[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
| [ House Amendment 002 ] | [ Senate Amendment 001 ] | [ Conference Committee Report 001 ] |
92_HB6012enr HB6012 Enrolled LRB9214226SMdvA 1 AN ACT concerning taxation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Simplified Municipal Telecommunications 5 Tax Act is amended by adding Section 5-42 as follows: 6 (35 ILCS 636/5-42 new) 7 Sec. 5-42. Procedure for determining proper tax 8 jurisdiction. 9 (a) Tax jurisdiction information provided by a 10 municipality upon written request from a telecommunications 11 retailer. For purposes of this subsection (a), 12 "telecommunications retailer" does not include retailers 13 providing Commercial Mobile Radio Service as the term is used 14 in the Mobile Telecommunications Sourcing Act. 15 (1) A municipality may provide, within 30 days 16 following receipt of a written request from a 17 telecommunications retailer, the following: 18 (A) A list containing each street name, known 19 street name aliases, street address number ranges, 20 applicable directionals, and zip codes associated 21 with each street name, for all street addresses 22 located within the municipality. For a range of 23 street address numbers located within a municipality 24 that consists only of odd or even street numbers, 25 the list must specify whether the street numbers in 26 the range are odd or even. The list shall be 27 alphabetical, except that numbered streets shall be 28 in numerical sequence. 29 (B) A list containing each postal zip code and 30 all the city names associated therewith for all zip 31 codes assigned to geographic areas located entirely HB6012 Enrolled -2- LRB9214226SMdvA 1 within the municipality, including zip codes 2 assigned to rural route boxes. 3 (C) A sequential list containing all rural 4 route box number ranges and the city names and zip 5 codes associated therewith, for all rural route 6 boxes located within the municipality, except that 7 rural route boxes with postal zip codes entirely 8 within the municipality that are included on the 9 list furnished under paragraph (B) need not be 10 duplicated. 11 (D) The lists shall be printed. If a list is 12 available through another medium, however, the 13 municipality shall, upon request, furnish the list 14 through such medium in addition to or in lieu of the 15 printed lists. The municipality shall be responsible 16 for updating the lists as changes occur and for 17 furnishing this information to all 18 telecommunications retailers affected by the 19 changes. Each update shall specify an effective 20 date, which shall be the next ensuing January 1, 21 April 1, July 1, or October 1; shall be furnished to 22 the telecommunications retailer not less than 60 23 days prior to the effective date; and shall identify 24 the additions, deletions, and other changes to the 25 preceding version of the list. If the information is 26 received less than 60 days prior to the effective 27 date of the change, the telecommunications retailer 28 has until the next ensuing January 1, April 1, July 29 1, or October 1 to make the appropriate changes. 30 Nothing in this subsection (a) shall prevent a 31 municipality from providing a telecommunications retailer 32 with the information set forth in this subdivision (a)(1) 33 in the absence of a written request from the 34 telecommunications retailer. HB6012 Enrolled -3- LRB9214226SMdvA 1 (2) The telecommunications retailer shall be 2 responsible for charging the tax to the service addresses 3 contained in the lists requested under subdivision (a)(1) 4 that include all of the elements required by this 5 Section. If a service address is not included in the list 6 or if no list is provided, the telecommunications 7 retailer shall be held harmless from situsing errors 8 provided it uses a reasonable methodology to assign the 9 service address or addresses to a local tax jurisdiction. 10 The telecommunications retailer shall be held harmless 11 for any tax overpayments or underpayments (including 12 penalty or interest) resulting from written information 13 provided by the municipality or, in the case of disputes, 14 the Department. If a municipality is aware of a situsing 15 error in a telecommunications retailer's records, the 16 municipality may file a written notification to the 17 telecommunications retailer at an address specified by 18 the telecommunications retailer describing the street 19 address or addresses that are incorrect and, if known, 20 the affected customer name or names and account number or 21 numbers. If another jurisdiction is claiming the same 22 street address or addresses that are the subject of the 23 notification, the telecommunications retailer must notify 24 the Department as specified in subdivision (a)(3) of this 25 Section, otherwise, the telecommunications retailer shall 26 make such correction to its records within 90 days. 27 (3) If it is determined from the lists or updates 28 furnished under subdivision (a)(1) that more than one 29 municipality claims the same address or group of 30 addresses, the telecommunications retailer shall notify 31 the Department within 60 days of discovering the 32 discrepancy. After notification and until resolution, the 33 telecommunications retailer will continue its prior tax 34 treatment and will be held harmless for any tax, penalty, HB6012 Enrolled -4- LRB9214226SMdvA 1 and interest in the event the prior tax treatment is 2 wrong. Upon resolution, the Department will notify the 3 telecommunications retailer in a written form describing 4 the resolution. Upon receipt of the resolution, the 5 telecommunications retailer has until the next ensuing 6 January 1, April 1, July 1, or October 1 to make the 7 change. 