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91_SB0432
LRB9100062PTpk
1 AN ACT to exempt senior citizens from certain taxes,
2 amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Gas Revenue Tax Act is amended by
6 changing Section 1 as follows:
7 (35 ILCS 615/1) (from Ch. 120, par. 467.16)
8 Sec. 1. Definitions. For the purposes of this Act:
9 "Gross receipts" means the consideration received for gas
10 distributed, supplied, furnished or sold to persons for use
11 or consumption and not for resale, and for all services
12 (including the transportation or storage of gas for an
13 end-user) rendered in connection therewith, and shall include
14 cash, services and property of every kind or nature, and
15 shall be determined without any deduction on account of the
16 cost of the service, product or commodity supplied, the cost
17 of materials used, labor or service costs, or any other
18 expense whatsoever. However, "gross receipts" shall not
19 include receipts from:
20 (i) any minimum or other charge for gas or gas
21 service where the customer has taken no therms of gas;
22 (ii) any charge for a dishonored check;
23 (iii) any finance or credit charge, penalty or
24 charge for delayed payment, or discount for prompt
25 payment;
26 (iv) any charge for reconnection of service or for
27 replacement or relocation of facilities;
28 (v) any advance or contribution in aid of
29 construction;
30 (vi) repair, inspection or servicing of equipment
31 located on customer premises;
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1 (vii) leasing or rental of equipment, the leasing
2 or rental of which is not necessary to distributing,
3 furnishing, supplying, selling, transporting or storing
4 gas;
5 (viii) any sale to a customer if the taxpayer is
6 prohibited by federal or State constitution, treaty,
7 convention, statute or court decision from recovering the
8 related tax liability from such customer;
9 (ix) any charges added to customers' bills pursuant
10 to the provisions of Section 9-221 or Section 9-222 of
11 the Public Utilities Act, as amended, or any charges
12 added to customers' bills by taxpayers who are not
13 subject to rate regulation by the Illinois Commerce
14 Commission for the purpose of recovering any of the tax
15 liabilities or other amounts specified in such provisions
16 of such Act; and
17 (x) any charge for gas or gas services to a
18 customer who acquired contractual rights for the direct
19 purchase of gas or gas services originating from an
20 out-of-state supplier or source on or before March 1,
21 1995, except for those charges solely related to the
22 local distribution of gas by a public utility. This
23 exemption includes any charge for gas or gas service,
24 except for those charges solely related to the local
25 distribution of gas by a public utility, to a customer
26 who maintained an account with a public utility (as
27 defined in Section 3-105 of the Public Utilities Act) for
28 the transportation of customer-owned gas on or before
29 March 1, 1995. The provisions of this amendatory Act of
30 1997 are intended to clarify, rather than change,
31 existing law as to the meaning and scope of this
32 exemption; and.
33 (xi) beginning January 1, 1999, and without being
34 subject to Section 2a.3, any charge for gas or gas
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1 services for residential use or consumption to a customer
2 who (1) is an individual 65 years of age or older, (2)
3 occupies the serviced property as a principal residence,
4 and (3) is liable for payment of the charge. The amount
5 of tax saved under this item (xi) shall be deducted from
6 and reflected in the qualifying customer's bill.
7 In case credit is extended, the amount thereof shall be
8 included only as and when payments are received.
9 "Gross receipts" shall not include consideration received
10 from business enterprises certified under Section 9-222.1 of
11 the Public Utilities Act, as amended, to the extent of such
12 exemption and during the period of time specified by the
13 Department of Commerce and Community Affairs.
14 "Department" means the Department of Revenue of the State
15 of Illinois.
16 "Director" means the Director of Revenue for the
17 Department of Revenue of the State of Illinois.
18 "Taxpayer" means a person engaged in the business of
19 distributing, supplying, furnishing or selling gas for use or
20 consumption and not for resale.
21 "Person" means any natural individual, firm, trust,
22 estate, partnership, association, joint stock company, joint
23 adventure, corporation, limited liability company, or a
24 receiver, trustee, guardian or other representative appointed
25 by order of any court, or any city, town, county or other
26 political subdivision of this State.
27 "Invested capital" means that amount equal to (i) the
28 average of the balances at the beginning and end of each
29 taxable period of the taxpayer's total stockholder's equity
30 and total long-term debt, less investments in and advances to
31 all corporations, as set forth on the balance sheets included
32 in the taxpayer's annual report to the Illinois Commerce
33 Commission for the taxable period; (ii) multiplied by a
34 fraction determined under Sections 301 and 304(a) of the
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1 Illinois "Illinois Income Tax Act Act" and reported on the
2 Illinois income tax return for the taxable period ending in
3 or with the taxable period in question. However,
4 notwithstanding the income tax return reporting requirement
5 stated above, beginning July 1, 1979, no taxpayer's
6 denominators used to compute the sales, property or payroll
7 factors under subsection (a) of Section 304 of the Illinois
8 Income Tax Act shall include payroll, property or sales of
9 any corporate entity other than the taxpayer for the purposes
10 of determining an allocation for the invested capital tax.
11 This amendatory Act of 1982, Public Act 82-1024, is not
12 intended to and does not make any change in the meaning of
13 any provision of this Act, it having been the intent of the
14 General Assembly in initially enacting the definition of
15 "invested capital" to provide for apportionment of the
16 invested capital of each company, based solely upon the
17 sales, property and payroll of that company.
18 "Taxable period" means each period which ends after the
19 effective date of this Act and which is covered by an annual
20 report filed by the taxpayer with the Illinois Commerce
21 Commission.
22 (Source: P.A. 89-417, eff. 1-1-96; 90-16, eff. 6-16-97.)
