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91_SB1682
LRB9113101SMdvA
1 AN ACT concerning sales and use taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. This Act may be cited as the Streamlined
5 Sales Tax System for the 21st Century Act.
6 Section 5. Legislative findings and intent; legislative
7 declaration. The General Assembly finds that:
8 (1) State and local tax systems should treat
9 transactions in a competitively neutral manner.
10 (2) A simplified sales and use tax system that treats
11 all transactions in a competitively neutral manner will
12 strengthen and preserve the sales and use tax as vital State
13 and local revenue sources and preserve State fiscal
14 sovereignty.
15 (3) Remote sellers should not receive preferential tax
16 treatment at the expense of local "main street" merchants,
17 nor should such vendors be burdened with special,
18 discriminatory, or multiple taxes.
19 (4) The State should simplify sales and use taxes to
20 reduce the administrative burden of collection.
21 (5) While states have the sovereign right to set their
22 own tax policies, states working together have the
23 opportunity to develop a more simple, uniform, and fair
24 system of state sales and use taxation without federal
25 government mandates or interference.
26 Section 10. Definitions. As used in this Act:
27 "Department" means the Department of Revenue.
28 "Sales tax" includes occupation taxes.
29 Section 15. Multi-state discussions. The Department
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1 shall enter into discussions with states regarding
2 development of a multi-state, voluntary, streamlined system
3 for sales and use tax collection and administration. These
4 discussions shall focus on a system that would have the
5 capability to determine whether the transaction is taxable or
6 tax exempt, the appropriate tax rate applied to the
7 transaction, and the total tax due on the transaction, and
8 shall provide a method for collecting and remitting sales
9 and use taxes to the State. The system may provide
10 compensation for costs of collecting and remitting sales and
11 use taxes. Discussions between the Department and other
12 states may include, but are not limited to:
13 (1) The development of a "Joint Request for
14 Information" from potential public and private parties
15 governing the specifications for the system.
16 (2) The mechanism for compensating parties for the
17 development and operation of the system.
18 (3) Establishment of minimum statutory
19 simplification measures necessary for State participation
20 in the system.
21 (4) Measures to preserve confidentiality of
22 taxpayer information and privacy rights of consumers.
23 Following these discussions, the Department may proceed to
24 issue a Joint Request for Information.
25 Section 20. Joint pilot project. The Department is
26 authorized to participate in a sales and use tax pilot
27 project with other states and selected businesses to test
28 means for simplifying sales and use tax administration and
29 may enter into joint agreements for that purpose.
30 (a) Agreements to participate in the test shall
31 establish provisions for the administration, imposition, and
32 collection of sales and use taxes resulting in revenues paid
33 that are the same as would be paid under the Use Tax Act, the
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1 Service Use Tax Act, the Service Occupation Tax Act, and the
2 Retailers' Occupation Tax Act.
3 (b) Parties to the agreements are excused from complying
4 with the provisions of the Use Tax Act, the Service Use Tax
5 Act, the Service Occupation Tax Act, and the Retailers'
6 Occupation Tax Act to the extent a different procedure is
7 required by the agreements, except for confidentiality of
8 taxpayer information as detailed in Section 25 of this Act.
9 (c) Agreements authorized under this Section shall
10 terminate no later than December 31, 2001.
11 Section 25. Confidentiality of taxpayer information.
12 Return information submitted to any party or parties acting
13 for and on behalf of the State shall be treated as
14 confidential taxpayer information. Disclosure of
15 confidential taxpayer information necessary under Sections 15
16 and 20 of this Act shall be pursuant to a written agreement
17 between the Department and the party or parties. The party
18 or parties shall be bound by the same requirements of
19 confidentiality as the Department with respect to individual
20 taxpayers as otherwise provided by law.
21 Section 30. Legislative oversight. There is hereby
22 created a Legislative Oversight Committee on Sales Taxes.
23 The Department shall provide testimony and information as
24 requested by the Committee. The Committee shall consist of 6
25 members, with 2 members appointed by the President of the
26 Senate, 1 member appointed by the Minority Leader of the
27 Senate, 2 members appointed by the Speaker of the House of
28 Representative, and 1 member appointed by the Minority Leader
29 of the House of Representatives.
30 Section 35. Final report. On or before March 1, 2001,
31 the Department shall report to the Governor, the Speaker of
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1 the House, the Minority Leader of the House, the President of
2 the Senate, the Minority Leader of the Senate, and the
3 Legislative Oversight Committee on Sales Taxes on the status
4 of multi-state discussions and, if a proposed system has been
5 agreed upon by participating states, shall also recommend
6 whether the State should participate in that system.
7 Section 40. Rules. The Department shall promulgate
8 rules and procedures reasonably necessary for the
9 administration of this Act.
10 Section 90. This Act is repealed on May 15, 2002.
11 Section 905. The Illinois Procurement Code is amended by
12 changing Section 1-10 as follows:
13 (30 ILCS 500/1-10)
14 Sec. 1-10. Application.
15 (a) This Code applies only to procurements for which
16 contractors were first solicited on or after July 1, 1998.
17 This Code shall not be construed to affect or impair any
18 contract, or any provision of a contract, entered into based
19 on a solicitation prior to the implementation date of this
20 Code as described in Article 99, including but not limited to
21 any covenant entered into with respect to any revenue bonds
22 or similar instruments. All procurements for which contracts
23 are solicited between the effective date of Articles 50 and
24 99 and July 1, 1998 shall be substantially in accordance with
25 this Code and its intent.
26 (b) This Code shall apply regardless of the source of
27 the funds with which the contracts are paid, including
28 federal assistance moneys. This Code shall not apply to:
29 (1) contracts between the State and its political
30 subdivisions or other governments, or between State
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1 governmental bodies except as specifically provided in
2 this Code.
3 (2) grants.
4 (3) purchase of care.
5 (4) hiring of an individual as employee and not as
6 an independent contractor, whether pursuant to an
7 employment code or policy or by contract directly with
8 that individual.
9 (5) collective bargaining contracts.
10 (6) purchase of real estate.
11 (7) contracts necessary to prepare for anticipated
12 litigation, enforcement actions, or investigations,
13 provided that the chief legal counsel to the Governor
14 shall give his or her prior approval when the procuring
15 agency is one subject to the jurisdiction of the
16 Governor, and provided that the chief legal counsel of
17 any other procuring entity subject to this Code shall
18 give his or her prior approval when the procuring entity
19 is not one subject to the jurisdiction of the Governor.
20 (8) contracts for services to Northern Illinois
21 University by a person, acting as an independent
22 contractor, who is qualified by education, experience,
23 and technical ability and is selected by negotiation for
24 the purpose of providing non-credit educational service
25 activities or products by means of specialized programs
26 offered by the university.
27 (9) until May 15, 2002, contracts entered into by
28 the Department of Revenue to implement the sales tax
29 pilot project under the Streamlined Sales Tax System for
30 the 21st Century Act.
31 (Source: P.A. 90-572, eff. date - See Sec. 99-5; 91-627, eff.
32 8-19-99.)
33 Section 99. Effective date. This Act takes effect upon
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1 becoming law.
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