093_HB2388

 
                                     LRB093 07076 SJM 07228 b

 1        AN ACT in relation to taxation.

 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 changing
 5    Section 10 as follows:

 6        (35 ILCS 105/10) (from Ch. 120, par. 439.10)
 7        Sec.  10.  Except  as  to   motor   vehicles,   aircraft,
 8    watercraft,  and trailers, when tangible personal property is
 9    purchased from  a  retailer  for  use  in  this  State  by  a
10    purchaser  who did not pay the tax imposed by this Act to the
11    retailer, and who does not file returns with  the  Department
12    as a retailer under Section 9 of this Act, such purchaser (by
13    the  last  day  of  the month following the calendar month in
14    which such purchaser makes any payment upon the selling price
15    of such property) shall, except as provided in this  Section,
16    file  a  return with the Department and pay the tax upon that
17    portion of the selling price so paid by the purchaser  during
18    the   preceding   calendar   month.  When  tangible  personal
19    property, including but not limited  to  motor  vehicles  and
20    aircraft,  is  purchased  by  a lessor, under a lease for one
21    year or longer, executed or in effect at the time of purchase
22    to an interstate carrier for hire, who did not  pay  the  tax
23    imposed by this Act to the retailer, such lessor (by the last
24    day  of  the month following the calendar month in which such
25    property reverts to the use of  such  lessor)  shall  file  a
26    return  with  the  Department  and  pay the tax upon the fair
27    market value of such property on the date of such  reversion.
28    However,  in determining the fair market value at the time of
29    reversion, the fair market value of such property  shall  not
30    exceed  the  original purchase price of the property that was
31    paid by the lessor at the time of purchase. Such return shall
 
                            -2-      LRB093 07076 SJM 07228 b
 1    be filed on a form prescribed by  the  Department  and  shall
 2    contain  such  information  as  the Department may reasonably
 3    require.  Such return and payment from the purchaser shall be
 4    submitted to the Department sooner than the last day  of  the
 5    month  after  the  month in which the purchase is made to the
 6    extent that that may be necessary  in  order  to  secure  the
 7    title  to  a motor vehicle or the certificate of registration
 8    for an aircraft. However, except as  to  motor  vehicles  and
 9    aircraft,  if  the  purchaser's annual use tax liability does
10    not exceed $600, the purchaser may  file  the  return  on  an
11    annual  basis  on  or before April 15th of the year following
12    the year use tax liability was incurred.
13        In addition with respect  to  motor  vehicles,  aircraft,
14    watercraft,  and  trailers,  a  purchaser  of  such  tangible
15    personal  property  for use in this State, who purchases such
16    tangible personal property  from  an  out-of-state  retailer,
17    shall  file with the Department, upon a form to be prescribed
18    and supplied by the Department, a return for each  such  item
19    of  tangible  personal property purchased, except that if, in
20    the same transaction, (i)  a  purchaser  of  motor  vehicles,
21    aircraft,  watercraft, or trailers who is a retailer of motor
22    vehicles, aircraft, watercraft, or  trailers  purchases  more
23    than  one motor vehicle, aircraft, watercraft, or trailer for
24    the purpose of resale or (ii) a purchaser of motor  vehicles,
25    aircraft,  watercraft,  or  trailers  purchases more than one
26    motor vehicle, aircraft, watercraft, or trailer  for  use  as
27    qualifying  rolling stock as provided in Section 3-55 of this
28    Act, then the purchaser may report the purchase of all  motor
29    vehicles,  aircraft, watercraft, or trailers involved in that
30    transaction to the Department on a single  return  prescribed
31    by the Department.  Such return in the case of motor vehicles
32    and  aircraft  must  show the name and address of the seller,
33    the name, address of purchaser, the  amount  of  the  selling
34    price including the amount allowed by the retailer for traded
 
