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92_SB0010ham004
LRB9201430SMpcam
1 AMENDMENT TO SENATE BILL 10
2 AMENDMENT NO. . Amend Senate Bill 10 by replacing
3 the title with the following:
4 "AN ACT concerning telecommunications."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "ARTICLE 5
8 Section 5-1. Short title. This Article may be cited as
9 the Simplified Municipal Telecommunications Tax Act.
10 References in this Article to "this Act" mean this Article.
11 Section 5-5. Legislative intent. The General Assembly has
12 authorized the corporate authorities of any municipality to
13 impose various fees and taxes on the privilege of originating
14 or receiving telecommunications, and on retailers engaged in
15 the business of transmitting such telecommunications, all of
16 which are 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 replacing the various
20 municipal telecommunications fees and taxes with a single tax
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1 by replacing the municipal telecommunications tax, the
2 municipal tax on the occupation or privilege of transmitting
3 messages, and the municipal infrastructure maintenance fee
4 with this Simplified Municipal Telecommunications Tax Act
5 which provides for a single municipally imposed
6 telecommunications tax which, for municipalities with
7 populations of less than 500,000, will be collected by the
8 Illinois Department of Revenue, but which, for municipalities
9 of 500,000 or more, will continue to be collected by such
10 municipalities. To promote certainty and so as not to impose
11 an unnecessary burden on the municipalities that currently
12 have in place one or more of the taxes or fees being
13 replaced, the General Assembly will not require such
14 municipalities to adopt a new ordinance imposing the
15 Simplified Municipal Telecommunications Tax. Instead, the
16 General Assembly will replace the existing taxes and fees
17 with the Simplified Municipal Telecommunications Tax, which
18 may be imposed at a rate initially calculated to combine the
19 previously existing effective rates of the replaced taxes and
20 fees; provided, however, that the Simplified Municipal
21 Telecommunications Tax shall be valid whether or not it
22 generates the same amount of revenue as was generated by the
23 previously imposed taxes and fees. Municipalities that
24 determine to impose the Simplified Municipal
25 Telecommunications Tax at an authorized rate other than that
26 provided by Sections 5-25 and 5-30, and municipalities that
27 do not currently have in place one or more of the taxes or
28 fees being replaced, may also adopt the Simplified Municipal
29 Telecommunications Tax by passage of an ordinance in
30 accordance with Section 5-20.
31 Section 5-7. Definitions. For purposes of the taxes
32 authorized by this Act:
33 "Amount paid" means the amount charged to the taxpayer's
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1 service address in such municipality regardless of where such
2 amount is billed or paid.
3 "Department" means the Illinois Department of Revenue.
4 "Gross charge" means the amount paid for the act or
5 privilege of originating or receiving telecommunications in
6 such municipality and for all services and equipment provided
7 in connection therewith by a retailer, valued in money
8 whether paid in money or otherwise, including cash, credits,
9 services and property of every kind or nature, and shall be
10 determined without any deduction on account of the cost of
11 such telecommunications, the cost of the materials used,
12 labor or service costs or any other expense whatsoever. In
13 case credit is extended, the amount thereof shall be included
14 only as and when paid. "Gross charges" for private line
15 service shall include charges imposed at each channel point
16 within this State, charges for the channel mileage between
17 each channel point within this State, and charges for that
18 portion of the interstate inter-office channel provided
19 within Illinois. However, "gross charge" shall not include:
20 (1) any amounts added to a purchaser's bill because
21 of a charge made pursuant to: (i) the tax imposed by this
22 Act, (ii) the tax imposed by the Telecommunications
23 Excise Tax Act, (iii) the tax imposed by Section 4251 of
24 the Internal Revenue Code, (iv) 911 surcharges, or (v)
25 charges added to customers' bills pursuant to the
26 provisions of Section 9-221 or 9-222 of the Public
27 Utilities Act, as amended, or any similar charges added
28 to customers' bills by retailers who are not subject to
29 rate regulation by the Illinois Commerce Commission for
30 the purpose of recovering any of the tax liabilities or
31 other amounts specified in those provisions of the Public
32 Utilities Act;
33 (2) charges for a sent collect telecommunication
34 received outside of such municipality;
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1 (3) charges for leased time on equipment or charges
2 for the storage of data or information or subsequent
3 retrieval or the processing of data or information
4 intended to change its form or content. Such equipment
5 includes, but is not limited to, the use of calculators,
6 computers, data processing equipment, tabulating
7 equipment or accounting equipment and also includes the
8 usage of computers under a time-sharing agreement;
9 (4) charges for customer equipment, including such
10 equipment that is leased or rented by the customer from
11 any source, wherein such charges are disaggregated and
12 separately identified from other charges;
13 (5) charges to business enterprises certified as
14 exempt under Section 9-222.1 of the Public Utilities Act
15 to the extent of such exemption and during the period of
16 time specified by the Department of Commerce and
17 Community Affairs;
18 (6) charges for telecommunications and all services
19 and equipment provided in connection therewith between a
20 parent corporation and its wholly owned subsidiaries or
21 between wholly owned subsidiaries when the tax imposed
22 under this Act has already been paid to a retailer and
23 only to the extent that the charges between the parent
24 corporation and wholly owned subsidiaries or between
25 wholly owned subsidiaries represent expense allocation
26 between the corporations and not the generation of profit
27 for the corporation rendering such service;
28 (7) bad debts ("bad debt" means any portion of a
29 debt that is related to a sale at retail for which gross
30 charges are not otherwise deductible or excludable that
31 has become worthless or uncollectible, as determined
32 under applicable federal income tax standards; if the
33 portion of the debt deemed to be bad is subsequently
34 paid, the retailer shall report and pay the tax on that
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1 portion during the reporting period in which the payment
2 is made);
3 (8) charges paid by inserting coins in
4 coin-operated telecommunication devices; or
5 (9) amounts paid by telecommunications retailers
6 under the Telecommunications Infrastructure Maintenance
7 Fee Act.
8 "Interstate telecommunications" means all
9 telecommunications that either originate or terminate outside
10 this State.
11 "Intrastate telecommunications" means all
12 telecommunications that originate and terminate within this
13 State.
14 "Person" means any natural individual, firm, trust,
15 estate, partnership, association, joint stock company, joint
16 venture, corporation, limited liability company, or a
17 receiver, trustee, guardian, or other representative
18 appointed by order of any court, the Federal and State
19 governments, including State universities created by statute,
20 or any city, town, county, or other political subdivision of
21 this State.
22 "Purchase at retail" means the acquisition, consumption
23 or use of telecommunications through a sale at retail.
24 "Retailer" means and includes every person engaged in the
25 business of making sales at retail as defined in this
26 Section. The Department may, in its discretion, upon
27 application, authorize the collection of the tax hereby
28 imposed by any retailer not maintaining a place of business
29 within this State, who, to the satisfaction of the
30 Department, furnishes adequate security to insure collection
31 and payment of the tax. Such retailer shall be issued,
32 without charge, a permit to collect such tax. When so
33 authorized, it shall be the duty of such retailer to collect
34 the tax upon all of the gross charges for telecommunications
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1 in this State in the same manner and subject to the same
2 requirements as a retailer maintaining a place of business
3 within this State. The permit may be revoked by the
4 Department at its discretion.
5 "Retailer maintaining a place of business in this State",
6 or any like term, means and includes any retailer having or
7 maintaining within this State, directly or by a subsidiary,
8 an office, distribution facilities, transmission facilities,
9 sales office, warehouse or other place of business, or any
10 agent or other representative operating within this State
11 under the authority of the retailer or its subsidiary,
12 irrespective of whether such place of business or agent or
13 other representative is located here permanently or
14 temporarily, or whether such retailer or subsidiary is
15 licensed to do business in this State.
16 "Sale at retail" means the transmitting, supplying or
17 furnishing of telecommunications and all services and
18 equipment provided in connection therewith for a
19 consideration, to persons other than the Federal and State
20 governments, and State universities created by statute and
21 other than between a parent corporation and its wholly owned
22 subsidiaries or between wholly owned subsidiaries for their
23 use or consumption and not for resale.
24 "Service address" means the location of
25 telecommunications equipment from which telecommunications
26 services are originated or at which telecommunications
27 services are received by a taxpayer. In the event this may
28 not be a defined location, as in the case of mobile phones,
29 paging systems, and maritime systems, service address means
30 the customer's place of primary use as defined in the Mobile
31 Telecommunications Sourcing Conformity Act. For
32 air-to-ground systems and the like, "service address" shall
33 mean the location of a taxpayer's primary use of the
34 telecommunications equipment as defined by telephone number,
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1 authorization code, or location in Illinois where bills are
2 sent.
3 "Taxpayer" means a person who individually or through his
4 or her agents, employees, or permittees engages in the act or
5 privilege of originating or receiving telecommunications in a
6 municipality and who incurs a tax liability as authorized by
7 this Act.