23 Section 10. The Telecommunications Excise Tax Act is
24 amended by changing Section 2 as follows:
25 (35 ILCS 630/2) (from Ch. 120, par. 2002)
26 Sec. 2. Definitions. As used in this Article, unless
27 the context clearly requires otherwise:
28 (a) "Gross charge" means the amount paid for the act or
29 privilege of originating or receiving telecommunications in
30 this State and for all services and equipment provided in
31 connection therewith by a retailer, valued in money whether
32 paid in money or otherwise, including cash, credits, services
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1 and property of every kind or nature, and shall be determined
2 without any deduction on account of the cost of such
3 telecommunications, the cost of materials used, labor or
4 service costs or any other expense whatsoever. In case
5 credit is extended, the amount thereof shall be included only
6 as and when paid. "Gross charges" for private line service
7 shall include charges imposed at each channel point within
8 this State, charges for the channel mileage between each
9 channel point within this State, and charges for that portion
10 of the interstate inter-office channel provided within
11 Illinois. However, "gross charges" shall not include:
12 (1) any amounts added to a purchaser's bill because
13 of a charge made pursuant to (i) the tax imposed by this
14 Article; (ii) charges added to customers' bills pursuant
15 to the provisions of Sections 9-221 or 9-222 of the
16 Public Utilities Act, as amended, or any similar charges
17 added to customers' bills by retailers who are not
18 subject to rate regulation by the Illinois Commerce
19 Commission for the purpose of recovering any of the tax
20 liabilities or other amounts specified in such provisions
21 of such Act; or (iii) the tax imposed by Section 4251 of
22 the Internal Revenue Code;
23 (2) charges for a sent collect telecommunication
24 received outside of the State;
25 (3) charges for leased time on equipment or charges
26 for the storage of data or information for subsequent
27 retrieval or the processing of data or information
28 intended to change its form or content. Such equipment
29 includes, but is not limited to, the use of calculators,
30 computers, data processing equipment, tabulating
31 equipment or accounting equipment and also includes the
32 usage of computers under a time-sharing agreement;
33 (4) charges for customer equipment, including such
34 equipment that is leased or rented by the customer from
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1 any source, wherein such charges are disaggregated and
2 separately identified from other charges;
3 (5) charges to business enterprises certified under
4 Section 9-222.1 of the Public Utilities Act, as amended,
5 to the extent of such exemption and during the period of
6 time specified by the Department of Commerce and
7 Community Affairs;
8 (6) charges for telecommunications and all services
9 and equipment provided in connection therewith between a
10 parent corporation and its wholly owned subsidiaries or
11 between wholly owned subsidiaries when the tax imposed
12 under this Article has already been paid to a retailer
13 and only to the extent that the charges between the
14 parent corporation and wholly owned subsidiaries or
15 between wholly owned subsidiaries represent expense
16 allocation between the corporations and not the
17 generation of profit for the corporation rendering such
18 service;
19 (7) bad debts. "Bad debt" Bad debt means any
20 portion of a debt that is related to a sale at retail for
21 which gross charges are not otherwise deductible or
22 excludable that has become worthless or uncollectable, as
23 determined under applicable federal income tax standards.
24 If the portion of the debt deemed to be bad is
25 subsequently paid, the retailer shall report and pay the
26 tax on that portion during the reporting period in which
27 the payment is made;
28 (8) charges paid by inserting coins in
29 coin-operated telecommunication devices;
30 (9) amounts paid by telecommunications retailers
31 under the Telecommunications Municipal Infrastructure
32 Maintenance Fee Act; and.
33 (10) beginning January 1, 1999, and without being
34 subject to Section 4.5, charges for telecommunications
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1 and related services and equipment to a residential
2 customer, or nonbusiness customer in the case of cellular
3 telecommunications services, who (i) is an individual 65
4 years of age or older, (ii) is liable for the payment of
5 the charges, and (iii) in the case of noncellular
6 telecommunications services, occupies the serviced
7 property as a principal residence. The amount of tax
8 saved under this paragraph (10) shall be deducted from
9 and reflected in the qualifying customer's bill.
10 (b) "Amount paid" means the amount charged to the
11 taxpayer's service address in this State regardless of where
12 such amount is billed or paid.
13 (c) "Telecommunications", in addition to the meaning
14 ordinarily and popularly ascribed to it, includes, without
15 limitation, messages or information transmitted through use
16 of local, toll and wide area telephone service; private line
17 services; channel services; telegraph services;
18 teletypewriter; computer exchange services; cellular mobile
19 telecommunications service; specialized mobile radio;
20 stationary two way radio; paging service; or any other form
21 of mobile and portable one-way or two-way communications; or
22 any other transmission of messages or information by
23 electronic or similar means, between or among points by wire,
24 cable, fiber-optics, laser, microwave, radio, satellite or
25 similar facilities. As used in this Act, "private line" means
26 a dedicated non-traffic sensitive service for a single
27 customer, that entitles the customer to exclusive or priority
28 use of a communications channel or group of channels, from
29 one or more specified locations to one or more other
30 specified locations. The definition of "telecommunications"
31 shall not include value added services in which computer
32 processing applications are used to act on the form, content,
33 code and protocol of the information for purposes other than
34 transmission. "Telecommunications" shall not include
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1 purchases of telecommunications by a telecommunications
2 service provider for use as a component part of the service
3 provided by him to the ultimate retail consumer who
4 originates or terminates the taxable end-to-end
5 communications. Carrier access charges, right of access
6 charges, charges for use of inter-company facilities, and all
7 telecommunications resold in the subsequent provision of,
8 used as a component of, or integrated into end-to-end
9 telecommunications service shall be non-taxable as sales for
10 resale.
11 (d) "Interstate telecommunications" means all
12 telecommunications that either originate or terminate outside
13 this State.
14 (e) "Intrastate telecommunications" means all
15 telecommunications that originate and terminate within this
16 State.
17 (f) "Department" means the Department of Revenue of the
18 State of Illinois.
19 (g) "Director" means the Director of Revenue for the
20 Department of Revenue of the State of Illinois.
21 (h) "Taxpayer" means a person who individually or
22 through his agents, employees or permittees engages in the
23 act or privilege of originating or receiving
24 telecommunications in this State and who incurs a tax
25 liability under this Article.
26 (i) "Person" means any natural individual, firm, trust,
27 estate, partnership, association, joint stock company, joint
28 venture, corporation, limited liability company, or a
29 receiver, trustee, guardian or other representative appointed
30 by order of any court, the Federal and State governments,
31 including State universities created by statute or any city,
32 town, county or other political subdivision of this State.
33 (j) "Purchase at retail" means the acquisition,
34 consumption or use of telecommunication through a sale at
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1 retail.
2 (k) "Sale at retail" means the transmitting, supplying
3 or furnishing of telecommunications and all services and
4 equipment provided in connection therewith for a
5 consideration to persons other than the Federal and State
6 governments, and State universities created by statute and
7 other than between a parent corporation and its wholly owned
8 subsidiaries or between wholly owned subsidiaries for their
9 use or consumption and not for resale.
10 (l) "Retailer" means and includes every person engaged
11 in the business of making sales at retail as defined in this
12 Article. The Department may, in its discretion, upon
13 application, authorize the collection of the tax hereby
14 imposed by any retailer not maintaining a place of business
15 within this State, who, to the satisfaction of the
16 Department, furnishes adequate security to insure collection
17 and payment of the tax. Such retailer shall be issued,
18 without charge, a permit to collect such tax. When so
19 authorized, it shall be the duty of such retailer to collect
20 the tax upon all of the gross charges for telecommunications
21 in this State in the same manner and subject to the same
22 requirements as a retailer maintaining a place of business
23 within this State. The permit may be revoked by the
24 Department at its discretion.
25 (m) "Retailer maintaining a place of business in this
26 State", or any like term, means and includes any retailer
27 having or maintaining within this State, directly or by a
28 subsidiary, an office, distribution facilities, transmission
29 facilities, sales office, warehouse or other place of
30 business, or any agent or other representative operating
31 within this State under the authority of the retailer or its
32 subsidiary, irrespective of whether such place of business or
33 agent or other representative is located here permanently or
34 temporarily, or whether such retailer or subsidiary is
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1 licensed to do business in this State.
