Full Text of SB3175 94th General Assembly
SB3175 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB3175
Introduced 2/27/2006, by Sen. Steven J. Rauschenberger SYNOPSIS AS INTRODUCED: |
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35 ILCS 630/1 |
from Ch. 120, par. 2001 |
35 ILCS 630/1.5 new |
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35 ILCS 630/2 |
from Ch. 120, par. 2002 |
35 ILCS 630/3 |
from Ch. 120, par. 2003 |
35 ILCS 630/4 |
from Ch. 120, par. 2004 |
35 ILCS 630/4.3 new |
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35 ILCS 630/5 |
from Ch. 120, par. 2005 |
35 ILCS 630/6 |
from Ch. 120, par. 2006 |
35 ILCS 630/8 |
from Ch. 120, par. 2008 |
35 ILCS 630/8.5 new |
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35 ILCS 630/9 |
from Ch. 120, par. 2009 |
35 ILCS 630/9.5 new |
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35 ILCS 630/10 |
from Ch. 120, par. 2010 |
35 ILCS 630/20 |
from Ch. 120, par. 2020 |
35 ILCS 635/15 |
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35 ILCS 636/5-5 |
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35 ILCS 636/5-10 |
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Amends the Telecommunications Excise Tax Act. Changes the short title of the Act to the Telecommunications and Video Entertainment Excise Tax Act. Deletes a provision that the tax proceeds must be used for general revenue and education purposes. Imposes the excise tax on video entertainment. Provides that the rate of tax under the Act is the combined sales tax rate for general merchandise in each local jurisdiction, as published in the Department of Revenue's sales tax reference manual. Creates a credit for video entertainment providers equal to the amount of municipal franchise fees. Provides that certain waiver provisions set forth in the Simplified Municipal Telecommunications Tax Act apply to this Act. Amends the Telecommunications Infrastructure maintenance Fee Act. Repeals a Section concerning the imposition of telecommunications infrastructure maintenance fees. Amends the Simplified Municipal Telecommunications Tax Act. Repeals a Section authorizing municipalities to impose a tax on certain acts or privileges. Effective January 1, 2007.
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A BILL FOR
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SB3175 |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Telecommunications Excise Tax Act is amended | 5 |
| by changing Sections 1, 2, 3, 4, 5, 6, 8, 9, 10, and 20 and by | 6 |
| adding Sections 1.5, 4.3, 8.5, and 9.5 as follows:
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| (35 ILCS 630/1) (from Ch. 120, par. 2001)
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| Sec. 1. This Article shall be known and may be cited as the
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| "Telecommunications and Video Entertainment Excise Tax Act". | 10 |
| The net proceeds from the taxes
imposed by this Act shall be | 11 |
| used for the support of the General Revenue
Fund and education.
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| (Source: P.A. 84-126.)
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| (35 ILCS 630/1.5 new) | 14 |
| Sec. 1.5. Legislative intent. | 15 |
| (a) The General Assembly has authorized the State and | 16 |
| corporate authorities of municipalities to impose various fees | 17 |
| and taxes on the privilege of originating or receiving | 18 |
| telecommunications and on retailers engaged in the business of | 19 |
| transmitting such telecommunications. This has resulted in a | 20 |
| heavy tax burden which, in many cases, exceeds the tax rate | 21 |
| levied on general merchandise. Additionally, the competitive | 22 |
| environment of telecommunications and video is changing | 23 |
| rapidly. Traditional video providers are now offering | 24 |
| telecommunications and traditional telecommunications | 25 |
| providers are now offering video services. Under the current | 26 |
| tax system, video and telecommunications have varying tax | 27 |
| burdens. Therefore, the General Assembly is repealing the | 28 |
| simplified municipal telecommunications tax and the State | 29 |
| infrastructure maintenance fee and is enacting the State | 30 |
| telecommunications and video entertainment excise tax.
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| (b) The enactment of this amendatory Act of the 94th |
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| General Assembly and the repeal of the simplified municipal | 2 |
| telecommunications tax does not give municipalities the | 3 |
| authority to levy new fees, charges, or other compensation for | 4 |
| the use of the public right-of-way by telecommunications | 5 |
| retailers. The waiver of franchise fees under Section 5-60 of | 6 |
| the Simplified Municipal Telecommunications Tax Act shall | 7 |
| carry forward to this Act even though the simplified municipal | 8 |
| telecommunications tax is repealed. Additionally, the | 9 |
| legislative intent in Section 5 of the Telecommunications | 10 |
| Infrastructure Maintenance Fee Act with regard to franchise | 11 |
| fees should be read in concert with the legislative intent | 12 |
| found in Section 5-5 of the Simplified Municipal | 13 |
| Telecommunications Tax Act with regard to the simplified | 14 |
| municipal telecommunications tax.
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| (35 ILCS 630/2) (from Ch. 120, par. 2002)
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| Sec. 2. As used in this Article, unless the context clearly | 17 |
| requires
otherwise:
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| (a) "Gross charge" means the amount paid for the act or
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| privilege of originating or receiving telecommunications or | 20 |
| video entertainment in this State and
for all services and | 21 |
| equipment provided in connection therewith by a
retailer, | 22 |
| valued in money whether paid in money or otherwise, including
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| cash, credits, services and property of every kind or nature, | 24 |
| and shall be
determined without any deduction on account of the | 25 |
| cost of such
telecommunications or video entertainment , the | 26 |
| cost of materials used, labor or service costs or
any other | 27 |
| expense whatsoever. In case credit is extended, the amount
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| thereof shall be included only as and when paid.
