State of Illinois
90th General Assembly
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[ Introduced ]

90_HB0599ham001

                                           LRB9003379DNmbam03
 1                     AMENDMENT TO HOUSE BILL 599
 2        AMENDMENT NO.     .  Amend House Bill 599 on page 7, line
 3    9, by replacing "168(c)(3)(B)(iv)" with "168(i)(2)"; and
 4    on page 7,  line  15,   after  "lessee."  by  inserting  "The
 5    exemption  granted by this Section shall be limited to 50% of
 6    the tax that would  otherwise  have  been  due  for  property
 7    delivered  to  the  lessor in this State before July 1, 1998;
 8    and 75% of the tax that would otherwise  have  been  due  for
 9    property  delivered  to  the  lessor in this State during the
10    period of July 1, 1998 through June 30, 1999.  The provisions
11    of this paragraph shall be  exempt  from  the  provisions  of
12    Section 3-90."; and
13    on  page  14,  line  3,  by replacing "168(c)(3)(B)(iv)" with
14    "168(i)(2)"; and
15    on page 14, line 15, after "Act." by inserting  "As  used  in
16    this  Section,  "lease" means an operating or true lease.  An
17    operating or true lease is a lease under which,  for  federal
18    income tax purposes, the lessor is considered to be the owner
19    of  the  leased property.  For federal income tax purposes, a
20    lessor is considered to be the owner of the property  if  the
21    lessor is permitted to claim a depreciation expense deduction
22    for  the  property.   The amount of retailers' occupation tax
                            -2-            LRB9003379DNmbam03
 1    imposed under this Act shall be reduced by an amount equal to
 2    the percentage  limitation  of  the  exemption  for  use  tax
 3    granted  under  Section  3-5(26)  of  the  Use  Tax  Act, for
 4    property subject to the limitation.  The gross receipts  from
 5    the  sale  or  lease  of property for which this election has
 6    been made shall be subject to the tax imposed by this Act  on
 7    any subsequent sale or lease in this State.  Lessors shall be
 8    subject to the tax imposed under the Use Tax Act based on the
 9    fair  market  value of any property returned to the lessor at
10    the termination of a lease if the property is  used  for  any
11    purpose other than the further sale or lease of the property.
12    The  provisions  of  this  paragraph shall be exempt from the
13    provisions of Section 2-70.".

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