2 (n) "Service address" means the location of
3 telecommunications equipment from which the
4 telecommunications services are originated or at which
5 telecommunications services are received by a taxpayer. In
6 the event this may not be a defined location, as in the case
7 of mobile phones, paging systems, maritime systems,
8 air-to-ground systems and the like, service address shall
9 mean the location of a taxpayer's primary use of the
10 telecommunications equipment as defined by telephone number,
11 authorization code, or location in Illinois where bills are
12 sent.
13 (Source: P.A. 90-562, eff. 12-16-97.)
14 Section 15. The Electricity Excise Tax Law is amended by
15 changing Section 2-3 as follows:
16 (35 ILCS 640/2-3)
17 Sec. 2-3. Definitions. As used in this Law, unless the
18 context clearly requires otherwise:
19 (a) "Department" means the Department of Revenue of the
20 State of Illinois.
21 (b) "Director" means the Director of the Department of
22 Revenue of the State of Illinois.
23 (c) "Person" means any natural individual, firm, trust,
24 estate, partnership, association, joint stock company, joint
25 venture, corporation, limited liability company, or a
26 receiver, trustee, guardian, or other representative
27 appointed by order of any court, or any city, town, village,
28 county, or other political subdivision of this State.
29 (d) "Purchase price" means the consideration paid for
30 the distribution, supply, furnishing, sale, transmission or
31 delivery of electricity to a person for non-residential use
32 or consumption (and for both residential and non-residential
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1 use or consumption in the case of electricity purchased from
2 a municipal system or electric cooperative described in
3 subsection (b) of Section 2-4) and not for resale, and for
4 all services directly related to the production, transmission
5 or distribution of electricity distributed, supplied,
6 furnished, sold, transmitted or delivered for non-residential
7 use or consumption, and includes transition charges imposed
8 in accordance with Article XVI of the Public Utilities Act
9 and instrument funding charges imposed in accordance with
10 Article XVIII of the Public Utilities Act, as well as cash,
11 services and property of every kind or nature, and shall be
12 determined without any deduction on account of the cost of
13 the service, product or commodity supplied, the cost of
14 materials used, labor or service costs, or any other expense
15 whatsoever. However, "purchase price" shall not include
16 consideration paid for:
17 (i) any charge for a dishonored check;
18 (ii) any finance or credit charge, penalty or
19 charge for delayed payment, or discount for prompt
20 payment;
21 (iii) any charge for reconnection of service or for
22 replacement or relocation of facilities;
23 (iv) any advance or contribution in aid of
24 construction;
25 (v) repair, inspection or servicing of equipment
26 located on customer premises;
27 (vi) leasing or rental of equipment, the leasing or
28 rental of which is not necessary to furnishing, supplying
29 or selling electricity;
30 (vii) any purchase by a purchaser if the supplier
31 is prohibited by federal or State constitution, treaty,
32 convention, statute or court decision from recovering the
33 related tax liability from such purchaser; and
34 (viii) any amounts added to purchasers' bills
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1 because of charges made pursuant to the tax imposed by
2 this Law; and.
3 (ix) beginning January 1, 1999, and without being
4 subject to Section 2-6, any charge for electricity or
5 electricity service for residential use or consumption to
6 a customer who (1) is an individual 65 years of age or
7 older, (2) occupies the serviced property as a principal
8 residence, and (3) is liable for payment of the charge.
9 The amount of tax saved under this item (ix) shall be
10 deducted from and reflected in the qualifying customer's
11 bill.
12 In case credit is extended, the amount thereof shall be
13 included only as and when payments are made.
14 "Purchase price" shall not include consideration received
15 from business enterprises certified under Section 9-222.1 of
16 the Public Utilities Act, as amended, to the extent of such
17 exemption and during the period of time specified by the
18 Department of Commerce and Community Affairs.
19 (e) "Purchaser" means any person who acquires
20 electricity for use or consumption and not for resale, for a
21 valuable consideration.
22 (f) "Non-residential electric use" means any use or
23 consumption of electricity which is not residential electric
24 use.
25 (g) "Residential electric use" means electricity used or
26 consumed at a dwelling of 2 or fewer units, or electricity
27 for household purposes used or consumed at a building with
28 multiple dwelling units where the electricity is registered
29 by a separate meter for each dwelling unit.
30 (h) "Self-assessing purchaser" means a purchaser for
31 non-residential electric use who elects to register with and
32 to pay tax directly to the Department in accordance with
33 Sections 2-10 and 2-11 of this Law.
34 (i) "Delivering supplier" means any person engaged in
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1 the business of delivering electricity to persons for use or
2 consumption and not for resale and who, in any case where
3 more than one person participates in the delivery of
4 electricity to a specific purchaser, is the last of the
5 suppliers engaged in delivering the electricity prior to its
6 receipt by the purchaser.
7 (j) "Delivering supplier maintaining a place of business
8 in this State", or any like term, means any delivering
9 supplier having or maintaining within this State, directly or
10 by a subsidiary, an office, generation facility, transmission
11 facility, distribution facility, sales office or other place
12 of business, or any employee, agent or other representative
13 operating within this State under the authority of such
14 delivering supplier or such delivering supplier's subsidiary,
15 irrespective of whether such place of business or agent or
16 other representative is located in this State permanently or
17 temporarily, or whether such delivering supplier or such
18 delivering supplier's subsidiary is licensed to do business
19 in this State.
20 (k) "Use" means the exercise by any person of any right
21 or power over electricity incident to the ownership of that
22 electricity, except that it does not include the generation,
23 production, transmission, distribution, delivery or sale of
24 electricity in the regular course of business or the use of
25 electricity for such purposes.
26 (Source: P.A. 90-561, eff. 8-1-98.)
27 Section 20. The Illinois Municipal Code is amended by
28 changing Sections 8-11-2 and 8-11-17 as follows:
29 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
30 Sec. 8-11-2. Municipal utility tax. The corporate
31 authorities of any municipality may tax any or all of the
32 following occupations or privileges:
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1 1. Persons engaged in the business of transmitting
2 messages by means of electricity or radio magnetic waves,
3 or fiber optics, at a rate not to exceed 5% of the gross
4 receipts from that business originating within the
5 corporate limits of the municipality.
6 2. Persons engaged in the business of distributing,
7 supplying, furnishing, or selling gas for use or
8 consumption within the corporate limits of a municipality
9 of 500,000 or fewer population, and not for resale, at a
10 rate not to exceed 5% of the gross receipts therefrom.
11 2a. Persons engaged in the business of
12 distributing, supplying, furnishing, or selling gas for
13 use or consumption within the corporate limits of a
14 municipality of over 500,000 population, and not for
15 resale, at a rate not to exceed 8% of the gross receipts
16 therefrom. If imposed, this tax shall be paid in monthly
17 payments.
