HB5807 102ND GENERAL ASSEMBLY

LRB102 28551 HLH 40428 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5807

Introduced 11/16/2022, by Rep. Janet Yang Rohr

SYNOPSIS AS INTRODUCED:

5 ILCS 100/5-45.21 new
35 ILCS 105/3-6.1 new
35 ILCS 120/2-8.1 new
35 ILCS 735/3-8.1 new

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, if a retailer inadvertently collects from a purchaser the entire 6.25% rate of tax on a sales tax holiday item, and if the retailer does not refund the excess tax proceeds to the purchaser, then the retailer shall remit those proceeds to the Department of Revenue in accordance with rules adopted by the Department of Revenue. Amends the Uniform Penalty and Interest Act. Provides that no penalties or interest shall be imposed under the Act for failure to pay a tax under the Use Tax Act or the Retailers' Occupation Tax Act on tangible personal property that is sold between August 5, 2022 and August 14, 2022 if (i) the failure to pay the tax was due to the taxpayer's mistaken belief that the item was a sales tax holiday item and (ii) the taxpayer made a good faith effort to comply with the requirements of the sales tax holiday. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 3. The Illinois Administrative Procedure Act is amended by adding Section 5-45.21 as follows:

(5 ILCS 100/5-45.21 new)

Sec. 5-45.21. Emergency rulemaking; sales tax holiday. To provide for the expeditious and timely implementation of this amendatory Act of the 102nd General Assembly, emergency rules implementing this amendatory Act of the 102nd General Assembly may be adopted in accordance with Section 5-45 by the Department of Revenue. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 102nd General Assembly.

Section 5. The Use Tax Act is amended by adding Section 3-6.1 as follows:

(35 ILCS 105/3-6.1 new)

Sec. 3-6.1. Tax collected on sales tax holiday items. If, between August 5, 2022 and August 14, 2022, a retailer inadvertently collects from a purchaser the entire 6.25% rate of tax on a sales tax holiday item described in Section 3-6, and if the retailer does not refund the excess tax proceeds to the purchaser, then the retailer shall remit those proceeds to the Department in accordance with rules adopted by the Department. Excess tax proceeds remitted to the Department under this Section shall be allocated in the manner described in Section 9 for proceeds generated from the 6.25% general rate on the selling price of tangible personal property.

Section 10. The Retailers' Occupation Tax Act is amended by adding Section 2-8.1 as follows:

(35 ILCS 120/2-8.1 new)

Sec. 2-8.1. Tax collected on sales tax holiday items. If, between August 5, 2022 and August 14, 2022, a retailer inadvertently collects from a purchaser the entire 6.25% rate of tax on a sales tax holiday item described in Section 2-8, and if the retailer does not refund the excess tax proceeds to the purchaser, then the retailer shall remit those proceeds to the Department in accordance with rules adopted by the Department. Excess tax proceeds remitted to the Department under this Section shall be allocated in the manner described in Section 3 for proceeds generated from the 6.25% general rate on the selling price of tangible personal property.

Section 15. The Uniform Penalty and Interest Act is amended by adding Section 3-8.1 as follows:

(35 ILCS 735/3-8.1 new)

Sec. 3-8.1. Sales tax holiday. No penalties or interest shall be imposed under this Act for failure to pay a tax under the Use Tax Act or the Retailers' Occupation Tax Act on tangible personal property that is sold between August 5, 2022 and August 14, 2022 if (i) the failure to pay the tax was due to the taxpayer's mistaken belief that the item was a sales tax holiday item, as described in Section 3-6 of the Use Tax Act or Section 2-8 of the Retailers' Occupation Tax Act, and (ii) the taxpayer made a good faith effort to comply with the requirements of the sales tax holiday that occurred between August 5, 2022 and August 14, 2022.

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