Rep. Michael J. Zalewski

Filed: 12/2/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1227

2    AMENDMENT NO. ______. Amend Senate Bill 1227, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Short title. This Act may be cited as the
6Direct Broadcast Satellite Service Providers Fee Act.
 
7    Section 5. Definitions.
8    "Department" means the Department of Revenue of the State
9of Illinois.
10    "Direct broadcast satellite service" means the
11distribution or broadcasting of video programming or services
12by satellite to receiving equipment located at a subscriber's
13or customer's premises, including, but not limited to, the
14provision of premium channels, the provision of music or other
15audio services or channels, and any other service received in
16connection with the provision of that video programming or

 

 

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1those services. However, "direct broadcast satellite service"
2does not include satellite radio service or subscription radio
3service whereby a digital radio signal is broadcast without any
4corresponding or related video programming or services.
5    "Gross revenue" means all consideration of any kind or
6nature received by a provider, or an affiliate of the provider,
7in connection with the provision of direct broadcast satellite
8service to subscribers or customers, including recurring
9monthly charges for direct broadcast satellite service and
10pay-per-view, video-on-demand, and other event-based charges
11for direct broadcast satellite service; provided, however,
12that gross revenues shall not include:
13        (1) revenue not actually received, regardless of
14    whether it is billed, including, but not limited to, bad
15    debts;
16        (2) revenue received by an affiliate or other person in
17    exchange for supplying goods and services used by a
18    provider;
19        (3) refunds, rebates, or discounts made to subscribers
20    or customers, to advertisers, or to other persons;
21        (4) revenue from any service that is subject to tax
22    under the Service Occupation Tax Act, Retailers'
23    Occupation Tax Act, Service Use Tax Act, or Use Tax Act;
24        (5) the fee imposed by this Act or any tax of general
25    applicability imposed on a provider or a purchaser of
26    direct broadcast satellite service, by a federal, State, or

 

 

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1    local governmental entity and required to be collected by a
2    person and remitted to the taxing entity;
3        (6) charges, other than those charges specifically
4    described in this Act, that are aggregated or bundled with
5    such specifically-described charges on a subscriber or
6    customer's bill, if the provider can reasonably identify
7    the charges in its books and records kept in the regular
8    course of business;
9        (7) revenue from advertising services; or
10        (8) charges that may not be taxed pursuant to the
11    Internet Tax Freedom Act.
12    "Person" means any natural individual, firm, trust,
13estate, partnership, association, joint stock company, joint
14venture, corporation, limited liability company, or a
15receiver, trustee, guardian, or other representative appointed
16by order of any court, the federal government and State
17governments, including State universities created by statute
18or any city, town, county, or other political subdivision of
19this State.
20    "Provider" means a person who transmits, broadcasts,
21sells, or distributes direct broadcast satellite service to
22subscribers or customers in the State.
23    "Subscriber" or "customer" means a member of the general
24public who receives direct broadcast satellite service from a
25provider and does not further distribute such service in the
26ordinary course of business.

 

 

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1    "Video programming" means programming provided by, or
2programming comparable to programming provided by, a
3television broadcast station or multichannel video service
4provider, including, but not limited to, video programming
5provided by local networks, national broadcast networks, and
6all forms of pay-per-view video entertainment.
 
7    Section 10. Imposition of a service provider fee.
8    (a) A fee is imposed upon the act or privilege of providing
9direct broadcast satellite service to a subscriber or customer
10in this State by any provider at the rate of 5% of the
11provider's gross revenues derived from or attributable to that
12customer or subscriber.
13    (b) The fee imposed by subsection (a) may be passed through
14to, and collected from, the provider's customers in Illinois.
15To the extent allowed under federal or State law, a provider
16may identify as a separate line item on each regular bill
17issued to a subscriber or customer the amount of the total bill
18assessed as a fee under this Act.
 