18 3. The privilege of using or consuming electricity
19 acquired in a purchase at retail and used or consumed
20 within the corporate limits of the municipality at rates
21 not to exceed the following maximum rates, calculated on
22 a monthly basis for each purchaser:
23 (i) For the first 2,000 kilowatt-hours used or
24 consumed in a month; 0.61 cents per kilowatt-hour;
25 (ii) For the next 48,000 kilowatt-hours used or
26 consumed in a month; 0.40 cents per kilowatt-hour;
27 (iii) For the next 50,000 kilowatt-hours used or
28 consumed in a month; 0.36 cents per kilowatt-hour;
29 (iv) For the next 400,000 kilowatt-hours used or
30 consumed in a month; 0.35 cents per kilowatt-hour;
31 (v) For the next 500,000 kilowatt-hours used or
32 consumed in a month; 0.34 cents per kilowatt-hour;
33 (vi) For the next 2,000,000 kilowatt-hours used or
34 consumed in a month; 0.32 cents per kilowatt-hour;
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1 (vii) For the next 2,000,000 kilowatt-hours used or
2 consumed in a month; 0.315 cents per kilowatt-hour;
3 (viii) For the next 5,000,000 kilowatt-hours used
4 or consumed in a month; 0.31 cents per kilowatt-hour;
5 (ix) For the next 10,000,000 kilowatt-hours used or
6 consumed in a month; 0.305 cents per kilowatt-hour; and
7 (x) For all electricity used or consumed in excess
8 of 20,000,000 kilowatt-hours in a month, 0.30 cents per
9 kilowatt-hour.
10 If a municipality imposes a tax at rates lower than
11 either the maximum rates specified in this Section or the
12 alternative maximum rates promulgated by the Illinois
13 Commerce Commission, as provided below, the tax rates
14 shall be imposed upon the kilowatt hour categories set
15 forth above with the same proportional relationship as
16 that which exists among such maximum rates.
17 Notwithstanding the foregoing, until December 31, 2008,
18 no municipality shall establish rates that are in excess
19 of rates reasonably calculated to produce revenues that
20 equal the maximum total revenues such municipality could
21 have received under the tax authorized by this
22 subparagraph in the last full calendar year prior to the
23 effective date of Section 65 of this amendatory Act of
24 1997; provided that this shall not be a limitation on the
25 amount of tax revenues actually collected by such
26 municipality.
27 Upon the request of the corporate authorities of a
28 municipality, the Illinois Commerce Commission shall,
29 within 90 days after receipt of such request, promulgate
30 alternative rates for each of these kilowatt-hour
31 categories that will reflect, as closely as reasonably
32 practical for that municipality, the distribution of the
33 tax among classes of purchasers as if the tax were based
34 on a uniform percentage of the purchase price of
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1 electricity. A municipality that has adopted an
2 ordinance imposing a tax pursuant to subparagraph 3 as it
3 existed prior to the effective date of Section 65 of this
4 amendatory Act of 1997 may, rather than imposing the tax
5 permitted by this amendatory Act of 1997, continue to
6 impose the tax pursuant to that ordinance with respect to
7 gross receipts received from residential customers
8 through July 31, 1999, and with respect to gross receipts
9 from any non-residential customer until the first bill
10 issued to such customer for delivery services in
11 accordance with Section 16-104 of the Public Utilities
12 Act but in no case later than the last bill issued to
13 such customer before December 31, 2000. No ordinance
14 imposing the tax permitted by this amendatory Act of 1997
15 shall be applicable to any non-residential customer until
16 the first bill issued to such customer for delivery
17 services in accordance with Section 16-104 of the Public
18 Utilities Act but in no case later than the last bill
19 issued to such non-residential customer before December
20 31, 2000.
21 4. Persons engaged in the business of distributing,
22 supplying, furnishing, or selling water for use or
23 consumption within the corporate limits of the
24 municipality, and not for resale, at a rate not to exceed
25 5% of the gross receipts therefrom.
26 None of the taxes authorized by this Section may be
27 imposed with respect to any transaction in interstate
28 commerce or otherwise to the extent to which the business or
29 privilege may not, under the constitution and statutes of the
30 United States, be made the subject of taxation by this State
31 or any political sub-division thereof; nor shall any persons
32 engaged in the business of distributing, supplying,
33 furnishing, selling or transmitting gas, water, or
34 electricity, or engaged in the business of transmitting
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1 messages, or using or consuming electricity acquired in a
2 purchase at retail, be subject to taxation under the
3 provisions of this Section for those transactions that are or
4 may become subject to taxation under the provisions of the
5 Municipal "Municipal Retailers' Occupation Tax Act Act"
6 authorized by Section 8-11-1; nor shall any tax authorized by
7 this Section be imposed upon any person engaged in a business
8 or on any privilege unless the tax is imposed in like manner
9 and at the same rate upon all persons engaged in businesses
10 of the same class in the municipality, whether privately or
11 municipally owned or operated, or exercising the same
12 privilege within the municipality.
13 Any of the taxes enumerated in this Section may be in
14 addition to the payment of money, or value of products or
15 services furnished to the municipality by the taxpayer as
16 compensation for the use of its streets, alleys, or other
17 public places, or installation and maintenance therein,
18 thereon or thereunder of poles, wires, pipes or other
19 equipment used in the operation of the taxpayer's business.
20 (a) If the corporate authorities of any home rule
21 municipality have adopted an ordinance that imposed a tax on
22 public utility customers, between July 1, 1971, and October
23 1, 1981, on the good faith belief that they were exercising
24 authority pursuant to Section 6 of Article VII of the 1970
25 Illinois Constitution, that action of the corporate
26 authorities shall be declared legal and valid,
27 notwithstanding a later decision of a judicial tribunal
28 declaring the ordinance invalid. No municipality shall be
29 required to rebate, refund, or issue credits for any taxes
30 described in this paragraph, and those taxes shall be deemed
31 to have been levied and collected in accordance with the
32 Constitution and laws of this State.
33 (b) In any case in which (i) prior to October 19, 1979,
34 the corporate authorities of any municipality have adopted an
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1 ordinance imposing a tax authorized by this Section (or by
2 the predecessor provision of the "Revised Cities and Villages
3 Act") and have explicitly or in practice interpreted gross
4 receipts to include either charges added to customers' bills
5 pursuant to the provision of paragraph (a) of Section 36 of
6 the Public Utilities Act or charges added to customers' bills
7 by taxpayers who are not subject to rate regulation by the
8 Illinois Commerce Commission for the purpose of recovering
9 any of the tax liabilities or other amounts specified in such
10 paragraph (a) of Section 36 of that Act, and (ii) on or after
11 October 19, 1979, a judicial tribunal has construed gross
12 receipts to exclude all or part of those charges, then
13 neither those municipality nor any taxpayer who paid the tax
14 shall be required to rebate, refund, or issue credits for any
15 tax imposed or charge collected from customers pursuant to
16 the municipality's interpretation prior to October 19, 1979.
17 This paragraph reflects a legislative finding that it would
18 be contrary to the public interest to require a municipality
19 or its taxpayers to refund taxes or charges attributable to
20 the municipality's more inclusive interpretation of gross
21 receipts prior to October 19, 1979, and is not intended to
22 prescribe or limit judicial construction of this Section. The
23 legislative finding set forth in this subsection does not
24 apply to taxes imposed after the effective date of this
25 amendatory Act of 1995.
