HB3952 103RD GENERAL ASSEMBLY

LRB103 30527 HLH 56960 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3952

Introduced 2/17/2023, by Rep. Janet Yang Rohr

SYNOPSIS AS INTRODUCED:

5 ILCS 100/5-45.35 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 on or after August 5, 2022 and through August 14, 2022 if the taxpayer paid tax on an item as a sales tax holiday item and the item was not a sales tax holiday item. 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 5-45.35 as follows:

(5 ILCS 100/5-45.35 new)

Sec. 5-45.35. Emergency rulemaking; sales tax holiday. To provide for the expeditious and timely implementation of this amendatory Act of the 103rd General Assembly, emergency rules implementing this amendatory Act of the 103rd 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This Section is repealed one year after the effective date of this amendatory Act of the 103rd General Assembly.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 on or after August 5, 2022 and through August 14, 2022 if the taxpayer paid tax on an item as 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 the item was not a sales tax holiday item.

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