Sen. Debbie DeFrancesco Halvorson
Filed: 5/19/2004
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1 | AMENDMENT TO HOUSE BILL 851
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2 | AMENDMENT NO. ______. Amend House Bill 851 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Watercraft Use Tax Law. | ||||||
6 | Section 5. Definitions. For the purposes of this Law: | ||||||
7 | "Department" means the Department of Revenue. | ||||||
8 | "Purchase price" means the reasonable consideration paid | ||||||
9 | for a watercraft valued at $10,000 or more whether received in | ||||||
10 | money or otherwise, including, but not limited to, cash, | ||||||
11 | credits, property, and services, and including the value of any | ||||||
12 | motor sold with, or in conjunction with, the watercraft. Except | ||||||
13 | in the case of transfers between immediate family members, | ||||||
14 | reasonable consideration ordinarily means the fair market | ||||||
15 | value on the date the watercraft or the share of the watercraft | ||||||
16 | was acquired or the date the watercraft was brought into this | ||||||
17 | State, whichever is later, unless the taxpayer can demonstrate | ||||||
18 | that a different value is reasonable. In the case of transfers | ||||||
19 | between immediate family members, reasonable consideration | ||||||
20 | ordinarily means the consideration actually paid, unless it | ||||||
21 | appears from the facts and circumstances that the primary | ||||||
22 | motivation of the transfer was the avoidance of tax. | ||||||
23 | "Watercraft" means: | ||||||
24 | (1) Class 1, Class 2, Class 3, and Class 4 watercraft, |
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1 | as defined in Section 3-2 of the Boat Registration and | ||||||
2 | Safety Act; | ||||||
3 | (2) personal watercraft, as defined in Section 1-2 of | ||||||
4 | the Boat Registration and Safety Act; and | ||||||
5 | (3) any boat equipped with an inboard motor. | ||||||
6 | Section 10. Tax imposed. A tax is hereby imposed on the | ||||||
7 | privilege of using, in this State, any watercraft acquired by | ||||||
8 | gift, transfer, or purchase after June 30, 2004. This tax does | ||||||
9 | not apply if: (i) the use of the watercraft is otherwise taxed | ||||||
10 | under the Use Tax Act; (ii) the watercraft is bought and used | ||||||
11 | by a governmental agency or a society, association, foundation, | ||||||
12 | or institution organized and operated exclusively for | ||||||
13 | charitable, religious, or educational purposes and that entity | ||||||
14 | has been issued an exemption identification number under | ||||||
15 | Section 1g of the Retailers' Occupation Tax Act; (iii) the use | ||||||
16 | of the watercraft is not subject to the Use Tax Act by reason | ||||||
17 | of subsection (a), (b), (c), (d), or (e) of Section 3-55 of | ||||||
18 | that Act dealing with the prevention of actual or likely | ||||||
19 | multi-state taxation; or (iv) the transfer is a gift to a | ||||||
20 | beneficiary in the administration of an estate and the | ||||||
21 | beneficiary is a surviving spouse. | ||||||
22 | Section 15. Rate of tax. | ||||||
23 | The rate of tax is 6.25% of the purchase price for each | ||||||
24 | purchase of watercraft that is subject to tax under this Law. | ||||||
25 | When an ownership share of a watercraft is acquired, the tax is | ||||||
26 | imposed on the purchase price of that share. All owners are | ||||||
27 | jointly and severally liable for any tax due as a result of the | ||||||
28 | purchase, gift, or transfer of an ownership share of the | ||||||
29 | watercraft. | ||||||
30 | Section 20. Returns. | ||||||
31 | (a) The purchaser, transferee, or donee shall file with the |
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1 | Department a return signed by the purchaser, transferee, or | ||||||
2 | donee on a form prescribed by the Department. The return shall | ||||||
3 | contain a verification in substantially the following form and | ||||||
4 | such other information as the Department may reasonably | ||||||
5 | require: | ||||||
6 | VERIFICATION | ||||||
7 | I declare that I have examined this return and, to the best | ||||||
8 | of my knowledge, it is true, correct, and complete. I | ||||||
9 | understand that the penalty for willfully filing a false | ||||||
10 | return is a fine not to exceed $1,000 or imprisonment in a | ||||||
11 | penal institution other than the penitentiary not to exceed | ||||||
12 | one year, or both a fine and imprisonment. | ||||||
13 | (b) The return and payment from the purchaser, transferee, | ||||||
14 | or donee shall be submitted to the Department within 30 days | ||||||
15 | after the date of purchase, donation, or other transfer or the | ||||||
16 | date the watercraft is brought into this State, whichever is | ||||||
17 | later. Payment of tax is a condition to securing certificate of | ||||||
18 | title for the watercraft from the Department of Natural | ||||||
19 | Resources. When a purchaser, transferee, or donee pays the tax | ||||||
20 | imposed by Section 10 of this Law, the Department (upon request | ||||||
21 | therefor from the purchaser, transferee, or donee) shall issue | ||||||
22 | an appropriate receipt to the purchaser, transferee, or donee | ||||||
23 | showing that he or she has paid the tax to the Department. The | ||||||
24 | receipt shall be sufficient to relieve the purchaser, | ||||||
25 | transferee, or donee from further liability for the tax to | ||||||
26 | which the receipt may refer. | ||||||
27 | Section 25. Filing false or incomplete return. Any person | ||||||
28 | required to file a return under this Law who willfully files a | ||||||
29 | false or incomplete return is guilty of a Class A misdemeanor. | ||||||
30 | Section 30. Determining purchase price. For the purpose of | ||||||
31 | assisting in determining the validity of the purchase price | ||||||
32 | reported on returns filed with the Department, the Department |
