90th General Assembly
Summary of SB1313
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Senate Sponsors:
PETERSON AND LAUZEN.

House Sponsors:
KUBIK-BRUNSVOLD

Short description: 
USE OCC TXS-PREPAID PHONE CARD                                             

Synopsis of Bill as introduced:
        Amends the Use Tax Act, the Service  Use  Tax  Act,  the  Service      
   Occupation  Tax  Act, and the Retailers' Occupation Tax Act.  Provides      
   that any sale or use of a prepaid telephone calling card or a  prepaid      
   authorization  number  or  reauthorization  number shall be deemed the      
   sale or use of tangible personal property and subject  only  to  taxes      
   imposed  under  those  Acts.  Amends the Telecommunications Excise Tax      
   Act to provide that the sale or use of the cards  or  numbers  is  not      
   subject to the tax imposed under that Act.  Effective immediately.          
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          35 ILCS 105/3-5.7 new                                                
          35 ILCS 110/3-5.7 new                                                
          35 ILCS 115/3-5.7 new                                                
          35 ILCS 120/2j new                                                   
          35 ILCS 630/5.5 new                                                  
          Adds reference to:                                                   
          35 ILCS 105/3                   from Ch. 120, par. 439.3             
          35 ILCS 110/3                   from Ch. 120, par. 439.33            
          35 ILCS 115/3                   from Ch. 120, par. 439.103           
          35 ILCS 120/2                   from Ch. 120, par. 441               
          35 ILCS 630/2                   from Ch. 120, par. 2002              
          65 ILCS 5/8-11-17               from Ch. 24, par. 8-11-17            
        Deletes everything after the enacting clause.  Amends the Use Tax      
   Act, the Service Use Tax Act, the Service Occupation Tax Act, and  the      
   Retailers' Occupation Tax Act.                                              
   Subjects  to  the  taxes  imposed  under  these Acts prepaid telephone      
   calling cards, prepaid telephone authorization  numbers,  and  prepaid      
   telephone reauthorization numbers.                                          
   Provides  that  if  the sale of these items does not take place at the      
   retailer's place  of  business,  then  it  is  shall  be  conclusively      
   determined  to  take  place  at the customer's address, which shall be      
   retained by the  provider  of  the  authorization  or  reauthorization      
   number. Amends the Telecommunications Excise Tax Act and the municipal      
   telecommunications tax provisions of the Illinois Municipal Code.           
   Excludes from these  tax  provisions  communications  attributable  to      
   prepaid  telephone  calling  cards,  prepaid  telephone  authorization      
   numbers,  or prepaid telephone reauthorization numbers.  Provides that      
   nothing in the amendatory Act shall eliminate or affect the collection      
   of the tax imposed by Section 2-202 of the Public Utilities Act.            
          FISCAL NOTE (Dpt. Revenue)                                           
          There may be a negative fiscal impact to the State from chang-       
          ing the tax rate from 7% (telecommunications excise tax) to          
          6.25% (sales tax). Specific data is not available to determine       
          the resulting fiscal impact.                                         
          STATE MANDATES ACT FISCAL NOTE                                       
          Fails to create a State mandate.                                     
          HOME RULE NOTE                                                       
          Contains no language preempting home rule authority.                 
 
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   1


   END OF INQUIRY 



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