8 "Telecommunications", in addition to the meaning
9 ordinarily and popularly ascribed to it, includes, without
10 limitation, messages or information transmitted through use
11 of local, toll, and wide area telephone service, private line
12 services, channel services, telegraph services,
13 teletypewriter, computer exchange services, cellular mobile
14 telecommunications service, specialized mobile radio,
15 stationary two-way radio, paging service, or any other form
16 of mobile and portable one-way or two-way communications, or
17 any other transmission of messages or information by
18 electronic or similar means, between or among points by wire,
19 cable, fiber optics, laser, microwave, radio, satellite, or
20 similar facilities. As used in this Act, "private line"
21 means a dedicated non-traffic sensitive service for a single
22 customer, that entitles the customer to exclusive or priority
23 use of a communications channel or group of channels, from
24 one or more specified locations to one or more other
25 specified locations. The definition of "telecommunications"
26 shall not include value added services in which computer
27 processing applications are used to act on the form, content,
28 code, and protocol of the information for purposes other than
29 transmission. "Telecommunications" shall not include
30 purchases of telecommunications by a telecommunications
31 service provider for use as a component part of the service
32 provided by such provider to the ultimate retail consumer who
33 originates or terminates the taxable end-to-end
34 communications. Carrier access charges, right of access
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1 charges, charges for use of inter-company facilities, and all
2 telecommunications resold in the subsequent provision of,
3 used as a component of, or integrated into, end-to-end
4 telecommunications service shall be non-taxable as sales for
5 resale. Prepaid telephone calling arrangements shall not be
6 considered "telecommunications" subject to the tax imposed
7 under this Act. For purposes of this Section, "prepaid
8 telephone calling arrangements" means that term as defined in
9 Section 2-27 of the Retailers' Occupations Tax Act.
10 Section 5-10. Authority. The corporate authorities of
11 any municipality in this State may tax any and all of the
12 following acts or privileges:
13 (a) The act or privilege of originating in such
14 municipality or receiving in such municipality intrastate
15 telecommunications by a person. However, such tax is not
16 imposed on such act or privilege to the extent such act or
17 privilege may not, under the Constitution and statutes of the
18 United States, be made the subject of taxation by
19 municipalities in this State.
20 (b) The act or privilege of originating in such
21 municipality or receiving in such municipality interstate
22 telecommunications by a person. To prevent actual multi-state
23 taxation of the act or privilege that is subject to taxation
24 under this subsection, any taxpayer, upon proof that the
25 taxpayer has paid a tax in another state on such event, shall
26 be allowed a credit against any tax enacted pursuant to or
27 authorized by this Section to the extent of the amount of
28 such tax properly due and paid in such other state which was
29 not previously allowed as a credit against any other state or
30 local tax in this State. However, such tax is not imposed on
31 the act or privilege to the extent such act or privilege may
32 not, under the Constitution and statutes of the United
33 States, be made the subject of taxation by municipalities in
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1 this State.
2 Section 5-15. Maximum rates.
3 (a) For municipalities with a population of less than
4 500,000, the tax authorized by this Act may be imposed at a
5 rate not to exceed 6% of the gross charge for
6 telecommunications purchased at retail. If imposed, the tax
7 must be in increments of 0.25%.
8 (b) For municipalities with a population of 500,000 or
9 more, the tax authorized by this Act may be imposed at a rate
10 not to exceed 7% of the gross charge for telecommunications
11 purchased at retail. If imposed, the tax must be in
12 increments of 0.25%.
13 Section 5-20. Imposition.
14 (a) On and after July 1, 2002, for municipalities with
15 populations of less than 500,000, the tax authorized by this
16 Act shall be imposed (except as provided in Sections 5-25 and
17 5-30 of this Act), amended, or repealed by an ordinance
18 adopted by the municipality, which ordinance shall be filed
19 by the municipality with the Department pursuant to the rules
20 of the Department.
21 (1) Any ordinance adopted by a municipality with a
22 population of less than 500,000 which attempts to impose,
23 amend or repeal the tax authorized by this Act shall be
24 of no force and effect until properly filed with an
25 appropriate form with the Department.
26 (2) Any certified copy of an ordinance filed with
27 the Department prior to April 1, 2002 shall be effective
28 with respect to gross charges billed by
29 telecommunications retailers on or after July 1, 2002 and
30 thereafter any certified copy of an ordinance filed with
31 the Department prior to any October 1 or April 1 shall
32 be effective with respect to gross charges billed by
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1 telecommunications retailers on or after the following
2 January 1 or July 1, respectively.
3 (b) On and after July 1, 2002, for municipalities with
4 populations of 500,000 or more, the tax authorized by this
5 Act shall be imposed, amended, or repealed, and any
6 authorized exemptions granted, by the adoption of an
7 ordinance.
8 Section 5-25. Existing telecommunications taxes and
9 fees.
10 (a) Between January 1, 2002 and February 1, 2002, the
11 Department shall publish a list of the municipalities with a
12 population of less than 500,000 which had any taxes or fees
13 authorized by subparagraph (1) of Section 8-11-2 of the
14 Illinois Municipal Code, Section 8-11-17 of the Illinois
15 Municipal Code, or Section 20 of the Telecommunications
16 Infrastructure Maintenance Fee Act that were in effect for
17 billing periods that include January 1, 2002, whether or not
18 bills were actually issued on January 1, 2002. Such list
19 shall include the name of each such municipality, the rates
20 at which such taxes or fees were imposed, and the rate of the
21 new Simplified Municipal Telecommunications Tax, as
22 calculated pursuant to Section 5-30 of this Act.
23 (b) In compiling the list described in this Section, the
24 Department shall collect information from retailers,
25 municipalities, the Illinois Commerce Commission, and other
26 sources deemed by the Department to be reliable.
27 (c) Any municipality appearing on the list published
28 pursuant to this Section shall not be required to adopt and
29 file an ordinance implementing the tax authorized by this
30 Act. The list shall be conclusive evidence of the imposition
31 of the tax authorized by this Act at the rate appearing on
32 such list. Any tax imposed in such manner shall take effect
33 with respect to gross charges billed by telecommunications
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1 retailers on or after July 1, 2002. A municipality may alter
2 such tax only by filing an ordinance with the Department
3 pursuant to Section 5-20 of this Act.
4 Section 5-30. Calculation of rates for certain
5 municipalities.
6 (a) For each municipality on the list described in
7 Section 5-25 of this Act, the rate of the taxes and fees
8 imposed by a municipality pursuant to subparagraph (1) of
9 Section 8-11-2 of the Illinois Municipal Code, Section
10 8-11-17 of the Illinois Municipal Code, or Section 20 of the
11 Telecommunications Infrastructure Maintenance Fee Act which
12 appears on the list shall be used by the Department in
13 calculating the rate of the Simplified Municipal
14 Telecommunications Tax for such municipality.
15 (b) The rate of the Simplified Municipal
16 Telecommunications Tax for municipalities on the list shall
17 be equal to the sum of the following rates in effect on
18 January 1, 2002:
19 (1) The rate equal to 70% of the rate imposed by
20 such municipality pursuant to subparagraph (1) of Section
21 8-11-2 of the Illinois Municipal Code, rounded to the
22 nearest even 0.25% increment; plus
23 (2) The rate imposed by such municipality pursuant
24 to Section 8-11-17 of the Illinois Municipal Code,
25 rounded to the nearest even 0.25% increment; plus
26 (3) The rate imposed by such municipality pursuant
27 to Section 20 of the Telecommunications Infrastructure
28 Maintenance Fee Act.
29 (c) The Department shall enter each of the rates
30 described in subdivisions (b)(1), (b)(2), and (b)(3) of this
31 Section 5-30, as well as the rate of the Simplified Municipal
32 Telecommunications Tax, on the list provided for in Section
33 5-25 of this Act.
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1 Section 5-35. Rebates and exemptions. Any municipality
2 may implement the following rebates and exemptions:
3 (1) A municipality that imposes the tax authorized
4 by this Act and whose territory includes part of another
5 unit of local government or a school district, may, by
6 separate ordinance, rebate some or all of the amount of
7 such tax paid by the other unit of local government or
8 school district. Any such rebate shall be paid by the
9 municipality directly to the other unit of local
10 government or school district qualifying for the rebate
11 as determined by the municipality's ordinance, which
12 shall not be filed with the Department.
13 (2) A municipality that imposes the tax authorized
14 by this Act may, by separate ordinance, rebate some or
15 all of the amount of such tax to persons 65 years of age
16 or older. Any tax related to such rebate shall be
17 rebated from the municipality directly to persons
18 qualified for the rebate as determined by the
19 municipality's ordinance, which shall not be filed with
20 the Department.
21 (3) A municipality with a population of 500,000 or
22 more that imposes the tax authorized by this Act may, by
23 separate ordinance, exempt from the tax authorized by
24 this Act, charges for inbound toll-free
25 telecommunications service commonly known as "800",
26 "877", or "888" or for a similar service, to the extent
27 such municipality has passed an ordinance providing for
28 this exemption.
29 Section 5-40. Collection.
30 (a) For municipalities with populations of less than
31 500,000, the tax authorized by this Act shall be collected
32 from the taxpayer by a retailer maintaining a place of
33 business in this State and shall be remitted by such retailer
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1 to the Department. Any tax required to be collected pursuant
2 to or as authorized by this Act and any such tax collected by
3 such retailer and required to be remitted to the Department
4 shall constitute a debt owed by the retailer to the State.
5 Retailers shall collect the tax from the taxpayer by adding
6 the tax to the gross charge for the act or privilege of
7 originating or receiving telecommunications when sold for
8 use, in the manner prescribed by the Department. The tax
9 authorized by this Act shall constitute a debt of the
10 taxpayer to the retailer until paid, and, if unpaid, is
11 recoverable at law in the same manner as the original charge
12 for such sale at retail. If the retailer fails to collect
13 the tax from the taxpayer, then the taxpayer shall be
14 required to pay the tax directly to the Department in the
15 manner provided by the Department.
16 (b) For municipalities with populations of 500,000 or
17 more, the tax authorized by this Act shall be collected from
18 the taxpayer by a retailer making or effectuating the sale at
19 retail and shall be remitted by such retailer to such
20 municipality. Any tax required to be collected pursuant to
21 an ordinance authorized by this Act and any such tax
22 collected by a retailer shall constitute a debt owed by the
23 retailer to such municipality. Retailers shall collect the
24 tax from the taxpayer by adding the tax to the gross charge
25 for the act or privilege of originating or receiving
26 telecommunications when sold for use, in the manner
27 prescribed by such municipality. The tax authorized by this
28 Act shall constitute a debt of the taxpayer to the retailer
29 who made or effectuated the sale at retail until paid and, if
30 unpaid, is recoverable at law in the same manner as the
31 original charge for the sale at retail. If the retailer
32 fails to collect the tax from the taxpayer, then the taxpayer
33 shall be required to pay the tax directly to such
34 municipality in the manner provided by such municipality.