"Gross | 29 |
| charges" for private line service shall include charges imposed | 30 |
| at
each channel termination point within this State, charges | 31 |
| for the channel
mileage
between each channel termination point | 32 |
| within this State, and charges for
that portion
of the | 33 |
| interstate inter-office channel provided within Illinois. | 34 |
| Charges for
that portion of the interstate inter-office channel | 35 |
| provided in Illinois shall
be determined by the retailer as |
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| follows: (i) for interstate
inter-office channels having 2 | 2 |
| channel termination points, only one of which
is in Illinois, | 3 |
| 50% of the total charge imposed; or (ii) for interstate
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| inter-office channels having more than 2 channel termination | 5 |
| points, one or
more of which
are in Illinois, an amount equal | 6 |
| to the total charge
multiplied by a fraction, the numerator of | 7 |
| which is the number of channel
termination points within | 8 |
| Illinois and the denominator of which is the total
number of | 9 |
| channel termination points. Prior to January 1,
2004, any | 10 |
| method consistent with this
paragraph or other method that | 11 |
| reasonably apportions the total charges for
interstate | 12 |
| inter-office channels among the states in which channel | 13 |
| terminations
points are located shall be accepted as a | 14 |
| reasonable method to determine the
charges for
that portion of | 15 |
| the interstate inter-office channel provided within Illinois
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| for that period. However, "gross charges" shall not include any | 17 |
| of the
following:
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| (1) Any amounts added to a purchaser's bill because of | 19 |
| a charge made
pursuant to (i) the tax imposed by this | 20 |
| Article; (ii) charges added to
customers' bills pursuant to | 21 |
| the provisions of Sections 9-221 or 9-222 of
the Public | 22 |
| Utilities Act, as amended, or any similar charges added to
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| customers' bills by retailers who are not subject to rate | 24 |
| regulation by
the Illinois Commerce Commission for the | 25 |
| purpose of recovering any of the
tax liabilities or other | 26 |
| amounts specified in such provisions of such
Act; (iii) the | 27 |
| tax imposed by Section 4251 of the Internal Revenue Code;
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| (iv) 911 surcharges; or (v) the tax imposed by the | 29 |
| Simplified Municipal
Telecommunications Tax Act.
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| (2) Charges for a sent collect telecommunication | 31 |
| received outside of the
State.
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| (3) Charges for leased time on equipment or charges for | 33 |
| the storage of
data or information for subsequent retrieval | 34 |
| or the processing of data or
information intended to change | 35 |
| its form or content. Such equipment
includes, but is not | 36 |
| limited to, the use of calculators, computers, data
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| processing equipment, tabulating equipment or accounting | 2 |
| equipment and also
includes the usage of computers under a | 3 |
| time-sharing agreement.
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| (4) Charges for customer equipment, including such | 5 |
| equipment that is
leased or rented by the customer from any | 6 |
| source, wherein such charges are
disaggregated and | 7 |
| separately identified from other charges.
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| (5) Charges to business enterprises certified under | 9 |
| Section 9-222.1
of the Public Utilities Act, as amended, to | 10 |
| the extent of such exemption
and during the period of time | 11 |
| specified by the Department of Commerce and
Economic | 12 |
| Opportunity
Community Affairs .
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| (6) Charges for telecommunications and video | 14 |
| entertainment and all services and equipment
provided in | 15 |
| connection therewith between a parent corporation and its
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| wholly owned subsidiaries or between wholly owned | 17 |
| subsidiaries when the tax
imposed under this Article has | 18 |
| already been paid to a
retailer and only to the extent that | 19 |
| the charges between the parent
corporation and wholly owned | 20 |
| subsidiaries or between wholly owned
subsidiaries | 21 |
| represent expense allocation
between the corporations and | 22 |
| not the generation of profit for the
corporation rendering | 23 |
| such service.
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| (7) Bad debts. Bad debt means any portion of a debt | 25 |
| that is related
to a sale at retail for which gross charges | 26 |
| are not otherwise deductible or
excludable that has become | 27 |
| worthless or uncollectable, as determined under
applicable | 28 |
| federal income tax standards. If the portion of the debt | 29 |
| deemed to
be bad is subsequently paid, the retailer shall | 30 |
| report and pay the tax on that
portion during the reporting | 31 |
| period in which the payment is made.
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| (8) Charges paid by inserting coins in coin-operated | 33 |
| telecommunication
devices.
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| (9) Amounts paid by telecommunications retailers under | 35 |
| the
Telecommunications Municipal Infrastructure | 36 |
| Maintenance Fee Act.
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| (10) Charges for nontaxable services or | 2 |
| telecommunications if (i) those
charges are
aggregated
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| with other
charges for telecommunications that are | 4 |
| taxable, (ii) those charges are not
separately stated
on | 5 |
| the
customer bill or invoice, and (iii) the retailer can | 6 |
| reasonably identify the
nontaxable
charges on
the | 7 |
| retailer's books and records kept in the regular course of | 8 |
| business. If the
nontaxable
charges cannot reasonably be | 9 |
| identified, the gross charge from the sale of both
taxable
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| and nontaxable services or telecommunications billed on a | 11 |
| combined basis shall
be
attributed to the taxable services | 12 |
| or telecommunications. The burden of proving
nontaxable
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| charges
shall be on the retailer of the telecommunications.
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| (b) "Amount paid" means the amount charged to the | 15 |
| taxpayer's service
address in this State regardless of where | 16 |
| such amount is billed or paid.
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| (c) "Telecommunications", in addition to the meaning | 18 |
| ordinarily and
popularly ascribed to it, includes, without | 19 |
| limitation, messages or
information transmitted through use of | 20 |
| local, toll and wide area telephone
service; private line | 21 |
| services; channel services; telegraph services;
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| teletypewriter; computer exchange services; cellular mobile
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| telecommunications service; specialized mobile radio; | 24 |
| stationary two way
radio; paging service; or any other form of | 25 |
| mobile and portable one-way or
two-way communications; or any | 26 |
| other transmission of messages or
information by electronic or | 27 |
| similar means, between or among points by
wire, cable, | 28 |
| fiber-optics, laser, microwave, radio, satellite or similar
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| facilities. As used in this Act, "private line" means a | 30 |
| dedicated non-traffic
sensitive service for a single customer, | 31 |
| that entitles the customer to
exclusive or priority use of a | 32 |
| communications channel or group of channels,
from one or more | 33 |
| specified locations to one or more other specified
locations. | 34 |
| The definition of "telecommunications" shall not include value
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| added services in which computer processing applications are | 36 |
| used to act on
the form, content, code and protocol of the |
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| information for purposes other
than transmission. | 2 |
| "Telecommunications" shall not include purchases of
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| telecommunications by a telecommunications service provider | 4 |
| for use as a
component part of the service provided by him to | 5 |
| the ultimate retail
consumer who originates or terminates the | 6 |
| taxable end-to-end
communications. Carrier access charges, | 7 |
| right of access charges, charges
for use of inter-company | 8 |
| facilities, and all telecommunications resold in
the | 9 |
| subsequent provision of, used as a component of, or integrated | 10 |
| into
end-to-end telecommunications service shall be | 11 |
| non-taxable as sales for resale.
