95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB6319


 
Introduced , by Rep. Rosemary Mulligan - Ruth Munson - Ronald A. Wait - Dennis M. Reboletti - Sidney H. Mathias, et al.
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 105/3b new






35 ILCS 120/2-75 new











    Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that no tax is imposed under the Acts upon the use or purchase of (i) tangible personal property  that is purchased in its original package  for a selling price of $600 or less or (ii) tangible personal property that qualifies as an "Energy Star" product under the federal Energy Star Program to the extent of the first $600 of value if that property is purchased during a tax holiday. Defines "tax-holiday" as the period from 12:01 a.m. on  May 23, 2008 through
midnight of May 26, 2008. Sets forth criteria for transactions to qualify for the exemption. Effective immediately.

















LRB095 20376 HLH 48425 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB6319

LRB095 20376 HLH 48425 b






1
    AN ACT concerning revenue.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:




 
4
    "Section 5. The Use Tax Act is amended  by changing Section 
5
9 and  by adding Section 3b as follows:

 
6
    (35 ILCS 105/3b  new)
7
    Sec. 3b. Tax holiday.
8
    (a) No tax under this Act is imposed upon the privilege of 
9
using, in this State, qualified  merchandise that is purchased 
10
at retail from a retailer if the qualified  merchandise is 
11
purchased during the holiday period.
12
    (b) For the purpose of this Section:
13
    "Holiday period" means the period from 12:01 a.m. on  May 
14
23, 2008 through
midnight of May 26, 2008.
15
    "Qualified  merchandise" means:
16
        (1) any tangible personal property  that is purchased in 
17
    its original package  for a selling price of $600 or less; 
18
    and
19
        (2) any property that qualifies as an "Energy Star" 
20
    product under the
Energy Star Program administered by the 
21
    United States
Environmental Protection Agency to the 
22
    extent of the first $600 of value.
23
    (c) For purpose of this Section, a "purchase" occurs
during 
 


 






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1
the tax holiday if the buyer places an order and pays
the 
2
purchase price by cash or credit during the tax holiday
period 
3
regardless of whether the delivery of the item occurs
after the 
4
tax holiday period.
5
    An item of qualified merchandise that is placed in a 
6
layaway or similar deferred plan during the holiday period is 
7
not eligible for the reduced tax rate unless the item is 
8
delivered to the purchaser during the period. An item that was 
9
placed in a layaway or similar deferred plan before the holiday 
10
period and is then delivered to the purchaser during the 
11
holiday period is eligible for the exemption under this 
12
Section.
13
    (d) Any discount,
coupon, or other credit offered either by 
14
the retailer or by a
vendor of the retailer to reduce the final 
15
price to the
customer must be taken into account in determining 
16
the selling
price of the item for the purposes of this holiday. 
17
If the  price of an item is free or reduced with the purchase of 
18
another item, then the  total price of the  items may not be 
19
averaged in order for both items to qualify for the holiday.
20
    The amount of any rebate may not be considered when 
21
determining the selling price of the item for the purposes of 
22
this holiday.

23
    (e) Articles that are normally sold as a unit must continue

24
to be sold in that manner; they may not be priced separately 
25
and
sold as individual items in order to be subject to the 
26
holiday. Components that are
normally priced as separate 
 


 






HB6319
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1
articles, however,  may continue to be sold as
separate 
2
articles.
3
    (f) Qualified merchandise that customers purchase during 
4
the holiday period with the use of a rain check qualify for the 
5
holiday regardless of when the rain check was issued. The 
6
issuance of a rain check, however, during the holiday period 
7
does not qualify  merchandise for the exemption if the 
8
merchandise is actually purchased after the holiday period.
9
    (g) If a customer purchases an item of qualified 
10
merchandise during the holiday period but later exchanges the 
11
item for a substantially similar item of a different size, 
12
different color, or other feature, then no additional tax is 
13
due even if the exchange is made after the holiday period.
14
    If a customer purchases an item of qualified merchandise 
15
during the holiday period, but after the holiday period has 
16
ended, the customer returns the item and receives credit on the 
17
purchase of a different item, then the newly purchased item is 
18
subject to the full tax rate.
19
    If a customer purchases an item of qualified merchandise 
20
before the holiday period, but during the holiday period, the 
21
customer returns the item and receives credit on the purchase 
22
of a different item of qualified merchandise, then the newly 
23
purchased item is subject to the exemption.

