Full Text of SB1434 100th General Assembly
SB1434ham001 100TH GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 5/23/2017
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| 1 | | AMENDMENT TO SENATE BILL 1434
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1434 by replacing | 3 | | line 8 on page 3 through line 3 on page 7 with the following:
| 4 | | "Section 10. Rental Purchase Agreement Occupation Tax. A | 5 | | tax is imposed upon persons engaged in this State in the | 6 | | business of renting merchandise under a rental-purchase | 7 | | agreement in Illinois at the rate of 6.25% of the gross | 8 | | receipts received from the business. Every person engaged in | 9 | | this State in the business of renting merchandise shall apply | 10 | | to the Department (upon a form prescribed and furnished by the | 11 | | Department) for a certificate of registration under this Act. | 12 | | The certificate of registration which is issued by the | 13 | | Department to a retailer under the Retailers' Occupation Tax | 14 | | Act shall permit the merchant to engage in a business that is | 15 | | taxable under this Section without registering separately with | 16 | | the Department. | 17 | | The Department shall have full power to administer and |
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| 1 | | enforce this Section, to collect all taxes and penalties due | 2 | | hereunder, to dispose of taxes and penalties so collected in | 3 | | the manner hereinafter provided, and to determine all rights to | 4 | | credit memoranda, arising on account of the erroneous payment | 5 | | of tax or penalty hereunder. In the administration of, and | 6 | | compliance with, this Section, the Department and persons who | 7 | | are subject to this Section shall have the same rights, | 8 | | remedies, privileges, immunities, powers and duties, and be | 9 | | subject to the same conditions, restrictions, limitations, | 10 | | penalties and definitions of terms, and employ the same modes | 11 | | of procedure, as are prescribed in Sections 1, 1a, 2, 2-10 | 12 | | through 2-65 (in respect to all provisions therein other than | 13 | | the State rate of tax), 2a, 2b, 2c, 3 (except provisions | 14 | | relating to transaction returns), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, | 15 | | 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of | 16 | | the Retailers' Occupation Tax Act and Section 3-7 of the | 17 | | Uniform Penalty and Interest Act as fully as if those | 18 | | provisions were set forth herein.
| 19 | | Section 15. Rental Purchase Agreement Use Tax. A tax is | 20 | | imposed upon the privilege of using, in this State, merchandise | 21 | | which is rented from a merchant. Such tax is at the rate of | 22 | | 6.25% of the rental price paid to the merchant under any rental | 23 | | purchase agreement. | 24 | | The tax hereby imposed shall be collected from the consumer | 25 | | by a merchant maintaining a place of business in this State and |
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| 1 | | remitted to the Department. | 2 | | The tax hereby imposed and not paid to a merchant pursuant | 3 | | to the preceding paragraph of this Section shall be paid to the | 4 | | Department directly by any person using such merchandise within | 5 | | this State. | 6 | | Merchants shall collect the tax from consumers by adding | 7 | | the tax to the rental price of the merchandise, when rented for | 8 | | use, in the manner prescribed by the Department. The Department | 9 | | shall have the power to adopt and promulgate reasonable rules | 10 | | and regulations for the adding of such tax by merchants to | 11 | | rental prices by prescribing bracket systems for the purpose of | 12 | | enabling such merchants to add and collect, as far as | 13 | | practicable, the amount of such tax. | 14 | | The tax imposed by this Section shall, when collected, be | 15 | | stated as a distinct item separate and apart from the rental | 16 | | price of the merchandise. | 17 | | The Department shall have full power to administer and | 18 | | enforce this Section; to collect all taxes, penalties and | 19 | | interest due hereunder; to dispose of taxes, penalties and | 20 | | interest so collected in the manner hereinafter provided, and | 21 | | to determine all rights to credit memoranda or refunds arising | 22 | | on account of the erroneous payment of tax, penalty or interest | 23 | | hereunder. In the administration of, and compliance with, this | 24 | | Section, the Department and persons who are subject to this | 25 | | Section shall have the same rights, remedies, privileges, | 26 | | immunities, powers, and duties, and be subject to the same |
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| 1 | | conditions, restrictions, limitations, penalties, and | 2 | | definitions of terms, and employ the same modes of procedure, | 3 | | as are prescribed in Sections 2, 3, 3-10 through 3-80, 4, 6, 7, | 4 | | 8, 9 (except provisions relating to transaction returns ), 10, | 5 | | 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use Tax | 6 | | Act, and are not inconsistent with this Section, as fully as if | 7 | | those provisions were set forth herein.