26 (c) The tax authorized by subparagraph 3 shall be
27 collected from the purchaser by the person maintaining a
28 place of business in this State who delivers the electricity
29 to the purchaser. This tax shall constitute a debt of the
30 purchaser to the person who delivers the electricity to the
31 purchaser and if unpaid, is recoverable in the same manner as
32 the original charge for delivering the electricity. Any tax
33 required to be collected pursuant to an ordinance authorized
34 by subparagraph 3 and any such tax collected by a person
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1 delivering electricity shall constitute a debt owed to the
2 municipality by such person delivering the electricity,
3 provided, that the person delivering electricity shall be
4 allowed credit for such tax related to deliveries of
5 electricity the charges for which are written off as
6 uncollectible, and provided further, that if such charges are
7 thereafter collected, the delivering supplier shall be
8 obligated to remit such tax. For purposes of this subsection
9 (c), any partial payment not specifically identified by the
10 purchaser shall be deemed to be for the delivery of
11 electricity. Persons delivering electricity shall collect the
12 tax from the purchaser by adding such tax to the gross charge
13 for delivering the electricity, in the manner prescribed by
14 the municipality. Persons delivering electricity shall also
15 be authorized to add to such gross charge an amount equal to
16 3% of the tax to reimburse the person delivering electricity
17 for the expenses incurred in keeping records, billing
18 customers, preparing and filing returns, remitting the tax
19 and supplying data to the municipality upon request. If the
20 person delivering electricity fails to collect the tax from
21 the purchaser, then the purchaser shall be required to pay
22 the tax directly to the municipality in the manner prescribed
23 by the municipality. Persons delivering electricity who file
24 returns pursuant to this paragraph (c) shall, at the time of
25 filing such return, pay the municipality the amount of the
26 tax collected pursuant to subparagraph 3.
27 (d) For the purpose of the taxes enumerated in this
28 Section:
29 "Gross receipts" means the consideration received for the
30 transmission of messages, the consideration received for
31 distributing, supplying, furnishing or selling gas for use or
32 consumption and not for resale, and the consideration
33 received for distributing, supplying, furnishing or selling
34 water for use or consumption and not for resale, and for all
-20- LRB9100062PTpk
1 services rendered in connection therewith valued in money,
2 whether received in money or otherwise, including cash,
3 credit, services and property of every kind and material and
4 for all services rendered therewith, and shall be determined
5 without any deduction on account of the cost of transmitting
6 such messages, without any deduction on account of the cost
7 of the service, product or commodity supplied, the cost of
8 materials used, labor or service cost, or any other expenses
9 whatsoever. "Gross receipts" shall not include that portion
10 of the consideration received for distributing, supplying,
11 furnishing, or selling gas or water to, or for the
12 transmission of messages for, business enterprises described
13 in paragraph (e) of this Section to the extent and during the
14 period in which the exemption authorized by paragraph (e) is
15 in effect or for school districts or units of local
16 government described in paragraph (f) during the period in
17 which the exemption authorized in paragraph (f) is in effect.
18 "Gross receipts" shall not include amounts paid by
19 telecommunications retailers under the Telecommunications
20 Municipal Infrastructure Maintenance Fee Act.
21 For utility bills issued on or after May 1, 1996, but
22 before May 1, 1997, and for receipts from those utility
23 bills, "gross receipts" does not include one-third of (i)
24 amounts added to customers' bills under Section 9-222 of the
25 Public Utilities Act, or (ii) amounts added to customers'
26 bills by taxpayers who are not subject to rate regulation by
27 the Illinois Commerce Commission for the purpose of
28 recovering any of the tax liabilities described in Section
29 9-222 of the Public Utilities Act. For utility bills issued
30 on or after May 1, 1997, but before May 1, 1998, and for
31 receipts from those utility bills, "gross receipts" does not
32 include two-thirds of (i) amounts added to customers' bills
33 under Section 9-222 of the Public Utilities Act, or (ii)
34 amount added to customers' bills by taxpayers who are not
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1 subject to rate regulation by the Illinois Commerce
2 Commission for the purpose of recovering any of the tax
3 liabilities described in Section 9-222 of the Public
4 Utilities Act. For utility bills issued on or after May 1,
5 1998, and for receipts from those utility bills, "gross
6 receipts" does not include (i) amounts added to customers'
7 bills under Section 9-222 of the Public Utilities Act, or
8 (ii) amounts added to customers' bills by taxpayers who are
9 not subject to rate regulation by the Illinois Commerce
10 Commission for the purpose of recovering any of the tax
11 liabilities described in Section 9-222 of the Public
12 Utilities Act.
13 For purposes of this Section "gross receipts" shall not
14 include (i) amounts added to customers' bills under Section
15 9-221 of the Public Utilities Act, or (ii) charges added to
16 customers' bills to recover the surcharge imposed under the
17 Emergency Telephone System Act. This paragraph is not
18 intended to nor does it make any change in the meaning of
19 "gross receipts" for the purposes of this Section, but is
20 intended to remove possible ambiguities, thereby confirming
21 the existing meaning of "gross receipts" prior to the
22 effective date of this amendatory Act of 1995.
23 Beginning January 1, 1999, "gross receipts" does not
24 include amounts paid for the transmission of messages, the
25 privilege of using or consuming electricity, or for
26 distributing, supplying, furnishing, or selling gas or water,
27 or for related services by a residential customer, or
28 nonbusiness customer in the case of cellular message
29 transmission services, who (i) is an individual 65 years of
30 age or older, (ii) is liable for the payment of the amount
31 due, and (iii) in the case of electricity, gas, water, and
32 noncellular message transmission services, occupies the
33 serviced property as a principal residence. The amount of
34 tax saved under this paragraph shall be deducted from and
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1 reflected in the qualifying customer's bill. This paragraph
2 is a denial and limitation of home rule powers and functions
3 under subsection (g) of Section 6 of Article VII of the
4 Illinois Constitution.
5 The words "transmitting messages", in addition to the
6 usual and popular meaning of person to person communication,
7 shall include the furnishing, for a consideration, of
8 services or facilities (whether owned or leased), or both, to
9 persons in connection with the transmission of messages where
10 those persons do not, in turn, receive any consideration in
11 connection therewith, but shall not include such furnishing
12 of services or facilities to persons for the transmission of
13 messages to the extent that any such services or facilities
14 for the transmission of messages are furnished for a
15 consideration, by those persons to other persons, for the
16 transmission of messages.
17 "Person" as used in this Section means any natural
18 individual, firm, trust, estate, partnership, association,
19 joint stock company, joint adventure, corporation, limited
20 liability company, municipal corporation, the State or any of
21 its political subdivisions, any State university created by
22 statute, or a receiver, trustee, guardian or other
23 representative appointed by order of any court.
