Full Text of HB0451 096th General Assembly
HB0451 96TH GENERAL ASSEMBLY
|
|
|
96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB0451
Introduced 2/4/2009, by Rep. LaShawn K. Ford SYNOPSIS AS INTRODUCED: |
|
35 ILCS 105/3-1 new |
|
35 ILCS 120/2-1 new |
|
|
Amends the Use Tax Act and the Retailers' Occupation Tax Act. Imposes an additional tax of 5% on the following luxury items: (1) a passenger motor vehicle to the extent that the selling price exceeds $60,000; (2) a vessel (watercraft) to the extent that the selling price exceeds $200,000; (3) an aircraft to the extent that the selling price exceeds $500,000; and (4) jewelry or fur clothing and footwear to the extent that the selling price per item of jewelry or fur clothing and footwear exceeds $20,000. Provides for administration and collection of the tax. Provides for all amounts collected to be deposited into the General Revenue Fund. Contains other provisions. Effective July 1, 2009.
|
| |
|
|
| FISCAL NOTE ACT MAY APPLY | |
|
|
A BILL FOR
|
|
|
|
|
HB0451 |
|
LRB096 05795 RCE 15871 b |
|
| 1 |
| AN ACT concerning revenue.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Use Tax Act is amended by adding Section 3-1 | 5 |
| as follows: | 6 |
| (35 ILCS 105/3-1 new) | 7 |
| Sec. 3-1. Tax surcharge on certain luxury property. | 8 |
| (a) Definitions. For purposes of the tax imposed by this | 9 |
| Section, the following terms mean: | 10 |
| (1) Passenger motor vehicle. A motor vehicle of the | 11 |
| first division as defined in Section 1-46 of the Illinois | 12 |
| Vehicle Code, but not including a vehicle purchased for use | 13 |
| exclusively in the active conduct of a trade or business of | 14 |
| transporting persons or property for compensation or hire, | 15 |
| a vehicle purchased for use exclusively in providing | 16 |
| emergency medical services, or a demonstrator vehicle. | 17 |
| (2) Vessel. A vessel or watercraft, as defined in | 18 |
| Section 1-2 of the Boat Registration and Safety Act, but | 19 |
| not including a vessel purchased for use exclusively in the | 20 |
| active conduct of a trade or business of transporting | 21 |
| persons or property for compensation or hire, a vessel | 22 |
| purchased for use exclusively in providing emergency | 23 |
| medical services, or a demonstrator vessel. |
|
|
|
HB0451 |
- 2 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| (3) Aircraft. Any aircraft that is propelled by a motor | 2 |
| or engine and is capable of carrying one or more | 3 |
| individuals, but not including aircraft purchased for use | 4 |
| exclusively in the active conduct of a trade or business of | 5 |
| transporting persons or property for compensation or hire, | 6 |
| an aircraft purchased for use exclusively in providing | 7 |
| emergency medical services, or a demonstrator aircraft. | 8 |
| (4) Jewelry. All articles commonly or commercially | 9 |
| known as jewelry, whether real or imitation, including but | 10 |
| not limited to rings, earrings, necklaces, bracelets, and | 11 |
| watches, and also including loose pearls and precious and | 12 |
| semi-precious stones. | 13 |
| (5) Fur clothing and footwear. Clothing and footwear | 14 |
| made, in whole or in part, of any animal skin or part | 15 |
| thereof with hair, fleece, or fur fibers attached thereto, | 16 |
| in either its raw or processed state, but not including | 17 |
| skins that are converted into leather or that in processing | 18 |
| have had the hair, fleece, or fur fiber completely removed. | 19 |
| (b) Imposition of additional tax. Notwithstanding any | 20 |
| other provision of this Act or any other law to the contrary, | 21 |
| in addition to all other taxes, a tax is imposed at the rate of | 22 |
| 5% upon the privilege of using in this State the following | 23 |
| tangible personal property purchased at retail from a retailer: | 24 |
| (1) a passenger motor vehicle to the extent that the | 25 |
| selling price exceeds $60,000; | 26 |
| (2) a vessel to the extent that the selling price |
|
|
|
HB0451 |
- 3 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| exceeds $200,000; | 2 |
| (3) an aircraft to the extent that the selling price | 3 |
| exceeds $500,000; and | 4 |
| (4) jewelry or fur clothing and footwear to the extent | 5 |
