Date	Chamber	Action
1/11/2005	House	Session Sine Die

Statutes Amended In Order of Appearance

35 ILCS 105/10

from Ch. 120, par. 439.10

35 ILCS 110/10

from Ch. 120, par. 439.40

Synopsis As Introduced
Amends the Use Tax Act and the Service Use Tax Act. Provides that Department of Revenue is authorized to contract with credit card issuers to collect the tax imposed by these Acts on Internet sales, phone order sales, and direct-mail sales. If a credit card issuer enters into such a contract with the Department, the issuer must state as a separate item on the monthly bill to customers the tax charged under these Acts. A credit card issuer is entitled to reduce the amount of the tax collected under these Acts that it remits to the Department by the amount of costs incurred by the company to collect the tax or 4% of the revenue generated from the sale on which the tax is collected, whichever is greater. Effective immediately.

Fiscal Note (Department of Revenue)

HB 2388 allows for the credit card company to keep 4% of the revenue generated by the sale or actual costs incurred to collect the tax (whichever is greater). In addition, there is no cap on the amount the credit card company may keep. This proposal could result in fiscal loss because the credit card companies' cost of collection allowance is significantly higher than the 1.75% amount currently allowed to in-state vendors. The credit card company could end up retaining more than half of the tax collected.

Actions 

Date	Chamber	Action
2/20/2003	House	Filed with the Clerk by Rep. Constance A. Howard
2/20/2003	House	First Reading
2/20/2003	House	Referred to Rules Committee
2/26/2003	House	Assigned to Revenue Committee
3/5/2003	House	Fiscal Note Filed
3/13/2003	House	Rule 19(a) / Re-referred to Rules Committee
1/11/2005	House	Session Sine Die

Back To Top