24 "Person maintaining a place of business in this State"
25 shall mean any person having or maintaining within this
26 State, directly or by a subsidiary or other affiliate, an
27 office, generation facility, distribution facility,
28 transmission facility, sales office or other place of
29 business, or any employee, agent, or other representative
30 operating within this State under the authority of the person
31 or its subsidiary or other affiliate, irrespective of whether
32 such place of business or agent or other representative is
33 located in this State permanently or temporarily, or whether
34 such person, subsidiary or other affiliate is licensed or
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1 qualified to do business in this State.
2 "Public utility" shall have the meaning ascribed to it in
3 Section 3-105 of the Public Utilities Act and shall include
4 telecommunications carriers as defined in Section 13-202 of
5 that Act and alternative retail electric suppliers as defined
6 in Section 16-102 of that Act.
7 "Purchase at retail" shall mean any acquisition of
8 electricity by a purchaser for purposes of use or
9 consumption, and not for resale, but shall not include the
10 use of electricity by a public utility directly in the
11 generation, production, transmission, delivery or sale of
12 electricity.
13 "Purchaser" shall mean any person who uses or consumes,
14 within the corporate limits of the municipality, electricity
15 acquired in a purchase at retail.
16 In the case of persons engaged in the business of
17 transmitting messages through the use of mobile equipment,
18 such as cellular phones and paging systems, the gross
19 receipts from the business shall be deemed to originate
20 within the corporate limits of a municipality only if the
21 address to which the bills for the service are sent is within
22 those corporate limits. If, however, that address is not
23 located within a municipality that imposes a tax under this
24 Section, then (i) if the party responsible for the bill is
25 not an individual, the gross receipts from the business shall
26 be deemed to originate within the corporate limits of the
27 municipality where that party's principal place of business
28 in Illinois is located, and (ii) if the party responsible for
29 the bill is an individual, the gross receipts from the
30 business shall be deemed to originate within the corporate
31 limits of the municipality where that party's principal
32 residence in Illinois is located.
33 (e) Any municipality that imposes taxes upon public
34 utilities or upon the privilege of using or consuming
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1 electricity pursuant to this Section whose territory includes
2 any part of an enterprise zone or federally designated
3 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
4 corporate authorities, exempt from those taxes for a period
5 not exceeding 20 years any specified percentage of gross
6 receipts of public utilities received from, or electricity
7 used or consumed by, business enterprises that:
8 (1) either (i) make investments that cause the
9 creation of a minimum of 200 full-time equivalent jobs in
10 Illinois, (ii) make investments of at least $175,000,000
11 that cause the creation of a minimum of 150 full-time
12 equivalent jobs in Illinois, or (iii) make investments
13 that cause the retention of a minimum of 1,000 full-time
14 jobs in Illinois; and
15 (2) are either (i) located in an Enterprise Zone
16 established pursuant to the Illinois Enterprise Zone Act
17 or (ii) Department of Commerce and Community Affairs
18 designated High Impact Businesses located in a federally
19 designated Foreign Trade Zone or Sub-Zone; and
20 (3) are certified by the Department of Commerce and
21 Community Affairs as complying with the requirements
22 specified in clauses (1) and (2) of this paragraph (e).
23 Upon adoption of the ordinance authorizing the exemption,
24 the municipal clerk shall transmit a copy of that ordinance
25 to the Department of Commerce and Community Affairs. The
26 Department of Commerce and Community Affairs shall determine
27 whether the business enterprises located in the municipality
28 meet the criteria prescribed in this paragraph. If the
29 Department of Commerce and Community Affairs determines that
30 the business enterprises meet the criteria, it shall grant
31 certification. The Department of Commerce and Community
32 Affairs shall act upon certification requests within 30 days
33 after receipt of the ordinance.
34 Upon certification of the business enterprise by the
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1 Department of Commerce and Community Affairs, the Department
2 of Commerce and Community Affairs shall notify the Department
3 of Revenue of the certification. The Department of Revenue
4 shall notify the public utilities of the exemption status of
5 the gross receipts received from, and the electricity used or
6 consumed by, the certified business enterprises. Such
7 exemption status shall be effective within 3 months after
8 certification.
9 (f) A municipality that imposes taxes upon public
10 utilities or upon the privilege of using or consuming
11 electricity under this Section and whose territory includes
12 part of another unit of local government or a school district
13 may by ordinance exempt the other unit of local government or
14 school district from those taxes.
15 (g) The amendment of this Section by Public Act 84-127
16 shall take precedence over any other amendment of this
17 Section by any other amendatory Act passed by the 84th
18 General Assembly before the effective date of Public Act
19 84-127.
20 (h) In any case in which, before July 1, 1992, a person
21 engaged in the business of transmitting messages through the
22 use of mobile equipment, such as cellular phones and paging
23 systems, has determined the municipality within which the
24 gross receipts from the business originated by reference to
25 the location of its transmitting or switching equipment, then
26 (i) neither the municipality to which tax was paid on that
27 basis nor the taxpayer that paid tax on that basis shall be
28 required to rebate, refund, or issue credits for any such tax
29 or charge collected from customers to reimburse the taxpayer
30 for the tax and (ii) no municipality to which tax would have
31 been paid with respect to those gross receipts if the
32 provisions of this amendatory Act of 1991 had been in effect
33 before July 1, 1992, shall have any claim against the
34 taxpayer for any amount of the tax.
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1 (Source: P.A. 89-325, eff. 1-1-96; 90-16, eff. 6-16-97;
2 90-561, eff. 8-1-98; 90-562, eff. 12-16-97; 90-655, eff.
3 7-30-98.)
4 (65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17)
5 Sec. 8-11-17. Municipal telecommunications tax.
6 (a) Beginning on the effective date of this amendatory
7 Act of 1991, the corporate authorities of any municipality in
8 this State may tax any or all of the following acts or
9 privileges:
10 (1) The act or privilege of originating in such
11 municipality or receiving in such municipality intrastate
12 telecommunications by a person at a rate not to exceed 5%
13 of the gross charge for such telecommunications purchased
14 at retail from a retailer by such person. However, such
15 tax is not imposed on such act or privilege to the extent
16 such act or privilege may not, under the Constitution and
17 statutes of the United States, be made the subject of
18 taxation by municipalities in this State.
19 (2) The act or privilege of originating in such
20 municipality or receiving in such municipality interstate
21 telecommunications by a person at a rate not to exceed 5%
22 of the gross charge for such telecommunications purchased
23 at retail from a retailer by such person. To prevent
24 actual multi-state taxation of the act or privilege that
25 is subject to taxation under this paragraph, any
26 taxpayer, upon proof that the taxpayer has paid a tax in
27 another state on such event, shall be allowed a credit
28 against any tax enacted pursuant to an ordinance
29 authorized by this paragraph to the extent of the amount
30 of such tax properly due and paid in such other state
31 which was not previously allowed as a credit against any
32 other state or local tax in this State. However, such
33 tax is not imposed on the act or privilege to the extent
-27- LRB9100062PTpk
1 such act or privilege may not, under the Constitution and
2 statutes of the United States, be made the subject of
3 taxation by municipalities in this State.