| that the selling price per item of jewelry or fur clothing | 6 |
| and footwear exceeds $20,000; an item that is ordinarily | 7 |
| sold as a pair, such as earrings or gloves, are considered | 8 |
| to be one item for purposes of this Section. | 9 |
| (c) Special rules. Notwithstanding any other provision of | 10 |
| this Act or any other law to the contrary, for purposes of this | 11 |
| Section: | 12 |
| (1) Selling price has the same definition as set forth | 13 |
| in Section 2, except that the value of or credit given for | 14 |
| traded-in tangible personal property shall be included | 15 |
| instead of deducted. Selling price also includes the price | 16 |
| of any property installed on a passenger motor vehicle, | 17 |
| vessel, or aircraft by the vendor of that vehicle, vessel, | 18 |
| or aircraft within 6 months of the sale of the vehicle, | 19 |
| vessel, or aircraft, plus any charge for installing that | 20 |
| property, but does not include the selling price of any | 21 |
| property installed on a passenger motor vehicle to make it | 22 |
| adaptable for use by a person with a disability or to | 23 |
| replace damaged, defective, or malfunctioning property, or | 24 |
| any charge for installing that property. | 25 |
| (2) With respect to any lease of a passenger motor | 26 |
| vehicle, vessel, or aircraft for a term of one year or |
|
|
|
HB0451 |
- 4 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| more, selling price means the manufacturer's suggested | 2 |
| retail price for that vehicle, vessel, or aircraft, without | 3 |
| any deduction for the value of or credit given for | 4 |
| traded-in tangible personal property. The tax due under | 5 |
| this Section must be collected at the time the first | 6 |
| payment is made under the lease, option to renew, or | 7 |
| similar provision or combination of them, or as of the date | 8 |
| of registration under Illinois law, whichever is earlier. | 9 |
| (d) Incorporation of other provisions of this Act. Except | 10 |
| as otherwise provided in this Section, the taxes imposed by | 11 |
| this Section shall be identical to, and administered and | 12 |
| collected in a like manner as, the other taxes imposed under | 13 |
| this Act. All the provisions of this Act, including the | 14 |
| definition and exemption provisions and the provisions | 15 |
| relating or applicable to the administration and collection of | 16 |
| the other taxes imposed by this Act shall apply to the tax | 17 |
| imposed by this Section so far as those provisions can be made | 18 |
| applicable to the tax imposed by this Section, with such | 19 |
| modifications as may be necessary in order to adapt the | 20 |
| language of those provisions to the tax imposed by this | 21 |
| Section. Those provisions shall apply with the same force and | 22 |
| effect as if the language of those provisions had been set | 23 |
| forth in full in this Section, except to the extent that any of | 24 |
| those provisions are either inconsistent with a provision of | 25 |
| this Section or are not relevant to the tax imposed by this | 26 |
| Section. For purposes of this Section, any reference to |
|
|
|
HB0451 |
- 5 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| "selling price" means "selling price" as defined by this | 2 |
| Section and any reference in this Act to a tax or the taxes | 3 |
| otherwise imposed by this Act shall be deemed also to refer to | 4 |
| the tax imposed by this Section unless a different meaning is | 5 |
| clearly required. | 6 |
| (e) Separate statement of tax. Every person required to | 7 |
| collect the tax imposed by this Section shall state, charge, | 8 |
| and show that tax separately from the price or charge, and also | 9 |
| separately from any other tax imposed by this Act or other law, | 10 |
| on any sales slip, invoice, receipt, or other statement or | 11 |
| memorandum of the price or charge, paid or payable, given to | 12 |
| the customer. | 13 |
| (f) No discounts or credits for collection or remittance. | 14 |
| The taxes imposed by, and collected or paid over under, this | 15 |
| Section shall not be included or considered in computing any | 16 |
| discount or credit for the collection or remittance of those | 17 |