                            -3-      LRB093 07076 SJM 07228 b
 1    in  property,  if any; the amount allowed by the retailer for
 2    the traded-in tangible personal  property,  if  any,  to  the
 3    extent to which Section 2 of this Act allows an exemption for
 4    the  value  of  traded-in property; the balance payable after
 5    deducting such trade-in  allowance  from  the  total  selling
 6    price;  the amount of tax due from the purchaser with respect
 7    to such transaction; the amount of  tax  collected  from  the
 8    purchaser   by   the   retailer   on   such  transaction  (or
 9    satisfactory evidence that  such  tax  is  not  due  in  that
10    particular  instance  if that is claimed to be the fact); the
11    place and date of the sale, a  sufficient  identification  of
12    the   property  sold,  and  such  other  information  as  the
13    Department may reasonably require.
14        Such return shall be filed not later than 30  days  after
15    such motor vehicle or aircraft is brought into this State for
16    use.
17        For  purposes of this Section, "watercraft" means a Class
18    2, Class 3, or Class 4 watercraft as defined in  Section  3-2
19    of   the   Boat  Registration  and  Safety  Act,  a  personal
20    watercraft, or any boat equipped with an inboard motor.
21        The return and tax remittance or proof of exemption  from
22    the tax that is imposed by this Act may be transmitted to the
23    Department  by  way  of the State agency with which, or State
24    officer with whom, the tangible  personal  property  must  be
25    titled or registered (if titling or registration is required)
26    if  the Department and such agency or State officer determine
27    that  this  procedure  will  expedite   the   processing   of
28    applications for title or registration.
29        With  each  such  return,  the  purchaser shall remit the
30    proper amount  of  tax  due  (or  shall  submit  satisfactory
31    evidence  that  the sale is not taxable if that is the case),
32    to the Department or its  agents,  whereupon  the  Department
33    shall  issue,  in  the  purchaser's name, a tax receipt (or a
34    certificate of exemption if the Department is satisfied  that
 
                            -4-      LRB093 07076 SJM 07228 b
 1    the  particular  sale is tax exempt) which such purchaser may
 2    submit to the agency with which, or State officer with  whom,
 3    he must title or register the tangible personal property that
 4    is  involved  (if  titling  or  registration  is required) in
 5    support of  such  purchaser's  application  for  an  Illinois
 6    certificate  or  other  evidence  of title or registration to
 7    such tangible personal property.
 8        When a purchaser pays a tax imposed by this Act  directly
 9    to the Department, the Department (upon request therefor from
10    such  purchaser)  shall  issue an appropriate receipt to such
11    purchaser  showing  that  he  has  paid  such  tax   to   the
12    Department.   Such receipt shall be sufficient to relieve the
13    purchaser from further liability for the tax  to  which  such
14    receipt may refer.
15        A  user  who  is  liable  to  pay use tax directly to the
16    Department  only  occasionally  and  not  on   a   frequently
17    recurring basis, and who is not required to file returns with
18    the  Department as a retailer under Section 9 of this Act, or
19    under the "Retailers' Occupation Tax Act", or as a registrant
20    with the Department under the "Service Occupation Tax Act" or
21    the "Service  Use  Tax  Act",  need  not  register  with  the
22    Department.   However,  if  such  a  user  has  a  frequently
23    recurring direct use tax liability to pay to the  Department,
24    such  user  shall be required to register with the Department
25    on forms prescribed by  the  Department  and  to  obtain  and
26    display  a  certificate  of registration from the Department.
27    In that event, all of the provisions of Section 9 of this Act
28    concerning the filing of regular monthly, quarterly or annual
29    tax returns and all of the provisions of Section  2a  of  the
30    "Retailers'  Occupation  Tax Act" concerning the requirements
31    for registrants to post  bond  or  other  security  with  the
32    Department,  as  the provisions of such sections now exist or
33    may hereafter be amended, shall apply to such  users  to  the
34    same extent as if such provisions were included herein.
 
                            -5-      LRB093 07076 SJM 07228 b
 1        The Department is authorized to contract with credit card
 2    issuers  to  collect  the  tax  imposed by this Act on remote
 3    sales.  If a credit card issuer enters into such  a  contract
 4    with the Department, the issuer must state as a separate item
 5    on  the  monthly bill to customers the tax charged under this
 6    Act.  A credit card issuer is entitled to reduce  the  amount
 7    of  the  tax  collected  under this Act that it remits to the
 8    Department by the amount of costs incurred by the company  to
 9    collect  the tax or 4% of the revenue generated from the sale
10    on which the tax is collected, whichever is greater.  As used
11    in this paragraph, "remote sales" means Internet sales, phone
12    order  sales,  and  direct-mail  sales.   As  used  in   this
13    paragraph,  "credit  card"  means  any  instrument or device,
14    whether known as a credit card, credit plate,  charge  plate,
15    or  any other name, issued with or without a fee by an issuer
16    for the use of the  cardholder  in  obtaining  money,  goods,
17    services,   or  anything  else  of  value  on  credit  or  in
18    consideration for an undertaking or guaranty by the issuer of
19    the payment of a check drawn by the cardholder.  As  used  in
20    this  paragraph,  "issuer" means the business organization or
21    financial institution that issues  a  credit  card  or  debit
22    card, or its duly authorized agent.
23    (Source: P.A. 91-541, eff. 8-13-99; 91-901, eff. 1-1-01.)

