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.


LRB096 05795 RCE 15871 b

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.

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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.