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Full Text of SB1434  100th General Assembly

SB1434ham001 100TH GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 5/23/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1434

2    AMENDMENT NO. ______. Amend Senate Bill 1434 by replacing
3line 8 on page 3 through line 3 on page 7 with the following:
 
4    "Section 10. Rental Purchase Agreement Occupation Tax. A
5tax is imposed upon persons engaged in this State in the
6business of renting merchandise under a rental-purchase
7agreement in Illinois at the rate of 6.25% of the gross
8receipts received from the business. Every person engaged in
9this State in the business of renting merchandise shall apply
10to the Department (upon a form prescribed and furnished by the
11Department) for a certificate of registration under this Act.
12The certificate of registration which is issued by the
13Department to a retailer under the Retailers' Occupation Tax
14Act shall permit the merchant to engage in a business that is
15taxable under this Section without registering separately with
16the Department.
17    The Department shall have full power to administer and

 

 

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1enforce this Section, to collect all taxes and penalties due
2hereunder, to dispose of taxes and penalties so collected in
3the manner hereinafter provided, and to determine all rights to
4credit memoranda, arising on account of the erroneous payment
5of tax or penalty hereunder. In the administration of, and
6compliance with, this Section, the Department and persons who
7are subject to this Section shall have the same rights,
8remedies, privileges, immunities, powers and duties, and be
9subject to the same conditions, restrictions, limitations,
10penalties and definitions of terms, and employ the same modes
11of procedure, as are prescribed in Sections 1, 1a, 2, 2-10
12through 2-65 (in respect to all provisions therein other than
13the State rate of tax), 2a, 2b, 2c, 3 (except provisions
14relating to transaction returns), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
155g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
16the Retailers' Occupation Tax Act and Section 3-7 of the
17Uniform Penalty and Interest Act as fully as if those
18provisions were set forth herein.
 
19    Section 15. Rental Purchase Agreement Use Tax. A tax is
20imposed upon the privilege of using, in this State, merchandise
21which is rented from a merchant. Such tax is at the rate of
226.25% of the rental price paid to the merchant under any rental
23purchase agreement.
24    The tax hereby imposed shall be collected from the consumer
25by a merchant maintaining a place of business in this State and

 

 

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1remitted to the Department.
2    The tax hereby imposed and not paid to a merchant pursuant
3to the preceding paragraph of this Section shall be paid to the
4Department directly by any person using such merchandise within
5this State.
6    Merchants shall collect the tax from consumers by adding
7the tax to the rental price of the merchandise, when rented for
8use, in the manner prescribed by the Department. The Department
9shall have the power to adopt and promulgate reasonable rules
10and regulations for the adding of such tax by merchants to
11rental prices by prescribing bracket systems for the purpose of
12enabling such merchants to add and collect, as far as
13practicable, the amount of such tax.
14    The tax imposed by this Section shall, when collected, be
15stated as a distinct item separate and apart from the rental
16price of the merchandise.
17    The Department shall have full power to administer and
18enforce this Section; to collect all taxes, penalties and
19interest due hereunder; to dispose of taxes, penalties and
20interest so collected in the manner hereinafter provided, and
21to determine all rights to credit memoranda or refunds arising
22on account of the erroneous payment of tax, penalty or interest
23hereunder. In the administration of, and compliance with, this
24Section, the Department and persons who are subject to this
25Section shall have the same rights, remedies, privileges,
26immunities, powers, and duties, and be subject to the same

 

 

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1conditions, restrictions, limitations, penalties, and
2definitions of terms, and employ the same modes of procedure,
3as are prescribed in Sections 2, 3, 3-10 through 3-80, 4, 6, 7,
48, 9 (except provisions relating to transaction returns ), 10,
511, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use Tax
6Act, and are not inconsistent with this Section, as fully as if
7those provisions were set forth herein.
 
