Synopsis of Bill as introduced:
Amends the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act. Beginning
January 1, 2002, exempts from the taxes imposed by these Acts tangible
personal property and its component parts purchased by a
telecommunications carrier if the property and parts are used directly
and primarily in transmitting, receiving, switching, or recording any
interactive, two-way electromagnetic communications, including voice,
image, data, and information, through the use of any medium,
including, but not limited to, poles, wires, cables, switching
equipment, computers, and record storage devices and media. Excepts
the provisions from the sunset requirements. Amends the State
Mandates Act to require implementation without reimbursement.
HOUSE AMENDMENT NO. 1.
Deletes reference to:
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
30 ILCS 805/8.25 new
Replaces the amendatory changes in the bill with a technical
change to the Use Tax Act.
FISCAL NOTE (Department of Revenue)
HB 539 will create an indeterminable fiscal impact to the State
and local governments. The Department cannot estimate the
actual cost; however, this exemption is so inclusive as to
potentially cover all purchases made by telecommunications
carriers. The resulting revenue loss to the State and to local
governments will be substantial.
SENATE AMENDMENT NO. 1.
Deletes reference to:
35 ILCS 105/3-5
Adds reference to:
35 ILCS 130/2 from Ch. 120, par. 453.2
35 ILCS 130/3 from Ch. 120, par. 453.3
35 ILCS 135/2 from Ch. 120, par. 453.32
35 ILCS 135/3 from Ch. 120, par. 453.33
35 ILCS 200/31-35
Deletes everything. Amends the Cigarette Tax Act and the
Cigarette Use Tax Act. Increases the tax from 29 mills per cigarette
sold or used in Illinois (58 cents per pack of 20) to 49 mills per
cigarette sold or used in Illinois (98 cents per pack of 20).
Provides for payment of $5,000,000 per month into the School
Infrastructure Fund beginning on April 1, 2003. Provides that any
distributor having cigarettes to which stamps have been affixed in his
or her possession for sale on July 1, 2002 shall not be required to
pay the additional tax imposed on those stamped cigarettes. Provides
that, beginning on the effective date of this amendatory Act and
through June 30, 2002, persons holding valid licenses as distributors
may purchase cigarette tax stamps up to an amount equal to 115% of the
distributor's average monthly cigarette tax stamp purchases over the
12 calendar months prior to the effective date of this amendatory Act.
Amends the Property Tax Code. Provides that the revenue from the real
estate transfer tax shall be deposited as follows: 50% into the
Illinois Affordable Housing Trust Fund (same as now); 20% into the
Open Space Lands Acquisition and Development Fund (now, 35%); 5% into
the Natural Areas Acquisition Fund (now, 15%); and 25% into the
General Revenue Fund (now, none). Effective immediately.
Last action on Bill: PUBLIC ACT.............................. 92-0536
Last action date: JUN-06-2002
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 1
END OF INQUIRY
Full Text Bill Status