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1 The municipality imposing the tax shall provide for its
2 administration and enforcement.
3 (c) Retailers filing tax returns pursuant to this Act
4 shall, at the time of filing such return, pay to a
5 municipality with a population of 500,000 or more or to the
6 Department for all other municipalities, the amount of the
7 tax collected, less a commission of 1% which is allowed to
8 reimburse the retailer for the expenses incurred in keeping
9 records, billing the customer, preparing and filing returns,
10 remitting the tax and supplying data to a municipality or
11 Department upon request. No commission may be claimed by a
12 retailer for taxes not timely remitted.
13 (d) Whenever possible, the tax authorized by this Act
14 shall, when collected, be stated as a distinct item separate
15 and apart from the gross charge for telecommunications.
16 Section 5-45. Resellers.
17 (a) If a person who originates or receives
18 telecommunications claims to be a reseller of such
19 telecommunications, such person shall apply to a municipality
20 with a population of 500,000 or more or to the Department for
21 all other municipalities, for a resale number. Such
22 applicant shall state facts which will show a municipality
23 with a population of 500,000 or more or the Department for
24 all other municipalities, why such applicant is not liable
25 for tax authorized by this Act on any of such purchases and
26 shall furnish such additional information as a municipality
27 with a population of 500,000 or more or the Department for
28 all other municipalities, may reasonably require.
29 (b) Upon approval of the application, a municipality
30 with a population of 500,000 or more or the Department for
31 all other municipalities, shall assign a resale number to the
32 applicant and shall certify such number to the applicant. A
33 municipality with a population of 500,000 or more or the
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1 Department for all other municipalities, may cancel any
2 number which is obtained through misrepresentation, or which
3 is used to send or receive such telecommunication tax-free
4 when such actions in fact are not for resale, or which no
5 longer applies because of the person's having discontinued
6 the making of resales.
7 (c) Except as provided hereinabove in this Section, the
8 act or privilege of originating or receiving
9 telecommunications in this State shall not be made tax-free
10 on the ground of being a sale for resale unless the person
11 has an active resale number from a municipality with a
12 population of 500,000 or more or the Department for all other
13 municipalities, and furnishes that number to the retailer in
14 connection with certifying to the retailer that any sale to
15 such person is non-taxable because of being a sale for
16 resale.
17 Section 5-50. Returns to the Department.
18 (a) Commencing on August 1, 2002, for the tax imposed
19 under subsection (a) of Section 5-20 of this Act, every
20 retailer maintaining a place of business in this State shall,
21 on or before the 30th day of each month, except for the month
22 of February, on or before the 28th day of February, make a
23 return to the Department for the preceding calendar month,
24 stating:
25 (1) Its name;
26 (2) The address of its principal place of business,
27 and the address of the principal place of business (if
28 that is a different address) from which it engages in the
29 business of transmitting telecommunications;
30 (3) Total amount of gross charges billed by it
31 during the preceding calendar month for providing
32 telecommunications during the calendar month;
33 (4) Total amount received by it during the
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1 preceding calendar month on credit extended;
2 (5) Deductions allowed by law;
3 (6) Gross charges that were billed by it during the
4 preceding calendar month and upon the basis of which the
5 tax is imposed;
6 (7) Amount of tax (computed upon Item 6);
7 (8) The municipalities to which the Department
8 shall remit the taxes and the amount of such remittances;
9 (9) Such other reasonable information as the
10 Department may require.
11 (b) Any retailer required to make payments under this
12 Section may make the payments by electronic funds transfer.
13 The Department shall adopt rules necessary to effectuate a
14 program of electronic funds transfer. Any retailer who has
15 average monthly tax billings due to the Department under this
16 Act and the Telecommunications Excise Tax Act that exceed
17 $1,000 shall make all payments by electronic funds transfer
18 as required by rules of the Department.
19 (c) If the retailer's average monthly tax billings due
20 to the Department under this Act and the Telecommunications
21 Excise Tax Act do not exceed $1,000, the Department may
22 authorize such retailer's returns to be filed on a
23 quarter-annual basis, with the return for January, February,
24 and March of a given year being due by April 30th of that
25 year; with the return for April, May, and June of a given
26 year being due by July 30th of that year; with the return for
27 July, August, and September of a given year being due by
28 October 30th of that year; and with the return for October,
29 November, and December of a given year being due by January
30 30th of the following year.
31 (d) If the retailer is otherwise required to file a
32 monthly or quarterly return and if the retailer's average
33 monthly tax billings due to the Department under this Act and
34 the Telecommunications Excise Tax Act do not exceed $400, the
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1 Department may authorize such retailer's return to be filed
2 on an annual basis, with the return for a given year being
3 due by January 30th of the following year.
4 (e) Each retailer whose average monthly remittance to
5 the Department under this Act and the Telecommunications
6 Excise Tax Act was $25,000 or more during the preceding
7 calendar year, excluding the month of highest remittance and
8 the month of lowest remittance in such calendar year, and who
9 is not operated by a unit of local government, shall make
10 estimated payments to the Department on or before the 7th,
11 15th, 22nd, and last day of the month during which the tax
12 remittance is owed to the Department in an amount not less
13 than the lower of either 22.5% of the retailer's actual tax
14 collections for the month or 25% of the retailer's actual tax
15 collections for the same calendar month of the preceding
16 year. The amount of such quarter-monthly payments shall be
17 credited against the final remittance of the retailer's
18 return for that month. Any outstanding credit, approved by
19 the Department, arising from the retailer's overpayment of
20 its final remittance for any month may be applied to reduce
21 the amount of any subsequent quarter-monthly payment or
22 credited against the final remittance of the retailer's
23 return for any subsequent month. If any quarter-monthly
24 payment is not paid at the time or in the amount required by
25 this Section, the retailer shall be liable for penalty and
26 interest on the difference between the minimum amount due as
27 a payment and the amount of such payment actually and timely
28 paid, except insofar as the retailer has previously made
29 payments for that month to the Department or received credits
30 in excess of the minimum payments previously due.
31 (f) Notwithstanding any other provision of this Section
32 containing the time within which a retailer may file his or
33 her return, in the case of any retailer who ceases to engage
34 in a kind of business that makes him or her responsible for
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1 filing returns under this Section, the retailer shall file a
2 final return under this Section with the Department not more
3 than one month after discontinuing such business.
4 (g) In making such return, the retailer shall determine
5 the value of any consideration other than money received by
6 it and such retailer shall include the value in its return.
7 Such determination shall be subject to review and revision by
8 the Department in the manner hereinafter provided for the
9 correction of returns.
10 (h) Any retailer who has average monthly tax billings
11 due to the Department under this Act and the
12 Telecommunications Excise Tax Act that exceed $1,000 shall
13 file the return required by this Section by electronic means
14 as required by rules of the Department.
15 (i) The retailer filing the return herein provided for
16 shall, at the time of filing the return, pay to the
17 Department the amounts due pursuant to this Act. The
18 Department shall immediately pay over to the State Treasurer,
19 ex officio, as trustee, 99.5% of all taxes, penalties, and
20 interest collected hereunder for deposit into the Municipal
21 Telecommunications Fund, which is hereby created. The
22 remaining 0.5% received by the Department pursuant to this
23 Act shall be deposited into the Tax Compliance and
24 Administration Fund and shall be used by the Department,
25 subject to appropriation, to cover the costs of the
26 Department. On or before the 25th day of each calendar month,
27 the Department shall prepare and certify to the Comptroller
28 the disbursement of stated sums of money to be paid to named
29 municipalities from the Municipal Telecommunications Fund for
30 amounts collected during the second preceding calendar month.
31 The named municipalities shall be those municipalities
32 identified by a retailer in such retailer's return as having
33 imposed the tax authorized by the Act. The amount of money
34 to be paid to each municipality shall be the amount (not
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1 including credit memoranda) collected hereunder during the
2 second preceding calendar month by the Department, plus an
3 amount the Department determines is necessary to offset any
4 amounts that were erronenously paid to a different taxing
5 body, and not including an amount equal to the amount of
6 refunds made during the second preceding calendar month by
7 the Department on behalf of such municipality, and not
8 including any amount that the Department determines is
9 necessary to offset any amount that were payable to a
10 different taxing body but were erroneously paid to the
11 municipality. Within 10 days after receipt by the
12 Comptroller of the disbursement certification from the
13 Department, the Comptroller shall cause the orders to be
14 drawn for the respective amounts in accordance with the
15 directions contained in the certification. When certifying
16 to the Comptroller the amount of a monthly disbursement to a
17 municipality under this Section, the Department shall
18 increase or decrease the amount by an amount necessary to
19 offset any misallocation of previous disbursements. The
20 offset amount shall be the amount erroneously disbursed
21 within the previous 6 months from the time a misallocation is
22 discovered.
23 (j) For municipalities with populations of less than
24 500,000, whenever the Department determines that a refund
25 shall be made under this Section to a claimant instead of
26 issuing a credit memorandum, the Department shall notify the
27 State Comptroller, who shall cause the order to be drawn for
28 the amount specified and to the person named in the
29 notification from the Department. The refund shall be paid
30 by the State Treasurer out of the Municipal
31 Telecommunications Fund.
32 Section 5-55. Pledged revenues. If a municipality has,
33 by contract, pledged or dedicated any or all of the revenues
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1 collected under any of its taxes imposed pursuant to
2 subparagraph (1) of Section 8-11-2 of the Illinois Municipal
3 Code, Section 8-11-17 of the Illinois Municipal Code, or
4 Section 20 of the Telecommunications Infrastructure
5 Maintenance Fee Act as shown on the list described in Section
6 5-25 of this Act, then the equivalent portion of revenues
7 collected from the tax authorized by this Act shall be deemed
8 pledged or dedicated in a manner substantially similar to the
9 pledge of the then existing taxes so as to prevent disruption
10 of such contract.
