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91_SB1682eng SB1682 Engrossed LRB9113101SMdvA 1 AN ACT concerning sales and use taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. This Act may be cited as the Streamlined 5 Sales Tax System for the 21st Century Act. 6 Section 5. Legislative findings and intent; legislative 7 declaration. The General Assembly finds that: 8 (1) State and local tax systems should treat 9 transactions in a competitively neutral manner. 10 (2) A simplified sales and use tax system that treats 11 all transactions in a competitively neutral manner will 12 strengthen and preserve the sales and use tax as vital State 13 and local revenue sources and preserve State fiscal 14 sovereignty. 15 (3) Remote sellers should not receive preferential tax 16 treatment at the expense of local "main street" merchants, 17 nor should such vendors be burdened with special, 18 discriminatory, or multiple taxes. 19 (4) The State should simplify sales and use taxes to 20 reduce the administrative burden of collection. 21 (5) While states have the sovereign right to set their 22 own tax policies, states working together have the 23 opportunity to develop a more simple, uniform, and fair 24 system of state sales and use taxation without federal 25 government mandates or interference. 26 Section 10. Definitions. As used in this Act: 27 "Department" means the Department of Revenue. 28 "Sales tax" includes occupation taxes. 29 Section 15. Multi-state discussions. The Department SB1682 Engrossed -2- LRB9113101SMdvA 1 shall enter into discussions with states regarding 2 development of a multi-state, voluntary, streamlined system 3 for sales and use tax collection and administration. These 4 discussions shall focus on a system that would have the 5 capability to determine whether the transaction is taxable or 6 tax exempt, the appropriate tax rate applied to the 7 transaction, and the total tax due on the transaction, and 8 shall provide a method for collecting and remitting sales 9 and use taxes to the State. The system may provide 10 compensation for costs of collecting and remitting sales and 11 use taxes. Discussions between the Department and other 12 states may include, but are not limited to: 13 (1) The development of a "Joint Request for 14 Information" from potential public and private parties 15 governing the specifications for the system. 16 (2) The mechanism for compensating parties for the 17 development and operation of the system. 18 (3) Establishment of minimum statutory 19 simplification measures necessary for State participation 20 in the system. 21 (4) Measures to preserve confidentiality of 22 taxpayer information and privacy rights of consumers. 23 Following these discussions, the Department may proceed to 24 issue a Joint Request for Information. 25 Section 20. Joint pilot project. The Department is 26 authorized to participate in a sales and use tax pilot 27 project with other states and selected businesses to test 28 means for simplifying sales and use tax administration and 29 may enter into joint agreements for that purpose. 30 (a) Agreements to participate in the test shall 31 establish provisions for the administration, imposition, and 32 collection of sales and use taxes resulting in revenues paid 33 that are the same as would be paid under the Use Tax Act, the SB1682 Engrossed -3- LRB9113101SMdvA 1 Service Use Tax Act, the Service Occupation Tax Act, and the 2 Retailers' Occupation Tax Act. 3 (b) Parties to the agreements are excused from complying 4 with the provisions of the Use Tax Act, the Service Use Tax 5 Act, the Service Occupation Tax Act, and the Retailers' 6 Occupation Tax Act to the extent a different procedure is 7 required by the agreements, except for confidentiality of 8 taxpayer information as detailed in Section 25 of this Act. 9 (c) Agreements authorized under this Section shall 10 terminate no later than December 31, 2001. 11 Section 25. Confidentiality of taxpayer information. 12 Return information submitted to any party or parties acting 13 for and on behalf of the State shall be treated as 14 confidential taxpayer information. Disclosure of 15 confidential taxpayer information necessary under Sections 15 16 and 20 of this Act shall be pursuant to a written agreement 17 between the Department and the party or parties. The party 18 or parties shall be bound by the same requirements of 19 confidentiality as the Department with respect to individual 20 taxpayers as otherwise provided by law. 21 Section 30. Legislative oversight. There is hereby 22 created a Legislative Oversight Committee on Sales Taxes. 23 The Department shall provide testimony and information as 24 requested by the Committee. The Committee shall consist of 6 25 members, with 2 members appointed by the President of the 26 Senate, 1 member appointed by the Minority Leader of the 27 Senate, 2 members appointed by the Speaker of the House of 28 Representatives, and 1 member appointed by the Minority 29 Leader of the House of Representatives. 30 Section 35. Final report. On or before March 1, 2001, 31 the Department shall report to the Governor, the Speaker of SB1682 Engrossed -4- LRB9113101SMdvA 1 the House, the Minority Leader of the House, the President of 2 the Senate, the Minority Leader of the Senate, and the 3 Legislative Oversight Committee on Sales Taxes on the status 4 of multi-state discussions and, if a proposed system has been 5 agreed upon by participating states, shall also recommend 6 whether the State should participate in that system. 7 Section 40. Rules. The Department shall promulgate 8 rules and procedures reasonably necessary for the 9 administration of this Act. 10 Section 90. This Act is repealed on May 15, 2002. 11 Section 905. The Illinois Procurement Code is amended by 12 changing Section 1-10 as follows: 13 (30 ILCS 500/1-10) 14 Sec. 1-10. Application. 15 (a) This Code applies only to procurements for which 16 contractors were first solicited on or after July 1, 1998. 17 This Code shall not be construed to affect or impair any 18 contract, or any provision of a contract, entered into based 19 on a solicitation prior to the implementation date of this 20 Code as described in Article 99, including but not limited to 21 any covenant entered into with respect to any revenue bonds 22 or similar instruments. All procurements for which contracts 23 are solicited between the effective date of Articles 50 and 24 99 and July 1, 1998 shall be substantially in accordance with 25 this Code and its intent. 26 (b) This Code shall apply regardless of the source of 27 the funds with which the contracts are paid, including 28 federal assistance moneys. This Code shall not apply to: 29 (1) contracts between the State and its political 30 subdivisions or other governments, or between State SB1682 Engrossed -5- LRB9113101SMdvA 1 governmental bodies except as specifically provided in 2 this Code. 3 (2) grants. 4 (3) purchase of care. 5 (4) hiring of an individual as employee and not as 6 an independent contractor, whether pursuant to an 7 employment code or policy or by contract directly with 8 that individual. 9 (5) collective bargaining contracts. 10 (6) purchase of real estate. 11 (7) contracts necessary to prepare for anticipated 12 litigation, enforcement actions, or investigations, 13 provided that the chief legal counsel to the Governor 14 shall give his or her prior approval when the procuring 15 agency is one subject to the jurisdiction of the 16 Governor, and provided that the chief legal counsel of 17 any other procuring entity subject to this Code shall 18 give his or her prior approval when the procuring entity 19 is not one subject to the jurisdiction of the Governor. 20 (8) contracts for services to Northern Illinois 21 University by a person, acting as an independent 22 contractor, who is qualified by education, experience, 23 and technical ability and is selected by negotiation for 24 the purpose of providing non-credit educational service 25 activities or products by means of specialized programs 26 offered by the university. 27 (9) until May 15, 2002, contracts entered into by 28 the Department of Revenue to implement the sales tax 29 pilot project under the Streamlined Sales Tax System for 30 the 21st Century Act. 31 (Source: P.A. 90-572, eff. date - See Sec. 99-5; 91-627, eff. 32 8-19-99.) 33 Section 99. Effective date. This Act takes effect upon SB1682 Engrossed -6- LRB9113101SMdvA 1 becoming law.