text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Consumer and Retail Sales Stimulus 
  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 30 days after the 
          expiration of the sales tax holiday period, 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 60 days after 
          the expiration of the sales tax holiday period, 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 10 days after the date of the 
          enactment of this Act, 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 10 days after the date of 
                  the enactment of this Act, 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 10 days after the date of the 
                  enactment of this Act, 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 45 days after the expiration of the 
                  sales tax holiday period, 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 60 days after the expiration of the sales tax 
                  holiday period, 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 30-day period beginning on the 21st day 
          occurring after the date of the enactment of this Act.
              (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.
target: Consumer and Retail Sales Stimulus Act of 2001 - Directs the Secretary of the Treasury to reimburse States for the amount of State and local sales tax payable and not collected during the sales tax holiday period. Sets forth requirements and formulae for determining the amount and timing of reimbursement.
feat_title: To provide Federal reimbursement to State and local governments for a 30-day sales, use, and retailers' occupation tax holiday.