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| (d) "Interstate telecommunications" means all | 13 |
| telecommunications that
either originate or terminate outside | 14 |
| this State.
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| (e) "Intrastate telecommunications" means all | 16 |
| telecommunications that
originate and terminate within this | 17 |
| State.
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| (f) "Department" means the Department of Revenue of the | 19 |
| State of Illinois.
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| (g) "Director" means the Director of Revenue for the | 21 |
| Department of
Revenue of the State of Illinois.
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| (h) "Taxpayer" means a person who individually or through | 23 |
| his agents,
employees or permittees engages in the act or | 24 |
| privilege of originating or
receiving telecommunications in | 25 |
| this State and who incurs a tax liability
under this Article.
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| (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.
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| (j) "Purchase at retail" means the acquisition, | 34 |
| consumption or use of
telecommunication through a sale at | 35 |
| retail.
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| (k) "Sale at retail" means the transmitting, supplying or |
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| furnishing of
telecommunications or video entertainment and | 2 |
| all services and equipment provided in connection
therewith for | 3 |
| a consideration to persons other than the Federal and State
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| governments, and State universities created by statute and | 5 |
| other than between
a parent corporation and its wholly owned | 6 |
| subsidiaries or between wholly
owned subsidiaries for their use | 7 |
| or consumption and not for resale.
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| (l) "Retailer" means and includes every person engaged in | 9 |
| the business
of making sales at retail as defined in this | 10 |
| Article. The Department may, in
its discretion, upon | 11 |
| application, authorize the collection of the tax
hereby imposed | 12 |
| by any retailer not maintaining a place of business within
this | 13 |
| State, who, to the satisfaction of the Department, furnishes | 14 |
| adequate
security to insure collection and payment of the tax. | 15 |
| Such retailer shall
be issued, without charge, a permit to | 16 |
| collect such tax. When so
authorized, it shall be the duty of | 17 |
| such retailer to collect the tax upon
all of the gross charges | 18 |
| for telecommunications or video entertainment in this State in | 19 |
| the same
manner and subject to the same requirements as a | 20 |
| retailer maintaining a
place of business within this State. The | 21 |
| permit may be revoked by the
Department at its discretion.
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| (m) "Retailer maintaining a place of business in this | 23 |
| State", or any
like term, means and includes any retailer | 24 |
| having or maintaining within
this State, directly or by a | 25 |
| subsidiary, an office, distribution
facilities, transmission | 26 |
| facilities, sales office, warehouse or other place
of business, | 27 |
| or any agent or other representative operating within this
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| State under the authority of the retailer or its subsidiary, | 29 |
| irrespective
of whether such place of business or agent or | 30 |
| other representative is
located here permanently or | 31 |
| temporarily, or whether such retailer or
subsidiary is licensed | 32 |
| to do business in this State.
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| (n) "Service address" means the location of | 34 |
| telecommunications or video entertainment equipment
from which | 35 |
| the telecommunications services are originated or at which
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| telecommunications or video entertainment services are |
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| received by a taxpayer. In the event this may
not be a defined | 2 |
| location, as in the case of mobile phones, paging systems, and
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| maritime systems, service address means the customer's place of | 4 |
| primary use
as defined in the Mobile Telecommunications | 5 |
| Sourcing Conformity Act. For
air-to-ground systems and the | 6 |
| like, service address shall mean the location
of a taxpayer's | 7 |
| primary use of the telecommunications equipment as defined by
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| telephone number, authorization code, or location in Illinois | 9 |
| where bills are
sent.
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| (o) "Prepaid telephone calling arrangements" mean the | 11 |
| right to exclusively
purchase telephone or telecommunications | 12 |
| services that must be paid for in
advance and enable the | 13 |
| origination of one or more intrastate, interstate, or
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| international telephone calls or other telecommunications | 15 |
| using an access
number, an authorization code, or both, whether | 16 |
| manually or electronically
dialed, for which payment to a | 17 |
| retailer must be made in advance, provided
that, unless | 18 |
| recharged, no further service is provided once that prepaid
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| amount of service has been consumed. Prepaid telephone calling | 20 |
| arrangements
include the recharge of a prepaid calling | 21 |
| arrangement. For purposes of this
subsection, "recharge" means | 22 |
| the purchase of additional prepaid telephone or
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| telecommunications services whether or not the purchaser | 24 |
| acquires a different
access number or authorization code. | 25 |
| "Prepaid telephone calling arrangement"
does not include an | 26 |
| arrangement whereby a customer purchases a payment card and
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| pursuant to which the service provider reflects the amount of | 28 |
| such purchase as
a credit on an invoice issued to that customer | 29 |
| under an existing subscription
plan.
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| (p) "Video entertainment" means providing a video service, | 31 |
| for a fee, which regularly amplifies and transmits by wire, | 32 |
| coaxial cable, lightwave, or microwave, to 50 or more | 33 |
| subscribers, programs broadcast by television or radio | 34 |
| stations or originated by themselves or any other party. "Video | 35 |
| entertainment" does not include a master antenna system which | 36 |
| serves one residential, commercial, or government building or |
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| complex of buildings under common ownership or control if that | 2 |
| facility does not provide any broadcast signals other than | 3 |
| those which may be viewed in that facility.
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| (Source: P.A. 92-474, eff. 8-1-02; 92-526, eff.
1-1-03; 92-878, | 5 |
| eff. 1-1-04; 93-286, 1-1-04; revised 12-6-03.)