8 (4) Municipalities shall notify any 9 telecommunications retailer that has previously requested 10 a list under subdivision (a)(1) of this Section of any 11 annexations, de-annexations, or other boundary changes at 12 least 60 days after the effective date of such changes. 13 The notification shall contain each street name, known 14 street name aliases, street address number ranges, 15 applicable directionals, and zip codes associated with 16 each street name, for all street addresses for which a 17 change has occurred. The notice shall be mailed to an 18 address designated by the telecommunications retailer. 19 The telecommunications retailer has until the next 20 ensuing January 1, April 1, July 1, or October 1 to make 21 the changes described in such notification. 22 (b) The safe harbor provisions, Sections 40 and 45 of 23 the Mobile Telecommunications Sourcing Conformity Act, shall 24 apply to any telecommunications retailer electing to employ 25 enhanced zip codes (zip+4) to assign each street address, 26 address range, rural route box, or rural route box range in 27 their service area to a specific municipal tax jurisdiction, 28 except as provided under subdivision (c)(5). A 29 telecommunications retailer shall make its election as 30 prescribed by rules adopted by the Department. 31 (c) Persons who believe that they are improperly being 32 charged a tax imposed under this Act because their service 33 address is assigned to the wrong taxing jurisdiction shall 34 file a written complaint with their telecommunications HB6012 Enrolled -5- LRB9214226SMdvA 1 (mobile or non-mobile) retailer. The written complaint shall 2 include the street address for her or his place of primary 3 use for mobile telecommunications service or the service 4 address for non-mobile telecommunications, the name and 5 address of the telecommunications retailer who is collecting 6 the tax imposed by this Act, the account name and number for 7 which the person seeks a correction of the tax assignment, a 8 description of the error asserted by that person, an 9 estimated amount of tax claimed to have been incorrectly 10 paid, the time period for which that amount of tax applies, 11 and any other information that the telecommunications 12 retailer may reasonably require to process the request. For 13 purposes of this Section, the terms "place of primary use" 14 and "mobile telecommunications service" shall have the same 15 meanings as those terms are defined in the Mobile 16 Telecommunications Sourcing Conformity Act. 17 Within 60 days after receiving the complaint under this 18 subsection (c), the telecommunications retailer shall review 19 its records, the written complaint, any information submitted 20 by the affected municipality or municipalities, and the 21 electronic database, if existing, or enhanced zip code used 22 pursuant to Section 25 or 40 of the Mobile Telecommunications 23 Sourcing Conformity Act to determine the customer's taxing 24 jurisdiction. If this review shows that the amount of tax, 25 assignment of place of primary use or service address, or 26 taxing jurisdiction is in error, the telecommunications 27 retailer shall correct the error and refund or credit the 28 amount of tax erroneously collected from the customer for the 29 period still available for the filing of a claim for credit 30 or refund by the telecommunications retailer under this Act. 31 If this review shows that the amount of tax, assignment of 32 place of primary use or service address, or taxing 33 jurisdiction is correct, the telecommunications retailer 34 shall provide a written explanation to the person from whom HB6012 Enrolled -6- LRB9214226SMdvA 1 the notice was received. 2 (1) If the person is dissatisfied with the response 3 from the telecommunications retailer, the customer may 4 request a written determination from the Department on a 5 form prescribed by the Department. The request shall 6 contain the same information as was provided to the 7 telecommunications retailer. The Department shall review 8 the request for determination and make all reasonable 9 efforts to determine if such person's place of primary 10 use for mobile telecommunications service or the service 11 address for non-mobile telecommunications is located 12 within the jurisdictional boundaries of the municipality 13 for which the person is being charged tax under this Act. 14 Upon request by the Department, municipalities that have 15 imposed a tax under this Act shall have 30 days to 16 provide information to the Department regarding such 17 requests for determination via certified mail. 18 (2) Within 90 days after receipt of a request for 19 determination under subdivision (c)(1) of this Section, 20 the Department shall issue a letter of determination to 21 the person stating whether that person's place of primary 22 use for mobile telecommunications service or the service 23 address for non-mobile telecommunications is located 24 within the jurisdictional boundaries of the municipality 25 for which the person is being charged tax under this Act 26 or naming the proper municipality, if different. The 27 Department shall also list in the letter of 28 determination, if the municipality has provided that 29 information to the Department, the Department's findings 30 as to the limit of the jurisdictional boundary (street 31 address range) for the municipality in relation to the 32 street address listed in the request for a letter of 33 determination. A copy of such letter of determination 34 shall be provided by the Department to the HB6012 Enrolled -7- LRB9214226SMdvA 1 telecommunications retailer listed on the request for 2 determination. The copy shall be sent via mail to an 3 address designated by the telecommunications retailer. 