11 Section 5-60. Waiver of franchise fees.
12 (a) Any municipality shall be deemed to have waived its
13 right to receive all fees, charges and other compensation
14 that might accrue to the municipality after the effective
15 date of this Act, under any franchise agreement, license, or
16 similar agreement, executed on or before January 1, 1998 with
17 telecommunications retailers if:
18 (1) the municipality imposes the tax authorized by
19 this Act at a rate exceeding 5%;
20 (2) the municipality affirmatively waives such
21 fees; or
22 (3) the municipality is included in the list
23 described in Section 5-25 of this Act as having an
24 infrastructure maintenance fee in place.
25 (b) This waiver shall be effective only during the time
26 that either the infrastructure maintenance fee or the
27 replacement tax authorized under this Act is subject to being
28 lawfully imposed on the telecommunications retailer,
29 collected by the municipality or the Department, and paid
30 over to the municipality.
31 (c) No portion of this Act shall be construed to have
32 repealed or amended the prohibition on franchise fees or
33 other charges set forth in Section 30 of the
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1 Telecommunications Infrastructure Maintenance Fee Act.
2 Section 5-65. Incorporation by reference. On and after
3 January 1, 2002, for municipalities with populations of less
4 than 500,000, all of the provisions of Sections 7, 10, 11,
5 12, 13, 14, 15, 16, 17, 18, and 19 of the Telecommunications
6 Excise Tax Act, Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
7 5i, 5j, 6, 6a, 6b, and 6c of the Retailers' Occupation Tax
8 Act, and all the provisions of the Uniform Penalty and
9 Interest Act, which are not inconsistent with this Act, shall
10 apply, as far as practicable, to the subject matter of this
11 Act to the same extent as if such provisions were included
12 herein. References in such incorporated Sections of the
13 Retailers' Occupation Tax Act to retailers, to sellers, or to
14 persons engaged in the business of selling tangible personal
15 property mean retailers, as defined in this Act, or persons
16 engaged in the act or privilege of originating or receiving
17 telecommunications. References in such incorporated Sections
18 of the Retailers' Occupation Tax Act to purchasers of
19 tangible personal property mean purchasers of
20 telecommunications as defined in this Act. References in
21 such incorporated Sections of the Retailers' Occupation Tax
22 Act to sales of tangible personal property mean the act or
23 privilege of originating or receiving telecommunications as
24 defined in this Act.
25 ARTICLE 10
26 Section 10-1. Short title. This Article may be cited as
27 the Mobile Telecommunications Sourcing Conformity Act.
28 References in this Article to "this Act" mean this Article.
29 Section 10-5. Legislative intent. The General Assembly
30 recognizes that the Mobile Telecommunications Sourcing Act,
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1 Public Law 106-252, codified at 4 U.S.C Sections 116 through
2 126, was passed by the United States Congress to establish
3 sourcing requirements for state and local taxation of mobile
4 telecommunication services. In general, the rules provide
5 that taxes on mobile telecommunications services shall be
6 collected and remitted to the jurisdiction where the
7 customer's primary use of the services occurs, irrespective
8 of where the mobile telecommunications services originate,
9 terminate, or pass through. By passing this legislation in
10 the State of Illinois, the General Assembly desires to
11 implement that Act in this State by establishing the Mobile
12 Telecommunications Sourcing Conformity Act and to inform
13 State and local government officials of its provisions as it
14 applies to the taxes of this State.
15 Section 10-10. Definitions. As used in this Act:
16 "Charges for mobile telecommunications services" means
17 any charge for, or associated with, the provision of
18 commercial mobile radio service, as defined in Section 20.3
19 of Title 47 of the Code of Federal Regulations as in effect
20 on June 1, 1999, or any charge for, or associated with, a
21 service provided as an adjunct to a commercial mobile radio
22 service, that is billed to the customer by or for the
23 customer's home service provider regardless of whether
24 individual transmissions originate or terminate within the
25 licensed service area of the home service provider.
26 "Customer" means (i) the person or entity that contracts
27 with the home service provider for mobile telecommunications
28 services or (ii) if the end user of mobile telecommunications
29 services is not the contracting party, the end user of the
30 mobile telecommunications services, but this clause (ii)
31 applies only for the purpose of determining the place of
32 primary use. "Customer" does not include (i) a reseller of
33 mobile telecommunications service or (ii) a serving carrier
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1 under an arrangement to serve the customer outside the home
2 service provider's licensed service area.
3 "Designated database provider" means a corporation,
4 association, or other entity representing all the political
5 subdivisions of a State that is:
6 (i) responsible for providing an electronic
7 database prescribed in Section 10-25 if the State has not
8 provided such electronic database; and
9 (ii) approved by municipal and county associations
10 or leagues of the State whose responsibility it would
11 otherwise be to provide such database prescribed by
12 Sections 116 through 126 of Title 4 of the United States
13 Code.
14 "Enhanced zip code" means a United States postal zip code
15 of 9 or more digits.
16 "Home service provider" means the facilities-based
17 carrier or reseller with which the customer contracts for the
18 provision of mobile telecommunications services.
19 "Licensed service area" means the geographic area in
20 which the home service provider is authorized by law or
21 contract to provide commercial mobile radio service to the
22 customer.
23 "Mobile telecommunications service" means commercial
24 mobile radio service, as defined in Section 20.3 of Title 47
25 of the Code of Federal Regulations as in effect on June 1,
26 1999.
27 "Place of primary use" means the street address
28 representative of where the customer's use of the mobile
29 telecommunications service primarily occurs, which must be:
30 (i) the residential street address or the primary
31 business street address of the customer; and
32 (ii) within the licensed service area of the home
33 service provider.
34 "Prepaid telephone calling services" means the right to
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1 purchase exclusively telecommunications services that must be
2 paid for in advance that enables the origination of calls
3 using an access number, authorization code, or both, whether
4 manually or electronically dialed, if the remaining amount of
5 units of service that have been prepaid is known by the
6 provider of the prepaid service on a continuous basis.
7 "Reseller" means a provider who purchases
8 telecommunications services from another telecommunications
9 service provider and then resells, uses as a component part
10 of, or integrates the purchased services into a mobile
11 telecommunications service. "Reseller" does not include a
12 serving carrier with which a home service provider arranges
13 for the services to its customers outside the home service
14 provider's licensed service area.
15 "Serving carrier" means a facilities-based carrier
16 providing mobile telecommunications service to a customer
17 outside a home service provider's or reseller's licensed
18 service area.
19 "Taxing jurisdiction" means any of the several states,
20 the District of Columbia, or any territory or possession of
21 the United States, any municipality, city, county, township,
22 parish, transportation district, or assessment jurisdiction,
23 or any other political subdivision within the territorial
24 limits of the United States with the authority to impose a
25 tax, charge, or fee.
26 Section 10-15. Application of this Act. The provisions
27 of this Act shall apply as follows:
28 (a) General provisions. This Act shall apply to any
29 tax, charge, or fee levied by the State or a taxing
30 jurisdiction within this State as a fixed charge for each
31 customer or measured by gross amounts charged to customers
32 for mobile telecommunications services, regardless of whether
33 the tax, charge, or fee is imposed on the vendor or customer
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1 of the service and regardless of the terminology used to
2 describe the tax, charge, or fee.
3 (b) General exceptions. This Act does not apply to:
4 (1) any tax, charge, or fee levied upon or measured
5 by the net income, capital stock, net worth, or property
6 value of the provider of mobile telecommunications
7 service;
8 (2) any tax, charge, or fee that is applied to an
9 equitably apportioned amount that is not determined on a
10 transactional basis;
11 (3) any tax, charge, or fee that represents
12 compensation for a mobile telecommunications service
13 provider's use of public rights of way or other public
14 property, provided that such tax, charge, or fee is not
15 levied by the taxing jurisdiction as a fixed charge for
16 each customer or measured by gross amounts charged to
17 customers for mobile telecommunications services;
18 (4) any generally applicable business and
19 occupation tax that is imposed by a State, is applied to
20 gross receipts or gross proceeds, is the legal liability
21 of the home service provider, and that statutorily allows
22 the home service provider to elect to use the sourcing
23 method required in this Act;
24 (5) any fee related to obligations under Section
25 254 of the federal Communications Act of 1934; or
26 (6) any tax, charge, or fee imposed by the Federal
27 Communications Commission.
28 (c) Specific exceptions. The provisions of this Act:
29 (1) do not apply to the determination of the taxing
30 situs of prepaid telephone calling services;
31 (2) do not affect the taxability of either the
32 initial sale of mobile telecommunications services or
33 subsequent resale of such services, whether as sales of
34 such services alone or as a part of a bundled product, if
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1 the federal Internet Tax Freedom Act would preclude a
2 taxing jurisdiction from subjecting the charges of the
3 sale of such services to a tax, charge, or fee, but this
4 Section provides no evidence of the intent of the General
5 Assembly with respect to the applicability of the federal
6 Internet Tax Freedom Act to such charges; and
7 (3) do not apply to the determination of the taxing
8 situs of air-ground radiotelephone service as defined in
9 Section 22.99 of Title 47 of the Code of Federal
10 Regulations as in effect on June 1, 1999.
11 (d) Date of applicability. The provisions of this Act
12 apply to customer bills issued on or after August 1, 2002.
13 Section 10-20. Sourcing rules for mobile
14 telecommunications services.
15 (a) Notwithstanding the law of this State or any
16 political subdivision of this State, mobile
17 telecommunications services provided in a taxing jurisdiction
18 to a customer, the charges for which are billed by or for the
19 customer's home service provider, shall be deemed to be
20 provided by the customer's home service provider.
