HB5542 96TH GENERAL ASSEMBLY

LRB096 16394 HLH 31659 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5542

Introduced 2/9/2010, by Rep. John D. Cavaletto

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3-13 new
35 ILCS 110/3-13 new
35 ILCS 115/3-13 new
35 ILCS 120/2-13 new

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that no tax is imposed under the Acts upon the use or purchase of energy-efficient products that qualify as "Energy Star" products under the federal Energy Star Program and that are purchased at a price of $1,500 or less during a tax holiday. Defines "tax-holiday" as the periods each year: (1) beginning at 12:01 a.m. on November 1st and continuing through 11:59 p.m. on November 7th; and (2) beginning at 12:01 a.m. on April 22nd and continuing through 11:59 p.m. on April 28th. Sets forth criteria for transactions to qualify for the exemption. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Use Tax Act is amended by adding Section 3-13 as follows:

(35 ILCS 105/3-13 new)

Sec. 3-13. Tax holiday for energy-efficient products.

(a) No tax is imposed under this Act upon the privilege of using, in this State, any energy-efficient product that is purchased at retail at a sales price of $1,500 or less if the product is purchased during a holiday period.

(b) For the purpose of this Section:

"Holiday period" means the periods each year:

(1) beginning at 12:01 a.m. on November 1st and continuing through 11:59 p.m. on November 7th; and

(2) beginning at 12:01 a.m. on April 22nd and continuing through 11:59 p.m. on April 28th.

"Energy-efficient product" means a dishwasher, clothes washer, air conditioner, ceiling fan, incandescent or fluorescent light bulb, dehumidifier, programmable thermostat, or refrigerator that qualifies as an "Energy Star" product under the Energy Star Program administered by the United States Environmental Protection Agency.

(c) For purpose of this Section, a "purchase" occurs during the tax holiday if the buyer places an order and pays the purchase price by cash or credit during the tax holiday period regardless of whether the delivery of the product occurs after the tax holiday period.

An energy-efficient product that is placed in a layaway or similar deferred plan during the holiday period is not eligible for the exemption unless the product is delivered to the purchaser during the holiday period. An energy-efficient product that was placed in a layaway or similar deferred plan before the holiday period and is then delivered to the purchaser during the holiday period is eligible for the exemption.

(d) Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer must be taken into account in determining the selling price of the product for the purposes of this holiday. If the price of a product is free or reduced with the purchase of another energy-efficient product, then the total price of the products may not be averaged in order for both products to qualify for the holiday.

The amount of any rebate may not be considered when determining the selling price of an energy-efficient product for the purposes of this holiday.

(e) Articles that are normally sold as a unit must continue to be sold in that manner; they may not be priced separately and sold as individual items in order to be subject to the holiday. Components that are normally priced as separate articles, however, may continue to be sold as separate articles.

(f) An energy-efficient product that a customer purchases during the holiday period with the use of a rain check qualifies for the holiday regardless of when the rain check was issued. The issuance of a rain check, however, during the holiday period does not qualify merchandise for the exemption if the product is actually purchased after the holiday period.

(g) If a customer purchases an energy-efficient product during the holiday period but later exchanges the product for a substantially similar product of a different size, different color, or other feature, then no additional tax is due even if the exchange is made after the holiday period.

If a customer purchases an energy-efficient product during the holiday period, but, after the holiday period has ended, the customer returns the product and receives credit on the purchase of a different product, then the newly purchased product is subject to the full tax rate.

If a customer purchases an energy-efficient product before the holiday period, but, during the holiday period, the customer returns the product and receives credit on the purchase of a different energy-efficient product, then the newly purchased product is subject to the exemption.

(h) Each unit of local government that imposes a use tax may, by resolution or ordinance, declare a tax holiday with respect to its use tax for the same items, during the same periods, and under the same conditions and is encouraged to do so.

Section 10. The Service Use Tax Act is amended by adding Section 3-13 as follows:

(35 ILCS 110/3-13 new)

Sec. 3-13. Tax holiday for energy-efficient products.

(a) No tax is imposed under this Act upon the privilege of using, in this State, any energy-efficient product that is purchased at retail at a sales price of $1,500 or less if the product is purchased during a holiday period.

(b) For the purpose of this Section:

"Holiday period" means the periods each year:

(1) beginning at 12:01 a.m. on November 1st and continuing through 11:59 p.m. on November 7th; and

(2) beginning at 12:01 a.m. on April 22nd and continuing through 11:59 p.m. on April 28th.