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| (35 ILCS 630/3) (from Ch. 120, par. 2003)
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| Sec. 3. Until December 31, 1997, a tax is imposed upon the | 8 |
| act or
privilege of originating or
receiving intrastate | 9 |
| telecommunications by a person in this State at the
rate of 5% | 10 |
| of the gross charge for such telecommunications purchased at
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| retail from a retailer by such person. Beginning January 1, | 12 |
| 1998, a tax is
imposed upon the act or privilege of originating | 13 |
| in this State or receiving in
this State intrastate | 14 |
| telecommunications by a person in this State at the rate
of
7% | 15 |
| of the gross charge for such telecommunications purchased at | 16 |
| retail from a
retailer by such person. However, such tax is not | 17 |
| imposed on
the act or privilege to the extent such act or | 18 |
| privilege may not, under the
Constitution and statutes of the | 19 |
| United States, be made the subject of
taxation by the State.
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| Beginning January 1, 2001, prepaid telephone calling | 21 |
| arrangements shall not
be considered telecommunications | 22 |
| subject to the tax imposed under this Act. Beginning January 1, | 23 |
| 2007, the tax imposed by this Section shall be levied at the | 24 |
| rate determined in Section 4.3 and shall also be levied on | 25 |
| intrastate video entertainment.
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| (Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)
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| (35 ILCS 630/4) (from Ch. 120, par. 2004)
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| Sec. 4. Until December 31, 1997, a tax is imposed upon the | 29 |
| act or
privilege of originating in this State or receiving in | 30 |
| this State interstate
telecommunications by a person in this | 31 |
| State at the rate of 5% of the gross
charge for such | 32 |
| telecommunications purchased at retail from a retailer by such
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| person. Beginning January 1, 1998, a tax is imposed upon the | 34 |
| act or
privilege
of originating in this State or receiving in |
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| this State interstate
telecommunications by a person in this | 2 |
| State at the rate of 7% of the gross
charge for such | 3 |
| telecommunications purchased at retail from a
retailer by such | 4 |
| person. To prevent actual multi-state
taxation of the act or | 5 |
| privilege that is subject to taxation under this
paragraph, any | 6 |
| taxpayer, upon proof that that taxpayer has paid a tax in
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| another state on such event, shall be allowed a credit against | 8 |
| the tax
imposed in this Section 4 to the extent of the amount | 9 |
| of such tax
properly due and paid in such other state. However, | 10 |
| such tax is not
imposed on the act or privilege to the extent | 11 |
| such act or privilege
may not, under the Constitution and | 12 |
| statutes of the United States, be made
the subject of taxation | 13 |
| by the State.
Beginning on January 1, 2001, prepaid telephone | 14 |
| calling arrangements shall
not be
considered | 15 |
| telecommunications subject to the tax imposed under this Act. | 16 |
| Beginning January 1, 2007, the tax imposed by this Section | 17 |
| shall be levied at the rate determined in Section 4.3 and shall | 18 |
| also be levied on intrastate video entertainment.
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| (Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)
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| (35 ILCS 630/4.3 new) | 21 |
| Sec. 4.3. Beginning January 1, 2007, the tax rate imposed | 22 |
| in Sections 3 and 4 shall be the combined sales tax rate for | 23 |
| general merchandise in each local jurisdiction, as published in | 24 |
| the Department's sales tax reference manual.
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| (35 ILCS 630/5) (from Ch. 120, par. 2005)
| 26 |
| Sec. 5. Any retailer maintaining a place of business in | 27 |
| this State shall
collect and remit to the Department the tax | 28 |
| imposed by this Act. Any such
retailer shall be liable for the | 29 |
| tax whether or not the tax has been collected
by the retailer. | 30 |
| To the extent that a retailer required to collect the tax
| 31 |
| imposed by this Act has actually collected that tax, such tax | 32 |
| is held in trust
for the benefit of the Department. Retailers
| 33 |
| shall collect the tax from the taxpayer by adding the tax to | 34 |
| the gross
charge for the act or privilege of originating or |
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| receiving
telecommunications or video entertainment in this | 2 |
| State, when sold for use, in the manner
prescribed by the | 3 |
| Department. Whenever possible, the tax imposed by this
Article | 4 |
| shall, when collected, be stated as a distinct item separate | 5 |
| and apart
from the gross charge for telecommunications or video | 6 |
| entertainment . The tax imposed by this
Article shall constitute | 7 |
| a debt of the purchaser to the retailer who
provides such | 8 |
| taxable services until paid, and, if unpaid, is recoverable
at | 9 |
| law in the same manner as the original charge for such taxable | 10 |
| services.
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| (Source: P.A. 91-203, eff. 7-20-99.)
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| (35 ILCS 630/6) (from Ch. 120, par. 2006)
| 13 |
| Sec. 6. Returns and payments of tax.
Except as provided | 14 |
| hereinafter in this Section, on or before
the last day of each | 15 |
| month, each retailer maintaining a place
of
business in
this | 16 |
| State shall make a return to the Department for the preceding | 17 |
| calendar
month, stating:
| 18 |
| 1. His name;
| 19 |
| 2. The address of his principal place of business, or | 20 |
| the
address of
the principal place of business (if that is | 21 |
| a different address) from which
he engages in the business | 22 |
| of transmitting telecommunications or video entertainment ;
| 23 |
| 3. Total amount of gross charges billed by him during | 24 |
| the preceding
calendar month for providing | 25 |
| telecommunications or video entertainment during such | 26 |
| calendar month;
| 27 |
| 4. Total amount received by him during the preceding | 28 |
| calendar month on
credit extended;
| 29 |
| 5. Deductions allowed by law;
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| 6. Gross charges which were billed by him during the | 31 |
| preceding calendar
month and upon the basis of which the | 32 |
| tax is imposed;
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| 7. Amount of tax (computed upon Item 6) and credits to | 34 |
| tax ;
| 35 |
| 8. Such other reasonable information as the Department |
|
|
|
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| 1 |
| may require.
| 2 |
| Any taxpayer required to make payments under this Section | 3 |
| may make the
payments by electronic funds transfer. The | 4 |
| Department shall adopt
rules
necessary to effectuate a program | 5 |
| of electronic funds transfer.
