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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||
5 | Section 218 as follows: | ||||||||||||||||||||||||
6 | (35 ILCS 5/218 new) | ||||||||||||||||||||||||
7 | Sec. 218. Back-to-school purchase credit. | ||||||||||||||||||||||||
8 | (a) For taxable years ending on or after December 31, 2008 | ||||||||||||||||||||||||
9 | and on or before December 30, 2013, each individual taxpayer | ||||||||||||||||||||||||
10 | who purchases qualified merchandise during the back-to-school | ||||||||||||||||||||||||
11 | period is entitled to a credit against the tax imposed under | ||||||||||||||||||||||||
12 | subsections (a) and (b) of Section 201 in an amount equal to | ||||||||||||||||||||||||
13 | 6.25% of the purchase. | ||||||||||||||||||||||||
14 | (b) For the purpose of this Section: | ||||||||||||||||||||||||
15 | "Back-to-school period" means the period from 12:01 a.m. on | ||||||||||||||||||||||||
16 | the first Friday in August through
midnight of the Sunday that | ||||||||||||||||||||||||
17 | follows 9 days later. | ||||||||||||||||||||||||
18 | "Qualified merchandise" means: | ||||||||||||||||||||||||
19 | (1) an article of clothing or footwear that is | ||||||||||||||||||||||||
20 | purchased for a selling price of $200 or less; and | ||||||||||||||||||||||||
21 | (2) a computer that is purchased for a selling price of | ||||||||||||||||||||||||
22 | $1,500 or less. | ||||||||||||||||||||||||
23 | "Clothing or footwear" means an article of apparel designed |
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1 | to be worn about the human body. The term does not include | ||||||
2 | accessories such as jewelry, handbags, purses, briefcases, | ||||||
3 | luggage, wallets, watches, and similar items that are carried | ||||||
4 | on or about the human body, without regard to whether the item | ||||||
5 | is worn on the body in a manner that is characteristic of | ||||||
6 | clothing. | ||||||
7 | "Computer" means a central processing unit for personal use | ||||||
8 | plus any peripheral sold with it and any computer software | ||||||
9 | installed in it at the time of purchase. The term "computer" | ||||||
10 | includes desktop computers, laptop computers, hand-held | ||||||
11 | computers, and personal digital assistants. The term | ||||||
12 | "computer" does not include any device designed primarily for | ||||||
13 | video game applications. The term "peripheral" includes any | ||||||
14 | monitor, keyboard, printer, scanner, web/PC camera, | ||||||
15 | microphone, external drive, network card, internal drive, and | ||||||
16 | additional storage. | ||||||
17 | (c) For purpose of this Section, a "purchase" occurs
during | ||||||
18 | the back-to-school period if the buyer places an order and pays
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19 | the purchase price by cash or credit during the tax | ||||||
20 | back-to-school period regardless of whether the delivery of the | ||||||
21 | item occurs
after the tax back-to-school period. | ||||||
22 | An item of qualified merchandise that is placed in a | ||||||
23 | layaway or similar deferred plan during the back-to-school | ||||||
24 | period is not eligible for the credit unless the item is | ||||||
25 | delivered to the purchaser during the period. An item that was | ||||||
26 | placed in a layaway or similar deferred plan before the |
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1 | back-to-school period and is then delivered to the purchaser | ||||||
2 | during the back-to-school period is eligible for the credit. | ||||||
3 | (d) Any discount,
coupon, or other credit offered either by | ||||||
4 | the retailer or by a
vendor of the retailer to reduce the final | ||||||
5 | price to the
customer must be taken into account in determining | ||||||
6 | the selling
price of the item for the purposes of this credit. | ||||||
7 | If the price of an item is free or reduced with the purchase of | ||||||
8 | another item, then the total price of the items may not be | ||||||
9 | averaged in order for both items to qualify for the credit. | ||||||
10 | The amount of any rebate may not be considered when | ||||||
11 | determining the selling price of the item for the purposes of | ||||||
12 | this credit.
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13 | (e) Articles that are normally sold as a unit must continue
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14 | to be sold in that manner; they may not be priced separately | ||||||
15 | and
sold as individual items in order to be subject to the | ||||||
16 | credit.
For example, if a pair of shoes sells for $220, the | ||||||
17 | pair cannot
be split in order to sell each shoe for $110 to | ||||||
18 | qualify for the
credit. If a uniform is normally priced at $250 | ||||||
19 | on a single price
tag, the uniform cannot be split into | ||||||
20 | separate articles so that
any of the components may be sold for | ||||||
21 | less than $200 in order
to qualify for the credit. Components | ||||||
22 | that are
normally priced as separate articles, however, may | ||||||
23 | continue to be sold as
separate articles. | ||||||
24 | (f) Qualified merchandise that customers purchase during | ||||||
25 | the back-to-school period with the use of a rain check | ||||||
26 | qualifies for the credit regardless of when the rain check was |
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1 | issued. The issuance of a rain check, however, during the | ||||||
2 | back-to-school period does not qualify merchandise for the | ||||||
3 | credit if the merchandise is actually purchased after the | ||||||
4 | back-to-school period. | ||||||
5 | (g) If a customer purchases an item of qualified | ||||||
6 | merchandise during the back-to-school period but later | ||||||
7 | exchanges the item for a substantially similar item of a | ||||||
8 | different size, different color, or other feature, then the | ||||||
9 | item qualifies for the credit even if the exchange is made | ||||||
10 | after the back-to-school period. | ||||||
11 | If a customer purchases an item of qualified merchandise | ||||||
12 | during the back-to-school period, but after the back-to-school | ||||||
13 | period has ended, the customer returns the item and receives | ||||||
14 | credit on the purchase of a different item, then the newly | ||||||
15 | purchased item does not qualify for the credit. | ||||||
16 | If a customer purchases an item of qualified merchandise | ||||||
17 | before the back-to-school period, but during the | ||||||
18 | back-to-school period, the customer returns the item and | ||||||
19 | receives credit on the purchase of a different item of | ||||||
20 | qualified merchandise, then the newly purchased qualifies for | ||||||
21 | the credit.
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22 | (h) The credit under this Section may not be carried | ||||||
23 | forward or back and may not reduce the taxpayer's liability to | ||||||
24 | less than zero.
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25 | Section 99. Effective date. This Act takes effect upon | ||||||
26 | becoming law.
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