| taxes, including any discount under Section 9. | 18 |
| (g) Taxes are in addition to any other. The taxes imposed | 19 |
| by this Section are in addition to any other tax imposed or | 20 |
| authorized to be imposed by this Act or other law. | 21 |
| (h) Deposit into GRF. Notwithstanding any other provision | 22 |
| of this Act or any other law to the contrary, all amounts | 23 |
| collected under this Section shall be deposited into the | 24 |
| General Revenue Fund. | 25 |
| Section 10. The Retailers' Occupation Tax Act is amended by |
|
|
|
HB0451 |
- 6 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| adding Section 2-1 as follows: | 2 |
| (35 ILCS 120/2-1 new) | 3 |
| Sec. 2-1. Tax surcharge on certain luxury property. | 4 |
| (a) Definitions. For purposes of the tax imposed by this | 5 |
| Section, the following terms mean: | 6 |
| (1) Passenger motor vehicle. A motor vehicle of the | 7 |
| first division as defined in Section 1-46 of the Illinois | 8 |
| Vehicle Code, but not including a vehicle purchased for use | 9 |
| exclusively in the active conduct of a trade or business of | 10 |
| transporting persons or property for compensation or hire, | 11 |
| a vehicle purchased for use exclusively in providing | 12 |
| emergency medical services, or a demonstrator vehicle. | 13 |
| (2) Vessel. A vessel or watercraft, as defined in | 14 |
| Section 1-2 of the Boat Registration and Safety Act, but | 15 |
| not including a vessel purchased for use exclusively in the | 16 |
| active conduct of a trade or business of transporting | 17 |
| persons or property for compensation or hire, a vessel | 18 |
| purchased for use exclusively in providing emergency | 19 |
| medical services, or a demonstrator vessel. | 20 |
| (3) Aircraft. Any aircraft that is propelled by a motor | 21 |
| or engine and is capable of carrying one or more | 22 |
| individuals, but not including aircraft purchased for use | 23 |
| exclusively in the active conduct of a trade or business of | 24 |
| transporting persons or property for compensation or hire, | 25 |
| an aircraft purchased for use exclusively in providing |
|
|
|
HB0451 |
- 7 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| emergency medical services, or a demonstrator aircraft. | 2 |
| (4) Jewelry. All articles commonly or commercially | 3 |
| known as jewelry, whether real or imitation, including but | 4 |
| not limited to rings, earrings, necklaces, bracelets, and | 5 |
| watches, and also including loose pearls and precious and | 6 |
| semi-precious stones. | 7 |
| (5) Fur clothing and footwear. Clothing and footwear | 8 |
| made, in whole or in part, of any animal skin or part | 9 |
| thereof with hair, fleece, or fur fibers attached thereto, | 10 |
| in either its raw or processed state, but not including | 11 |
| skins that are converted into leather or that in processing | 12 |
| have had the hair, fleece, or fur fiber completely removed. | 13 |
| (b) Imposition of additional tax. Notwithstanding any | 14 |
| other provision of this Act or any other law to the contrary, | 15 |
| in addition to all other taxes, a tax is imposed upon persons | 16 |
| engaged in the business of selling the following tangible | 17 |
| personal property in the course of business at the rate of 5% | 18 |
| of the gross receipts from sales: | 19 |
| (1) a passenger motor vehicle to the extent that the | 20 |
| selling price exceeds $60,000; | 21 |
| (2) a vessel to the extent that the selling price | 22 |
| exceeds $200,000; | 23 |
| (3) an aircraft to the extent that the selling price | 24 |
| exceeds $500,000; and | 25 |
| (4) jewelry or fur clothing and footwear to the extent | 26 |
| that the selling price per item of jewelry or fur clothing |
|
|
|
HB0451 |
- 8 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| and footwear exceeds $20,000; an item that is ordinarily | 2 |
| sold as a pair, such as earrings or gloves, are considered | 3 |
| to be one item for purposes of this Section. | 4 |
| (c) Special rules. Notwithstanding any other provision of | 5 |
| this Act or any other law to the contrary, for purposes of this | 6 |
| Section: | 7 |
| (1) Selling price has the same definition as set forth | 8 |
| in Section 1, except that the value of or credit given for | 9 |