"Energy-efficient product" means a dishwasher, clothes washer, air conditioner, ceiling fan, incandescent or fluorescent light bulb, dehumidifier, programmable thermostat, or refrigerator that qualifies as an "Energy Star" product under the Energy Star Program administered by the United States Environmental Protection Agency.

(c) For purpose of this Section, a "purchase" occurs during the tax holiday if the buyer places an order and pays the purchase price by cash or credit during the tax holiday period regardless of whether the delivery of the product occurs after the tax holiday period.

An energy-efficient product that is placed in a layaway or similar deferred plan during the holiday period is not eligible for the exemption unless the product is delivered to the purchaser during the holiday period. An energy-efficient product that was placed in a layaway or similar deferred plan before the holiday period and is then delivered to the purchaser during the holiday period is eligible for the exemption.

(d) Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer must be taken into account in determining the selling price of the product for the purposes of this holiday. If the price of a product is free or reduced with the purchase of another energy-efficient product, then the total price of the products may not be averaged in order for both products to qualify for the holiday.

The amount of any rebate may not be considered when determining the selling price of an energy-efficient product for the purposes of this holiday.

(e) Articles that are normally sold as a unit must continue to be sold in that manner; they may not be priced separately and sold as individual items in order to be subject to the holiday. Components that are normally priced as separate articles, however, may continue to be sold as separate articles.

(f) An energy-efficient product that a customer purchases during the holiday period with the use of a rain check qualifies for the holiday regardless of when the rain check was issued. The issuance of a rain check, however, during the holiday period does not qualify merchandise for the exemption if the product is actually purchased after the holiday period.

(g) If a customer purchases an energy-efficient product during the holiday period but later exchanges the product for a substantially similar product of a different size, different color, or other feature, then no additional tax is due even if the exchange is made after the holiday period.

If a customer purchases an energy-efficient product during the holiday period, but, after the holiday period has ended, the customer returns the product and receives credit on the purchase of a different product, then the newly purchased product is subject to the full tax rate.

If a customer purchases an energy-efficient product before the holiday period, but, during the holiday period, the customer returns the product and receives credit on the purchase of a different energy-efficient product, then the newly purchased product is subject to the exemption.

(h) Each unit of local government that imposes a service use tax may, by resolution or ordinance, declare a tax holiday with respect to its use tax for the same items, during the same periods, and under the same conditions and is encouraged to do so.

Section 15. The Service Occupation Tax Act is amended by adding Section 3-13 as follows:

(35 ILCS 115/3-13 new)

Sec. 3-13. Tax holiday for energy-efficient products.

(a) No tax is imposed under this Act upon persons engaged in the business of selling, at retail, any energy-efficient product if the product is purchased at a sales price of $1,500 or less during a tax-holiday period.

(b) For the purpose of this Section:

"Tax-holiday period" means the periods each year:

(1) beginning at 12:01 a.m. on November 1st and continuing through 11:59 p.m. on November 7th; and

(2) beginning at 12:01 a.m. on April 22nd and continuing through 11:59 p.m. on April 28th.

"Energy-efficient product" means a dishwasher, clothes washer, air conditioner, ceiling fan, incandescent or fluorescent light bulb, dehumidifier, programmable thermostat, or refrigerator that qualifies as an "Energy Star" product under the Energy Star Program administered by the United States Environmental Protection Agency.

(c) For purpose of this Section, a "purchase" occurs during the tax holiday if the buyer places an order and pays the purchase price by cash or credit during the tax holiday period regardless of whether the delivery of the product occurs after the tax holiday period.

An energy-efficient product that is placed in a layaway or similar deferred plan during the holiday period is not eligible for the exemption unless the product is delivered to the purchaser during the holiday period. An energy-efficient product that was placed in a layaway or similar deferred plan before the holiday period and is then delivered to the purchaser during the holiday period is eligible for the exemption.

(d) Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer must be taken into account in determining the selling price of the product for the purposes of this holiday. If the price of a product is free or reduced with the purchase of another energy-efficient product, then the total price of the products may not be averaged in order for both products to qualify for the holiday.

The amount of any rebate may not be considered when determining the selling price of an energy-efficient product for the purposes of this holiday.

