101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2468

Introduced 1/19/2020, by Sen. Ann Gillespie

SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.930 new

Creates the Assault Weapon Retailers' Tax Act. Imposes a tax on licensed firearm dealers engaged in the State in the business of making retail sales of assault weapons, large capacity ammunition feeding devices, or both. Provides that the tax shall be imposed at the rate of 10% of the retail selling price each assault weapon or large capacity ammunition feeding device sold in the State. Provides that the proceeds from the tax shall be deposited into the Firearms Tax Fund. Provides that moneys in the Firearms Tax Fund shall be used to prevent gun violence in schools and State-owned buildings. Amends the State Finance Act to create the Firearms Tax Fund.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Assault Weapon Retailers' Tax Act.
6 Section 5. Definitions. As used in this Act:
7 "Assault weapon" means a firearm that accepts large
8capacity ammunition feeding devices.
9 "Department" means the Department of Revenue.
10 "Large capacity ammunition feeding device" means:
11 (1) a magazine, belt, drum, feed strip, or similar
12 device that has a capacity of, or that can be readily
13 restored or converted to accept, more than 10 rounds of
14 ammunition; or
15 (2) any combination of parts from which a device
16 described in paragraph (1) can be assembled.
17 "Large capacity ammunition feeding device" does not
18include an attached tubular device designed to accept, and
19capable of operating only with, .22 caliber rimfire ammunition.
20"Large capacity ammunition feeding device" does not include a
21tubular magazine that is contained in a lever-action firearm or
22any device that has been made permanently inoperable.
23 "Licensed firearm dealer" means a person who possesses a

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1valid certificate of license issued under the Firearm Dealer
2License Certification Act.
3 "Person" means any natural individual, firm, partnership,
4association, joint stock company, joint adventure, public or
5private corporation, limited liability company, or a receiver,
6executor, trustee, guardian, or other representative appointed
7by order of any court.
8 "Retail selling price" means the consideration for a sale
9valued in money whether received in money or otherwise,
10including cash, credits, property, and services. "Retail
11selling price" shall be determined without any deduction on
12account of the cost of the property sold, the cost of materials
13used, labor or service cost, or any other expense, but does not
14include charges that are added by sellers on account of the tax
15imposed under this Act or any federal, State, or local tax
16required to be collected by the seller.
17 Section 10. Tax imposed. Beginning on January 1, 2021, a
18tax is imposed on each licensed firearm dealer engaged in the
19State in the business of making retail sales of assault
20weapons, large capacity ammunition feeding devices, or both.
21The tax shall be imposed at the rate of 10% of the retail
22selling price of each assault weapon or large capacity
23ammunition feeding device sold in the State. The Department may
24adopt rules for the implementation and enforcement of this Act.
25Proceeds from the tax shall be deposited into the Firearms Tax

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1Fund.
2 Section 15. Exemptions. The following are exempt from the
3tax imposed under this Act:
4 (1) sales of firearms or large capacity ammunition
5 feeding devices to any federal, State, or local law
6 enforcement agency; and
7 (2) sales between unlicensed persons where the
8 licensed firearm dealer's only role is to facilitate the
9 sale by conducting a background check.
10 Section 20. Returns; payment of tax. On or before the
11twentieth day of January, April, July, and October, every
12person engaged in the business of selling assault weapons,
13large capacity ammunition feeding devices, or both at retail in
14this State during the preceding calendar quarter shall file a
15return with the Department, stating:
16 (1) the name of the licensed firearm dealer;
17 (2) his residence address and the address of his
18 principal place of business and the address of the
19 principal place of business (if that is a different
20 address) from which he engages in business as a licensed
21 firearm dealer in this State;
22 (3) the total amount of receipts received by him during
23 the preceding calendar quarter from taxable sales under
24 this Act;

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1 (4) the amount of tax due;
2 (5) the signature of the taxpayer; and
3 (6) such other reasonable information as the
4 Department may require.
5 With each such return, the licensed firearm dealer shall
6remit the proper amount of tax due (or shall submit
7satisfactory evidence that the sale is not taxable if that is
8the case), to the Department or its agents. The Department may
9adopt rules requiring or allowing payments to be made by
10electronic funds transfer or any other lawful means.
11 All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
125g, 5i, 5j, and 13 of the Retailers' Occupation Tax Act, which
13are not inconsistent with this Act, and Section 3-7 of the
14Uniform Penalty and Interest Act shall apply, as far as
15practicable, to the subject matter of this Act to the same
16extent as if such provisions were included herein. References
17in such incorporated Sections of the "Retailers' Occupation Tax
18Act" to retailers, to sellers or to persons engaged in the
19business of selling tangible personal property shall mean
20licensed firearm dealers when used in this Act.
21 In case any person who is required to file a return under
22this Act fails to file such return, the Department shall
23determine the amount of tax due from him according to its best
24judgment and information, which amount so fixed by the
25Department shall be prima facie correct and shall be prima
26facie evidence of the correctness of the amount of tax due, as

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1shown in such determination. Proof of such determination by the
2Department may be made at any hearing before the Department or
3in any legal proceeding by a reproduced copy of the
4Department's record relating thereto in the name of the
5Department under the certificate of the Director of Revenue.
6Such reproduced copy shall, without further proof, be admitted
7into evidence before the Department or in any legal proceeding
8and shall be prima facie proof of the correctness of the amount
9of tax due, as shown therein. The Department shall issue such
10person a notice of tax liability for the amount of tax claimed
11by the Department to be due, together with a penalty in an
12amount determined in accordance with Sections 3-3, 3-5 and 3-6
13of the Uniform Penalty and Interest Act. If such person or the
14legal representative of such person, within 60 days after such
15notice, files a protest to such notice of tax liability and
16requests a hearing thereon, the Department shall give notice to
17such person or the legal representative of such person of the
18time and place fixed for such hearing and shall hold a hearing
19in conformity with the provisions of this Act, and pursuant
20thereto shall issue a final assessment to such person or to the
21legal representative of such person for the amount found to be
22due as a result of such hearing. If a protest to the notice of
23tax liability and a request for a hearing thereon is not filed
24within 60 days after such notice of tax liability, such notice
25of tax liability shall become final without the necessity of a
26final assessment being issued and shall be deemed to be a final

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1assessment. Any person aggrieved by a final decision of the
2Department under this Section may obtain review of the decision
3under the provisions of the Administrative Review Law.
4 Section 25. Firearms Tax Fund; creation; deposit of tax
5proceeds. The Firearms Tax Fund is hereby created as a special
6fund in the State treasury. Moneys in the Fund shall be used to
7prevent gun violence in schools and State-owned buildings by
8funding programs that promote safety and prevent gun violence
9in those areas, as well as safety enhancements in such schools
10and State-owned buildings; however, no funds shall be used to
11arm or increase arming of personnel in those buildings. Such
12programs may include, but are not limited to, research,
13prevention, and youth education and employment programs.
14Moneys in the Fund may also be used for administrative costs
15related to the Fund. Interest earned on moneys in the Fund
16shall be deposited into the Fund.
17 Section 900. The State Finance Act is amended by adding
18Section 5.930 as follows:
19 (30 ILCS 105/5.930 new)
20 Sec. 5.930. The Firearms Tax Fund.