| 8 | | Section 20. Electronic filing and payment. Any return or | 9 | | document that is required to be filed under this Act shall be | 10 | | filed electronically, in the form and manner required by the | 11 | | Department. | 12 | | Any payment required to be made under this Act shall be | 13 | | paid electronically, in the form and manner required by the | 14 | | Department. | 15 | | The Department shall grant a waiver of the electronic | 16 | | filing or payment requirement under this Section for any | 17 | | taxpayer who petitions the Department and demonstrates undue | 18 | | hardship in complying with the electronic filing or payment | 19 | | requirement. The waiver shall be for a period not to exceed 2 | 20 | | years, but may be renewed an unlimited number of times for | 21 | | periods not to exceed 2 years each.
| 22 | | Section 25. Deposit of taxes. | 23 | | (a) Each month, from the net revenue realized for the | 24 | | preceding month, the Department shall pay an amount estimated |
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| 1 | | by the Department to be required for refunds of the tax under | 2 | | this Act, which shall be deposited into the Rental Purchase | 3 | | Agreement Tax Refund Fund. | 4 | | (b) Of the remainder of funds after the deposit under | 5 | | subsection (a) of this Section: | 6 | | (1) each month the Department shall pay into the State | 7 | | and Local Sales Tax Reform Fund 20% of the net revenue | 8 | | realized for the preceding month from the tax imposed under | 9 | | this Act; and | 10 | | (2) each month the Department shall pay into the | 11 | | General Revenue Fund 80% of the net revenue realized for | 12 | | the preceding month from the tax imposed under this Act.
| 13 | | Section 30. One-Time Transitional Use Tax Credit. Within 3 | 14 | | months after effective date of this Act, the merchant shall | 15 | | file an application (upon a form prescribed and furnished by | 16 | | the Department) to receive a one-time credit for the Use Tax | 17 | | paid on merchandise subject to tax under this Act purchased | 18 | | during the 6 months immediately prior to the effective date of | 19 | | this Act. The Department shall issue a credit equal to the | 20 | | total Use Tax paid in the 6 months immediately prior to the | 21 | | effective date of this Act. Upon the issuance of the credit, | 22 | | the merchant may apply the credit against the tax imposed under | 23 | | this Act. | 24 | | Section 35. Applicability. This Act does not apply to |
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| 1 | | tangible personal property which is required to be titled and | 2 | | registered by a State agency. | 3 | | Section 40. Rulemaking. The Department may make such rules | 4 | | as it may deem necessary to implement the purposes of this Act. | 5 | | Section 45. The State Finance Act is amended by adding | 6 | | Sections 5.878 and 6z-102 as follows: | 7 | | (30 ILCS 105/5.878 new) | 8 | | Sec. 5.878. The Rental Purchase Agreement Tax Refund Fund. | 9 | | (30 ILCS 105/6z-102 new) | 10 | | Sec. 6z-102. The Rental Purchase Agreement Tax Refund Fund. | 11 | | (a) The Rental Purchase Agreement Tax Refund Fund is hereby | 12 | | created as a special fund in the State Treasury. Moneys in the | 13 | | Fund shall be used by the Department of Revenue to pay refunds | 14 | | of Rental Purchase Agreement Tax in the manner provided in | 15 | | Section 6 of the Retailers' Occupation Tax Act and Section 19 | 16 | | of the Use Tax Act, as incorporated into Sections 10 and 15 of | 17 | | the Rental Purchase Agreement Tax Act. | 18 | | (b) Moneys in the Rental Purchase Agreement Tax Refund Fund | 19 | | shall be expended exclusively for the purpose of paying refunds | 20 | | pursuant to this Section. | 21 | | (c) The Director of Revenue shall order payment of refunds | 22 | | under this Section from the Rental Purchase Agreement Tax |
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| 1 | | Refund Fund only to the extent that amounts collected pursuant | 2 | | to Sections 10 and 15 of the Rental Purchase Agreement | 3 | | Occupation and Use Tax Act have been deposited and retained in | 4 | | the Fund. | 5 | | As soon as possible after the end of each fiscal year, the | 6 | | Director of Revenue shall order transferred, and the State | 7 | | Treasurer and State Comptroller shall transfer from the Rental | 8 | | Purchase Agreement Tax Refund Fund to the General Revenue Fund, | 9 | | any surplus remaining as of the end of such fiscal year. | 10 | | This Section shall constitute an irrevocable and continuing | 11 | | appropriation from the Rental Purchase Agreement Tax Refund | 12 | | Fund for the purpose of paying refunds in accordance with the | 13 | | provisions of this Section. ".
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