Synopsis As Introduced Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning February 1, 2006 and through April 30, 2006, with respect to propane and home heating oil, the tax under the Acts is imposed at the rate of 1.25% (eliminating the State's portion of the tax). Amends the State Finance Act to make corresponding changes concerning the distribution of the tax. Amends the Gas Revenue Tax Act. Suspends the tax on sale for the use or consumption of gas by residential customers for the period beginning February 1, 2006 through April 30, 2006. Effective immediately.
State Debt Impact Note (Commission on Gov. Forecasting & Accountability)
Would not change the amount of authorization for any state-issued or state-supported bond, and therefore would not affect the level of state indebtedness.
Fiscal Note (Illinois Department of Revenue)
Suspending the tax imposed under the Gas Revenue Tax Act for 3 months would cost approximately $40 million to $65 million in lost Gas Revenue Tax receipts. Removing the State portion of the sales tax on propane and home heating oil used for residential use would cost approximately $400,000 to $675,000 in lost sales tax receipts. Additionally, the Department of Revenue would incur approximately $100,000 in administrative expenses related to changes to computer systems, notification of retailers, and modification of returns.