24
    (h) Each unit of local government that imposes a use tax

25
may, by resolution or ordinance, declare a tax holiday with

26
respect to its use tax for the same items, during the same

 


 






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1
periods, and under the same conditions and is encouraged to do

2
so.
 
3
    Section 10. The Retailers' Occupation Tax Act is amended  by 
4
changing Section 3 and  by adding Section 2-75 as follows:
 
5
    (35 ILCS 120/2-75  new)
6
    Sec. 2-75. Tax holiday.
7
    (a) No tax under this Act is imposed upon persons engaged 
8
in the business of selling, at retail, qualified  merchandise if 
9
the qualified  merchandise is purchased during the holiday 
10
period.
11
    (b) For the purpose of this Section:
12
    "Holiday period" means the period from 12:01 a.m. on  May 
13
23, 2008 through
midnight of May 26, 2008.
14
    "Qualified  merchandise" means:
15
        (1) any tangible personal property  that is purchased in 
16
    its original package  for a selling price of $600 or less; 
17
    and
18
        (2) any property that qualifies as an "Energy Star" 
19
    product under the
Energy Star Program administered by the 
20
    United States
Environmental Protection Agency to the 
21
    extent of the first $600 of value.
22
    (c) For purpose of this Section, a "purchase" occurs
during 
23
the tax holiday if the buyer places an order and pays
the 
24
purchase price by cash or credit during the tax holiday
period 
 


 






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1
regardless of whether the delivery of the item occurs
after the 
2
tax holiday period.
3
    An item of qualified merchandise that is placed in a 
4
layaway or similar deferred plan during the holiday period is 
5
not eligible for the reduced tax rate unless the item is 
6
delivered to the purchaser during the period. An item that was 
7
placed in a layaway or similar deferred plan before the holiday 
8
period and is then delivered to the purchaser during the 
9
holiday period is eligible for the exemption under this 
10
Section.
11
    (d) Any discount,
coupon, or other credit offered either by 
12
the retailer or by a
vendor of the retailer to reduce the final 
13
price to the
customer must be taken into account in determining 
14
the selling
price of the item for the purposes of this holiday. 
15
If the price of an item is free or reduced with the purchase of 
16
another item, then the  total price of the  items may not be 
17
averaged in order for both items to qualify for the holiday.
18
    The amount of any rebate may not be considered when 
19
determining the selling price of the item for the purposes of 
20
this holiday.

21
    (e) Articles that are normally sold as a unit must continue

22
to be sold in that manner; they may not be priced separately 
23
and
sold as individual items in order to be subject to the 
24
holiday.
Components that are
normally priced as separate 
25
articles, however,  may continue to be sold as
separate 
26
articles.
 


 






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1
    (f) Qualified merchandise that customers purchase during 
2
the holiday period with the use of a rain check qualify for the 
3
holiday regardless of when the rain check was issued. The 
4
issuance of a rain check, however, during the holiday period 
5
does not qualify  merchandise for the exemption if the 
6
merchandise is actually purchased after the holiday period.
7
    (g) If a customer purchases an item of qualified 
8
merchandise during the holiday period but later exchanges the 
9
item for a substantially similar item of a different size, 
10
different color, or other feature, then no additional tax is 
11
due even if the exchange is made after the holiday period.
12
    If a customer purchases an item of qualified merchandise 
13
during the holiday period, but after the holiday period has 
14
ended, the customer returns the item and receives credit on the 
15
purchase of a different item, then the newly purchased item is 
16
subject to the full tax rate.
17
    If a customer purchases an item of qualified merchandise 
18
before the holiday period, but during the holiday period, the 
19
customer returns the item and receives credit on the purchase 
20
of a different item of qualified merchandise, then the newly 
21
purchased item is subject to the exemption.

22
    (h) Each unit of local government that imposes a use tax

23
may, by resolution or ordinance, declare a tax holiday with

24
respect to its use tax for the same items, during the same

25
periods, and under the same conditions and is encouraged to do

26
so.
 

 


 






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1
    Section 99. Effective date. This Act takes effect upon 
2
becoming law.