To provide Federal reimbursement to State and local governments for a limited sales, use, and retailers' occupation tax holiday, and to offset the cost of such reimbursements.

SA 3389. Mr. BURR proposed an amendment to amendment SA 3336 proposed
by Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code
of 1986 to extend certain expiring provisions, and for other purposes;
as follows:

On page 268, between lines 11 and 12, insert the following:

SEC. __. STATE AND LOCAL SALES TAX RELIEF FOR CONSUMERS.

(a) In General.--The Secretary shall reimburse each State
for 75 percent of 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 45 days after the
date of the enactment of this Act, the Secretary shall pay to
each State an amount equal to the sum of--
(A)(i) 75 percent of the amount of State and local sales
tax payable and collected in such State during the same
period in 2009 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 July 1, 2010,
the Secretary shall pay to each electing State under
subsection (c)(2) an amount equal to the excess (if any) of--
(A) 75 percent of 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 the first day of the sales tax
holiday period 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 the first day of the sales tax holiday period 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 the first day of the sales tax holiday period 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
June 1, 2010, 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 July 1,
2010, 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
2010 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

[[Page S1105]]

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--
(A) beginning on the first Friday which is 30 days after
the date of the enactment of this Act, and
(B) ending on the date which is 10 days after the date
described in subparagraph (A).
(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.

SEC. ___. RESCISSION OF DISCRETIONARY AMOUNTS APPROPRIATED BY
THE AMERICAN RECOVERY AND REINVESTMENT ACT OF
2009.

(a) In General.--All discretionary amounts made available
by the American Recovery and Reinvestment Act of 2009 (123
Stat. 115; Public Law No: 111-5) that are unobligated on the
date of the enactment of this Act are hereby rescinded.
(b) Administration.--Not later than 30 days after the date
of the enactment of this Act, the Director of the Office of
Management and Budget shall--
(1) administer the reduction specified in subsection (a);
and
(2) submit to the Committee on Appropriations of the Senate
and the Committee on Appropriations of the House of
Representatives a report specifying the account and the
amount of each reduction made pursuant to subsection (a).
______