90th General Assembly
Summary of HB0533
   [ Home ]   [ Back ]   [ Legislation ]
Please enter a bill number.

 Full Text  Bill Status
House Sponsors:

Senate Sponsors:

Short description: 
SERVICE USE-STATING TAX-TECH                                               

Synopsis of Bill as introduced:
        Amends the Service Use Tax Act.  Makes a technical change in  the      
   Section concerning the method of stating the tax.                           
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          35 ILCS 110/3a                                                       
          Adds reference to:                                                   
          35 ILCS 105/3-5                 from Ch. 120, par. 439.3-5           
          35 ILCS 120/2-5                                                      
          55 ILCS 5/5-1006                from Ch. 34, par. 5-1006             
          55 ILCS 5/5-1006.5                                                   
          65 ILCS 5/8-11-1                from Ch. 24, par. 8-11-1             
          65 ILCS 5/8-11-1.3              from Ch. 24, par. 8-11-1.3           
          65 ILCS 5/8-11-1.6                                                   
        Deletes everything.  Amends  the  Use  Tax  Act,  the  Retailers'      
   Occupation  Tax  Act,  the  Counties  Code, and the Illinois Municipal      
   Code. Exempts qualified technological  equipment  as  defined  in  the      
   Internal Revenue Code, that was purchased by a lessor who has elected,      
   as  to  all  such  equipment  leased  by the lessor, to pay retailers'      
   occupation tax based on the lessor's gross receipts from the lease  of      
   the equipment in this State to a lessee for his or her use and not for      
   the  purpose  of  sublease.  Provides that this exemption shall not be      
   construed to create liability for the lessee, to create any right to a      
   refund on tax previously paid by the lessor, or to exempt  the  lessor      
   from  paying  the  applicable  tax.  Provides  that,  for  purposes of      
   determining the local governmental unit whose  tax  is  applicable,  a      
   retail  sale by a lessor is a sale at retail at the place where leased      
   tangible personal property is located. Exempts the deduction from  the      
   sunset  provision of the Use Tax Act and the Retailers' Occupation Tax      
   Act.  Defines  "lease".   Provides  that  the  amount  of   retailer's      
   occupation  tax  imposed  shall  be  reduced by an amount equal to the      
   percentage  limitation  of  the  use  tax  exemption.    States   that      
   subsequent  sales or leases of property for which the election for the      
   lessor to pay  the  tax  was  made  shall  not  be  exempt.  Effective      
        SENATE AMENDMENT NO. 2.                                                
          Deletes reference to:                                                
          55 ILCS 5/5-1006                                                     
          55 ILCS 5/5-1006.5                                                   
          65 ILCS 5/8-11-1                                                     
          65 ILCS 5/8-11-1.3                                                   
          65 ILCS 5/8-11-1.6                                                   
          Adds reference to:                                                   
          New Act                                                              
          30 ILCS 115/1                   from Ch. 85, par. 611                
          35 ILCS 105/9                   from Ch. 120, par. 439.9             
          35 ILCS 105/9.5 new                                                  
          35 ILCS 110/3-5                 from Ch. 120, par. 439.33-5          
          35 ILCS 115/3-5                 from Ch. 120, par. 439.103-5         
          35 ILCS 115/3-5                 from Ch. 120, par. 439.103-5         
          35 ILCS 120/1c-5 new                                                 
          35 ILCS 120/2-5                 from Ch. 120, par. 441-5             
          35 ILCS 120/3                   from Ch. 120, par. 442               
          35 ILCS 120/3.5 new                                                  
        Deletes  everything.    Creates   the   Qualified   Technological      
   Equipment  Leasing  Occupation  and  Use  Tax  Act.   Imposes a tax on      
   persons engaged in the State in  the  business  of  leasing  qualified      
   technological  equipment in Illinois at the rate of 8.25% of the gross      
   receipts received from the business.  Imposes a tax upon the privilege      
   of using in this  State  qualified  technological  equipment  that  is      
   leased  from a lessor at the rate of 8.25% of the leasing price of the      
   equipment paid to the lessor under a lease agreement.   Provides  that      
   each  month  the  Department  shall  pay  into  the  Local  Government      
   Distributive  Fund  20%  of the net revenue realized for the preceding      
   month under this Act.   Provides  that  the  remaining  80%  shall  be      
   distributed  under  the  Use Tax Act and the Retailers' Occupation Tax      
   Act.  Amends the Use Tax Act, the Service Use  Tax  Act,  the  Service      
   Occupation  Tax  Act,  and the Retailers' Occupation Tax Act to exempt      
   from  the  taxes  imposed  under  those  Act  qualified  technological      
   equipment sold to lessors  for  lease  under  leases  subject  to  the      
   Qualified  Technological Equipment Leasing Occupation and Use Tax Act.      
   Provides that the exemption is available for so long as the  equipment      
   is leased.  Provides that the exemptions are not subject to the sunset      
   provisions.   Provides that the exemptions for computer equipment used      
   in hospitals and certain property leased to a  governmental  body  are      
   exempt  from  the  sunset  provisions.   In  the  Use  Tax Act and the      
   Retailers' Occupation Tax Act, provides that a purchaser of  qualified      
   technological  equipment  may  obtain  a  refund of use and occupation      
   taxes paid administered by the Department of Revenue if the  purchaser      
   sells  the  property  to a rentor under a bona fide sale and leaseback      
   transaction to such purchaser within 90 days of the  first  functional      
   use of the property.  Makes other changes. Effective January 1, 1999.       
        SENATE AMENDMENT NO. 3.                                                
        Includes limited liability companies within the definition  of  a      
   "person". Makes technical corrections.                                      
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   3


 Full Text  Bill Status