Full Text of HB0851 93rd General Assembly
HB0851sam002 93RD GENERAL ASSEMBLY
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Sen. Debbie DeFrancesco Halvorson
Filed: 5/19/2004
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| AMENDMENT TO HOUSE BILL 851
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| AMENDMENT NO. ______. Amend House Bill 851 by replacing | 3 |
| everything after the enacting clause with the following:
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| "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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| 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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| 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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| 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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| 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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| (35 ILCS 120/1c) (from Ch. 120, par. 440c)
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| 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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| 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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| 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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| 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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| (Source: P.A. 93-24, eff. 6-20-03.)
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| Section 995. The Boat Registration and Safety Act is | 27 |
| amended by changing Section 3A-5 as follows:
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| (625 ILCS 45/3A-5) (from Ch. 95 1/2, par. 313A-5)
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| Sec. 3A-5. Certificate of title - Issuance - Records.
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| (a) The Department of Natural Resources shall file each
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| application received and, when satisfied as to its genuineness | 2 |
| and regularity,
and that no tax imposed by the " Use Tax Act "
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| 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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| (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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| (Source: P.A. 89-445, eff. 2-7-96.)
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| Section 999. Effective date. This Act takes effect July 1, | 14 |
| 2004.".
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