HB0451 96TH GENERAL ASSEMBLY

LRB096 05795 RCE 15871 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0451

Introduced 2/4/2009, by Rep. LaShawn K. Ford

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3-1 new
35 ILCS 120/2-1 new

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Imposes an additional tax of 5% on the following luxury items: (1) a passenger motor vehicle to the extent that the selling price exceeds $60,000; (2) a vessel (watercraft) to the extent that the selling price exceeds $200,000; (3) an aircraft to the extent that the selling price exceeds $500,000; and (4) jewelry or fur clothing and footwear to the extent that the selling price per item of jewelry or fur clothing and footwear exceeds $20,000. Provides for administration and collection of the tax. Provides for all amounts collected to be deposited into the General Revenue Fund. Contains other provisions. Effective July 1, 2009.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Use Tax Act is amended by adding Section 3-1 as follows:

(35 ILCS 105/3-1 new)

Sec. 3-1. Tax surcharge on certain luxury property.

(a) Definitions. For purposes of the tax imposed by this Section, the following terms mean:

(1) Passenger motor vehicle. A motor vehicle of the first division as defined in Section 1-46 of the Illinois Vehicle Code, but not including a vehicle purchased for use exclusively in the active conduct of a trade or business of transporting persons or property for compensation or hire, a vehicle purchased for use exclusively in providing emergency medical services, or a demonstrator vehicle.

(2) Vessel. A vessel or watercraft, as defined in Section 1-2 of the Boat Registration and Safety Act, but not including a vessel purchased for use exclusively in the active conduct of a trade or business of transporting persons or property for compensation or hire, a vessel purchased for use exclusively in providing emergency medical services, or a demonstrator vessel.

(3) Aircraft. Any aircraft that is propelled by a motor or engine and is capable of carrying one or more individuals, but not including aircraft purchased for use exclusively in the active conduct of a trade or business of transporting persons or property for compensation or hire, an aircraft purchased for use exclusively in providing emergency medical services, or a demonstrator aircraft.

(4) Jewelry. All articles commonly or commercially known as jewelry, whether real or imitation, including but not limited to rings, earrings, necklaces, bracelets, and watches, and also including loose pearls and precious and semi-precious stones.

(5) Fur clothing and footwear. Clothing and footwear made, in whole or in part, of any animal skin or part thereof with hair, fleece, or fur fibers attached thereto, in either its raw or processed state, but not including skins that are converted into leather or that in processing have had the hair, fleece, or fur fiber completely removed.

(b) Imposition of additional tax. Notwithstanding any other provision of this Act or any other law to the contrary, in addition to all other taxes, a tax is imposed at the rate of 5% upon the privilege of using in this State the following tangible personal property purchased at retail from a retailer:

(1) a passenger motor vehicle to the extent that the selling price exceeds $60,000;

(2) a vessel to the extent that the selling price exceeds $200,000;

(3) an aircraft to the extent that the selling price exceeds $500,000; and

(4) jewelry or fur clothing and footwear to the extent that the selling price per item of jewelry or fur clothing and footwear exceeds $20,000; an item that is ordinarily sold as a pair, such as earrings or gloves, are considered to be one item for purposes of this Section.

(c) Special rules. Notwithstanding any other provision of this Act or any other law to the contrary, for purposes of this Section:

(1) Selling price has the same definition as set forth in Section 2, except that the value of or credit given for traded-in tangible personal property shall be included instead of deducted. Selling price also includes the price of any property installed on a passenger motor vehicle, vessel, or aircraft by the vendor of that vehicle, vessel, or aircraft within 6 months of the sale of the vehicle, vessel, or aircraft, plus any charge for installing that property, but does not include the selling price of any property installed on a passenger motor vehicle to make it adaptable for use by a person with a disability or to replace damaged, defective, or malfunctioning property, or any charge for installing that property.

(2) With respect to any lease of a passenger motor vehicle, vessel, or aircraft for a term of one year or more, selling price means the manufacturer's suggested retail price for that vehicle, vessel, or aircraft, without any deduction for the value of or credit given for traded-in tangible personal property. The tax due under this Section must be collected at the time the first payment is made under the lease, option to renew, or similar provision or combination of them, or as of the date of registration under Illinois law, whichever is earlier.

(d) Incorporation of other provisions of this Act. Except as otherwise provided in this Section, the taxes imposed by this Section shall be identical to, and administered and collected in a like manner as, the other taxes imposed under this Act. All the provisions of this Act, including the definition and exemption provisions and the provisions relating or applicable to the administration and collection of the other taxes imposed by this Act shall apply to the tax imposed by this Section so far as those provisions can be made applicable to the tax imposed by this Section, with such modifications as may be necessary in order to adapt the language of those provisions to the tax imposed by this Section. Those provisions shall apply with the same force and effect as if the language of those provisions had been set forth in full in this Section, except to the extent that any of those provisions are either inconsistent with a provision of this Section or are not relevant to the tax imposed by this Section. For purposes of this Section, any reference to "selling price" means "selling price" as defined by this Section and any reference in this Act to a tax or the taxes otherwise imposed by this Act shall be deemed also to refer to the tax imposed by this Section unless a different meaning is clearly required.

(e) Separate statement of tax. Every person required to collect the tax imposed by this Section shall state, charge, and show that tax separately from the price or charge, and also separately from any other tax imposed by this Act or other law, on any sales slip, invoice, receipt, or other statement or memorandum of the price or charge, paid or payable, given to the customer.

(f) No discounts or credits for collection or remittance. The taxes imposed by, and collected or paid over under, this Section shall not be included or considered in computing any discount or credit for the collection or remittance of those taxes, including any discount under Section 9.