19    Section 15. Remittances.
20    (a) On or before the twentieth day of each calendar month,
21every provider of direct broadcast satellite service to a
22subscriber or customer in this State during the preceding
23calendar month shall file a return with the Department, in a
24form prescribed by the Department, stating:

 

 

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1        (1) the name of the provider;
2        (2) the address of the provider's principal place of
3    business;
4        (3) total amount of gross revenues received by the
5    provider during the preceding calendar month, quarter, or
6    year, as the case may be, from the provision of direct
7    broadcast satellite service during that preceding calendar
8    month, quarter, or year and upon the basis of which the fee
9    is imposed;
10        (4) the amount of fee due;
11        (5) the signature of the provider; and
12        (6) such other reasonable information as the
13    Department may require.
14    (b) If a provider fails to sign a return within 30 days
15after the proper notice and demand for signature by the
16Department is received by the provider, the return shall be
17considered valid and any amount shown to be due on the return
18shall be deemed assessed.
19    (c) If the provider is otherwise required to file a monthly
20return, and if the provider's average monthly fee liability to
21the Department under this Act does not exceed $200, the
22Department may authorize the provider's returns to be filed on
23a quarter annual basis, with the return for January, February,
24and March of a given year being due by April 20 of that year;
25with the return for April, May, and June of a given year being
26due by July 20 of that year; with the return for July, August,

 

 

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1and September of a given year being due by October 20 of that
2year; and with the return for October, November, and December
3of a given year being due by January 20 of the following year.
4    (d) If the provider is otherwise required to file a monthly
5or quarterly return, and if the provider's average monthly fee
6liability with the Department under this Act does not exceed
7$50, the Department may authorize the provider's returns to be
8filed on an annual basis, with the return for a given year
9being due by January 20 of the following year.
10    (e) Those quarterly and annual returns shall be subject to
11the same requirements as to form and substance as monthly
12returns.
13    (f) A provider who has a fee liability that exceeds the
14amount set forth in subsection (b) of Section 2505-210 of the
15Department of Revenue Law for tax liabilities shall make all
16payments required by rules of the Department by electronic
17funds transfer.
18    (g) Any provider not required to make payments by
19electronic funds transfer may make payments by electronic funds
20transfer with the permission of the Department.
21    (h) All providers required to make payment by electronic
22funds transfer and any providers authorized to voluntarily make
23payments by electronic funds transfer shall make those payments
24in the manner authorized by the Department.
 
25    Section 20. Records.

 

 

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1    (a) A provider on whom a fee is imposed by this Act shall
2maintain the necessary records, and any other information
3required by the Department, to determine the amount of the fee
4that the provider is required to remit and any credit that the
5provider is entitled to claim under this Act.
6    (b) The records shall be open at all times to inspection by
7the Department.
 
8    Section 25. Distribution of proceeds. The proceeds of the
9fee collected shall be deposited into the Education Assistance
10Fund.
 
11    Section 30. Department's authority to adopt rules. The
12Department is authorized to make, promulgate, and enforce such
13reasonable rules, and to prescribe such forms relating to the
14administration and enforcement of this Act, as it may deem
15appropriate.
 
16    Section 35. Applicability. This Act becomes operative on
17July 1, 2014, and applies to the provision of direct broadcast
18satellite service on or after that date.
 
19    Section 50. The Economic Development for a Growing Economy
20Tax Credit Act is amended by changing Section 5-15 as follows:
 
21    (35 ILCS 10/5-15)

 

 

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1    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
2forth in this Act, a Taxpayer is entitled to a Credit against
3or, as described in subsection (g) of this Section, a payment
4towards taxes imposed pursuant to subsections (a) and (b) of
5Section 201 of the Illinois Income Tax Act that may be imposed
6on the Taxpayer for a taxable year beginning on or after
7January 1, 1999, if the Taxpayer is awarded a Credit by the
8Department under this Act for that taxable year.
9    (a) The Department shall make Credit awards under this Act
10to foster job creation and retention in Illinois.
11    (b) A person that proposes a project to create new jobs in
12Illinois must enter into an Agreement with the Department for
13the Credit under this Act.
14    (c) The Credit shall be claimed for the taxable years
15specified in the Agreement.
16    (d) The Credit shall not exceed the Incremental Income Tax
17attributable to the project that is the subject of the
18Agreement.
19    (e) Nothing herein shall prohibit a Tax Credit Award to an
20Applicant that uses a PEO if all other award criteria are
21satisfied.
22    (f) In lieu of the Credit allowed under this Act against
23the taxes imposed pursuant to subsections (a) and (b) of
24Section 201 of the Illinois Income Tax Act for any taxable year
25ending on or after December 31, 2009, the Taxpayer may elect to
26claim the Credit against its obligation to pay over withholding

 

 