Any taxpayer who has average | 6 |
| monthly tax billings due to the Department under
this Act and | 7 |
| the Simplified Municipal Telecommunications Tax Act that | 8 |
| exceed
$1,000 shall
make all payments by electronic funds | 9 |
| transfer as required by rules of the
Department and shall file | 10 |
| the return required by this Section by electronic
means as | 11 |
| required by rules of the Department.
| 12 |
| If the retailer's average monthly tax billings due to the | 13 |
| Department under
this Act and the Simplified Municipal | 14 |
| Telecommunications Tax Act do
not exceed $1,000, the Department | 15 |
| may authorize his returns to be
filed on a
quarter annual | 16 |
| basis, with the return for January, February and March of a
| 17 |
| given year being due by April 30 of such year; with the return | 18 |
| for
April,
May and June of a given year being due by July 31st | 19 |
| of such year;
with
the
return for July, August and September of | 20 |
| a given year being due by October
31st of such year; and with | 21 |
| the return of October, November and
December of a
given year | 22 |
| being due by January 31st of the following year.
| 23 |
| If the retailer is otherwise required to file a monthly or | 24 |
| quarterly return
and if the retailer's average monthly tax | 25 |
| billings due to the Department
under this Act and the | 26 |
| Simplified Municipal Telecommunications Tax Act do
not
exceed | 27 |
| $400, the Department may authorize his or her return to be
| 28 |
| filed on an annual basis, with the return for a given year | 29 |
| being due by January
31st of the following year.
| 30 |
| Notwithstanding any other provision of this Article | 31 |
| containing the time
within which a retailer may file his | 32 |
| return, in the case of any retailer
who ceases to engage in a | 33 |
| kind of business which makes him responsible for
filing returns | 34 |
| under this Article, such retailer shall file a final return
| 35 |
| under this Article with the Department not more than one month | 36 |
| after
discontinuing such business.
|
|
|
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| In making such return, the retailer shall determine the | 2 |
| value of any
consideration other than money received by him and | 3 |
| he shall include such
value in his return. Such determination | 4 |
| shall be subject to review and
revision by the Department in | 5 |
| the manner hereinafter provided for the
correction of returns.
| 6 |
| Each retailer whose average monthly liability to the | 7 |
| Department under
this Article and the Simplified Municipal | 8 |
| Telecommunications Tax Act was
$25,000 or more during the | 9 |
| preceding calendar year, excluding
the month of highest | 10 |
| liability and the month of lowest liability in such
calendar | 11 |
| year, and who is not operated by a unit of local government,
| 12 |
| shall make estimated payments to the Department on or before | 13 |
| the 7th, 15th,
22nd and last day of the month during which tax | 14 |
| collection liability to the
Department is incurred in an amount | 15 |
| not less than the lower of either 22.5%
of the retailer's | 16 |
| actual tax collections for the month or 25% of the
retailer's | 17 |
| actual tax collections for the same calendar month of the
| 18 |
| preceding year. The amount of such quarter monthly payments | 19 |
| shall be
credited against the final liability of the retailer's | 20 |
| return for that
month. Any outstanding credit, approved by the | 21 |
| Department, arising from
the retailer's overpayment of its | 22 |
| final liability for any month may be
applied to reduce the | 23 |
| amount of any subsequent quarter monthly payment or
credited | 24 |
| against the final liability of the retailer's return for any
| 25 |
| subsequent month. If any quarter monthly payment is not paid at | 26 |
| the time
or in the amount required by this Section, the | 27 |
| retailer shall be liable for
penalty and interest on the | 28 |
| difference between the minimum amount due as a
payment and the | 29 |
| amount of such payment actually and timely paid, except
insofar | 30 |
| as the retailer has previously made payments for that month to | 31 |
| the
Department in excess of the minimum payments previously | 32 |
| due.
| 33 |
| The retailer making the return herein provided for shall, | 34 |
| at the time of
making such return, pay to the Department the | 35 |
| amount of tax herein imposed,
less a discount of 1% which is | 36 |
| allowed to reimburse the retailer for the
expenses incurred in |
|
|
|
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| 1 |
| keeping records, billing the customer, preparing and
filing | 2 |
| returns, remitting the tax, and supplying data to the | 3 |
| Department upon
request. No discount may be claimed by a | 4 |
| retailer on returns not timely filed
and for taxes not timely
| 5 |
| remitted.
On and after the effective date of this Article of | 6 |
| 1985,
$1,000,000
of the moneys received by the Department of | 7 |
| Revenue pursuant to this
Article shall be paid each month into | 8 |
| the Common School Fund and the
remainder into the General | 9 |
| Revenue Fund. On and after February 1, 1998,
however, of
the | 10 |
| moneys received by the Department of Revenue pursuant to the | 11 |
| additional
taxes imposed
by this amendatory Act of 1997
| 12 |
| one-half shall be deposited
into the School Infrastructure Fund | 13 |
| and one-half shall be deposited into the
Common School Fund.
On | 14 |
| and after the effective date of this amendatory Act of the 91st | 15 |
| General
Assembly, if in any fiscal year the total of the moneys | 16 |
| deposited into the
School Infrastructure Fund under this Act is | 17 |
| less than the total of the moneys
deposited into that Fund from | 18 |
| the additional taxes imposed by Public Act
90-548 during fiscal | 19 |
| year 1999, then, as soon as possible after the close of
the | 20 |
| fiscal year, the Comptroller shall order transferred
and the | 21 |
| Treasurer shall transfer from the General Revenue Fund to the | 22 |
| School
Infrastructure Fund an amount equal to the difference | 23 |
| between the fiscal year
total
deposits and the
total amount | 24 |
| deposited into the Fund in fiscal year 1999.
| 25 |
| (Source: P.A. 91-541, eff. 8-13-99; 91-870, 6-22-00; 92-526, | 26 |
| eff. 1-1-03.)
| 27 |
| (35 ILCS 630/8) (from Ch. 120, par. 2008)
| 28 |
| Sec. 8. Resellers of telecommunications or video | 29 |
| entertainment; resale number.
