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Public Act 91-0882
SB1682 Enrolled LRB9113101SMdvA
AN ACT concerning sales and use taxes.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. This Act may be cited as the Streamlined
Sales Tax System for the 21st Century Act.
Section 5. Legislative findings and intent; legislative
declaration. The General Assembly finds that:
(1) State and local tax systems should treat
transactions in a competitively neutral manner.
(2) A simplified sales and use tax system that treats
all transactions in a competitively neutral manner will
strengthen and preserve the sales and use tax as vital State
and local revenue sources and preserve State fiscal
sovereignty.
(3) Remote sellers should not receive preferential tax
treatment at the expense of local "main street" merchants,
nor should such vendors be burdened with special,
discriminatory, or multiple taxes.
(4) The State should simplify sales and use taxes to
reduce the administrative burden of collection.
(5) While states have the sovereign right to set their
own tax policies, states working together have the
opportunity to develop a more simple, uniform, and fair
system of state sales and use taxation without federal
government mandates or interference.
Section 10. Definitions. As used in this Act:
"Department" means the Department of Revenue.
"Sales tax" includes occupation taxes.
Section 15. Multi-state discussions. The Department
shall enter into discussions with states regarding
development of a multi-state, voluntary, streamlined system
for sales and use tax collection and administration. These
discussions shall focus on a system that would have the
capability to determine whether the transaction is taxable or
tax exempt, the appropriate tax rate applied to the
transaction, and the total tax due on the transaction, and
shall provide a method for collecting and remitting sales
and use taxes to the State. The system may provide
compensation for costs of collecting and remitting sales and
use taxes. Discussions between the Department and other
states may include, but are not limited to:
(1) The development of a "Joint Request for
Information" from potential public and private parties
governing the specifications for the system.
(2) The mechanism for compensating parties for the
development and operation of the system.
(3) Establishment of minimum statutory
simplification measures necessary for State participation
in the system.
(4) Measures to preserve confidentiality of
taxpayer information and privacy rights of consumers.
Following these discussions, the Department may proceed to
issue a Joint Request for Information.
Section 20. Joint pilot project. The Department is
authorized to participate in a sales and use tax pilot
project with other states and selected businesses to test
means for simplifying sales and use tax administration and
may enter into joint agreements for that purpose.
(a) Agreements to participate in the test shall
establish provisions for the administration, imposition, and
collection of sales and use taxes resulting in revenues paid
that are the same as would be paid under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act.
(b) Parties to the agreements are excused from complying
with the provisions of the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act to the extent a different procedure is
required by the agreements, except for confidentiality of
taxpayer information as detailed in Section 25 of this Act.
(c) Agreements authorized under this Section shall
terminate no later than December 31, 2001.
Section 25. Confidentiality of taxpayer information.
Return information submitted to any party or parties acting
for and on behalf of the State shall be treated as
confidential taxpayer information. Disclosure of
confidential taxpayer information necessary under Sections 15
and 20 of this Act shall be pursuant to a written agreement
between the Department and the party or parties. The party
or parties shall be bound by the same requirements of
confidentiality as the Department with respect to individual
taxpayers as otherwise provided by law.
Section 30. Legislative oversight. There is hereby
created a Legislative Oversight Committee on Sales Taxes.
The Department shall provide testimony and information as
requested by the Committee. The Committee shall consist of 6
members, with 2 members appointed by the President of the
Senate, 1 member appointed by the Minority Leader of the
Senate, 2 members appointed by the Speaker of the House of
Representatives, and 1 member appointed by the Minority
Leader of the House of Representatives.
Section 35. Final report. On or before March 1, 2001,
the Department shall report to the Governor, the Speaker of
the House, the Minority Leader of the House, the President of
the Senate, the Minority Leader of the Senate, and the
Legislative Oversight Committee on Sales Taxes on the status
of multi-state discussions and, if a proposed system has been
agreed upon by participating states, shall also recommend
whether the State should participate in that system.
Section 40. Rules. The Department shall promulgate
rules and procedures reasonably necessary for the
administration of this Act.
Section 90. This Act is repealed on May 15, 2002.
Section 99. Effective date. This Act takes effect upon
becoming law.
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