(g) Taxes are in addition to any other. The taxes imposed by this Section are in addition to any other tax imposed or authorized to be imposed by this Act or other law.

(h) Deposit into GRF. Notwithstanding any other provision of this Act or any other law to the contrary, all amounts collected under this Section shall be deposited into the General Revenue Fund.

Section 10. The Retailers' Occupation Tax Act is amended by adding Section 2-1 as follows:

(35 ILCS 120/2-1 new)

Sec. 2-1. Tax surcharge on certain luxury property.

(a) Definitions. For purposes of the tax imposed by this Section, the following terms mean:

(1) Passenger motor vehicle. A motor vehicle of the first division as defined in Section 1-46 of the Illinois Vehicle Code, but not including a vehicle purchased for use exclusively in the active conduct of a trade or business of transporting persons or property for compensation or hire, a vehicle purchased for use exclusively in providing emergency medical services, or a demonstrator vehicle.

(2) Vessel. A vessel or watercraft, as defined in Section 1-2 of the Boat Registration and Safety Act, but not including a vessel purchased for use exclusively in the active conduct of a trade or business of transporting persons or property for compensation or hire, a vessel purchased for use exclusively in providing emergency medical services, or a demonstrator vessel.

(3) Aircraft. Any aircraft that is propelled by a motor or engine and is capable of carrying one or more individuals, but not including aircraft purchased for use exclusively in the active conduct of a trade or business of transporting persons or property for compensation or hire, an aircraft purchased for use exclusively in providing emergency medical services, or a demonstrator aircraft.

(4) Jewelry. All articles commonly or commercially known as jewelry, whether real or imitation, including but not limited to rings, earrings, necklaces, bracelets, and watches, and also including loose pearls and precious and semi-precious stones.

(5) Fur clothing and footwear. Clothing and footwear made, in whole or in part, of any animal skin or part thereof with hair, fleece, or fur fibers attached thereto, in either its raw or processed state, but not including skins that are converted into leather or that in processing have had the hair, fleece, or fur fiber completely removed.

(b) Imposition of additional tax. Notwithstanding any other provision of this Act or any other law to the contrary, in addition to all other taxes, a tax is imposed upon persons engaged in the business of selling the following tangible personal property in the course of business at the rate of 5% of the gross receipts from sales:

(1) a passenger motor vehicle to the extent that the selling price exceeds $60,000;

(2) a vessel to the extent that the selling price exceeds $200,000;

(3) an aircraft to the extent that the selling price exceeds $500,000; and

(4) jewelry or fur clothing and footwear to the extent that the selling price per item of jewelry or fur clothing and footwear exceeds $20,000; an item that is ordinarily sold as a pair, such as earrings or gloves, are considered to be one item for purposes of this Section.

(c) Special rules. Notwithstanding any other provision of this Act or any other law to the contrary, for purposes of this Section:

(1) Selling price has the same definition as set forth in Section 1, except that the value of or credit given for traded-in tangible personal property shall be included instead of deducted. Selling price also includes the price of any property installed on a passenger motor vehicle, vessel, or aircraft by the vendor of that vehicle, vessel, or aircraft within 6 months of the sale of the vehicle, vessel, or aircraft, plus any charge for installing that property, but does not include the selling price of any property installed on a passenger motor vehicle to make it adaptable for use by a person with a disability or to replace damaged, defective, or malfunctioning property, or any charge for installing that property.

(2) With respect to any lease of a passenger motor vehicle, vessel, or aircraft for a term of one year or more, selling price means the manufacturer's suggested retail price for that vehicle, vessel, or aircraft, without any deduction for the value of or credit given for traded-in tangible personal property. The tax due under this Section must be collected at the time the first payment is made under the lease, option to renew, or similar provision or combination of them, or as of the date of registration under Illinois law, whichever is earlier.

(d) Incorporation of other provisions of this Act. Except as otherwise provided in this Section, the taxes imposed by this Section shall be identical to, and administered and collected in a like manner as, the other taxes imposed under this Act. All the provisions of this Act, including the definition and exemption provisions and the provisions relating or applicable to the administration and collection of the other taxes imposed by this Act shall apply to the tax imposed by this Section so far as those provisions can be made applicable to the tax imposed by this Section, with such modifications as may be necessary in order to adapt the language of those provisions to the tax imposed by this Section. Those provisions shall apply with the same force and effect as if the language of those provisions had been set forth in full in this Section, except to the extent that any of those provisions are either inconsistent with a provision of this Section or are not relevant to the tax imposed by this Section. For purposes of this Section, any reference to "selling price" means "selling price" as defined by this Section and any reference in this Act to a tax or the taxes otherwise imposed by this Act shall be deemed also to refer to the tax imposed by this Section unless a different meaning is clearly required.

(e) Separate statement of tax. Every person required to collect the tax imposed by this Section shall state, charge, and show that tax separately from the price or charge, and also separately from any other tax imposed by this Act or other law, on any sales slip, invoice, receipt, or other statement or memorandum of the price or charge, paid or payable, given to the customer.

(f) No discounts or credits for collection or remittance. The taxes imposed by, and collected or paid over under, this Section shall not be included or considered in computing any discount or credit for the collection or remittance of those taxes, including any discount under Section 3.

(g) Taxes are in addition to any other. The taxes imposed by this Section are in addition to any other tax imposed or authorized to be imposed by this Act or other law.

(h) Deposit into GRF. Notwithstanding any other provision of this Act or any other law to the contrary, all amounts collected under this Section shall be deposited into the General Revenue Fund.

Section 99. Effective date. This Act takes effect July 1, 2009.