If a person who originates or | 30 |
| receives telecommunications
or video entertainment in this | 31 |
| State claims to be a reseller of such telecommunications or | 32 |
| video entertainment , such
person shall apply to the Department | 33 |
| for a resale number. Such applicant
shall state facts which | 34 |
| will show the Department why such applicant is not
liable for | 35 |
| tax under this Article on any of his purchases and shall |
|
|
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| 1 |
| furnish
such additional information as the Department may | 2 |
| reasonably require.
| 3 |
| Upon approval of the application, the Department shall | 4 |
| assign a resale
number to the applicant and shall certify such | 5 |
| number to him. The
Department may cancel any such number which | 6 |
| is obtained through
misrepresentation, or which is used to | 7 |
| originate or receive such
telecommunications or video | 8 |
| entertainment tax-free when such actions in fact are not for | 9 |
| resale,
or which no longer applies because of the person's | 10 |
| having discontinued the
making of resales.
| 11 |
| Except as provided hereinabove in this Section, the act or | 12 |
| privilege of
originating or receiving telecommunications or | 13 |
| video entertainment in this State shall not be made
tax-free on | 14 |
| the ground of being a sale for resale unless the person has an
| 15 |
| active resale number from the Department and furnishes that | 16 |
| number to the
retailer in connection with certifying to the | 17 |
| retailer that any sale to
such person is nontaxable because of | 18 |
| being a sale for resale.
| 19 |
| (Source: P.A. 84-126.)
| 20 |
| (35 ILCS 630/8.5 new) | 21 |
| Sec. 8.5. Credit for local franchise fees. A video | 22 |
| entertainment provider that owes municipal franchise fees for | 23 |
| providing video entertainment may take a credit against the tax | 24 |
| imposed by this Act. The credit shall be equal to the sum total | 25 |
| of all franchise fees owed throughout the State and shall be | 26 |
| credited against the liability under this Act for the tax | 27 |
| period covered by the return.
| 28 |
| (35 ILCS 630/9) (from Ch. 120, par. 2009)
| 29 |
| Sec. 9. All of the provisions of Sections 4, 5, 5a, 5b, 5c, | 30 |
| 5d, 5e,
5f, 5g, 5i, 5j, 6b, and 6c of the Retailers' Occupation | 31 |
| Tax
Act,
which are not
inconsistent with this Act, and Section | 32 |
| 3-7 of the Uniform Penalty and Interest
Act, shall apply, as | 33 |
| far as practicable, to the subject matter of this Act to
the | 34 |
| same extent as if such provisions were included herein. |
|
|
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| 1 |
| References in such
incorporated Sections of the Retailers' | 2 |
| Occupation Tax Act to retailers,
to sellers or to persons | 3 |
| engaged in the business of selling tangible
personal property | 4 |
| mean retailers, as defined in this Article, or persons
engaged | 5 |
| in the act or privilege of originating or receiving
| 6 |
| telecommunications or video entertainment . References in such | 7 |
| incorporated Sections of the
Retailers' Occupation Tax Act to | 8 |
| purchasers of tangible personal
property mean purchasers of | 9 |
| telecommunications or video entertainment as defined in this | 10 |
| Article.
References in such incorporated Sections of the | 11 |
| Retailers' Occupation Tax
Act to sales of tangible personal | 12 |
| property mean the act or privilege of
originating or receiving | 13 |
| telecommunications or video entertainment as defined in this | 14 |
| Article.
| 15 |
| (Source: P.A. 90-491, eff. 1-1-98.)
| 16 |
| (35 ILCS 630/9.5 new) | 17 |
| Sec. 9.5. Waivers. The waiver provisions of Section 5-60 of | 18 |
| the Simplified Municipal Telecommunications Tax Act apply to | 19 |
| telecommunication providers under this Act and the intent | 20 |
| provided in Section 5 of the Telecommunications Infrastructure | 21 |
| Maintenance Fee Act shall apply to this Act as if such | 22 |
| provisions were included herein.
| 23 |
| (35 ILCS 630/10) (from Ch. 120, par. 2010)
| 24 |
| Sec. 10. If it shall appear that an amount of tax or | 25 |
| penalty or
interest has been paid in error hereunder to the | 26 |
| Department by a taxpayer,
as distinguished from the retailer, | 27 |
| whether such amount be paid through a
mistake of fact or an | 28 |
| error of law, such taxpayer may file a claim for
credit or | 29 |
| refund with the Department. If it shall appear that an amount | 30 |
| of
tax or penalty or interest has been paid in error to the | 31 |
| Department
hereunder by a retailer who is required or | 32 |
| authorized to collect and remit
the tax imposed by this | 33 |
| Article, whether such amount be paid through a mistake
of fact | 34 |
| or an error of law, such retailer may file a claim for credit |
|
|
|
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|
| 1 |
| or
refund with the Department, provided that no credit or | 2 |
| refund shall be
allowed for any amount paid by any such | 3 |
| retailer unless it shall appear
that he bore the burden of such | 4 |
| amount and did not shift the burden thereof
to anyone else, or | 5 |
| unless it shall appear that he or she or his or her
legal | 6 |
| representative has unconditionally repaid such amount to his | 7 |
| customer
(1) who bore the burden thereof and has not shifted | 8 |
| such burden directly or
indirectly in any manner whatsoever; or | 9 |
| (2) who, if he or she shifted such
burden, has repaid | 10 |
| unconditionally such amount to his or her own customer;
and (3) | 11 |
| who is not entitled to receive any reimbursement therefor from | 12 |
| any
other source than from his retailer, nor to be relieved of | 13 |
| such burden in
any other manner whatsoever.
| 14 |
| If it is determined that the Department should issue a | 15 |
| credit or refund
under this Article, the Department may first | 16 |
| apply the amount thereof against
any amount of tax or penalty | 17 |
| or interest due hereunder from the
person entitled to such | 18 |
| credit or refund. For this purpose, if proceedings
are pending | 19 |
| to determine whether or not any tax or penalty or interest is
| 20 |
| due under this Article from such person, the Department may | 21 |
| withhold issuance
of the credit or refund pending the final | 22 |
| disposition of such proceedings
and may apply such credit or | 23 |
| refund against any amount found to be due to
the Department as | 24 |
| a result of such proceedings. The balance, if any, of
the | 25 |
| credit or refund shall be issued to the person entitled | 26 |
| thereto.
