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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by adding Section 3b | ||||||||||||||||||||||||||
5 | as follows:
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6 | (35 ILCS 105/3b new) | ||||||||||||||||||||||||||
7 | Sec. 3b. Back-To-School Tax Holiday. | ||||||||||||||||||||||||||
8 | (a) No tax is imposed under this Act upon the privilege of | ||||||||||||||||||||||||||
9 | using, in this State, qualified merchandise that is purchased | ||||||||||||||||||||||||||
10 | at retail from a retailer if the qualified merchandise is | ||||||||||||||||||||||||||
11 | purchased during the holiday period. | ||||||||||||||||||||||||||
12 | (b) For the purpose of this Section: | ||||||||||||||||||||||||||
13 | "Holiday period" means the period from 12:01 a.m. on the | ||||||||||||||||||||||||||
14 | first Friday in August through
midnight of the Sunday that | ||||||||||||||||||||||||||
15 | follows 9 days later. | ||||||||||||||||||||||||||
16 | "Qualified merchandise" means: | ||||||||||||||||||||||||||
17 | (1) an article of clothing or footwear that is | ||||||||||||||||||||||||||
18 | purchased for a selling price of $200 or less; and | ||||||||||||||||||||||||||
19 | (2) a computer that is purchased for a selling price of | ||||||||||||||||||||||||||
20 | $3,000 or less. | ||||||||||||||||||||||||||
21 | "Clothing or footwear" means an article of apparel designed | ||||||||||||||||||||||||||
22 | to be worn about the human body. The term does not include | ||||||||||||||||||||||||||
23 | accessories such as jewelry, handbags, purses, briefcases, |
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1 | luggage, wallets, watches, and similar items that are carried | ||||||
2 | on or about the human body, without regard to whether the item | ||||||
3 | is worn on the body in a manner that is characteristic of | ||||||
4 | clothing. | ||||||
5 | "Computer" means a central processing unit for personal use | ||||||
6 | plus any peripheral sold with it and any computer software | ||||||
7 | installed in it at the time of purchase. The term "computer" | ||||||
8 | includes desktop computers, laptop computers, hand-held | ||||||
9 | computers, and personal digital assistants. The term | ||||||
10 | "computer" does not include any device designed primarily for | ||||||
11 | video game applications. The term "peripheral" includes any | ||||||
12 | monitor, keyboard, printer, scanner, web/PC camera, | ||||||
13 | microphone, external drive, network card, internal drive, and | ||||||
14 | additional storage. | ||||||
15 | (c) For purpose of this Section, a "purchase" occurs
during | ||||||
16 | the tax holiday if the buyer places an order and pays
the | ||||||
17 | purchase price by cash or credit during the tax holiday
period | ||||||
18 | regardless of whether the delivery of the item occurs
after the | ||||||
19 | tax holiday period. | ||||||
20 | An item of qualified merchandise that is placed in a | ||||||
21 | layaway or similar deferred plan during the holiday period is | ||||||
22 | not eligible for the exemption unless the item is delivered to | ||||||
23 | the purchaser during the period. An item that was placed in a | ||||||
24 | layaway or similar deferred plan before the holiday period and | ||||||
25 | is then delivered to the purchaser during the holiday period is | ||||||
26 | eligible for the exemption. |
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1 | (d) Any discount,
coupon, or other credit offered either by | ||||||
2 | the retailer or by a
vendor of the retailer to reduce the final | ||||||
3 | price to the
customer must be taken into account in determining | ||||||
4 | the selling
price of the item for the purposes of this holiday. | ||||||
5 | If the price of an item is free or reduced with the purchase of | ||||||
6 | another item, then the total price of the items may not be | ||||||
7 | averaged in order for both items to qualify for the holiday. | ||||||
8 | The amount of any rebate may not be considered when | ||||||
9 | determining the selling price of the item for the purposes of | ||||||
10 | this holiday.
| ||||||
11 | (e) Articles that are normally sold as a unit must continue
| ||||||
12 | to be sold in that manner; they may not be priced separately | ||||||
13 | and
sold as individual items in order to be subject to the | ||||||
14 | holiday.
