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90_SB0374sam001
LRB9002207DNmbam02
1 AMENDMENT TO SENATE BILL 374
2 AMENDMENT NO. . Amend Senate Bill 374 on page 7,
3 line 9, by replacing "168(c)(3)(B)(iv)" with "168(i)(2)"; and
4 on page 7, line 15, after "lessee." by inserting "The
5 exemption granted by this Section shall be limited to 50% of
6 the tax that would otherwise have been due for property
7 delivered to the lessor in this State before July 1, 1998;
8 and 75% of the tax that would otherwise have been due for
9 property delivered to the lessor in this State during the
10 period of July 1, 1998 through June 30, 1999. The provisions
11 of this paragraph shall be exempt from the provisions of
12 Section 3-90."; and
13 on page 14, line 3, by replacing "168(c)(3)(B)(iv)" with
14 "168(i)(2)"; and
15 on page 14, line 15, after "Act." by inserting "As used in
16 this Section, "lease" means an operating or true lease. An
17 operating or true lease is a lease under which, for federal
18 income tax purposes, the lessor is considered to be the owner
19 of the leased property. For federal income tax purposes, a
20 lessor is considered to be the owner of the property if the
21 lessor is permitted to claim a depreciation expense deduction
22 for the property. The amount of retailers' occupation tax
-2- LRB9002207DNmbam02
1 imposed under this Act shall be reduced by an amount equal to
2 the percentage limitation of the exemption for use tax
3 granted under Section 3-5(26) of the Use Tax Act, for
4 property subject to the limitation. The gross receipts from
5 the sale or lease of property for which this election has
6 been made shall be subject to the tax imposed by this Act on
7 any subsequent sale or lease in this State. Lessors shall be
8 subject to the tax imposed under the Use Tax Act based on the
9 fair market value of any property returned to the lessor at
10 the termination of a lease if the property is used for any
11 purpose other than the further sale or lease of the property.
12 The provisions of this paragraph shall be exempt from the
13 provisions of Section 2-70.".