[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3172 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3172

   To provide Federal reimbursement to the States for a limited tax 
   holiday during the period beginning November 23, 2001, and ending 
                           December 2, 2001.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 25, 2001

      Mr. Graham (for himself, Mr. Blagojevich, Mr. Hilleary, Mr. 
 Abercrombie, Mr. Largent, Mr. Houghton, Mr. Brown of South Carolina, 
Mr. Shimkus, Mr. Shadegg, Mr. Gutknecht, and Mr. Riley) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To provide Federal reimbursement to the States for a limited tax 
   holiday during the period beginning November 23, 2001, and ending 
                           December 2, 2001.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sales Tax Holiday Act of 2001''.

SEC. 2. STATE SALES TAX RELIEF FOR CONSUMERS.

    (a) In General.--The Secretary of the Treasury shall reimburse each 
eligible State for the amount of State sales tax not collected with 
respect to taxable tangible personal property payable for the period 
beginning November 23, 2001, and ending December 2, 2001.
    (b) Requirement for Reimbursement.--The Secretary may not pay a 
reimbursement under subsection (a) unless--
            (1) the chief executive officer of the State informs the 
        Secretary of the Treasury and the Director of Management and 
        Budget, not later than November 15, 2001, of the intention of 
        the State to qualify for such reimbursement,
            (2) the chief executive officer of such State agrees to 
        verify, not later than June 1, 2002, the amount of State sales 
        tax not collected with respect such property during such 
        period, and
            (3) the Director of Management and Budget certifies such 
        amount and recommends the amount of the reimbursement required 
        by subsection (a).
    (c) Eligibility.--To be eligible to receive a reimbursement under 
subsection (a), a State shall--
            (1) not collect sales tax with respect to taxable tangible 
        personal property payable for the period beginning November 23, 
        2001, and ending December 2, 2001, and
            (2) shall comply with the requirements of this Act.
    (d) Prepayment With Adjustments.--
            (1) Advance payment.--Subject to adjustment under paragraph 
        (2), not later than February 1, 2002, the Secretary of the 
        Treasury shall pay to each eligible State an amount equal to 80 
        percent of the annual average amount of sales tax collected by 
        such State with respect to taxable tangible personal property 
        payable during the taxable period in 1998, 1999, and 2000.
            (2) Adjustment.--The amount paid under paragraph (1) shall 
        be adjusted for overpayment or underpayment to conform to the 
        amount required to be paid under subsection (a).

SEC. 3. NEW YORK CITY SALES TAX RELIEF FOR CONSUMERS.

    (a) In General.--The Secretary of the Treasury shall reimburse the 
city of New York in the State of New York for the amount of municipal 
sales tax not collected with respect to taxable tangible personal 
property payable for the period beginning November 23, 2001, and ending 
December 2, 2001.
    (b) Requirement for Reimbursement.--The Secretary may not pay a 
reimbursement under subsection (a) unless--
            (1) the Mayor of the city of New York informs the Secretary 
        of the Treasury and the Director of Management and Budget, not 
        later than November 15, 2001, of the intention of the city of 
        New York to qualify for such reimbursement,
            (2) the Mayor of the city of New York agrees to verify, not 
        later than June 1, 2002, the amount of municipal sales tax not 
        collected with respect such property during such period, and--
            (3) the Director of Management and Budget certifies such 
        amount and recommends the amount of the reimbursement required 
        by subsection (a).
    (c) Eligibility.--To be eligible to receive a reimbursement under 
subsection (a), the City of New York shall--
            (1) not collect municipal sales tax with respect to taxable 
        tangible personal property payable for the period beginning 
        November 23, 2001, and ending December 2, 2001, and
            (2) shall comply with the requirements of this Act.
    (d) Prepayment With Adjustments.--
            (1) Advance payment.--Subject to adjustment under paragraph 
        (2), not later than February 1, 2002, the Secretary of the 
        Treasury shall pay to the Mayor of the city of New York an 
        amount equal to 80 percent of the annual average amount of 
        sales tax collected by such city with respect to taxable 
        tangible personal property payable during the taxable period in 
        1998, 1999, and 2000.
            (2) Adjustment.--The amount paid under paragraph (1) shall 
        be adjusted for overpayment or underpayment to conform to the 
        amount required to be paid under subsection (a).

SEC. 4. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``sales tax'' means--
                    (A) a tax imposed on or measured by general retail 
                sales of taxable tangible property, that is--
                            (i) calculated as a percentage of the 
                        price, gross receipts, or gross proceeds; and
                            (ii) can or is required to be collected 
                        directly by sellers from purchasers of such 
                        property,
                    (B) a use tax, or
                    (C) the Illinois Retailers' Occupation Tax, as 
                defined under the law of the State of Illinois,
        but excludes any tax payable with respect to food, tobacco 
        products, and beverages containing alcohol,
            (2) the term ``State'' means any of the several States, the 
        District of Columbia, or the Commonwealth of Puerto Rico,
            (3) the term ``taxable period'' means the period beginning 
        November 23 and ending December 2, and
            (4) the term ``use tax'' means a tax imposed on the 
        storage, use, or other consumption of tangible property that is 
        not subject to sales tax.
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