Illinois General Assembly - Bill Status for HB1626
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 Bill Status of HB1626  93rd General Assembly

Short Description:  USE TAX-REMOTE SALES

House Sponsors
Rep. George Scully, Jr.

Last Action
DateChamber Action
  1/11/2005HouseSession Sine Die

Statutes Amended In Order of Appearance
35 ILCS 105/10from Ch. 120, par. 439.10
35 ILCS 110/10from Ch. 120, par. 439.40

Synopsis As Introduced
Amends the Use Tax Act and the Service Use Tax Act. Provides that Department of Revenue is authorized to contract with credit card issuers to collect the tax imposed by these Acts on Internet sales, phone order sales, and direct-mail sales. If a credit card issuer enters into such a contract with the Department, the issuer must state as a separate item on the monthly bill to customers the tax charged under these Acts. A credit card issuer is entitled to reduce the amount of the tax collected under these Acts that it remits to the Department by the amount of costs incurred by the company to collect the tax or 4% of the revenue generated from the sale on which the tax is collected, whichever is greater. Effective immediately.

 Fiscal Note (Department of Revenue)
 HB 1626 allows for the credit card company to keep 4% of the revenue generated by the sale or actual costs incurred to collect the tax (whichever is greater). In addition, there is no cap on the amount the credit card company may keep. This proposal could result in fiscal loss because the credit card companies' cost of collection allowance is significantly higher than the 1.75% amount currently allowed to in-state vendors. The credit card company could end up retaining more than half of the tax collected.

DateChamber Action
  2/10/2003HouseFiled with the Clerk by Rep. George Scully, Jr.
  2/10/2003HouseFirst Reading
  2/10/2003HouseReferred to Rules Committee
  2/11/2003HouseAssigned to Revenue Committee
  3/5/2003HouseFiscal Note Filed
  3/13/2003HouseRule 19(a) / Re-referred to Rules Committee
  12/22/2003HouseRule 19(b) / Re-referred to Rules Committee
  1/11/2005HouseSession Sine Die

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