For example, if a pair of shoes sells for $220, the | ||||||
15 | pair cannot
be split in order to sell each shoe for $110 to | ||||||
16 | qualify for the
holiday. If a uniform is normally priced at | ||||||
17 | $250 on a single price
tag, the uniform cannot be split into | ||||||
18 | separate articles so that
any of the components may be sold for | ||||||
19 | less than $200 in order
to qualify for the holiday. Components | ||||||
20 | that are
normally priced as separate articles, however, may | ||||||
21 | continue to be sold as
separate articles. | ||||||
22 | (f) Qualified merchandise that customers purchase during | ||||||
23 | the holiday period with the use of a rain check qualify for the | ||||||
24 | holiday regardless of when the rain check was issued. The | ||||||
25 | issuance of a rain check, however, during the holiday period | ||||||
26 | does not qualify merchandise for the exemption if the |
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1 | merchandise is actually purchased after the holiday period. | ||||||
2 | (g) If a customer purchases an item of qualified | ||||||
3 | merchandise during the holiday period but later exchanges the | ||||||
4 | item for a substantially similar item of a different size, | ||||||
5 | different color, or other feature, then no additional tax is | ||||||
6 | due even if the exchange is made after the holiday period. | ||||||
7 | If a customer purchases an item of qualified merchandise | ||||||
8 | during the holiday period, but after the holiday period has | ||||||
9 | ended, the customer returns the item and receives credit on the | ||||||
10 | purchase of a different item, then the newly purchased item is | ||||||
11 | subject to the full tax rate. | ||||||
12 | If a customer purchases an item of qualified merchandise | ||||||
13 | before the holiday period, but during the holiday period, the | ||||||
14 | customer returns the item and receives credit on the purchase | ||||||
15 | of a different item of qualified merchandise, then the newly | ||||||
16 | purchased item is subject to the exemption.
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17 | (h) Each unit of local government that imposes a use tax
| ||||||
18 | may, by resolution or ordinance, declare a tax holiday with
| ||||||
19 | respect to its use tax for the same items, during the same
| ||||||
20 | periods, and under the same conditions and is encouraged to do
| ||||||
21 | so. | ||||||
22 | Section 10. The Retailers' Occupation Tax Act is amended by | ||||||
23 | adding Section 2-75 as follows: | ||||||
24 | (35 ILCS 120/2-75 new) |
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1 | Sec. 2-75. Back-To-School Tax Holiday. | ||||||
2 | (a) No tax is imposed under this Act upon persons engaged | ||||||
3 | in the business of selling, at retail, qualified merchandise if | ||||||
4 | the qualified merchandise is purchased during the holiday | ||||||
5 | period. | ||||||
6 | (b) For the purpose of this Section: | ||||||
7 | "Holiday period" means the period from 12:01 a.m. on the | ||||||
8 | first Friday in August through
midnight of the Sunday that | ||||||
9 | follows 9 days later. | ||||||
10 | "Qualified merchandise" means: | ||||||
11 | (1) an article of clothing or footwear that is | ||||||
12 | purchased for a selling price of $200 or less; and | ||||||
13 | (2) a computer that is purchased for a selling price of | ||||||
14 | $3,000 or less. | ||||||
15 | "Clothing or footwear" means an article of apparel designed | ||||||
16 | to be worn about the human body. The term does not include | ||||||
17 | accessories such as jewelry, handbags, purses, briefcases, | ||||||
18 | luggage, wallets, watches, and similar items that are carried | ||||||
19 | on or about the human body, without regard to whether the item | ||||||
20 | is worn on the body in a manner that is characteristic of | ||||||
21 | clothing. | ||||||
22 | "Computer" means a central processing unit for personal use | ||||||
23 | plus any peripheral sold with it and any computer software | ||||||
24 | installed in it at the time of purchase. The term "computer" | ||||||
25 | includes desktop computers, laptop computers, hand-held | ||||||
26 | computers, and personal digital assistants. The term |
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| |||||||
1 | "computer" does not include any device designed primarily for | ||||||
2 | video game applications. The term "peripheral" includes any | ||||||