4 (3) If the municipality or municipalities fail to 5 respond as set forth in subdivision (c)(1), then the 6 complaining person will no longer be subject to the tax 7 imposed under this Act. The Department shall notify the 8 relevant telecommunications retailer in writing of the 9 automatic determination and also list its findings as to 10 the street address listed in the request for a letter of 11 determination. Upon receipt of the notice of automatic 12 determination, the telecommunications retailer shall 13 correct its records and refund or credit the amount of 14 tax determined to have been paid by such person for the 15 period still available for the filing of a claim for 16 credit or refund by the telecommunications retailer under 17 this Act. A copy of the letter of determination shall be 18 provided by the Department to the telecommunications 19 retailer listed on the request for determination at an 20 address designated by the telecommunications retailer. 21 (4) If the telecommunications retailer receives a 22 copy of the letter of determination from the Department 23 described in subdivision (c)(2) of this Section that 24 states that such person's place of primary use for mobile 25 telecommunications service or the service address for 26 non-mobile telecommunications is not located within the 27 jurisdictional boundaries of the municipality for which 28 that person is being charged tax under this Act and that 29 provides the correct tax jurisdiction for the particular 30 street address, the telecommunications retailer shall 31 correct the error and refund or credit the amount of tax 32 determined to have been paid in error by such person up 33 to the period still available for the filing of a claim 34 for credit or refund by the telecommunications retailer HB6012 Enrolled -8- LRB9214226SMdvA 1 under this Act. The telecommunications retailer shall 2 retain such copy of the letter of determination in its 3 books and records and shall be held harmless for any tax, 4 penalty, or interest due as a result of its reliance on 5 such determination. If the Department subsequently 6 receives information that discloses that such service 7 addresses or places of primary use on that street are 8 within the jurisdictional boundaries of a municipality 9 other than the one specified in the previous letter, the 10 Department shall notify the telecommunications retailer 11 and the telecommunications customer in writing that the 12 telecommunications retailer is to begin collecting tax 13 for a specified municipality on the accounts associated 14 with those service addresses or places of primary use. 15 Notification to begin collecting tax on such accounts 16 sent by the Department to the telecommunications 17 retailers on or after October 1 and prior to January 1 18 shall be effective the following April 1. Notification to 19 begin collecting tax on such accounts sent by the 20 Department to the telecommunications retailers on or 21 after January 1 and prior to April 1 shall be effective 22 the following July 1. Notification to begin collecting 23 tax on such accounts sent by the Department to the 24 telecommunications retailers on or after April 1 and 25 prior to July 1 shall be effective the following October 26 1. Notification to begin collecting tax on such accounts 27 sent by the Department to the telecommunications 28 retailers on or after July 1 and prior to October 1 shall 29 be effective the following January 1. 30 (5) If the telecommunications retailer receives a 31 copy of the letter of determination from the Department 32 described in subdivisions (c)(2), (c)(3), or (c)(4) of 33 this Section that states that such person's place of 34 primary use for mobile telecommunications service or the HB6012 Enrolled -9- LRB9214226SMdvA 1 service address for non-mobile telecommunications is not 2 located within the jurisdictional boundaries of the 3 municipality for which that person is being charged tax 4 under this Act and the telecommunications retailer fails 5 to correct the error and refund or credit the appropriate 6 amount of tax paid in error within the time period 7 prescribed in subdivisions (c)(3) and (c)(4), the 8 telecommunications retailer shall not be held harmless 9 for any tax, penalty, or interest due the Department as a 10 result of the error. 11 (6) The procedures in this subsection (c) shall be 12 the first course of remedy available to customers seeking 13 correction of assignment of service address, place of 14 primary use, taxing jurisdiction, an amount of tax paid 15 erroneously, or other compensation for taxes, charges, or 16 fees erroneously collected by a telecommunications 17 retailer. No cause of action based upon a dispute arising 18 from these taxes, charges, or fees shall accrue until a 19 customer has reasonably exercised the rights and 20 procedures set forth in this subsection (c). If a 21 customer is not satisfied after exercising the rights and 22 following the procedures set forth in this subsection 23 (c), the customer shall have the normal cause of action 24 available under the law to recover any tax, penalty, or 25 interest from the telecommunications retailer. 