21 (b) All charges for mobile telecommunications services
22 that are deemed to be provided by the customer's home service
23 provider under this Act are authorized to be subjected to
24 tax, charge, or fee by the taxing jurisdictions whose
25 territorial limits encompass the customer's place of primary
26 use, regardless of where the mobile telecommunications
27 services originate, terminate, or pass through, and no other
28 taxing jurisdiction may impose taxes, charges, or fees on
29 charges for such mobile telecommunications services.
30 Section 10-25. Provision of electronic database.
31 (a) The State may provide an electronic database to a
32 home service provider or, if the State does not provide such
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1 an electronic database to home service providers, then the
2 designated database provider may provide an electronic
3 database to a home service provider.
4 (b) The electronic database, whether provided by the
5 State or the designated database provider, shall:
6 (1) be provided in a format approved by the
7 American National Standards Institute's Accredited
8 Standards Committee X12, that, allowing for de minimis
9 deviations, designates for each street address in the
10 State, including to the extent practical, any multiple
11 postal street addresses applicable to one street
12 location, the appropriate taxing jurisdictions, and the
13 appropriate code for each taxing jurisdiction, for each
14 level of taxing jurisdiction, identified by one
15 nationwide standard numeric code described in subsection
16 (c); and
17 (2) also provide the appropriate code for each
18 street address with respect to political subdivisions
19 that are not taxing jurisdictions when reasonably needed
20 to determine the proper taxing jurisdiction.
21 (c) The nationwide standard numeric codes shall contain
22 the same number of numeric digits with each digit or
23 combination of digits referring to the same level of taxing
24 jurisdiction throughout the United States using a format
25 similar to FIPS 55-3 or other appropriate standard approved
26 by the Federation of Tax Administrators and the Multistate
27 Tax Commission, or their successors. Each address shall be
28 provided in standard postal format.
29 Section 10-30. Notice; updates. If the State or a
30 designated database provider provides or maintains an
31 electronic database described in Section 10-25, then the
32 State or the electronic database provider shall provide
33 notice of the availability of the then current electronic
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1 database, and any subsequent revisions thereof, by
2 publication in the manner normally employed for the
3 publication of informational tax, charge, or fee notices to
4 taxpayers in the State.
5 Section 10-35. User held harmless. A home service
6 provider using the data contained in an electronic database
7 described in Section 10-25 shall be held harmless from any
8 tax, charge, or fee liability that otherwise would be due
9 solely as a result of any error or omission in the database
10 provided by the State or designated database provider. The
11 home service provider shall reflect changes made to the
12 database during a calendar quarter not later than 30 days
13 after the end of the calendar quarter if the State or an
14 electronic database provider issues notice of the
15 availability of an electronic database reflecting the changes
16 under Section 10-30.
17 Section 10-40. Safe harbor.
18 (a) If neither the State nor a designated database
19 provider provides an electronic database under Section 10-25,
20 a home service provider shall be held harmless from any tax,
21 charge, or fee liability that otherwise would be due solely
22 as a result of an assignment of a street address to an
23 incorrect taxing jurisdiction if, subject to Section 10-60,
24 the home service provider employs an enhanced zip code to
25 assign each street address to a specific taxing jurisdiction
26 for each level of taxing jurisdiction and exercises due
27 diligence at each level of taxing jurisdiction to ensure that
28 each such street address is assigned to the correct taxing
29 jurisdiction. If an enhanced zip code overlaps boundaries of
30 taxing jurisdictions of the same level, the home service
31 provider must designate one specific jurisdiction within the
32 enhanced zip code for use in taxing the activity for the
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1 enhanced zip code for each level of taxing jurisdiction. Any
2 enhanced zip code assignment changed in accordance with
3 Section 10-60 is deemed to be in compliance with this
4 Section.
5 (b) For purposes of this Section, there is a rebuttable
6 presumption that a home service provider has exercised due
7 diligence if the home service provider demonstrates that it
8 has:
9 (1) expended reasonable resources to implement and
10 maintain an appropriately detailed electronic database of
11 street address assignments to taxing jurisdictions;
12 (2) implemented and maintained reasonable internal
13 controls to promptly correct misassignments of street
14 addresses to taxing jurisdictions; and
15 (3) used all reasonably obtainable and usable data
16 pertaining to municipal annexations, incorporations,
17 reorganizations, and any other changes in jurisdictional
18 boundaries that materially affect the accuracy of the
19 database.
20 Section 10-45. Termination of safe harbor. Section
21 10-40 applies to a home service provider that is in
22 compliance with the requirements of Section 10-40 until the
23 later of:
24 (1) Eighteen months after the nationwide standard
25 numeric code described in Section 10-25 has been approved by
26 the Federation of Tax Administrators and the Multistate Tax
27 Commission; or
28 (2) Six months after the State or a designated database
29 provider in the State provides such database as prescribed in
30 Section 10-25.
31 Section 10-50. Home service provider required to obtain
32 and maintain customer's place of primary use. A home service
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1 provider shall be responsible for obtaining and maintaining
2 the customer's place of primary use, as defined in this Act.
3 Subject to Section 10-60, and if the home service provider's
4 reliance on information provided by its customer is in good
5 faith, a taxing jurisdiction shall:
6 (1) allow a home service provider to rely on the
7 applicable residential or business street address supplied by
8 the home service provider's customer; and
9 (2) not hold a home service provider liable for any
10 additional taxes, charges, or fees based on a different
11 determination of the place of primary use for taxes, charges,
12 or fees that are customarily passed on to the customer as a
13 separate itemized charge.
14 Section 10-55. Primary place of use for service
15 contracts in effect on or before July 28, 2002. Except as
16 provided in Section 10-60, a taxing jurisdiction shall allow
17 a home service provider to treat the address used by the home
18 service provider for tax purposes for any customer under a
19 service contract or agreement in effect on or before July 28,
20 2002 as that customer's place of primary use for the
21 remaining term of the service contract or agreement,
22 excluding any extension or renewal of the service contract or
23 agreement, for purposes of determining the taxing
24 jurisdictions to which taxes, charges, or fees on charges for
25 mobile telecommunications services are remitted.
26 Section 10-60. Determination by taxing jurisdiction or
27 State concerning place of primary use; notice to home service
28 provider. A taxing jurisdiction or the State, on behalf of
29 any taxing jurisdiction or taxing jurisdictions within this
30 State, may:
31 (a) determine that the address used for purposes of
32 determining the taxing jurisdictions to which taxes, charges,
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1 or fees for mobile telecommunications services are remitted
2 does not meet the definition of place of primary use in this
3 Act and give binding notice to the home service provider to
4 change the place of primary use on a prospective basis from
5 the date of notice of determination if:
6 (1) the taxing jurisdiction obtains the consent of
7 all affected taxing jurisdictions within the State before
8 giving the notice of determination (if the taxing
9 jurisdiction making the determination is not the State);
10 and
11 (2) before the taxing jurisdiction gives the notice
12 of determination, the customer is given an opportunity to
13 demonstrate in accordance with applicable State or local
14 tax, charge, or fee administrative procedures that the
15 address is the customer's place of primary use.
16 (b) determine that the assignment of a taxing
17 jurisdiction by a home service provider under Section 10-40
18 does not reflect the correct taxing jurisdiction and give
19 binding notice to the home service provider to change the
20 assignment on a prospective basis from the date of notice of
21 determination if:
22 (1) the taxing jurisdiction obtains the consent of
23 all affected taxing jurisdictions within the State before
24 giving the notice of determination (if the taxing
25 jurisdiction making the determination is not the State);
26 and
27 (2) the home service provider is given an
28 opportunity to demonstrate in accordance with applicable
29 State or local tax, charge, or fee administrative
30 procedures that the assignment reflects the correct
31 taxing jurisdiction.
32 Section 10-65. No change to authority of taxing
33 jurisdiction to collect tax if customer fails to provide
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1 place of primary use. Nothing in this Act modifies, impairs,
2 supersedes, or authorizes the modification, impairment, or
3 supersession of, any law allowing a taxing jurisdiction to
4 collect a tax, charge, or fee from a customer that has failed
5 to provide its place of primary use.
6 Section 10-70. Tax may be imposed on items not subject
7 to taxation if those items not separately stated. If a
8 taxing jurisdiction does not otherwise subject charges for
9 mobile telecommunications services to taxation and if these
10 charges are aggregated with and not separately stated from
11 charges that are subject to taxation, then the charges for
12 nontaxable mobile telecommunications services may be subject
13 to taxation unless the home service provider can reasonably
14 identify charges not subject to such tax, charge, or fee from
15 its books and records that are kept in the regular course of
16 business.
17 Section 10-75. Customers and otherwise non-taxable
18 charges. If a taxing jurisdiction does not subject charges
19 for mobile telecommunications services to taxation, a
20 customer may not rely upon the nontaxability of charges for
21 mobile telecommunications services unless the customer's home
22 service provider separately states the charges for nontaxable
23 mobile telecommunications services from taxable charges or
24 the home service provider elects, after receiving a written
25 request from the customer in the form required by the
26 provider, to provide verifiable data based upon the home
27 service provider's books and records that are kept in the
28 regular course of business that reasonably identifies the
29 nontaxable charges.
30 Section 10-80. Customers' procedures and remedies for
31 correcting taxes and fees.
