House Sponsors: MADIGAN,MJ-CURRIE-FEIGENHOLTZ-HAMOS. Senate Sponsors: RAUSCHENBERGER Short description: CIGARETTE TAX-INCREASE Synopsis of Bill as introduced: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Beginning January 1, 2002, exempts from the taxes imposed by these Acts tangible personal property and its component parts purchased by a telecommunications carrier if the property and parts are used directly and primarily in transmitting, receiving, switching, or recording any interactive, two-way electromagnetic communications, including voice, image, data, and information, through the use of any medium, including, but not limited to, poles, wires, cables, switching equipment, computers, and record storage devices and media. Excepts the provisions from the sunset requirements. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. HOUSE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 30 ILCS 805/8.25 new Replaces the amendatory changes in the bill with a technical change to the Use Tax Act. FISCAL NOTE (Department of Revenue) HB 539 will create an indeterminable fiscal impact to the State and local governments. The Department cannot estimate the actual cost; however, this exemption is so inclusive as to potentially cover all purchases made by telecommunications carriers. The resulting revenue loss to the State and to local governments will be substantial. SENATE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 105/3-5 Adds reference to: 35 ILCS 130/2 from Ch. 120, par. 453.2 35 ILCS 130/3 from Ch. 120, par. 453.3 35 ILCS 135/2 from Ch. 120, par. 453.32 35 ILCS 135/3 from Ch. 120, par. 453.33 35 ILCS 200/31-35 Deletes everything. Amends the Cigarette Tax Act and the Cigarette Use Tax Act. Increases the tax from 29 mills per cigarette sold or used in Illinois (58 cents per pack of 20) to 49 mills per cigarette sold or used in Illinois (98 cents per pack of 20). Provides for payment of $5,000,000 per month into the School Infrastructure Fund beginning on April 1, 2003. Provides that any distributor having cigarettes to which stamps have been affixed in his or her possession for sale on July 1, 2002 shall not be required to pay the additional tax imposed on those stamped cigarettes. Provides that, beginning on the effective date of this amendatory Act and through June 30, 2002, persons holding valid licenses as distributors may purchase cigarette tax stamps up to an amount equal to 115% of the distributor's average monthly cigarette tax stamp purchases over the 12 calendar months prior to the effective date of this amendatory Act. Amends the Property Tax Code. Provides that the revenue from the real estate transfer tax shall be deposited as follows: 50% into the Illinois Affordable Housing Trust Fund (same as now); 20% into the Open Space Lands Acquisition and Development Fund (now, 35%); 5% into the Natural Areas Acquisition Fund (now, 15%); and 25% into the General Revenue Fund (now, none). Effective immediately. Last action on Bill: PUBLIC ACT.............................. 92-0536 Last action date: JUN-06-2002 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 1 END OF INQUIRY Full Text Bill Status