3 | monitor, keyboard, printer, scanner, web/PC camera, | ||||||
4 | microphone, external drive, network card, internal drive, and | ||||||
5 | additional storage. | ||||||
6 | (c) For purpose of this Section, a "purchase" occurs
during | ||||||
7 | the tax holiday if the buyer places an order and pays
the | ||||||
8 | purchase price by cash or credit during the tax holiday
period | ||||||
9 | regardless of whether the delivery of the item occurs
after the | ||||||
10 | tax holiday period. | ||||||
11 | An item of qualified merchandise that is placed in a | ||||||
12 | layaway or similar deferred plan during the holiday period is | ||||||
13 | not eligible for the exemption unless the item is delivered to | ||||||
14 | the purchaser during the period. An item that was placed in a | ||||||
15 | layaway or similar deferred plan before the holiday period and | ||||||
16 | is then delivered to the purchaser during the holiday period is | ||||||
17 | eligible for the exemption. | ||||||
18 | (d) Any discount,
coupon, or other credit offered either by | ||||||
19 | the retailer or by a
vendor of the retailer to reduce the final | ||||||
20 | price to the
customer must be taken into account in determining | ||||||
21 | the selling
price of the item for the purposes of this holiday. | ||||||
22 | If the price of an item is free or reduced with the purchase of | ||||||
23 | another item, then the total price of the items may not be | ||||||
24 | averaged in order for both items to qualify for the holiday. | ||||||
25 | The amount of any rebate may not be considered when | ||||||
26 | determining the selling price of the item for the purposes of |
| |||||||
| |||||||
1 | this holiday.
| ||||||
2 | (e) Articles that are normally sold as a unit must continue
| ||||||
3 | to be sold in that manner; they may not be priced separately | ||||||
4 | and
sold as individual items in order to be subject to the | ||||||
5 | holiday.
For example, if a pair of shoes sells for $220, the | ||||||
6 | pair cannot
be split in order to sell each shoe for $110 to | ||||||
7 | qualify for the
holiday. If a uniform is normally priced at | ||||||
8 | $250 on a single price
tag, the uniform cannot be split into | ||||||
9 | separate articles so that
any of the components may be sold for | ||||||
10 | less than $200 in order
to qualify for the holiday. Components | ||||||
11 | that are
normally priced as separate articles, however, may | ||||||
12 | continue to be sold as
separate articles. | ||||||
13 | (f) Qualified merchandise that customers purchase during | ||||||
14 | the holiday period with the use of a rain check qualify for the | ||||||
15 | holiday regardless of when the rain check was issued. The | ||||||
16 | issuance of a rain check, however, during the holiday period | ||||||
17 | does not qualify merchandise for the exemption if the | ||||||
18 | merchandise is actually purchased after the holiday period. | ||||||
19 | (g) If a customer purchases an item of qualified | ||||||
20 | merchandise during the holiday period but later exchanges the | ||||||
21 | item for a substantially similar item of a different size, | ||||||
22 | different color, or other feature, then no additional tax is | ||||||
23 | due even if the exchange is made after the holiday period. | ||||||
24 | If a customer purchases an item of qualified merchandise | ||||||
25 | during the holiday period, but after the holiday period has | ||||||
26 | ended, the customer returns the item and receives credit on the |
| |||||||
| |||||||
1 | purchase of a different item, then the newly purchased item is | ||||||
2 | subject to the full tax rate. | ||||||
3 | If a customer purchases an item of qualified merchandise | ||||||
4 | before the holiday period, but during the holiday period, the | ||||||
5 | customer returns the item and receives credit on the purchase | ||||||
6 | of a different item of qualified merchandise, then the newly | ||||||
7 | purchased item is subject to the exemption.
| ||||||
8 | (h) Each unit of local government that imposes a retailers' | ||||||
9 | occupation tax
may, by resolution or ordinance, declare a tax | ||||||
10 | holiday with
respect to its use tax for the same items, during | ||||||
11 | the same
periods, and under the same conditions and is | ||||||
12 | encouraged to do
so.
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13 | Section 99. Effective date. This Act takes effect upon | ||||||
14 | becoming law.
|