(e) Articles that are normally sold as a unit must continue to be sold in that manner; they may not be priced separately and sold as individual items in order to be subject to the holiday. Components that are normally priced as separate articles, however, may continue to be sold as separate articles.

(f) An energy-efficient product that a customer purchases during the holiday period with the use of a rain check qualifies for the holiday regardless of when the rain check was issued. The issuance of a rain check, however, during the holiday period does not qualify merchandise for the exemption if the product is actually purchased after the holiday period.

(g) If a customer purchases an energy-efficient product during the holiday period but later exchanges the product for a substantially similar product of a different size, different color, or other feature, then no additional tax is due even if the exchange is made after the holiday period.

If a customer purchases an energy-efficient product during the holiday period, but, after the holiday period has ended, the customer returns the product and receives credit on the purchase of a different product, then the newly purchased product is subject to the full tax rate.

If a customer purchases an energy-efficient product before the holiday period, but, during the holiday period, the customer returns the product and receives credit on the purchase of a different energy-efficient product, then the newly purchased product is subject to the exemption.

(h) Each unit of local government that imposes a service occupation tax may, by resolution or ordinance, declare a tax holiday with respect to its occupation tax for the same items, during the same periods, and under the same conditions and is encouraged to do so.

Section 20. The Retailers' Occupation Tax Act is amended by adding Section 2-13 as follows:

(35 ILCS 120/2-13 new)

Sec. 2-13. Tax holiday for energy-efficient products.

(a) No tax is imposed under this Act upon persons engaged in the business of selling, at retail, any energy-efficient product if the product is purchased at a sales price of $1,500 or less during a tax-holiday period.

(b) For the purpose of this Section:

"Tax-holiday period" means the periods each year:

(1) beginning at 12:01 a.m. on November 1st and continuing through 11:59 p.m. on November 7th; and

(2) beginning at 12:01 a.m. on April 22nd and continuing through 11:59 p.m. on April 28th.

"Energy-efficient product" means a dishwasher, clothes washer, air conditioner, ceiling fan, incandescent or fluorescent light bulb, dehumidifier, programmable thermostat, or refrigerator that qualifies as an "Energy Star" product under the Energy Star Program administered by the United States Environmental Protection Agency.

(c) For purpose of this Section, a "purchase" occurs during the tax holiday if the buyer places an order and pays the purchase price by cash or credit during the tax holiday period regardless of whether the delivery of the product occurs after the tax holiday period.

An energy-efficient product that is placed in a layaway or similar deferred plan during the holiday period is not eligible for the exemption unless the product is delivered to the purchaser during the holiday period. An energy-efficient product that was placed in a layaway or similar deferred plan before the holiday period and is then delivered to the purchaser during the holiday period is eligible for the exemption.

(d) Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer must be taken into account in determining the selling price of the product for the purposes of this holiday. If the price of a product is free or reduced with the purchase of another energy-efficient product, then the total price of the products may not be averaged in order for both products to qualify for the holiday.

The amount of any rebate may not be considered when determining the selling price of an energy-efficient product for the purposes of this holiday.

(e) Articles that are normally sold as a unit must continue to be sold in that manner; they may not be priced separately and sold as individual items in order to be subject to the holiday. Components that are normally priced as separate articles, however, may continue to be sold as separate articles.

(f) An energy-efficient product that a customer purchases during the holiday period with the use of a rain check qualifies for the holiday regardless of when the rain check was issued. The issuance of a rain check, however, during the holiday period does not qualify merchandise for the exemption if the product is actually purchased after the holiday period.

(g) If a customer purchases an energy-efficient product during the holiday period but later exchanges the product for a substantially similar product of a different size, different color, or other feature, then no additional tax is due even if the exchange is made after the holiday period.

If a customer purchases an energy-efficient product during the holiday period, but, after the holiday period has ended, the customer returns the product and receives credit on the purchase of a different product, then the newly purchased product is subject to the full tax rate.

If a customer purchases an energy-efficient product before the holiday period, but, during the holiday period, the customer returns the product and receives credit on the purchase of a different energy-efficient product, then the newly purchased product is subject to the exemption.

(h) Each unit of local government that imposes a retailers' occupation tax may, by resolution or ordinance, declare a tax holiday with respect to its occupation tax for the same items, during the same periods, and under the same conditions and is encouraged to do so.

Section 99. Effective date. This Act takes effect upon becoming law.