Bill Text: IL HB5807 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, if a retailer inadvertently collects from a purchaser the entire 6.25% rate of tax on a sales tax holiday item, and if the retailer does not refund the excess tax proceeds to the purchaser, then the retailer shall remit those proceeds to the Department of Revenue in accordance with rules adopted by the Department of Revenue. Amends the Uniform Penalty and Interest Act. Provides that no penalties or interest shall be imposed under the Act for failure to pay a tax under the Use Tax Act or the Retailers' Occupation Tax Act on tangible personal property that is sold between August 5, 2022 and August 14, 2022 if (i) the failure to pay the tax was due to the taxpayer's mistaken belief that the item was a sales tax holiday item and (ii) the taxpayer made a good faith effort to comply with the requirements of the sales tax holiday. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-11-16 - Referred to Rules Committee [HB5807 Detail]

Download: Illinois-2021-HB5807-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5807 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED:
5 ILCS 100/5-45.21 new
35 ILCS 105/3-6.1 new
35 ILCS 120/2-8.1 new
35 ILCS 735/3-8.1 new
Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, if a retailer inadvertently collects from a purchaser the entire 6.25% rate of tax on a sales tax holiday item, and if the retailer does not refund the excess tax proceeds to the purchaser, then the retailer shall remit those proceeds to the Department of Revenue in accordance with rules adopted by the Department of Revenue. Amends the Uniform Penalty and Interest Act. Provides that no penalties or interest shall be imposed under the Act for failure to pay a tax under the Use Tax Act or the Retailers' Occupation Tax Act on tangible personal property that is sold between August 5, 2022 and August 14, 2022 if (i) the failure to pay the tax was due to the taxpayer's mistaken belief that the item was a sales tax holiday item and (ii) the taxpayer made a good faith effort to comply with the requirements of the sales tax holiday. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.21 as follows:
(5 ILCS 100/5-45.21 new)
Sec. 5-45.21. Emergency rulemaking; sales tax holiday. To
provide for the expeditious and timely implementation of this
amendatory Act of the 102nd General Assembly, emergency rules
implementing this amendatory Act of the 102nd General Assembly
may be adopted in accordance with Section 5-45 by the
Department of Revenue. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 102nd General Assembly.
Section 5. The Use Tax Act is amended by adding Section
3-6.1 as follows:
(35 ILCS 105/3-6.1 new)
Sec. 3-6.1. Tax collected on sales tax holiday items. If,
between August 5, 2022 and August 14, 2022, a retailer

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inadvertently collects from a purchaser the entire 6.25% rate
of tax on a sales tax holiday item described in Section 3-6,
and if the retailer does not refund the excess tax proceeds to
the purchaser, then the retailer shall remit those proceeds to
the Department in accordance with rules adopted by the
Department. Excess tax proceeds remitted to the Department
under this Section shall be allocated in the manner described
in Section 9 for proceeds generated from the 6.25% general
rate on the selling price of tangible personal property.
Section 10. The Retailers' Occupation Tax Act is amended
by adding Section 2-8.1 as follows:
(35 ILCS 120/2-8.1 new)
Sec. 2-8.1. Tax collected on sales tax holiday items. If,
between August 5, 2022 and August 14, 2022, a retailer
inadvertently collects from a purchaser the entire 6.25% rate
of tax on a sales tax holiday item described in Section 2-8,
and if the retailer does not refund the excess tax proceeds to
the purchaser, then the retailer shall remit those proceeds to
the Department in accordance with rules adopted by the
Department. Excess tax proceeds remitted to the Department
under this Section shall be allocated in the manner described
in Section 3 for proceeds generated from the 6.25% general
rate on the selling price of tangible personal property.

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Section 15. The Uniform Penalty and Interest Act is
amended by adding Section 3-8.1 as follows:
(35 ILCS 735/3-8.1 new)
Sec. 3-8.1. Sales tax holiday. No penalties or interest
shall be imposed under this Act for failure to pay a tax under
the Use Tax Act or the Retailers' Occupation Tax Act on
tangible personal property that is sold between August 5, 2022
and August 14, 2022 if (i) the failure to pay the tax was due
to the taxpayer's mistaken belief that the item was a sales tax
holiday item, as described in Section 3-6 of the Use Tax Act or
Section 2-8 of the Retailers' Occupation Tax Act, and (ii) the
taxpayer made a good faith effort to comply with the
requirements of the sales tax holiday that occurred between
August 5, 2022 and August 14, 2022.
Section 99. Effective date. This Act takes effect upon
becoming law.