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1 (a) If a customer believes that an amount of tax or
2 assignment of place of primary use or taxing jurisdiction
3 included on a billing is erroneous, the customer shall notify
4 the home service provider in writing. The customer shall
5 include in this written notification the street address for
6 her or his place of primary use, the account name and number
7 for which the customer seeks a correction of the tax
8 assignment, a description of the error asserted by the
9 customer, and any other information that the home service
10 provider reasonably requires to process the request. Within
11 60 days after receiving a notice under this subsection (a),
12 the home service provider shall review its records and the
13 electronic database or enhanced zip code used pursuant to
14 Section 10-25 or 10-40 to determine the customer's taxing
15 jurisdiction. If this review shows that the amount of tax,
16 assignment of place of primary use, or taxing jurisdiction is
17 in error, the home service provider shall correct the error
18 and refund or credit the amount of tax erroneously collected
19 from the customer for a period of up to 2 years. If this
20 review shows that the amount of tax, assignment of place of
21 primary use, or taxing jurisdiction is correct, the home
22 service provider shall provide a written explanation to the
23 customer.
24 (b) If the customer is dissatisfied with the response of
25 the home service provider under this Section, the customer
26 may seek a correction or refund or both from the taxing
27 jurisdiction affected.
28 (c) The procedures in this Section shall be the first
29 course of remedy available to customers seeking correction of
30 assignment of place of primary use or taxing jurisdiction or
31 a refund of or other compensation for taxes, charges, and
32 fees erroneously collected by the home service provider, and
33 no cause of action based upon a dispute arising from these
34 taxes, charges, or fees shall accrue until a customer has
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1 reasonably exercised the rights and procedures set forth in
2 this Section.
3 Section 10-85. Conditional effectiveness of Act. If the
4 federal Mobile Telecommunications Sourcing Act becomes
5 invalid and has no legal effect under the provisions of
6 Section 125 of Title 4 of the United States Code, then the
7 provisions of this Article 10 (the Mobile Telecommunications
8 Sourcing Conformity Act) and the amendatory changes made in
9 Sections 90-11 and 90-21 of Article 90 to Section 2 of the
10 Telecommunications Excise Tax Act and Section 15.3 of the
11 Emergency Telephone System Act are invalid and have no legal
12 effect as of the date the federal Mobile Telecommunications
13 Sourcing Act becomes invalid and has no legal effect.
14 ARTICLE 90
15 Section 90-5. The State Revenue Sharing Act is amended
16 by changing Section 12 as follows:
17 (30 ILCS 115/12) (from Ch. 85, par. 616)
18 Sec. 12. Personal Property Tax Replacement Fund. There
19 is hereby created the Personal Property Tax Replacement Fund,
20 a special fund in the State Treasury into which shall be paid
21 all revenue realized:
22 (a) all amounts realized from the additional personal
23 property tax replacement income tax imposed by subsections
24 (c) and (d) of Section 201 of the Illinois Income Tax Act,
25 except for those amounts deposited into the Income Tax Refund
26 Fund pursuant to subsection (c) of Section 901 of the
27 Illinois Income Tax Act; and
28 (b) all amounts realized from the additional personal
29 property replacement invested capital taxes imposed by
30 Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas
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1 Revenue Tax Act, Section 2a.1 of the Public Utilities
2 Revenue Act, and Section 3 of the Water Company Invested
3 Capital Tax Act, and amounts payable to the Department of
4 Revenue under the Telecommunications Municipal Infrastructure
5 Maintenance Fee Act.
6 As soon as may be after the end of each month, the
7 Department of Revenue shall certify to the Treasurer and the
8 Comptroller the amount of all refunds paid out of the General
9 Revenue Fund through the preceding month on account of
10 overpayment of liability on taxes paid into the Personal
11 Property Tax Replacement Fund. Upon receipt of such
12 certification, the Treasurer and the Comptroller shall
13 transfer the amount so certified from the Personal Property
14 Tax Replacement Fund into the General Revenue Fund.
15 The payments of revenue into the Personal Property Tax
16 Replacement Fund shall be used exclusively for distribution
17 to taxing districts as provided in this Section, payment of
18 the expenses of the Department of Revenue incurred in
19 administering the collection and distribution of monies paid
20 into the Personal Property Tax Replacement Fund and transfers
21 due to refunds to taxpayers for overpayment of liability for
22 taxes paid into the Personal Property Tax Replacement Fund.
23 As soon as may be after the effective date of this
24 amendatory Act of 1980, the Department of Revenue shall
25 certify to the Treasurer the amount of net replacement
26 revenue paid into the General Revenue Fund prior to that
27 effective date from the additional tax imposed by Section
28 2a.1 of the Messages Tax Act; Section 2a.1 of the Gas Revenue
29 Tax Act; Section 2a.1 of the Public Utilities Revenue Act;
30 Section 3 of the Water Company Invested Capital Tax Act;
31 amounts collected by the Department of Revenue under the
32 Telecommunications Municipal Infrastructure Maintenance Fee
33 Act; and the additional personal property tax replacement
34 income tax imposed by the Illinois Income Tax Act, as amended
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1 by Public Act 81-1st Special Session-1. Net replacement
2 revenue shall be defined as the total amount paid into and
3 remaining in the General Revenue Fund as a result of those
4 Acts minus the amount outstanding and obligated from the
5 General Revenue Fund in state vouchers or warrants prior to
6 the effective date of this amendatory Act of 1980 as refunds
7 to taxpayers for overpayment of liability under those Acts.
8 All interest earned by monies accumulated in the Personal
9 Property Tax Replacement Fund shall be deposited in such
10 Fund. All amounts allocated pursuant to this Section are
11 appropriated on a continuing basis.
12 Prior to December 31, 1980, as soon as may be after the
13 end of each quarter beginning with the quarter ending
14 December 31, 1979, and on and after December 31, 1980, as
15 soon as may be after January 1, March 1, April 1, May 1, July
16 1, August 1, October 1 and December 1 of each year, the
17 Department of Revenue shall allocate to each taxing district
18 as defined in Section 1-150 of the Property Tax Code, in
19 accordance with the provisions of paragraph (2) of this
20 Section the portion of the funds held in the Personal
21 Property Tax Replacement Fund which is required to be
22 distributed, as provided in paragraph (1), for each quarter.
23 Provided, however, under no circumstances shall any taxing
24 district during each of the first two years of distribution
25 of the taxes imposed by this amendatory Act of 1979 be
26 entitled to an annual allocation which is less than the funds
27 such taxing district collected from the 1978 personal
28 property tax. Provided further that under no circumstances
29 shall any taxing district during the third year of
30 distribution of the taxes imposed by this amendatory Act of
31 1979 receive less than 60% of the funds such taxing district
32 collected from the 1978 personal property tax. In the event
33 that the total of the allocations made as above provided for
34 all taxing districts, during either of such 3 years, exceeds
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1 the amount available for distribution the allocation of each
2 taxing district shall be proportionately reduced. Except as
3 provided in Section 13 of this Act, the Department shall then
4 certify, pursuant to appropriation, such allocations to the
5 State Comptroller who shall pay over to the several taxing
6 districts the respective amounts allocated to them.
7 Any township which receives an allocation based in whole
8 or in part upon personal property taxes which it levied
9 pursuant to Section 6-507 or 6-512 of the Illinois Highway
10 Code and which was previously required to be paid over to a
11 municipality shall immediately pay over to that municipality
12 a proportionate share of the personal property replacement
13 funds which such township receives.
14 Any municipality or township, other than a municipality
15 with a population in excess of 500,000, which receives an
16 allocation based in whole or in part on personal property
17 taxes which it levied pursuant to Sections 3-1, 3-4 and 3-6
18 of the Illinois Local Library Act and which was previously
19 required to be paid over to a public library shall
20 immediately pay over to that library a proportionate share of
21 the personal property tax replacement funds which such
22 municipality or township receives; provided that if such a
23 public library has converted to a library organized under The
24 Illinois Public Library District Act, regardless of whether
25 such conversion has occurred on, after or before January 1,
26 1988, such proportionate share shall be immediately paid over
27 to the library district which maintains and operates the
28 library. However, any library that has converted prior to
29 January 1, 1988, and which hitherto has not received the
30 personal property tax replacement funds, shall receive such
31 funds commencing on January 1, 1988.
32 Any township which receives an allocation based in whole
33 or in part on personal property taxes which it levied
34 pursuant to Section 1c of the Public Graveyards Act and which
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1 taxes were previously required to be paid over to or used for
2 such public cemetery or cemeteries shall immediately pay over
3 to or use for such public cemetery or cemeteries a
4 proportionate share of the personal property tax replacement
5 funds which the township receives.
6 Any taxing district which receives an allocation based in
7 whole or in part upon personal property taxes which it levied
8 for another governmental body or school district in Cook
9 County in 1976 or for another governmental body or school
10 district in the remainder of the State in 1977 shall
11 immediately pay over to that governmental body or school
12 district the amount of personal property replacement funds
13 which such governmental body or school district would receive
14 directly under the provisions of paragraph (2) of this
15 Section, had it levied its own taxes.
16 (1) The portion of the Personal Property Tax Replacement
17 Fund required to be distributed as of the time allocation is
18 required to be made shall be the amount available in such
19 Fund as of the time allocation is required to be made.
20 The amount available for distribution shall be the total
21 amount in the fund at such time minus the necessary
22 administrative expenses as limited by the appropriation and
23 the amount determined by: (a) $2.8 million for fiscal year
24 1981; (b) for fiscal year 1982, .54% of the funds distributed
25 from the fund during the preceding fiscal year; (c) for
26 fiscal year 1983 through fiscal year 1988, .54% of the funds
27 distributed from the fund during the preceding fiscal year
28 less .02% of such fund for fiscal year 1983 and less .02% of
29 such funds for each fiscal year thereafter, or (d) for fiscal
30 year 1989 and beyond no more than 105% of the actual
31 administrative expenses of the prior fiscal year. Such
32 portion of the fund shall be determined after the transfer
33 into the General Revenue Fund due to refunds, if any, paid
34 from the General Revenue Fund during the preceding quarter.
