[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3301 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 3301
To provide Federal reimbursement to State and local governments for a
limited sales, use, and retailers' occupation tax holiday.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 15, 2001
Mr. Graham (for himself, Mr. Blagojevich, Mr. Hilleary, Mr.
Abercrombie, Mr. Largent, Mr. Houghton, Mr. Brown of South Carolina,
Mr. Shimkus, Mr. Gutknecht, Mr. Riley, Mr. Baird, Mrs. Biggert, Mr.
Blunt, Mr. Cooksey, Mr. Davis of Illinois, Mr. Duncan, Mr. Foley, Mr.
Frost, Mr. Gordon, Ms. Hart, Mr. Jones of North Carolina, Mr. Kennedy
of Minnesota, Mr. Kirk, Mr. Knollenberg, Mr. LaHood, Mr. McGovern, Mrs.
Maloney of New York, Mr. Manzullo, Mr. Ortiz, Mr. Ramstad, Mr.
Reynolds, Mr. Rush, Mr. Shows, Mr. Sweeney, Mr. Taylor of North
Carolina, Mr. Thune, Mr. Vitter, Mr. Wamp, Mrs. Wilson, Mr. Grucci, and
Mr. Isakson) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide Federal reimbursement to State and local governments for a
limited sales, use, and retailers' occupation tax holiday.
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 AND LOCAL SALES TAX RELIEF FOR CONSUMERS.
(a) In General.--The Secretary shall reimburse each State for the
amount of State and local sales tax payable and not collected during
the sales tax holiday period.
(b) Determination and Timing of Reimbursement.--
(1) Predetermined amount.--Not later than January 4, 2002,
the Secretary shall pay to each State an amount equal to the
sum of--
(A)(i) the amount of State and local sales tax
payable and collected in such State during the same
period in 2000 as the sales tax holiday period, times
(ii) an acceleration factor equal to 1.73, plus
(B) an amount equal to 1 percent of the amount
determined under subparagraph (A) for State
administrative costs.
(2) Reconciliation amount.--Not later than March 6, 2002,
the Secretary shall pay to each electing State under subsection
(c)(2) an amount equal to the excess (if any) of--
(A) the amount of State and local sales tax payable
and not collected in such State during the sales tax
holiday period, over
(B) the amount determined under paragraph (1)(A)
and paid to such State.
(c) Requirement for Reimbursement.--The Secretary may not pay a
reimbursement under this section unless--
(1) the chief executive officer of the State informs the
Secretary, not later than November 28, 2001, of the intention
of the State to qualify for such reimbursement by not
collecting sales tax payable during the sales tax holiday
period,
(2) in the case of a State which elects to receive the
reimbursement of a reconciliation amount under subsection
(b)(2)--
(A) the chief executive officer of the State
informs the Secretary and the Director of Management
and Budget and the retail sellers of tangible property
in such State, not later than November 28, 2001, of the
intention of the State to make such an election,
(B) the chief executive officer of the State
informs the retail sellers of tangible property in such
State, not later than November 28, 2001, of the
intention of the State to make such an election and the
additional information (if any) that will be required
as an addendum to the standard reports required of such
retail sellers with respect to the reporting periods
including the sales tax holiday period,
(C) the chief executive officer reports to the
Secretary and the Director of Management and Budget,
not later than February 15, 2002, the amount determined
under subsection (b)(2) in a manner specified by the
Secretary,
(D) if amount determined under subsection (b)(1)(A)
and paid to such State exceeds the amount determined
under subsection (b)(2)(A), the chief executive officer
agrees to remit to the Secretary such excess not later
than March 6, 2002, and
(E) the chief executive officer of the State
certifies that such State--
(i) in the case of any retail seller unable
to identify and report sales which would
otherwise be taxable during the sales tax
holiday period, shall treat the reporting by
such seller of sales revenue during such
period, multiplied by the ratio of taxable
sales to total sales for the same period in 2000 as the sales tax
holiday period, as a good faith effort to comply with the requirements
under subparagraph (B), and
(ii) shall not treat any such retail seller
of tangible property who has made such a good
faith effort liable for any error made as a
result of such effort to comply unless it is
shown that the retailer acted recklessly or
fraudulently,
(3) in the case of any home rule State, the chief executive
officer of such State certifies that all local governments that
impose sales taxes in such State agree to provide a sales tax
holiday during the sales tax holiday period,
(4) the chief executive officer of the State agrees to pay
each local government's share of the reimbursement (as
determined under subsection (d)) not later than 20 days after
receipt of such reimbursement, and
(5) in the case of not more than 20 percent of the States
which elect to receive the reimbursement of a reconciliation
amount under subsection (b)(2), the Director of Management and
Budget certifies the amount of the reimbursement required under
subsection (b)(2) based on the reports by the chief executive
officers of such States under paragraph (2)(C).
(d) Determination of Reimbursement of Local Sales Taxes.--For
purposes of subsection (c)(4), a local government's share of the
reimbursement to a State under this section shall be based on the ratio
of the local sales tax to the State sales tax for such State for the
same time period taken into account in determining such reimbursement,
based on data published by the Bureau of the Census.
(e) Definitions.--For purposes of this section--
(1) Home rule state.--The term ``home rule State'' means a
State that does not control imposition and administration of
local taxes.
(2) Local.--The term ``local'' means a city, county, or
other subordinate revenue or taxing authority within a State.
(3) Sales tax.--The term ``sales tax'' means--
(A) a tax imposed on or measured by general retail
sales of taxable tangible property, or services
performed incidental to the sale 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 directly
collected by retail 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 and beverages
sold for immediate consumption on the premises, beverages
containing alcohol, and tobacco products.
(4) Sales tax holiday period.--The term ``sales tax holiday
period'' means the period beginning after December 7, 2001, and
ending before December 16, 2001.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(6) State.--The term ``State'' means any of the several
States, the District of Columbia, or the Commonwealth of Puerto
Rico.
(7) Use tax.--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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