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1 | may furnish the following information to persons with whom the | ||||||
2 | Department has contracted for service related to making that | ||||||
3 | determination: (i) the purchase price stated on the return; | ||||||
4 | (ii) the watercraft identification number; (iii) the year, the | ||||||
5 | make, and the model name or number of the watercraft; (iv) the | ||||||
6 | purchase date; and (v) the hours of operation. | ||||||
7 | Section 35. Powers of Department. The Department has full | ||||||
8 | power to: (i) administer and enforce this Law; (ii) collect all | ||||||
9 | taxes, penalties, and interest due under this Law; (iii) | ||||||
10 | dispose of taxes, penalties, and interest so collected in the | ||||||
11 | manner set forth in this Law; and (iv) determine all rights to | ||||||
12 | credit memoranda or refunds arising on account of the erroneous | ||||||
13 | payment of tax, penalty, or interest under this Law. In the | ||||||
14 | administration of, and compliance with, this Law, the | ||||||
15 | Department and persons who are subject to this Law have the | ||||||
16 | same rights, remedies, privileges, immunities, powers, and | ||||||
17 | duties, and are subject to the same conditions, restrictions, | ||||||
18 | limitations, penalties, and definitions of terms, and employ | ||||||
19 | the same modes of procedure, as are prescribed in the Use Tax | ||||||
20 | Act (except for the provisions of Section 3-70), that are not | ||||||
21 | inconsistent with this Law, as fully as if the provisions of | ||||||
22 | the Use Tax Act were set forth in this Law. In addition to any | ||||||
23 | other penalties imposed under law, any person convicted of | ||||||
24 | violating the provisions of this Law shall be assessed a fine | ||||||
25 | of $1,000. | ||||||
26 | Section 40. Payments to Local Government Distributive Fund | ||||||
27 | and General Revenue Fund. The Department shall each month, upon | ||||||
28 | collecting any taxes as provided in this Law, pay 20% of the | ||||||
29 | money collected into the Local Government Distributive Fund, a | ||||||
30 | special fund in the State treasury, and 80% into the General | ||||||
31 | Revenue Fund. |
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1 | Section 45. Rules. The Department has the authority to | ||||||
2 | adopt such rules as are reasonable and necessary to implement | ||||||
3 | the provisions of this Law. | ||||||
4 | Section 990. The Retailers' Occupation Tax Act is amended | ||||||
5 | by changing Section 1c as follows:
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6 | (35 ILCS 120/1c) (from Ch. 120, par. 440c)
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7 | Sec. 1c. A person who is engaged in the business of leasing | ||||||
8 | or
renting motor vehicles or, beginning July 1, 2003, aircraft | ||||||
9 | or, beginning July 1, 2004, watercraft to others and
who, in | ||||||
10 | connection with such
business sells any used motor vehicle ,
or
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11 | aircraft , or watercraft to a purchaser for his
use and not
for | ||||||
12 | the purpose of resale, is a retailer engaged in the business of
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13 | selling tangible personal property at retail under this Act to | ||||||
14 | the
extent of the value of the vehicle or aircraft sold. For | ||||||
15 | the purpose of
this
Section "motor vehicle" has the meaning | ||||||
16 | prescribed in Section 1-157 of
the Illinois Vehicle Code, as | ||||||
17 | now or hereafter amended.
For the purpose of this Section | ||||||
18 | "aircraft" has the meaning prescribed in
Section
3 of the
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19 | Illinois Aeronautics Act.
For the purpose of this Section, | ||||||
20 | "watercraft" has the meaning prescribed in Section 5 of the | ||||||
21 | Watercraft Use Tax Law. (Nothing
provided herein shall affect | ||||||
22 | liability incurred under this Act because
of the sale at retail | ||||||
23 | of such motor vehicles ,
or aircraft , or watercraft to a | ||||||
24 | lessor.)
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25 | (Source: P.A. 93-24, eff. 6-20-03.)
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26 | Section 995. The Boat Registration and Safety Act is | ||||||
27 | amended by changing Section 3A-5 as follows:
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28 | (625 ILCS 45/3A-5) (from Ch. 95 1/2, par. 313A-5)
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29 | Sec. 3A-5. Certificate of title - Issuance - Records.
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30 | (a) The Department of Natural Resources shall file each
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1 | application received and, when satisfied as to its genuineness | ||||||
2 | and regularity,
and that no tax imposed by the " Use Tax Act "
or | ||||||
3 | the Watercraft Use Tax Law is owed as evidenced by the
receipt | ||||||
4 | for payment or determination of exemption from the Department | ||||||
5 | of
Revenue provided for in Section 3A-3 of this Article, and | ||||||
6 | that the applicant is
entitled to the issuance of a certificate | ||||||
7 | of title, shall issue a certificate
of title.
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8 | (b) The Department of Natural Resources shall maintain
a | ||||||
9 | record of all certificates of title issued under a distinctive | ||||||
10 | title number
assigned to the watercraft and, in the discretion | ||||||
11 | of the Department, in any other method determined.
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12 | (Source: P.A. 89-445, eff. 2-7-96.)
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13 | Section 999. Effective date. This Act takes effect July 1, | ||||||
14 | 2004.".
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