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1 If at any time, for any reason, there is insufficient amount
2 in the Personal Property Tax Replacement Fund for payment of
3 costs of administration or for transfers due to refunds at
4 the end of any particular month, the amount of such
5 insufficiency shall be carried over for the purposes of
6 transfers into the General Revenue Fund and for purposes of
7 costs of administration to the following month or months.
8 Net replacement revenue held, and defined above, shall be
9 transferred by the Treasurer and Comptroller to the Personal
10 Property Tax Replacement Fund within 10 days of such
11 certification.
12 (2) Each quarterly allocation shall first be apportioned
13 in the following manner: 51.65% for taxing districts in Cook
14 County and 48.35% for taxing districts in the remainder of
15 the State.
16 The Personal Property Replacement Ratio of each taxing
17 district outside Cook County shall be the ratio which the Tax
18 Base of that taxing district bears to the Downstate Tax Base.
19 The Tax Base of each taxing district outside of Cook County
20 is the personal property tax collections for that taxing
21 district for the 1977 tax year. The Downstate Tax Base is
22 the personal property tax collections for all taxing
23 districts in the State outside of Cook County for the 1977
24 tax year. The Department of Revenue shall have authority to
25 review for accuracy and completeness the personal property
26 tax collections for each taxing district outside Cook County
27 for the 1977 tax year.
28 The Personal Property Replacement Ratio of each Cook
29 County taxing district shall be the ratio which the Tax Base
30 of that taxing district bears to the Cook County Tax Base.
31 The Tax Base of each Cook County taxing district is the
32 personal property tax collections for that taxing district
33 for the 1976 tax year. The Cook County Tax Base is the
34 personal property tax collections for all taxing districts in
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1 Cook County for the 1976 tax year. The Department of Revenue
2 shall have authority to review for accuracy and completeness
3 the personal property tax collections for each taxing
4 district within Cook County for the 1976 tax year.
5 For all purposes of this Section 12, amounts paid to a
6 taxing district for such tax years as may be applicable by a
7 foreign corporation under the provisions of Section 7-202 of
8 the Public Utilities Act, as amended, shall be deemed to be
9 personal property taxes collected by such taxing district for
10 such tax years as may be applicable. The Director shall
11 determine from the Illinois Commerce Commission, for any tax
12 year as may be applicable, the amounts so paid by any such
13 foreign corporation to any and all taxing districts. The
14 Illinois Commerce Commission shall furnish such information
15 to the Director. For all purposes of this Section 12, the
16 Director shall deem such amounts to be collected personal
17 property taxes of each such taxing district for the
18 applicable tax year or years.
19 Taxing districts located both in Cook County and in one
20 or more other counties shall receive both a Cook County
21 allocation and a Downstate allocation determined in the same
22 way as all other taxing districts.
23 If any taxing district in existence on July 1, 1979
24 ceases to exist, or discontinues its operations, its Tax Base
25 shall thereafter be deemed to be zero. If the powers, duties
26 and obligations of the discontinued taxing district are
27 assumed by another taxing district, the Tax Base of the
28 discontinued taxing district shall be added to the Tax Base
29 of the taxing district assuming such powers, duties and
30 obligations.
31 If two or more taxing districts in existence on July 1,
32 1979, or a successor or successors thereto shall consolidate
33 into one taxing district, the Tax Base of such consolidated
34 taxing district shall be the sum of the Tax Bases of each of
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1 the taxing districts which have consolidated.
2 If a single taxing district in existence on July 1, 1979,
3 or a successor or successors thereto shall be divided into
4 two or more separate taxing districts, the tax base of the
5 taxing district so divided shall be allocated to each of the
6 resulting taxing districts in proportion to the then current
7 equalized assessed value of each resulting taxing district.
8 If a portion of the territory of a taxing district is
9 disconnected and annexed to another taxing district of the
10 same type, the Tax Base of the taxing district from which
11 disconnection was made shall be reduced in proportion to the
12 then current equalized assessed value of the disconnected
13 territory as compared with the then current equalized
14 assessed value within the entire territory of the taxing
15 district prior to disconnection, and the amount of such
16 reduction shall be added to the Tax Base of the taxing
17 district to which annexation is made.
18 If a community college district is created after July 1,
19 1979, beginning on the effective date of this amendatory Act
20 of 1995, its Tax Base shall be 3.5% of the sum of the
21 personal property tax collected for the 1977 tax year within
22 the territorial jurisdiction of the district.
23 The amounts allocated and paid to taxing districts
24 pursuant to the provisions of this amendatory Act of 1979
25 shall be deemed to be substitute revenues for the revenues
26 derived from taxes imposed on personal property pursuant to
27 the provisions of the "Revenue Act of 1939" or "An Act for
28 the assessment and taxation of private car line companies",
29 approved July 22, 1943, as amended, or Section 414 of the
30 Illinois Insurance Code, prior to the abolition of such taxes
31 and shall be used for the same purposes as the revenues
32 derived from ad valorem taxes on real estate.
33 Monies received by any taxing districts from the Personal
34 Property Tax Replacement Fund shall be first applied toward
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1 payment of the proportionate amount of debt service which was
2 previously levied and collected from extensions against
3 personal property on bonds outstanding as of December 31,
4 1978 and next applied toward payment of the proportionate
5 share of the pension or retirement obligations of the taxing
6 district which were previously levied and collected from
7 extensions against personal property. For each such
8 outstanding bond issue, the County Clerk shall determine the
9 percentage of the debt service which was collected from
10 extensions against real estate in the taxing district for
11 1978 taxes payable in 1979, as related to the total amount of
12 such levies and collections from extensions against both real
13 and personal property. For 1979 and subsequent years' taxes,
14 the County Clerk shall levy and extend taxes against the real
15 estate of each taxing district which will yield the said
16 percentage or percentages of the debt service on such
17 outstanding bonds. The balance of the amount necessary to
18 fully pay such debt service shall constitute a first and
19 prior lien upon the monies received by each such taxing
20 district through the Personal Property Tax Replacement Fund
21 and shall be first applied or set aside for such purpose. In
22 counties having fewer than 3,000,000 inhabitants, the
23 amendments to this paragraph as made by this amendatory Act
24 of 1980 shall be first applicable to 1980 taxes to be
25 collected in 1981.
26 (Source: P.A. 89-327, eff. 1-1-96; 90-154, eff. 1-1-98.)
27 Section 90-10. The Telecommunications Excise Tax Act is
28 amended by changing Sections 2, 6, and 15 as follows:
29 (35 ILCS 630/2) (from Ch. 120, par. 2002)
30 Sec. 2. As used in this Article, unless the context
31 clearly requires otherwise:
32 (a) "Gross charge" means the amount paid for the act or
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1 privilege of originating or receiving telecommunications in
2 this State and for all services and equipment provided in
3 connection therewith by a retailer, valued in money whether
4 paid in money or otherwise, including cash, credits, services
5 and property of every kind or nature, and shall be determined
6 without any deduction on account of the cost of such
7 telecommunications, the cost of materials used, labor or
8 service costs or any other expense whatsoever. In case
9 credit is extended, the amount thereof shall be included only
10 as and when paid. "Gross charges" for private line service
11 shall include charges imposed at each channel point within
12 this State, charges for the channel mileage between each
13 channel point within this State, and charges for that portion
14 of the interstate inter-office channel provided within
15 Illinois. However, "gross charges" shall not include:
16 (1) any amounts added to a purchaser's bill because
17 of a charge made pursuant to (i) the tax imposed by this
18 Article; (ii) charges added to customers' bills pursuant
19 to the provisions of Sections 9-221 or 9-222 of the
20 Public Utilities Act, as amended, or any similar charges
21 added to customers' bills by retailers who are not
22 subject to rate regulation by the Illinois Commerce
23 Commission for the purpose of recovering any of the tax
24 liabilities or other amounts specified in such provisions
25 of such Act; or (iii) the tax imposed by Section 4251 of
26 the Internal Revenue Code; (iv) 911 surcharges; or (v)
27 the tax imposed by the Simplified Municipal
28 Telecommunications Tax Act;
29 (2) charges for a sent collect telecommunication
30 received outside of the State;
31 (3) charges for leased time on equipment or charges
32 for the storage of data or information for subsequent
33 retrieval or the processing of data or information
34 intended to change its form or content. Such equipment
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1 includes, but is not limited to, the use of calculators,
2 computers, data processing equipment, tabulating
3 equipment or accounting equipment and also includes the
4 usage of computers under a time-sharing agreement;
5 (4) charges for customer equipment, including such
6 equipment that is leased or rented by the customer from
7 any source, wherein such charges are disaggregated and
8 separately identified from other charges;
9 (5) charges to business enterprises certified under
10 Section 9-222.1 of the Public Utilities Act, as amended,
11 to the extent of such exemption and during the period of
12 time specified by the Department of Commerce and
13 Community Affairs;
14 (6) charges for telecommunications and all services
15 and equipment provided in connection therewith between a
16 parent corporation and its wholly owned subsidiaries or
17 between wholly owned subsidiaries when the tax imposed
18 under this Article has already been paid to a retailer
19 and only to the extent that the charges between the
20 parent corporation and wholly owned subsidiaries or
21 between wholly owned subsidiaries represent expense
22 allocation between the corporations and not the
23 generation of profit for the corporation rendering such
24 service;
25 (7) bad debts. Bad debt means any portion of a debt
26 that is related to a sale at retail for which gross
27 charges are not otherwise deductible or excludable that
28 has become worthless or uncollectable, as determined
29 under applicable federal income tax standards. If the
30 portion of the debt deemed to be bad is subsequently
31 paid, the retailer shall report and pay the tax on that
32 portion during the reporting period in which the payment
33 is made;
34 (8) charges paid by inserting coins in
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1 coin-operated telecommunication devices;
2 (9) amounts paid by telecommunications retailers
3 under the Telecommunications Municipal Infrastructure
4 Maintenance Fee Act.
5 (b) "Amount paid" means the amount charged to the
6 taxpayer's service address in this State regardless of where
7 such amount is billed or paid.
