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90_SB0441
New Act
20 ILCS 2605/55a-9 new
30 ILCS 105/5.401 new
Creates the Ammunition Tax Act. Imposes a 100% tax or a
200% tax, depending on the type of ammunition, on persons
engaged in the business of selling ammunition and on the
privilege of using ammunition in this State. Requires sellers
of ammunition to collect the tax and to remit it to the
Department of Revenue. Requires the Department to deposit tax
proceeds into the Ammunition Tax Fund. Amends the State
Finance Act to create the Ammunition Tax Fund in the State
treasury. Amends the Civil Administrative Code of Illinois.
Provides that the Fund shall be used for grants to be made by
the Department of State Police to units of local government
for police purposes. Requires the Department of State Police
to adopt rules for applying and qualifying for grants.
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1 AN ACT in relation to the taxation of ammunition.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Ammunition Tax Act.
6 Section 5. Definitions. As used in this Act:
7 "Department" means the Department of Revenue.
8 "Selling price" is defined as in the Retailers'
9 Occupation Tax Act.
10 Section 10. Occupation tax imposed.
11 (a) In addition to any other tax imposed by law, a tax is
12 imposed upon persons engaged in this State in the business of
13 selling ammunition in Illinois at the rate of (i) 100% of the
14 gross receipts for centerfire cartridges that have a
15 cartridge case less than 1.3 inches in length and cartridge
16 cases that are less than 1.3 inches in length and (ii) 200%
17 of the gross receipts for jacketed, hollow point projectiles
18 that may be used in a handgun and the jacket of which is
19 designed to produce, upon impact, evenly spaced sharp or
20 barb-like projections that extend beyond the diameter of the
21 unfired projectile. The tax imposed by this subsection does
22 not apply to any governmental body or to persons described in
23 subsection (a) of Section 24-2 of the Criminal Code of 1961.
24 Every person engaged in this State in the business of selling
25 ammunition shall apply to the Department (upon a form
26 prescribed and furnished by the Department) for a certificate
27 of registration under this Act. The certificate of
28 registration that is issued by the Department to a retailer
29 under the Retailers' Occupation Tax Act shall permit a seller
30 of ammunition to engage in a business that is taxable under
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1 this Section without registering separately with the
2 Department.
3 The Department has full power to administer and enforce
4 this Section, to collect all taxes and penalties due under
5 this Section, to dispose of taxes and penalties so collected
6 in the manner provided in this Section, and to determine all
7 rights to credit memoranda arising on account of the
8 erroneous payment of tax or penalty under this Section. In
9 the administration of, and compliance with, this Section, the
10 Department and persons who are subject to this Section (i)
11 have the same rights, remedies, privileges, immunities,
12 powers and duties, (ii) are subject to the same conditions,
13 restrictions, limitations, penalties and definitions of
14 terms, and (iii) employ the same modes of procedure as are
15 prescribed in Sections 1, 1a, 2 through 2-65 (in respect to
16 all provisions in those Sections other than the State rate of
17 tax), 2a, 2b, 2c, 3 (except provisions relating to
18 transaction returns and quarter monthly payments), 4, 5, 5a,
19 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10,
20 11, 11a, 12 and 13 of the Retailers' Occupation Tax Act and
21 Section 3-7 of the Uniform Penalty and Interest Act as fully
22 as if those provisions were set forth in this Act.
23 Section 15. Use tax imposed.
24 (a) In addition to any other tax imposed by law, a tax is
25 imposed upon the privilege of using ammunition in this State
26 at the rate of (i) 100% of the selling price for centerfire
27 cartridges that have a cartridge case less than 1.3 inches in
28 length and cartridge cases that are less than 1.3 inches in
29 length and (ii) 200% of the selling price for jacketed,
30 hollow point projectiles that may be used in a handgun and
31 the jacket of which is designed to produce, upon impact,
32 evenly spaced sharp or barb-like projections that extend
33 beyond the diameter of the unfired projectile. The tax
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1 imposed by this Section does not apply to any governmental
2 body or to persons described in subsection (a) of Section
3 24-2 of the Criminal Code of 1961.
4 The tax imposed by this Section shall be collected from
5 the buyer by a seller of ammunition maintaining a place of
6 business in this State and remitted to the Department. A
7 seller of ammunition need not remit that part of any tax
8 collected by the seller to the extent that the seller is
9 required to remit and does remit the tax imposed under
10 Section 10 with respect to the sale of the same ammunition.
11 The tax imposed and not paid to a seller under the
12 preceding paragraph of this Section shall be paid to the
13 Department directly by any person using the ammunition within
14 this State.
15 Sellers shall collect the tax from buyers by adding the
16 tax to the selling price of the ammunition in the manner
17 prescribed by the Department. The Department has the power to
18 adopt and promulgate reasonable rules and regulations for the
19 adding of the tax by sellers to selling prices by prescribing
20 bracket systems for the purpose of enabling the sellers to
21 add and collect, as far as practicable, the amount of the
22 tax.
23 The tax imposed by this Section shall, when collected, be
24 stated as a distinct item separate and apart from the selling
25 of the ammunition.
26 The Department has full power to administer and enforce
27 this Section; to collect all taxes, penalties, and interest
28 due under this Section; to dispose of taxes, penalties, and
29 interest so collected in the manner provided in this Section;
30 and to determine all rights to credit memoranda or refunds
31 arising on account of the erroneous payment of tax, penalty,
32 or interest under this Section. In the administration of, and
33 compliance with, this Section, the Department and persons who
34 are subject to this Section (i) have the same rights,
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1 remedies, privileges, immunities, powers and duties, (ii) are
2 subject to the same conditions, restrictions, limitations,
3 penalties and definitions of terms, and (iii) employ the same
4 modes of procedure as are prescribed in Sections 2, 3 through
5 3-80, 4, 6, 7, 8, 9 (except provisions relating to
6 transaction returns and quarter monthly payments), 10, 11,
7 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax
8 Act, and are not inconsistent with this Section, as fully as
9 if those provisions were set forth in this Act.
10 Section 20. Ammunition Tax Fund. The Department shall
11 deposit all tax proceeds received under this Act into the
12 Ammunition Tax Fund, a special fund which is created in the
13 State treasury.
14 Section 90. The Civil Administrative Code of Illinois is
15 amended by adding Section 55a-9 as follows:
16 (20 ILCS 2605/55a-9 new)
17 Sec. 55a-9. Ammunition Tax Fund; grants. Subject to
18 appropriation, the Department of State Police shall make
19 grants from the Ammunition Tax Fund to units of local
20 governments for police purposes. The Department shall adopt
21 rules establishing a process to apply for grants under this
22 Section and rules establishing criteria for issuing grants
23 under this Section.
24 Section 95. The State Finance Act is amended by adding
25 Section 5.449 as follows:
26 (30 ILCS 105/5.449 new)
27 Sec. 5.449. The Ammunition Tax Fund.