4 (3) The taxes authorized by paragraphs (1) and (2)
5 of subsection (a) of this Section may only be levied if
6 such municipality does not then have in effect an
7 occupation tax imposed on persons engaged in the business
8 of transmitting messages by means of electricity as
9 authorized by Section 8-11-2 of the Illinois Municipal
10 Code.
11 (b) The tax authorized by this Section shall be
12 collected from the taxpayer by a retailer maintaining a place
13 of business in this State and making or effectuating the sale
14 at retail and shall be remitted by such retailer to the
15 municipality. Any tax required to be collected pursuant to
16 an ordinance authorized by this Section and any such tax
17 collected by such retailer shall constitute a debt owed by
18 the retailer to such municipality. Retailers shall collect
19 the tax from the taxpayer by adding the tax to the gross
20 charge for the act or privilege of originating or receiving
21 telecommunications when sold for use, in the manner
22 prescribed by the municipality. The tax authorized by this
23 Section shall constitute a debt of the purchaser to the
24 retailer who provides such taxable services until paid and,
25 if unpaid, is recoverable at law in the same manner as the
26 original charge for such taxable services. If the retailer
27 fails to collect the tax from the taxpayer, then the taxpayer
28 shall be required to pay the tax directly to the municipality
29 in the manner provided by the municipality. The municipality
30 imposing the tax shall provide for its administration and
31 enforcement.
32 Beginning January 1, 1994, retailers filing tax returns
33 pursuant to this Section shall, at the time of filing such
34 return, pay to the municipality the amount of the tax imposed
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1 by this Section, less a commission of 1.75% which is allowed
2 to reimburse the retailer for the expenses incurred in
3 keeping records, billing the customer, preparing and filing
4 returns, remitting the tax and supplying data to the
5 municipality upon request. No commission may be claimed by a
6 retailer for tax not timely remitted to the municipality.
7 Whenever possible, the tax authorized by this Section
8 shall, when collected, be stated as a distinct item separate
9 and apart from the gross charge for telecommunications.
10 (c) For the purpose of the taxes authorized by this
11 Section:
12 (1) "Amount paid" means the amount charged to the
13 taxpayer's service address in such municipality
14 regardless of where such amount is billed or paid.
15 (2) "Gross charge" means the amount paid for the
16 act or privilege of originating or receiving
17 telecommunications in such municipality and for all
18 services rendered in connection therewith, valued in
19 money whether paid in money or otherwise, including cash,
20 credits, services and property of every kind or nature,
21 and shall be determined without any deduction on account
22 of the cost of such telecommunications, the cost of the
23 materials used, labor or service costs or any other
24 expense whatsoever. In case credit is extended, the
25 amount thereof shall be included only as and when paid.
26 However, "gross charge" shall not include:
27 (A) any amounts added to a purchaser's bill
28 because of a charge made pursuant to: (i) the tax
29 imposed by this Section, (ii) additional charges
30 added to a purchaser's bill pursuant to Section
31 9-222 of the Public Utilities Act, (iii) the tax
32 imposed by the Telecommunications Excise Tax Act, or
33 (iv) the tax imposed by Section 4251 of the Internal
34 Revenue Code;
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1 (B) charges for a sent collect
2 telecommunication received outside of such
3 municipality;
4 (C) charges for leased time on equipment or
5 charges for the storage of data or information or
6 subsequent retrieval or the processing of data or
7 information intended to change its form or content.
8 Such equipment includes, but is not limited to, the
9 use of calculators, computers, data processing
10 equipment, tabulating equipment or accounting
11 equipment and also includes the usage of computers
12 under a time-sharing agreement;
13 (D) charges for customer equipment, including
14 such equipment that is leased or rented by the
15 customer from any source, wherein such charges are
16 disaggregated and separately identified from other
17 charges;
18 (E) charges to business enterprises certified
19 under Section 9-222.1 of the Public Utilities Act to
20 the extent of such exemption and during the period
21 of time specified by the Department of Commerce and
22 Community Affairs;
23 (F) charges for telecommunications and all
24 services and equipment provided in connection
25 therewith between a parent corporation and its
26 wholly owned subsidiaries or between wholly owned
27 subsidiaries when the tax imposed under this Section
28 has already been paid to a retailer and only to the
29 extent that the charges between the parent
30 corporation and wholly owned subsidiaries or between
31 wholly owned subsidiaries represent expense
32 allocation between the corporations and not the
33 generation of profit for the corporation rendering
34 such service;
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1 (G) bad debts ("bad debt" means any portion of
2 a debt that is related to a sale at retail for which
3 gross charges are not otherwise deductible or
4 excludable that has become worthless or
5 uncollectable, as determined under applicable
6 federal income tax standards; if the portion of the
7 debt deemed to be bad is subsequently paid, the
8 retailer shall report and pay the tax on that
9 portion during the reporting period in which the
10 payment is made);
11 (H) charges paid by inserting coins in
12 coin-operated telecommunication devices; or
13 (I) amounts paid by telecommunications
14 retailers under the Telecommunications Municipal
15 Infrastructure Maintenance Fee Act; or.
16 (J) beginning January 1, 1999, charges for
17 telecommunications and related services and
18 equipment to a residential customer, or nonbusiness
19 customer in the case of cellular telecommunications
20 services, who (i) is an individual 65 years of age
21 or older, (ii) is liable for the payment of the
22 charges, and (iii) in the case of noncellular
23 telecommunications services, occupies the serviced
24 property as a principal residence. The amount of
25 tax saved under this subparagraph (J) shall be
26 deducted from and reflected in the qualifying
27 customer's bill. This subparagraph is a denial and
28 limitation of home rule powers and functions under
29 subsection (g) of Section 6 of Article VII of the
30 Illinois Constitution.
31 (3) "Interstate telecommunications" means all
32 telecommunications that either originate or terminate
33 outside this State.
34 (4) "Intrastate telecommunications" means all
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1 telecommunications that originate and terminate within
2 this State.
3 (5) "Person" means any natural individual, firm,
4 trust, estate, partnership, association, joint stock
5 company, joint venture, corporation, limited liability
6 company, or a receiver, trustee, guardian or other
7 representative appointed by order of any court, the
8 Federal and State governments, including State
9 universities created by statute, or any city, town,
10 county, or other political subdivision of this State.
11 (6) "Purchase at retail" means the acquisition,
12 consumption or use of telecommunications through a sale
13 at retail.
14 (7) "Retailer" means and includes every person
15 engaged in the business of making sales at retail as
16 defined in this Section. A municipality may, in its
17 discretion, upon application, authorize the collection of
18 the tax hereby imposed by any retailer not maintaining a
19 place of business within this State, who to the
20 satisfaction of the municipality, furnishes adequate
21 security to insure collection and payment of the tax.
