House Sponsors: MOORE,ANDREA AND MCCARTHY. Senate Sponsors: PETERSON-WELCH Short description: SERVICE USE-STATING TAX-TECH Synopsis of Bill as introduced: Amends the Service Use Tax Act. Makes a technical change in the Section concerning the method of stating the tax. SENATE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 110/3a Adds reference to: 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5 35 ILCS 120/2-5 55 ILCS 5/5-1006 from Ch. 34, par. 5-1006 55 ILCS 5/5-1006.5 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 Deletes everything. Amends the Use Tax Act, the Retailers' Occupation Tax Act, the Counties Code, and the Illinois Municipal Code. Exempts qualified technological equipment as defined in the Internal Revenue Code, that was purchased by a lessor who has elected, as to all such equipment leased by the lessor, to pay retailers' occupation tax based on the lessor's gross receipts from the lease of the equipment in this State to a lessee for his or her use and not for the purpose of sublease. Provides that this exemption shall not be construed to create liability for the lessee, to create any right to a refund on tax previously paid by the lessor, or to exempt the lessor from paying the applicable tax. Provides that, for purposes of determining the local governmental unit whose tax is applicable, a retail sale by a lessor is a sale at retail at the place where leased tangible personal property is located. Exempts the deduction from the sunset provision of the Use Tax Act and the Retailers' Occupation Tax Act. Defines "lease". Provides that the amount of retailer's occupation tax imposed shall be reduced by an amount equal to the percentage limitation of the use tax exemption. States that subsequent sales or leases of property for which the election for the lessor to pay the tax was made shall not be exempt. Effective immediately. SENATE AMENDMENT NO. 2. Deletes reference to: 55 ILCS 5/5-1006 55 ILCS 5/5-1006.5 65 ILCS 5/8-11-1 65 ILCS 5/8-11-1.3 65 ILCS 5/8-11-1.6 Adds reference to: New Act 30 ILCS 115/1 from Ch. 85, par. 611 35 ILCS 105/9 from Ch. 120, par. 439.9 35 ILCS 105/9.5 new 35 ILCS 110/3-5 from Ch. 120, par. 439.33-5 35 ILCS 115/3-5 from Ch. 120, par. 439.103-5 35 ILCS 115/3-5 from Ch. 120, par. 439.103-5 35 ILCS 120/1c-5 new 35 ILCS 120/2-5 from Ch. 120, par. 441-5 35 ILCS 120/3 from Ch. 120, par. 442 35 ILCS 120/3.5 new Deletes everything. Creates the Qualified Technological Equipment Leasing Occupation and Use Tax Act. Imposes a tax on persons engaged in the State in the business of leasing qualified technological equipment in Illinois at the rate of 8.25% of the gross receipts received from the business. Imposes a tax upon the privilege of using in this State qualified technological equipment that is leased from a lessor at the rate of 8.25% of the leasing price of the equipment paid to the lessor under a lease agreement. Provides that each month the Department shall pay into the Local Government Distributive Fund 20% of the net revenue realized for the preceding month under this Act. Provides that the remaining 80% shall be distributed under the Use Tax Act and the Retailers' Occupation Tax Act. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to exempt from the taxes imposed under those Act qualified technological equipment sold to lessors for lease under leases subject to the Qualified Technological Equipment Leasing Occupation and Use Tax Act. Provides that the exemption is available for so long as the equipment is leased. Provides that the exemptions are not subject to the sunset provisions. Provides that the exemptions for computer equipment used in hospitals and certain property leased to a governmental body are exempt from the sunset provisions. In the Use Tax Act and the Retailers' Occupation Tax Act, provides that a purchaser of qualified technological equipment may obtain a refund of use and occupation taxes paid administered by the Department of Revenue if the purchaser sells the property to a rentor under a bona fide sale and leaseback transaction to such purchaser within 90 days of the first functional use of the property. Makes other changes. Effective January 1, 1999. SENATE AMENDMENT NO. 3. Includes limited liability companies within the definition of a "person". Makes technical corrections. Last action on Bill: SESSION SINE DIE Last action date: 99-01-12 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 3 END OF INQUIRY Full Text Bill Status