24        Section  10.   The  Service  Use  Tax  Act  is amended by
25    changing Section 10 as follows:

26        (35 ILCS 110/10) (from Ch. 120, par. 439.40)
27        Sec. 10. Where property is acquired as an incident to the
28    purchase of a service from a serviceman for use in this State
29    by a purchaser who did not pay the tax herein imposed to  the
30    serviceman, and who does not file returns with the Department
31    as  a  serviceman under Section 9 of this Act, such purchaser
32    (by the last day of the month following the calendar month in
 
                            -6-      LRB093 07076 SJM 07228 b
 1    which such purchaser makes any payment upon the selling price
 2    of such property) shall, except as  hereinafter  provided  in
 3    this  Section,  file a return with the Department and pay the
 4    tax upon that portion of the selling price  so  paid  by  the
 5    purchaser  during  the  preceding calendar month. Such return
 6    shall be filed on a form prescribed  by  the  Department  and
 7    shall   contain   such  information  as  the  Department  may
 8    reasonably require.
 9        When a purchaser pays a tax herein  imposed  directly  to
10    the  Department,  the  Department (upon request therefor from
11    such purchaser) shall issue an appropriate  receipt  to  such
12    purchaser   showing   that  he  has  paid  such  tax  to  the
13    Department. Such receipt shall be sufficient to  relieve  the
14    purchaser  from  further liability from the tax to which such
15    receipt may refer.
16        A user who is liable to pay Service Use Tax  directly  to
17    the  Department  only  occasionally  and  not on a frequently
18    recurring basis, and who is  not  required  to  file  returns
19    within the Department as a serviceman under Section 9 of this
20    Act,  or  as  a  serviceman under the "Service Occupation Tax
21    Act", or as a retailer or user under the "Use Tax Act", or as
22    a retailer under the "Retailers' Occupation  Tax  Act",  need
23    not register with the Department. However, if such a user has
24    a  frequently  recurring  direct Service Use Tax liability to
25    pay to  the  Department,  such  user  shall  be  required  to
26    register  with  the  Department  on  forms  prescribed by the
27    Department  and  to  obtain  and  display  a  certificate  of
28    registration from the Department. In that event, all  of  the
29    provisions  of Section 9 of this Act concerning the filing of
30    regular monthly, quarterly or annual tax returns and  all  of
31    the  provisions  of  Section 2a of the "Retailers' Occupation
32    Tax Act" concerning the requirements for registrants to  post
33    bond or other security with the Department, as the provisions
34    of such sections now exist or may hereafter be amended, shall
 
                            -7-      LRB093 07076 SJM 07228 b
 1    apply  to such users to the same extent as if such provisions
 2    were included herein.
 3        The Department is authorized to contract with credit card
 4    issuers to collect the tax imposed  by  this  Act  on  remote
 5    sales.   If  a credit card issuer enters into such a contract
 6    with the Department, the issuer must state as a separate item
 7    on the monthly bill to customers the tax charged  under  this
 8    Act.    A credit card issuer is entitled to reduce the amount
 9    of the tax collected under this Act that  it  remits  to  the
10    Department  by the amount of costs incurred by the company to
11    collect the tax or 4% of the revenue generated from the  sale
12    on which the tax is collected, whichever is greater.  As used
13    in this paragraph, "remote sales" means Internet sales, phone
14    order   sales,  and  direct-mail  sales.   As  used  in  this
15    paragraph, "credit card"  means  any  instrument  or  device,
16    whether  known  as a credit card, credit plate, charge plate,
17    or any other name, issued with or without a fee by an  issuer
18    for  the  use  of  the  cardholder in obtaining money, goods,
19    services,  or  anything  else  of  value  on  credit  or   in
20    consideration for an undertaking or guaranty by the issuer of
21    the  payment  of a check drawn by the cardholder.  As used in
22    this paragraph, "issuer" means the business  organization  or
23    financial  institution  that  issues  a  credit card or debit
24    card, or its duly authorized agent.
25    (Source: P.A. 91-51, eff. 6-30-99.)

26        Section 99.  Effective date.  This Act takes effect  upon
27    becoming law.