8    Section 20. Electronic filing and payment. Any return or
9document that is required to be filed under this Act shall be
10filed electronically, in the form and manner required by the
11Department.
12    Any payment required to be made under this Act shall be
13paid electronically, in the form and manner required by the
14Department.
15    The Department shall grant a waiver of the electronic
16filing or payment requirement under this Section for any
17taxpayer who petitions the Department and demonstrates undue
18hardship in complying with the electronic filing or payment
19requirement. The waiver shall be for a period not to exceed 2
20years, but may be renewed an unlimited number of times for
21periods not to exceed 2 years each.
 
22    Section 25. Deposit of taxes.
23    (a) Each month, from the net revenue realized for the
24preceding month, the Department shall pay an amount estimated

 

 

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1by the Department to be required for refunds of the tax under
2this Act, which shall be deposited into the Rental Purchase
3Agreement Tax Refund Fund.
4    (b) Of the remainder of funds after the deposit under
5subsection (a) of this Section:
6        (1) each month the Department shall pay into the State
7    and Local Sales Tax Reform Fund 20% of the net revenue
8    realized for the preceding month from the tax imposed under
9    this Act; and
10        (2) each month the Department shall pay into the
11    General Revenue Fund 80% of the net revenue realized for
12    the preceding month from the tax imposed under this Act.
 
13    Section 30. One-Time Transitional Use Tax Credit. Within 3
14months after effective date of this Act, the merchant shall
15file an application (upon a form prescribed and furnished by
16the Department) to receive a one-time credit for the Use Tax
17paid on merchandise subject to tax under this Act purchased
18during the 6 months immediately prior to the effective date of
19this Act. The Department shall issue a credit equal to the
20total Use Tax paid in the 6 months immediately prior to the
21effective date of this Act. Upon the issuance of the credit,
22the merchant may apply the credit against the tax imposed under
23this Act.
 
24    Section 35. Applicability. This Act does not apply to

 

 

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1tangible personal property which is required to be titled and
2registered by a State agency.
 
3    Section 40. Rulemaking. The Department may make such rules
4as it may deem necessary to implement the purposes of this Act.
 
5    Section 45. The State Finance Act is amended by adding
6Sections 5.878 and 6z-102 as follows:
 
7    (30 ILCS 105/5.878 new)
8    Sec. 5.878. The Rental Purchase Agreement Tax Refund Fund.
 
9    (30 ILCS 105/6z-102 new)
10    Sec. 6z-102. The Rental Purchase Agreement Tax Refund Fund.
11    (a) The Rental Purchase Agreement Tax Refund Fund is hereby
12created as a special fund in the State Treasury. Moneys in the
13Fund shall be used by the Department of Revenue to pay refunds
14of Rental Purchase Agreement Tax in the manner provided in
15Section 6 of the Retailers' Occupation Tax Act and Section 19
16of the Use Tax Act, as incorporated into Sections 10 and 15 of
17the Rental Purchase Agreement Tax Act.
18    (b) Moneys in the Rental Purchase Agreement Tax Refund Fund
19shall be expended exclusively for the purpose of paying refunds
20pursuant to this Section.
21    (c) The Director of Revenue shall order payment of refunds
22under this Section from the Rental Purchase Agreement Tax

 

 

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1Refund Fund only to the extent that amounts collected pursuant
2to Sections 10 and 15 of the Rental Purchase Agreement
3Occupation and Use Tax Act have been deposited and retained in
4the Fund.
5    As soon as possible after the end of each fiscal year, the
6Director of Revenue shall order transferred, and the State
7Treasurer and State Comptroller shall transfer from the Rental
8Purchase Agreement Tax Refund Fund to the General Revenue Fund,
9any surplus remaining as of the end of such fiscal year.
10This Section shall constitute an irrevocable and continuing
11appropriation from the Rental Purchase Agreement Tax Refund
12Fund for the purpose of paying refunds in accordance with the
13provisions of this Section.".