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90_HB0419
New Act
Creates the Firearm Tax Act. Imposes a tax on all
persons engaged in the business of selling firearms.
Establishes procedures for collection of the tax and how the
tax is to be distributed.
LRB9001352RCks
LRB9001352KDks
1 AN ACT in relation to a tax on firearm sales.
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 Firearm Tax Act.
6 Section 5. Definitions.
7 "Department" means the Illinois Department of Revenue.
8 "Person" means any natural individual, firm, partnership,
9 association, joint stock company, joint venture, public or
10 private corporation, or receiver, executor, trustee,
11 conservator, or other representative appointed by order of
12 court.
13 "Firearm" has the same meaning as provided in Section 1.1
14 of the Firearm Owners Identification Card Act.
15 "Sale at retail" has the same meaning as provided in
16 Section 1 of the Retailers' Occupation Tax Act.
17 Section 10. Tax imposed; enforcement; proceeds.
18 (a) A tax is imposed upon all persons engaged in the
19 business of selling firearms. The tax is at the rate of 15%
20 of the purchase price of a concealable firearm sold at retail
21 requiring a 72 hour waiting period or 5% of the purchase
22 price of a rifle, shotgun, or other long gun sold at retail
23 requiring a 24 hour waiting period as provided in subsection
24 (g) of Section 24-3 of the Criminal Code of 1961.
25 (b) The tax and all civil penalties that may be assessed
26 as an incident of the tax shall be collected and enforced by
27 the Department. The certificate of registration that is
28 issued by the Department to a retailer under the Retailers'
29 Occupation Tax Act shall permit the retailer to engage in a
30 business that is taxable under this Act. The Department shall
-2- LRB9001352KDks
1 have full power to administer and enforce this Act; to
2 collect all taxes and penalties due under this Act; to
3 dispose of taxes and penalties so collected in the manner
4 provided in this Act; and to determine all rights to credit
5 memoranda arising on account of the erroneous payment of tax
6 or penalty under this Act. In the administration of, and
7 compliance with, this Act, the Department and persons who are
8 subject to this Act shall have the same rights, remedies,
9 privileges, immunities, powers and duties, and be subject to
10 the same conditions, restrictions, limitations, penalties and
11 definitions of terms, and employ the same modes of procedure,
12 as are prescribed in Sections 1, 2a, 2b, 2c, 3 (except as to
13 the disposition of taxes and penalties collected), 4, 5, 5a,
14 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10,
15 11, 11a, 12, 13 and 13 1/2 of the Retailers' Occupation Tax
16 Act, as fully as if those provisions were set forth in this
17 Act.
18 (c) Persons subject to the tax imposed by this Act may
19 reimburse themselves for their seller's tax liability under
20 this Act by separately stating that tax as an additional
21 charge. The charge may be stated in combination, in a single
22 amount, with any other applicable tax that sellers are
23 required to collect under State law or local ordinance.
24 (d) Whenever the Department determines that a refund to
25 a claimant should be made under this Act, the Department
26 shall issue a credit memorandum to the claimant.
27 (e) All taxes and penalties collected under this Act,
28 less 2% to be retained by the Department to cover its costs
29 of collection and administration, shall be deposited into the
30 Trauma Center Fund, a special fund in the State treasury, and
31 shall be distributed as provided in Section 14.1 of the
32 Emergency Medical Services (EMS) Systems Act.