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1under Section 704A of the Illinois Income Tax Act.
2        (1) The election under this subsection (f) may be made
3    only by a Taxpayer that (i) is primarily engaged in one of
4    the following business activities: water purification and
5    treatment, motor vehicle metal stamping, automobile
6    manufacturing, automobile and light duty motor vehicle
7    manufacturing, motor vehicle manufacturing, light truck
8    and utility vehicle manufacturing, heavy duty truck
9    manufacturing, motor vehicle body manufacturing, cable
10    television infrastructure design or manufacturing, or
11    wireless telecommunication or computing terminal device
12    design or manufacturing for use on public networks and (ii)
13    meets the following criteria:
14            (A) the Taxpayer (i) had an Illinois net loss or an
15        Illinois net loss deduction under Section 207 of the
16        Illinois Income Tax Act for the taxable year in which
17        the Credit is awarded, (ii) employed a minimum of 1,000
18        full-time employees in this State during the taxable
19        year in which the Credit is awarded, (iii) has an
20        Agreement under this Act on December 14, 2009 (the
21        effective date of Public Act 96-834), and (iv) is in
22        compliance with all provisions of that Agreement;
23            (B) the Taxpayer (i) had an Illinois net loss or an
24        Illinois net loss deduction under Section 207 of the
25        Illinois Income Tax Act for the taxable year in which
26        the Credit is awarded, (ii) employed a minimum of 1,000

 

 

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1        full-time employees in this State during the taxable
2        year in which the Credit is awarded, and (iii) has
3        applied for an Agreement within 365 days after December
4        14, 2009 (the effective date of Public Act 96-834);
5            (C) the Taxpayer (i) had an Illinois net operating
6        loss carryforward under Section 207 of the Illinois
7        Income Tax Act in a taxable year ending during calendar
8        year 2008, (ii) has applied for an Agreement within 150
9        days after the effective date of this amendatory Act of
10        the 96th General Assembly, (iii) creates at least 400
11        new jobs in Illinois, (iv) retains at least 2,000 jobs
12        in Illinois that would have been at risk of relocation
13        out of Illinois over a 10-year period, and (v) makes a
14        capital investment of at least $75,000,000;
15            (D) the Taxpayer (i) had an Illinois net operating
16        loss carryforward under Section 207 of the Illinois
17        Income Tax Act in a taxable year ending during calendar
18        year 2009, (ii) has applied for an Agreement within 150
19        days after the effective date of this amendatory Act of
20        the 96th General Assembly, (iii) creates at least 150
21        new jobs, (iv) retains at least 1,000 jobs in Illinois
22        that would have been at risk of relocation out of
23        Illinois over a 10-year period, and (v) makes a capital
24        investment of at least $57,000,000; or
25            (E) the Taxpayer (i) employed at least 2,500
26        full-time employees in the State during the year in

 

 

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1        which the Credit is awarded, (ii) commits to make at
2        least $500,000,000 in combined capital improvements
3        and project costs under the Agreement, (iii) applies
4        for an Agreement between January 1, 2011 and June 30,
5        2011, (iv) executes an Agreement for the Credit during
6        calendar year 2011, and (v) was incorporated no more
7        than 5 years before the filing of an application for an
8        Agreement.
9        (1.5) The election under this subsection (f) may also
10    be made by a Taxpayer for any Credit awarded pursuant to an
11    agreement that was executed between January 1, 2011 and
12    June 30, 2011, if the Taxpayer (i) is primarily engaged in
13    the manufacture of inner tubes or tires, or both, from
14    natural and synthetic rubber, (ii) employs a minimum of
15    2,400 full-time employees in Illinois at the time of
16    application, (iii) creates at least 350 full-time jobs and
17    retains at least 250 full-time jobs in Illinois that would
18    have been at risk of being created or retained outside of
19    Illinois, and (iv) makes a capital investment of at least
20    $200,000,000 at the project location.
21        (1.6) The election under this subsection (f) may also
22    be made by a Taxpayer for any Credit awarded pursuant to an
23    agreement that was executed within 150 days after the
24    effective date of this amendatory Act of the 97th General
25    Assembly, if the Taxpayer (i) is primarily engaged in the
26    operation of a discount department store, (ii) maintains

 

 

