SB3005 94TH GENERAL ASSEMBLY

LRB094 18931 BDD 54379 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB3005

Introduced 1/20/2006, by Sen. Cheryl Axley - Dale E. Risinger - Dan Cronin - William E. Peterson - Adeline Jay Geo-Karis, et al.

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3-3 new
35 ILCS 110/3-3 new
35 ILCS 115/3-3 new
35 ILCS 120/2-3 new

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning February 1, 2006 and through April 30, 2006, no tax is imposed under those Acts upon the use or sale of certain energy-efficient products. Authorizes and encourages units of local government that impose use and occupation taxes to declare a similar tax holiday. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 10. The Use Tax Act is amended by adding Section 3-3 as follows:

(35 ILCS 105/3-3 new)

Sec. 3-3. Tax holiday; energy-efficient products.

(a) No tax is imposed under this Act upon the privilege of using, in this State, energy-efficient products for residential use if those products are purchased during the tax-holiday period, which begins at 12:01 a.m. on February 1, 2006 and ends at 11:59 p.m. on April 30, 2006.

For the purposes of this Section, "energy-efficient products" means products that are entitled to and carry the Energy Star label under the Energy Star program administered by the federal government, such as windows, insulation, roof products, residential lamps and lights, transformers, heating and cooling equipment, clothes washers, dehumidifiers, dishwashers, refrigerators, freezers, room air conditioners, ceiling fans, programmable thermostats, ventilating fans, and compact fluorescent bulbs.

(b) Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer shall be taken into account in determining the selling price of the item for purposes of this tax holiday. For purposes of this Section, a "purchase" occurs during the tax holiday if the buyer places an order and pays the purchase price by cash or credit during the tax holiday period regardless of whether the delivery of the item occurs after the tax holiday period.

(c) Each unit of local government that imposes a use tax may, by resolution or ordinance, declare a tax holiday with respect to its tax for the same items, during the same periods, and under the same conditions and is encouraged to do so.

Section 15. The Service Use Tax Act is amended by adding Section 3-3 as follows:

(35 ILCS 110/3-3 new)

Sec. 3-3. Tax holiday; energy-efficient products.

(a) No tax is imposed under this Act upon the privilege of using, in this State, energy-efficient products for residential use if those products are acquired as an incident of a service that is purchased from a serviceman during the tax-holiday period, which begins at 12:01 a.m. on February 1, 2006 and ends at 11:59 p.m. on April 30, 2006.

For the purposes of this Section, "energy-efficient products" means products that are entitled to and carry the Energy Star label under the Energy Star program administered by the federal government, such as windows, insulation, roof products, residential lamps and lights, transformers, heating and cooling equipment, clothes washers, dehumidifiers, dishwashers, refrigerators, freezers, room air conditioners, ceiling fans, programmable thermostats, ventilating fans, and compact fluorescent bulbs.

(b) Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer shall be taken into account in determining the selling price of the item for purposes of this tax holiday. For purposes of this Section, a "purchase" occurs during the tax holiday if the buyer places an order and pays the purchase price by cash or credit during the tax holiday period regardless of whether the delivery of the item occurs after the tax holiday period.

(c) Each unit of local government that imposes a use tax may, by resolution or ordinance, declare a tax holiday with respect to its tax for the same items, during the same periods, and under the same conditions and is encouraged to do so.

Section 20. The Service Occupation Tax Act is amended by adding Section 3-3 as follows:

(35 ILCS 115/3-3 new)

Sec. 3-3. Tax holiday; energy-efficient products.

(a) No tax is imposed under this Act upon the transfer of energy-efficient products for residential use if those products are transferred as an incident of a service that is purchased from a serviceman during the tax-holiday period, which begins at 12:01 a.m. on February 1, 2006 and ends at 11:59 p.m. on April 30, 2006.

For the purposes of this Section, "energy-efficient products" means products that are entitled to and carry the Energy Star label under the Energy Star program administered by the federal government, such as windows, insulation, roof products, residential lamps and lights, transformers, heating and cooling equipment, clothes washers, dehumidifiers, dishwashers, refrigerators, freezers, room air conditioners, ceiling fans, programmable thermostats, ventilating fans, and compact fluorescent bulbs.

(b) Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer shall be taken into account in determining the selling price of the item for purposes of this tax holiday. For purposes of this Section, a "purchase" occurs during the tax holiday if the buyer places an order and pays the purchase price by cash or credit during the tax holiday period regardless of whether the delivery of the item occurs after the tax holiday period.

(c) Each unit of local government that imposes a use tax may, by resolution or ordinance, declare a tax holiday with respect to its tax for the same items, during the same periods, and under the same conditions and is encouraged to do so.

Section 25. The Retailers' Occupation Tax Act is amended by adding Section 2-3 as follows:

(35 ILCS 120/2-3 new)

Sec. 2-3. Tax holiday; energy-efficient products.

(a) No tax is imposed under this Act upon persons engaged in the business of selling at retail energy-efficient products for residential use if those products are purchased during the tax-holiday period, which begins at 12:01 a.m. on February 1, 2006 and ends at 11:59 p.m. on April 30, 2006.

For the purposes of this Section, "energy-efficient products" means products that are entitled to and carry the Energy Star label under the Energy Star program administered by the federal government, such as windows, insulation, roof products, residential lamps and lights, transformers, heating and cooling equipment, clothes washers, dehumidifiers, dishwashers, refrigerators, freezers, room air conditioners, ceiling fans, programmable thermostats, ventilating fans, and compact fluorescent bulbs.

(b) Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer shall be taken into account in determining the selling price of the item for purposes of this tax holiday. For purposes of this Section, a "purchase" occurs during the tax holiday if the buyer places an order and pays the purchase price by cash or credit during the tax holiday period regardless of whether the delivery of the item occurs after the tax holiday period.

(c) Each unit of local government that imposes a use tax may, by resolution or ordinance, declare a tax holiday with respect to its tax for the same items, during the same periods, and under the same conditions and is encouraged to do so.

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