| traded-in tangible personal property shall be included | 10 |
| instead of deducted. Selling price also includes the price | 11 |
| of any property installed on a passenger motor vehicle, | 12 |
| vessel, or aircraft by the vendor of that vehicle, vessel, | 13 |
| or aircraft within 6 months of the sale of the vehicle, | 14 |
| vessel, or aircraft, plus any charge for installing that | 15 |
| property, but does not include the selling price of any | 16 |
| property installed on a passenger motor vehicle to make it | 17 |
| adaptable for use by a person with a disability or to | 18 |
| replace damaged, defective, or malfunctioning property, or | 19 |
| any charge for installing that property. | 20 |
| (2) With respect to any lease of a passenger motor | 21 |
| vehicle, vessel, or aircraft for a term of one year or | 22 |
| more, selling price means the manufacturer's suggested | 23 |
| retail price for that vehicle, vessel, or aircraft, without | 24 |
| any deduction for the value of or credit given for | 25 |
| traded-in tangible personal property. The tax due under | 26 |
| this Section must be collected at the time the first |
|
|
|
HB0451 |
- 9 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| payment is made under the lease, option to renew, or | 2 |
| similar provision or combination of them, or as of the date | 3 |
| of registration under Illinois law, whichever is earlier. | 4 |
| (d) Incorporation of other provisions of this Act. Except | 5 |
| as otherwise provided in this Section, the taxes imposed by | 6 |
| this Section shall be identical to, and administered and | 7 |
| collected in a like manner as, the other taxes imposed under | 8 |
| this Act. All the provisions of this Act, including the | 9 |
| definition and exemption provisions and the provisions | 10 |
| relating or applicable to the administration and collection of | 11 |
| the other taxes imposed by this Act shall apply to the tax | 12 |
| imposed by this Section so far as those provisions can be made | 13 |
| applicable to the tax imposed by this Section, with such | 14 |
| modifications as may be necessary in order to adapt the | 15 |
| language of those provisions to the tax imposed by this | 16 |
| Section. Those provisions shall apply with the same force and | 17 |
| effect as if the language of those provisions had been set | 18 |
| forth in full in this Section, except to the extent that any of | 19 |
| those provisions are either inconsistent with a provision of | 20 |
| this Section or are not relevant to the tax imposed by this | 21 |
| Section. For purposes of this Section, any reference to | 22 |
| "selling price" means "selling price" as defined by this | 23 |
| Section and any reference in this Act to a tax or the taxes | 24 |
| otherwise imposed by this Act shall be deemed also to refer to | 25 |
| the tax imposed by this Section unless a different meaning is | 26 |
| clearly required. |
|
|
|
HB0451 |
- 10 - |
LRB096 05795 RCE 15871 b |
|
| 1 |
| (e) Separate statement of tax. Every person required to | 2 |
| collect the tax imposed by this Section shall state, charge, | 3 |
| and show that tax separately from the price or charge, and also | 4 |
| separately from any other tax imposed by this Act or other law, | 5 |
| on any sales slip, invoice, receipt, or other statement or | 6 |
| memorandum of the price or charge, paid or payable, given to | 7 |
| the customer. | 8 |
| (f) No discounts or credits for collection or remittance. | 9 |
| The taxes imposed by, and collected or paid over under, this | 10 |
| Section shall not be included or considered in computing any | 11 |
| discount or credit for the collection or remittance of those | 12 |
| taxes, including any discount under Section 3. | 13 |
| (g) Taxes are in addition to any other. The taxes imposed | 14 |
| by this Section are in addition to any other tax imposed or | 15 |
| authorized to be imposed by this Act or other law. | 16 |
| (h) Deposit into GRF. Notwithstanding any other provision | 17 |
| of this Act or any other law to the contrary, all amounts | 18 |
| collected under this Section shall be deposited into the | 19 |
| General Revenue Fund.
| 20 |
| Section 99. Effective date. This Act takes effect July 1, | 21 |
| 2009.
|
|