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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.".