| 27 |
| If no tax or penalty or interest is due and no proceeding | 28 |
| is pending to
determine whether such person is indebted to the | 29 |
| Department for tax or
penalty or interest, the credit | 30 |
| memorandum or refund shall be issued to the
claimant; or (in | 31 |
| the case of a credit memorandum) the credit memorandum may
be | 32 |
| assigned and set over by the lawful holder thereof, subject to
| 33 |
| reasonable rules of the Department, to any other person who is | 34 |
| subject to
this Article, and the amount thereof shall be | 35 |
| applied by the Department against
any tax or penalty or | 36 |
| interest due or to become due under this Article from
such |
|
|
|
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LRB094 19785 BDD 56558 b |
|
| 1 |
| assignee.
| 2 |
| As to any claim for credit or refund filed with the | 3 |
| Department on or after
each January 1 and July 1, no amounts | 4 |
| erroneously paid more than three
years prior to such January 1 | 5 |
| and July 1, respectively, shall be
credited or refunded, except | 6 |
| that if both the Department and the taxpayer
have agreed to an
| 7 |
| extension of time to issue a notice of tax liability under this | 8 |
| Act, the claim
may be filed at any time prior to the expiration | 9 |
| of the period agreed upon.
| 10 |
| Claims for credit or refund shall be filed upon forms | 11 |
| provided by the
Department. As soon as practicable after any | 12 |
| claim for credit or refund is
filed, the Department shall | 13 |
| examine the same and determine the amount of
credit or refund | 14 |
| to which the claimant is entitled and shall notify the
claimant | 15 |
| of such determination, which amount shall be prima facie | 16 |
| correct.
| 17 |
| A claim for credit or refund shall be considered to have | 18 |
| been filed with
the Department on the date upon which it is | 19 |
| received by the Department.
Upon receipt of any claim for | 20 |
| credit or refund filed under this Article, any
officer or | 21 |
| employee of the Department, authorized in writing by the
| 22 |
| Director of Revenue to acknowledge receipt of such claims on | 23 |
| behalf of the
Department, shall execute on behalf of the | 24 |
| Department, and shall deliver or
mail to the claimant or his | 25 |
| duly authorized agent, a written receipt,
acknowledging that | 26 |
| the claim has been filed with the Department, describing
the | 27 |
| claim in sufficient detail to identify it and stating the date | 28 |
| upon
which the claim was received by the Department. Such | 29 |
| written receipt shall
be prima facie evidence that the | 30 |
| Department received the claim described in
such receipt and | 31 |
| shall be prima facie evidence of the date when such claim
was | 32 |
| received by the Department. In the absence of such a written | 33 |
| receipt,
the records of the Department as to when the claim was | 34 |
| received by the
Department, or as to whether or not the claim | 35 |
| was received at all by the
Department, shall be deemed to be | 36 |
| prima facie correct upon these questions
in the event of any |
|
|
|
SB3175 |
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LRB094 19785 BDD 56558 b |
|
| 1 |
| dispute between the claimant (or his or her legal
| 2 |
| representative) and the Department concerning these questions.
| 3 |
| Any credit or refund that is allowed under this Article | 4 |
| shall bear interest
at the rate and in the manner specified in | 5 |
| the Uniform Penalty and Interest
Act.
| 6 |
| In case the Department determines that the claimant is | 7 |
| entitled to a
refund, such refund shall be made only from such | 8 |
| appropriation as may be
available for that purpose. If it | 9 |
| appears unlikely that the amount
appropriated would permit | 10 |
| everyone having a claim allowed during the period
covered by | 11 |
| such appropriation to elect to receive a cash refund, the
| 12 |
| Department by rule or regulation shall provide for the payment | 13 |
| of refunds
in hardship cases and shall define what types of | 14 |
| cases qualify as hardship
cases.
| 15 |
| If a retailer who has failed to pay tax on gross charges | 16 |
| for
telecommunications or video entertainment is required by | 17 |
| the Department to pay such tax, such
retailer, without filing | 18 |
| any formal claim with the Department, shall be
allowed to take | 19 |
| credit against such tax liability
to the extent, if any, to | 20 |
| which such retailer has paid the
tax to its vendor of the | 21 |
| telecommunications or video entertainment which
such retailer | 22 |
| purchased and used for resale, and no penalty or interest
shall | 23 |
| be charged to such retailer on the amount of such credit. | 24 |
| However,
when such credit is allowed to the retailer by the | 25 |
| Department, the vendor
is precluded from refunding any of the | 26 |
| tax to the retailer and filing a
claim for credit or refund | 27 |
| with respect thereto with the Department. The
provisions of | 28 |
| this Section added by this amendatory Act of 1988 shall be
| 29 |
| applied retroactively, regardless of the date of the | 30 |
| transaction.
| 31 |
| (Source: P.A. 90-491, eff. 1-1-98.)
| 32 |
| (35 ILCS 630/20) (from Ch. 120, par. 2020)
| 33 |
| Sec. 20. Severability.