22 Such retailer shall be issued, without charge, a permit
23 to collect such tax. When so authorized, it shall be the
24 duty of such retailer to collect the tax upon all of the
25 gross charges for telecommunications in such municipality
26 in the same manner and subject to the same requirements
27 as a retailer maintaining a place of business within such
28 municipality.
29 (8) "Retailer maintaining a place of business in
30 this State", or any like term, means and includes any
31 retailer having or maintaining within this State,
32 directly or by a subsidiary, an office, distribution
33 facilities, transmission facilities, sales office,
34 warehouse or other place of business, or any agent or
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1 other representative operating within this State under
2 the authority of the retailer or its subsidiary,
3 irrespective of whether such place of business or agent
4 or other representative is located here permanently or
5 temporarily, or whether such retailer or subsidiary is
6 licensed to do business in this State.
7 (9) "Sale at retail" means the transmitting,
8 supplying or furnishing of telecommunications and all
9 services rendered in connection therewith for a
10 consideration, to persons other than the Federal and
11 State governments, and State universities created by
12 statute and other than between a parent corporation and
13 its wholly owned subsidiaries or between wholly owned
14 subsidiaries, when the tax has already been paid to a
15 retailer and the gross charge made by one such
16 corporation to another such corporation is not greater
17 than the gross charge paid to the retailer for their use
18 or consumption and not for resale.
19 (10) "Service address" means the location of
20 telecommunications equipment from which
21 telecommunications services are originated or at which
22 telecommunications services are received by a taxpayer.
23 If this is not a defined location, as in the case of
24 mobile phones, paging systems, maritime systems,
25 air-to-ground systems and the like, "service address"
26 shall mean the location of a taxpayer's primary use of
27 the telecommunication equipment as defined by telephone
28 number, authorization code, or location in Illinois where
29 bills are sent.
30 (11) "Taxpayer" means a person who individually or
31 through his agents, employees, or permittees engages in
32 the act or privilege of originating in such municipality
33 or receiving in such municipality telecommunications and
34 who incurs a tax liability under any ordinance authorized
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1 by this Section.
2 (12) "Telecommunications", in addition to the usual
3 and popular meaning, includes, but is not limited to,
4 messages or information transmitted through use of local,
5 toll and wide area telephone service, channel services,
6 telegraph services, teletypewriter service, computer
7 exchange services; cellular mobile telecommunications
8 service, specialized mobile radio services, paging
9 service, or any other form of mobile and portable one-way
10 or two-way communications, or any other transmission of
11 messages or information by electronic or similar means,
12 between or among points by wire, cable, fiber optics,
13 laser, microwave, radio, satellite or similar facilities.
14 The definition of "telecommunications" shall not include
15 value added services in which computer processing
16 applications are used to act on the form, content, code
17 and protocol of the information for purposes other than
18 transmission. "Telecommunications" shall not include
19 purchase of telecommunications by a telecommunications
20 service provider for use as a component part of the
21 service provided by him to the ultimate retail consumer
22 who originates or terminates the taxable end-to-end
23 communications. Carrier access charges, right of access
24 charges, charges for use of inter-company facilities, and
25 all telecommunications resold in the subsequent provision
26 used as a component of, or integrated into, end-to-end
27 telecommunications service shall be non-taxable as sales
28 for resale.
29 (d) If a person, who originates or receives
30 telecommunications in such municipality claims to be a
31 reseller of such telecommunications, such person shall apply
32 to the municipality for a resale number. Such applicant
33 shall state facts which will show the municipality why such
34 applicant is not liable for tax under any ordinance
-34- LRB9100062PTpk
1 authorized by this Section on any of such purchases and shall
2 furnish such additional information as the municipality may
3 reasonably require.
4 Upon approval of the application, the municipality shall
5 assign a resale number to the applicant and shall certify
6 such number to the applicant. The municipality may cancel
7 any number which is obtained through misrepresentation, or
8 which is used to send or receive such telecommunication
9 tax-free when such actions in fact are not for resale, or
10 which no longer applies because of the person's having
11 discontinued the making of resales.
12 Except as provided hereinabove in this Section, the act
13 or privilege of sending or receiving telecommunications in
14 this State shall not be made tax-free on the ground of being
15 a sale for resale unless the person has an active resale
16 number from the municipality and furnishes that number to the
17 retailer in connection with certifying to the retailer that
18 any sale to such person is non-taxable because of being a
19 sale for resale.
20 (e) A municipality that imposes taxes upon
21 telecommunications under this Section and whose territory
22 includes part of another unit of local government or a school
23 district may, by ordinance, exempt the other unit of local
24 government or school district from those taxes.
25 (f) (Blank). A municipality that imposes taxes upon
26 telecommunications under this Section may, by ordinance, (i)
27 reduce the rate of the tax for persons 65 years of age or
28 older or (ii) exempt persons 65 years of age or older from
29 those taxes. Taxes related to such rate reductions or
30 exemptions shall be rebated from the municipality directly to
31 persons qualified for the rate reduction or exemption as
32 determined by the municipality's ordinance.
33 (Source: P.A. 90-357, eff. 1-1-98; 90-562, eff. 12-16-97.)
-35- LRB9100062PTpk
1 Section 25. The Public Utilities Act is amended by
2 changing Section 3-121 as follows:
3 (220 ILCS 5/3-121) (from Ch. 111 2/3, par. 3-121)
4 Sec. 3-121. Gross revenue. As used in Section 2-202 of
5 this Act, the term "gross revenue" includes all revenue which
6 (1) is collected by a public utility subject to regulations
7 under this Act (a) pursuant to the rates, other charges, and
8 classifications which it is required to file under Section
9 9-102 of this Act and (b) pursuant to emergency rates as
10 permitted by Section 9-104 of this Act, and (2) is derived
11 from the intrastate public utility business of such a
12 utility.
13 Such term does not include revenue derived by such a
14 public utility from the sale of public utility services,
15 products or commodities to another public utility or to an
16 electric cooperative for resale by such public utility or
17 electric cooperative.
18 "Gross revenue" does not include revenue derived by such
19 a public utility from the sale of public utility services,
20 products, or commodities to a residential customer who (a) is
21 an individual 65 years of age or older, (b) occupies the
22 serviced property as a principal residence, and (c) is liable
23 for the payment of the rates or charges. The amount of tax
24 saved under this paragraph shall be deducted from and
25 reflected in the qualifying customer's bill.
26 "Gross revenue" shall not include any charges added to
27 customers' bills pursuant to the provisions of Sections
28 Section 9-221, 9-221.1 and 9-222 of this Act or consideration
29 received from business enterprises certified under Section
30 9-222.1 of this Act to the extent of such exemption and
31 during the period in which the exemption is in effect.
32 (Source: P.A. 85-1021.)
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1 Section 90. The State Mandates Act is amended by adding
2 Section 8.23 as follows:
3 (30 ILCS 805/8.23 new)
4 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
5 and 8 of this Act, no reimbursement by the State is required
6 for the implementation of any mandate created by this
7 amendatory Act of 1998.
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.