26 (d) The provisions of this Section shall not apply to a 27 municipality that directly receives collected tax revenue 28 from a retailer pursuant to subsection (b) of Section 5-40. A 29 municipality that receives tax revenue pursuant to subsection 30 (b) of Section 5-40 for telecommunications other than mobile 31 telecommunications service, as that term is defined in the 32 Mobile Telecommunications Sourcing Conformity Act, shall 33 establish a procedure to remedy the complaints of persons who 34 believe they are being improperly taxed, which should HB6012 Enrolled -10- LRB9214226SMdvA 1 consider the requirements set forth in subsection (c) of this 2 Section. 3 Section 10. The Mobile Telecommunications Sourcing 4 Conformity Act is amended by changing Section 80 as follows: 5 (35 ILCS 638/80) 6 (This Section may contain text from a Public Act with a 7 delayed effective date) 8 Sec. 80. Customers' procedures and remedies for 9 correcting taxes and fees. 10 (a) If a customer believes that he or she is being 11 charged an improper amount of tax or is not subject to a tax 12 imposed under the Simplified Municipal Telecommunications Tax 13 Act for a telecommunications service covered by the term 14 "mobile telecommunications" under this Act, he or she shall 15 follow the procedures outlined in subsection (c) of Section 16 5-42 of the Simplified Municipal Telecommunications Tax Act. 17 The procedures outlined in subsection (c) of Section 5-42 of 18 the Simplified Municipal Telecommunications Tax Act shall 19 also apply to the home service provider, the Department, and 20 municipalities. 21 (b) Nothing in subsection (a) shall apply to a 22 municipality that directly receives collected tax revenue 23 from a retailer under subsection (b) of Section 5-40 of the 24 Simplified Municipal Telecommunications Tax Act for a 25 telecommunications service covered by the term "mobile 26 telecommunications service" under this Act. In lieu of 27 subsection (a), a customer may seek relief under subsection 28 (c) only if a municipality directly receives collected tax 29 revenue from a retailer under subsection (b) of Section 5-40 30 of the Simplified Municipal Telecommunications Tax Act for a 31 telecommunications service covered by the term "mobile 32 telecommunications service" under this Act. HB6012 Enrolled -11- LRB9214226SMdvA 1 (c) For municipalities covered under subsection (b) of 2 Section 5-40 of the Simplified Municipal Telecommunications 3 Tax Act, if a customer believes that an amount of tax or 4 assignment of place of primary use or taxing jurisdiction 5 included on a billing is erroneous, the customer shall notify 6 the home service provider in writing. The customer shall 7 include in this written notification the street address for 8 her or his place of primary use, the account name and number 9 for which the customer seeks a correction of the tax 10 assignment, a description of the error asserted by the 11 customer, and any other information that the home service 12 provider reasonably requires to process the request. Within 13 60 days after receiving a notice under this subsection (c) 14(a), the home service provider shall review its records and 15 the electronic database or enhanced zip code used pursuant to 16 Section 25 or 40 to determine the customer's taxing 17 jurisdiction. If this review shows that the amount of tax, 18 assignment of place of primary use, or taxing jurisdiction is 19 in error, the home service provider shall correct the error 20 and refund or credit the amount of tax erroneously collected 21 from the customer for a period of up to 2 years. If this 22 review shows that the amount of tax, assignment of place of 23 primary use, or taxing jurisdiction is correct, the home 24 service provider shall provide a written explanation to the 25 customer.(b)If the customer is dissatisfied with the 26 response of the home service provider under this Section, the 27 customer may seek a correction or refund or both from the 28 municipality that directly receives collected tax revenue 29 from a retailer pursuant to subsection (b) of Section 5-40 of 30 the Simplified Municipal Telecommunications Tax Act for a 31 telecommunications service covered by the term "mobile 32 telecommunications service" under this Acttaxing33jurisdiction affected. 34 (d)(c)The procedures set forth in subsections (b) and HB6012 Enrolled -12- LRB9214226SMdvA 1 (c)in this Sectionshall be the first course of remedy 2 available to customers seeking correction of assignment of 3 place of primary use or taxing jurisdiction or a refund of or 4 other compensation for taxes, charges, and fees erroneously 5 collected by the home service provider, and no cause of 6 action based upon a dispute arising from these taxes, 7 charges, or fees shall accrue until a customer has reasonably 8 exercised the rights and procedures set forth in this 9 Section. 10 (Source: P.A. 92-474, eff. 8-1-02.) 11 Section 90. The State Mandates Act is amended by adding 12 Section 8.26 as follows: 13 (30 ILCS 805/8.26 new) 14 Sec. 8.26. Exempt mandate. Notwithstanding Sections 6 15 and 8 of this Act, no reimbursement by the State is required 16 for the implementation of any mandate created by this 17 amendatory Act of the 92nd General Assembly. 18 Section 95. No acceleration or delay. Where this Act 19 makes changes in a statute that is represented in this Act by 20 text that is not yet or no longer in effect (for example, a 21 Section represented by multiple versions), the use of that 22 text does not accelerate or delay the taking effect of (i) 23 the changes made by this Act or (ii) provisions derived from 24 any other Public Act. 25 Section 99. Effective date. This Act takes effect on 26 July 1, 2002.