If any clause, sentence, Section, | 34 |
| provision or part of this
Article or the application thereof to | 35 |
| any person or circumstance, other than
the applicability of the |
|
|
|
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LRB094 19785 BDD 56558 b |
|
| 1 |
| Article to messages originating or terminating outside
this | 2 |
| State, shall be adjudged to be unconstitutional, the remainder | 3 |
| of this
Article or its application to persons or circumstances | 4 |
| other than those to
which it is held invalid shall not be | 5 |
| affected thereby. In particular, if
any provision which exempts | 6 |
| or has the effect of exempting some class of
persons or some | 7 |
| act or privilege of sending or receiving telecommunication
or | 8 |
| video entertainment from the tax imposed by this Article should | 9 |
| be held to constitute or to result
in an invalid classification | 10 |
| or to be unconstitutional for some other
reason, such provision | 11 |
| shall be deemed to be severable, with the remainder
of this | 12 |
| Article, without said provision, being held constitutional.
| 13 |
| (Source: P.A. 84-126.)
| 14 |
| Section 10. The Telecommunications Infrastructure | 15 |
| Maintenance Fee Act is amended by changing Section 15 as | 16 |
| follows:
| 17 |
| (35 ILCS 635/15)
| 18 |
| Sec. 15. State telecommunications infrastructure | 19 |
| maintenance fees.
| 20 |
| (a) A State infrastructure maintenance fee is hereby | 21 |
| imposed upon
telecommunications retailers as a replacement for | 22 |
| the personal property tax in
an amount
specified in subsection | 23 |
| (b).
| 24 |
| (b) The amount of the State infrastructure maintenance fee | 25 |
| imposed upon a
telecommunications retailer under this Section | 26 |
| shall be equal to 0.5% of all
gross charges charged by the | 27 |
| telecommunications retailer to service addresses
in this State | 28 |
| for telecommunications, other than wireless | 29 |
| telecommunications,
originating or received in this State. | 30 |
| However, the State infrastructure
maintenance fee is not | 31 |
| imposed in any case in which the imposition of the fee
would | 32 |
| violate the Constitution or statutes of the United States.
| 33 |
| (c) (Blank).
| 34 |
| (d) (Blank).
|
|
|
|
SB3175 |
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LRB094 19785 BDD 56558 b |
|
| 1 |
| (e) The State infrastructure maintenance fee authorized by | 2 |
| this Section shall be collected,
enforced, and
administered as | 3 |
| set forth in subsection (b) of Section 25 of this Act.
| 4 |
| (f) This Section is repealed on January 1, 2007.
| 5 |
| (Source: P.A. 92-526, eff. 1-1-03.)
| 6 |
| Section 15. The Simplified Municipal Telecommunications | 7 |
| Tax Act is amended by changing Sections 5-5 and 5-10 as | 8 |
| follows:
| 9 |
| (35 ILCS 636/5-5)
| 10 |
| Sec. 5-5. Legislative intent. | 11 |
| (a) The General Assembly has authorized the
corporate
| 12 |
| authorities of any municipality to impose various fees and | 13 |
| taxes on
the privilege of originating or receiving | 14 |
| telecommunications, and on
retailers engaged in the business of | 15 |
| transmitting such
telecommunications, all of which are | 16 |
| remitted by such retailers
directly to the imposing | 17 |
| municipality.
To simplify the imposition and collection of | 18 |
| municipal
telecommunications taxes and to reduce complication | 19 |
| and burden,
the General Assembly is repealing
the municipal | 20 |
| telecommunications
tax, the municipal tax on the occupation or | 21 |
| privilege of transmitting
messages, and the municipal | 22 |
| infrastructure maintenance fee, and is enacting
this | 23 |
| Simplified
Municipal Telecommunications Tax Act which
provides | 24 |
| for a single municipally imposed telecommunications tax
which, | 25 |
| for municipalities with populations of less than 500,000, will
| 26 |
| be collected by the Illinois Department of Revenue, but which, | 27 |
| for
municipalities of 500,000 or
more, will continue to be | 28 |
| collected by such municipalities.
| 29 |
| (b) This amendatory Act of the 94th General Assembly is | 30 |
| intended to end the imposition of the tax under this Act.
| 31 |
| (Source: P.A. 92-526, eff. 7-1-02.)
| 32 |
| (35 ILCS 636/5-10)
| 33 |
| Sec. 5-10. Authority. The
corporate authorities of any |
|
|
|
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LRB094 19785 BDD 56558 b |
|
| 1 |
| municipality in this State may tax any
and all of the following | 2 |
| acts or privileges:
| 3 |
| (a) The act or privilege of originating in such | 4 |
| municipality or
receiving in such municipality intrastate | 5 |
| telecommunications by a
person.
To prevent actual | 6 |
| multi-municipal taxation of the act or privilege that is
| 7 |
| subject to
taxation under this subsection, any taxpayer, upon | 8 |
| proof that the taxpayer has
paid a tax
in another municipality | 9 |
| on that event, shall be allowed a credit against any
tax
| 10 |
| enacted
pursuant to or authorized by this Section to the extent | 11 |
| of the amount of the
tax
properly
due and paid in the | 12 |
| municipality that was not previously allowed as a credit
| 13 |
| against any
other municipal tax.
However, such tax is not | 14 |
| imposed on such act or privilege to
the extent such act or | 15 |
| privilege may not, under the Constitution and
statutes of the | 16 |
| United States, be made the subject of taxation by
| 17 |
| municipalities in this State.
| 18 |
| (b) The act or privilege of originating in such | 19 |
| municipality or
receiving in such municipality interstate | 20 |
| telecommunications by a
person. To prevent actual multi-state | 21 |
| or multi-municipal taxation of the
act or privilege
that is | 22 |
| subject to taxation under this subsection, any
taxpayer, upon
| 23 |
| proof that the taxpayer has paid a tax in another state or | 24 |
| municipality in
this State on such event,
shall be allowed a | 25 |
| credit against any tax enacted pursuant to or
authorized by | 26 |
| this Section to the extent of the amount of such tax
properly | 27 |
| due and paid in such other state or such tax properly due and | 28 |
| paid
in a municipality in this State
which was not previously
| 29 |
| allowed as a credit against any other state or local tax in | 30 |
| this
State. However, such tax is not imposed on the act or | 31 |
| privilege to
the extent such act or privilege may not, under | 32 |
| the Constitution and
statutes of the United States, be made the | 33 |
| subject of taxation by
municipalities in this State.
| 34 |
| (c) This Section is repealed January 1, 2007.
| 35 |
| (Source: P.A. 92-526, eff. 7-1-02; 93-286, eff. 7-22-03.)
|
|
|
|
SB3175 |
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LRB094 19785 BDD 56558 b |
|
| 1 |
| Section 99. Effective date. This Act takes effect January | 2 |
| 1, 2007.
|
|