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
 


HB5807LRB102 28551 HLH 40428 b



1 AN ACT concerning revenue.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 3. The Illinois Administrative Procedure Act is 
5amended by adding Section 5-45.21 as follows:

6 (5 ILCS 100/5-45.21 new)
7 Sec. 5-45.21. Emergency rulemaking; sales tax holiday. To 
8provide for the expeditious and timely implementation of this 
9amendatory Act of the 102nd General Assembly, emergency rules 
10implementing this amendatory Act of the 102nd General Assembly 
11may be adopted in accordance with Section 5-45 by the 
12Department of Revenue. The adoption of emergency rules 
13authorized by Section 5-45 and this Section is deemed to be 
14necessary for the public interest, safety, and welfare.
15 This Section is repealed one year after the effective date 
16of this amendatory Act of the 102nd General Assembly.

17 Section 5. The Use Tax Act is amended by adding Section 
183-6.1 as follows:

19 (35 ILCS 105/3-6.1 new)
20 Sec. 3-6.1. Tax collected on sales tax holiday items. If, 
21between August 5, 2022 and August 14, 2022, a retailer 
 
 
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1inadvertently collects from a purchaser the entire 6.25% rate 
2of tax on a sales tax holiday item described in Section 3-6, 
3and if the retailer does not refund the excess tax proceeds to 
4the purchaser, then the retailer shall remit those proceeds to 
5the Department in accordance with rules adopted by the 
6Department. Excess tax proceeds remitted to the Department 
7under this Section shall be allocated in the manner described 
8in Section 9 for proceeds generated from the 6.25% general 
9rate on the selling price of tangible personal property.

10 Section 10. The Retailers' Occupation Tax Act is amended 
11by adding Section 2-8.1 as follows:

12 (35 ILCS 120/2-8.1 new)
13 Sec. 2-8.1. Tax collected on sales tax holiday items. If, 
14between August 5, 2022 and August 14, 2022, a retailer 
15inadvertently collects from a purchaser the entire 6.25% rate 
16of tax on a sales tax holiday item described in Section 2-8, 
17and if the retailer does not refund the excess tax proceeds to 
18the purchaser, then the retailer shall remit those proceeds to 
19the Department in accordance with rules adopted by the 
20Department. Excess tax proceeds remitted to the Department 
21under this Section shall be allocated in the manner described 
22in Section 3 for proceeds generated from the 6.25% general 
23rate on the selling price of tangible personal property.

 
 
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1 Section 15. The Uniform Penalty and Interest Act is 
2amended by adding Section 3-8.1 as follows:

3 (35 ILCS 735/3-8.1 new)
4 Sec. 3-8.1. Sales tax holiday. No penalties or interest 
5shall be imposed under this Act for failure to pay a tax under 
6the Use Tax Act or the Retailers' Occupation Tax Act on 
7tangible personal property that is sold between August 5, 2022 
8and August 14, 2022 if (i) the failure to pay the tax was due 
9to the taxpayer's mistaken belief that the item was a sales tax 
10holiday item, as described in Section 3-6 of the Use Tax Act or 
11Section 2-8 of the Retailers' Occupation Tax Act, and (ii) the 
12taxpayer made a good faith effort to comply with the 
13requirements of the sales tax holiday that occurred between 
14August 5, 2022 and August 14, 2022.


15 Section 99. Effective date. This Act takes effect upon 
16becoming law.