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1    its corporate headquarters in Illinois, (iii) employs a
2    minimum of 4,250 full-time employees at its corporate
3    headquarters in Illinois at the time of application, (iv)
4    retains at least 4,250 full-time jobs in Illinois that
5    would have been at risk of being relocated outside of
6    Illinois, (v) had a minimum of $40,000,000,000 in total
7    revenue in 2010, and (vi) makes a capital investment of at
8    least $300,000,000 at the project location.
9        (1.7) Notwithstanding any other provision of law, the
10    election under this subsection (f) may also be made by a
11    Taxpayer for any Credit awarded pursuant to an agreement
12    that was executed or applied for on or after July 1, 2011
13    and on or before March 31, 2012, if the Taxpayer is
14    primarily engaged in the manufacture of original and
15    aftermarket filtration parts and products for automobiles,
16    motor vehicles, light duty motor vehicles, light trucks and
17    utility vehicles, and heavy duty trucks, (ii) employs a
18    minimum of 1,000 full-time employees in Illinois at the
19    time of application, (iii) creates at least 250 full-time
20    jobs in Illinois, (iv) relocates its corporate
21    headquarters to Illinois from another state, and (v) makes
22    a capital investment of at least $4,000,000 at the project
23    location.
24        (1.8) The election under this subsection (f) may also
25    be made if:
26            (i) the agreement awarding the Credit was executed

 

 

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1        on or after the effective date of this amendatory Act
2        of the 98th General Assembly but not later than 150
3        days after the effective date of this amendatory Act of
4        the 98th General Assembly;
5            (ii) the taxpayer is primarily engaged in retail
6        and business-to-business office products distribution,
7        sales, and service;
8            (iii) the taxpayer maintains its corporate
9        headquarters in Illinois;
10            (iv) the taxpayer employs a minimum of 2,050
11        full-time employees at its corporate headquarters and
12        non-retail corporate locations in Illinois at the time
13        of application;
14            (v) the taxpayer retains at least 2,050 full-time
15        jobs in Illinois that would have been at risk of being
16        relocated outside of Illinois as a result of a business
17        combination with a third party;
18            (vi) the taxpayer creates at least 200 full-time
19        jobs in Illinois as a result of a business combination
20        with a third party;
21            (vii) the taxpayer's total aggregate revenue, when
22        combined with that third party, was at least
23        $17,500,000,000 in 2012; and
24            (viii) the taxpayer makes a capital investment of
25        at least $150,000,000 at the project location.
26        (1.9) Notwithstanding any other provision of law, an

 

 

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1    election under this subsection (f) may also be made by a
2    Taxpayer that:
3            (A) is primarily engaged in business as a
4        distributor of industrial and specialty chemicals;
5            (B) relocates its corporate headquarters to
6        Illinois from another State; and
7            (C) entered into an Agreement for a Credit prior to
8        the effective date of this amendatory Act of the 98th
9        General Assembly, which required the Taxpayer to (i)
10        make a capital investment of at least $9,300,000, (ii)
11        retain at least 100 full-time jobs at project locations
12        in Illinois, and (iii) create at least 69 full-time
13        jobs at project locations in Illinois.
14        (2) An election under this subsection shall allow the
15    credit to be taken against payments otherwise due under
16    Section 704A of the Illinois Income Tax Act during the
17    first calendar year beginning after the end of the taxable
18    year in which the credit is awarded under this Act, except
19    that an election under paragraph (1.9) shall allow the
20    credit to be taken against payments otherwise due under
21    Section 704A of the Illinois Income Tax Act during the
22    12-month period beginning with the first month after the
23    Taxpayer relocates its corporate headquarters to Illinois.
24        (3) The election shall be made in the form and manner
25    required by the Illinois Department of Revenue and, once
26    made, shall be irrevocable.

 

 

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1        (4) If a Taxpayer who meets the requirements of
2    subparagraph (A) of paragraph (1) of this subsection (f)
3    elects to claim the Credit against its withholdings as
4    provided in this subsection (f), then, on and after the
5    date of the election, the terms of the Agreement between
6    the Taxpayer and the Department may not be further amended
7    during the term of the Agreement.
8    (g) A pass-through entity that has been awarded a credit
9under this Act, its shareholders, or its partners may treat
10some or all of the credit awarded pursuant to this Act as a tax
11payment for purposes of the Illinois Income Tax Act. The term
12"tax payment" means a payment as described in Article 6 or
13Article 8 of the Illinois Income Tax Act or a composite payment
14made by a pass-through entity on behalf of any of its
15shareholders or partners to satisfy such shareholders' or
16partners' taxes imposed pursuant to subsections (a) and (b) of
17Section 201 of the Illinois Income Tax Act. In no event shall
18the amount of the award credited pursuant to this Act exceed
19the Illinois income tax liability of the pass-through entity or
20its shareholders or partners for the taxable year.
21(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
2296-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
233-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.".