[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
91_SB1682enr SB1682 Enrolled 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 Enrolled -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 Enrolled -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 Enrolled -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 99. Effective date. This Act takes effect upon 12 becoming law.