8 (c) "Telecommunications", in addition to the meaning
9 ordinarily and popularly ascribed to it, includes, without
10 limitation, messages or information transmitted through use
11 of local, toll and wide area telephone service; private line
12 services; channel services; telegraph services;
13 teletypewriter; computer exchange services; cellular mobile
14 telecommunications service; specialized mobile radio;
15 stationary two way radio; paging service; or any other form
16 of mobile and portable one-way or two-way communications; or
17 any other transmission of messages or information by
18 electronic or similar means, between or among points by wire,
19 cable, fiber-optics, laser, microwave, radio, satellite or
20 similar facilities. As used in this Act, "private line" means
21 a dedicated non-traffic sensitive service for a single
22 customer, that entitles the customer to exclusive or priority
23 use of a communications channel or group of channels, from
24 one or more specified locations to one or more other
25 specified locations. The definition of "telecommunications"
26 shall not include value added services in which computer
27 processing applications are used to act on the form, content,
28 code and protocol of the information for purposes other than
29 transmission. "Telecommunications" shall not include
30 purchases of telecommunications by a telecommunications
31 service provider for use as a component part of the service
32 provided by him to the ultimate retail consumer who
33 originates or terminates the taxable end-to-end
34 communications. Carrier access charges, right of access
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1 charges, charges for use of inter-company facilities, and all
2 telecommunications resold in the subsequent provision of,
3 used as a component of, or integrated into end-to-end
4 telecommunications service shall be non-taxable as sales for
5 resale.
6 (d) "Interstate telecommunications" means all
7 telecommunications that either originate or terminate outside
8 this State.
9 (e) "Intrastate telecommunications" means all
10 telecommunications that originate and terminate within this
11 State.
12 (f) "Department" means the Department of Revenue of the
13 State of Illinois.
14 (g) "Director" means the Director of Revenue for the
15 Department of Revenue of the State of Illinois.
16 (h) "Taxpayer" means a person who individually or
17 through his agents, employees or permittees engages in the
18 act or privilege of originating or receiving
19 telecommunications in this State and who incurs a tax
20 liability under this Article.
21 (i) "Person" means any natural individual, firm, trust,
22 estate, partnership, association, joint stock company, joint
23 venture, corporation, limited liability company, or a
24 receiver, trustee, guardian or other representative appointed
25 by order of any court, the Federal and State governments,
26 including State universities created by statute or any city,
27 town, county or other political subdivision of this State.
28 (j) "Purchase at retail" means the acquisition,
29 consumption or use of telecommunication through a sale at
30 retail.
31 (k) "Sale at retail" means the transmitting, supplying
32 or furnishing of telecommunications and all services and
33 equipment provided in connection therewith for a
34 consideration to persons other than the Federal and State
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1 governments, and State universities created by statute and
2 other than between a parent corporation and its wholly owned
3 subsidiaries or between wholly owned subsidiaries for their
4 use or consumption and not for resale.
5 (l) "Retailer" means and includes every person engaged
6 in the business of making sales at retail as defined in this
7 Article. The Department may, in its discretion, upon
8 application, authorize the collection of the tax hereby
9 imposed by any retailer not maintaining a place of business
10 within this State, who, to the satisfaction of the
11 Department, furnishes adequate security to insure collection
12 and payment of the tax. Such retailer shall be issued,
13 without charge, a permit to collect such tax. When so
14 authorized, it shall be the duty of such retailer to collect
15 the tax upon all of the gross charges for telecommunications
16 in this State in the same manner and subject to the same
17 requirements as a retailer maintaining a place of business
18 within this State. The permit may be revoked by the
19 Department at its discretion.
20 (m) "Retailer maintaining a place of business in this
21 State", or any like term, means and includes any retailer
22 having or maintaining within this State, directly or by a
23 subsidiary, an office, distribution facilities, transmission
24 facilities, sales office, warehouse or other place of
25 business, or any agent or other representative operating
26 within this State under the authority of the retailer or its
27 subsidiary, irrespective of whether such place of business or
28 agent or other representative is located here permanently or
29 temporarily, or whether such retailer or subsidiary is
30 licensed to do business in this State.
31 (n) "Service address" means the location of
32 telecommunications equipment from which the
33 telecommunications services are originated or at which
34 telecommunications services are received by a taxpayer. In
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1 the event this may not be a defined location, as in the case
2 of mobile phones, paging systems, maritime systems,
3 air-to-ground systems and the like, service address shall
4 mean the location of a taxpayer's primary use of the
5 telecommunications equipment as defined by telephone number,
6 authorization code, or location in Illinois where bills are
7 sent.
8 (o) "Prepaid telephone calling arrangements" mean the
9 right to exclusively purchase telephone or telecommunications
10 services that must be paid for in advance and enable the
11 origination of one or more intrastate, interstate, or
12 international telephone calls or other telecommunications
13 using an access number, an authorization code, or both,
14 whether manually or electronically dialed, for which payment
15 to a retailer must be made in advance, provided that, unless
16 recharged, no further service is provided once that prepaid
17 amount of service has been consumed. Prepaid telephone
18 calling arrangements include the recharge of a prepaid
19 calling arrangement. For purposes of this subsection,
20 "recharge" means the purchase of additional prepaid telephone
21 or telecommunications services whether or not the purchaser
22 acquires a different access number or authorization code.
23 "Prepaid telephone calling arrangement" does not include an
24 arrangement whereby a customer purchases a payment card and
25 pursuant to which the service provider reflects the amount of
26 such purchase as a credit on an invoice issued to that
27 customer under an existing subscription plan.
28 (Source: P.A. 90-562, eff. 12-16-97; 91-870, eff. 6-22-00.)
29 (35 ILCS 630/6) (from Ch. 120, par. 2006)
30 Sec. 6. Except as provided hereinafter in this Section,
31 on or before the 30th 15th day of each month, except for the
32 month of February, on or before the 28th day of February,
33 each retailer maintaining a place of business in this State
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1 shall make a return to the Department for the preceding
2 calendar month, stating:
3 1. His name;
4 2. The address of his principal place of business,
5 and the address of the principal place of business (if
6 that is a different address) from which he engages in the
7 business of transmitting telecommunications;
8 3. Total amount of gross charges billed by him
9 during the preceding calendar month for providing
10 telecommunications during such calendar month;
11 4. Total amount received by him during the
12 preceding calendar month on credit extended;
13 5. Deductions allowed by law;
14 6. Gross charges which were billed by him during
15 the preceding calendar month and upon the basis of which
16 the tax is imposed;
17 7. Amount of tax (computed upon Item 6);
18 8. Such other reasonable information as the
19 Department may require.
20 Any taxpayer required to make payments under this Section
21 may make the payments by electronic funds transfer. The
22 Department shall adopt rules necessary to effectuate a
23 program of electronic funds transfer. Any taxpayer who has
24 average monthly tax billings due to the Department under this
25 Act and the Simplified Municipal Telecommunications Tax Act
26 that exceed $1,000 shall make all payments by electronic
27 funds transfer as required by rules of the Department and
28 shall file the return required by this Section by electronic
29 means as required by rules of the Department.
30 If the retailer's average monthly tax billings due to the
31 Department under this Act and the Simplified Municipal
32 Telecommunications Tax Act do not exceed $1,000 $200, the
33 Department may authorize his returns to be filed on a quarter
34 annual basis, with the return for January, February and March
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1 of a given year being due by April 30 15 of such year; with
2 the return for April, May and June of a given year being due
3 by July 30 15 of such year; with the return for July, August
4 and September of a given year being due by October 30 15 of
5 such year; and with the return of October, November and
6 December of a given year being due by January 30 15 of the
7 following year.
8 If the retailer is otherwise required to file a monthly
9 or quarterly return and if the retailer's average monthly tax
10 billings due to the Department under this Act and the
11 Simplified Municipal Telecommunications Tax Act do not exceed
12 $400 $50, the Department may authorize his or her return to
13 be filed on an annual basis, with the return for a given year
14 being due by January 30th 15th of the following year.
15 Notwithstanding any other provision of this Article
16 containing the time within which a retailer may file his
17 return, in the case of any retailer who ceases to engage in a
18 kind of business which makes him responsible for filing
19 returns under this Article, such retailer shall file a final
20 return under this Article with the Department not more than
21 one month after discontinuing such business.
22 In making such return, the retailer shall determine the
23 value of any consideration other than money received by him
24 and he shall include such value in his return. Such
25 determination shall be subject to review and revision by the
26 Department in the manner hereinafter provided for the
27 correction of returns.
28 Each retailer whose average monthly liability to the
29 Department under this Article and the Simplified Municipal
30 Telecommunications Tax Act was $25,000 $10,000 or more during
31 the preceding calendar year, excluding the month of highest
32 liability and the month of lowest liability in such calendar
33 year, and who is not operated by a unit of local government,
34 shall make estimated payments to the Department on or before
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1 the 7th, 15th, 22nd and last day of the month during which
2 tax collection liability to the Department is incurred in an
3 amount not less than the lower of either 22.5% of the
4 retailer's actual tax collections for the month or 25% of the
5 retailer's actual tax collections for the same calendar month
6 of the preceding year. The amount of such quarter monthly
7 payments shall be credited against the final liability of the
8 retailer's return for that month. Any outstanding credit,
9 approved by the Department, arising from the retailer's
10 overpayment of its final liability for any month may be
11 applied to reduce the amount of any subsequent quarter
12 monthly payment or credited against the final liability of
13 the retailer's return for any subsequent month. If any
14 quarter monthly payment is not paid at the time or in the
15 amount required by this Section, the retailer shall be liable
16 for penalty and interest on the difference between the
17 minimum amount due as a payment and the amount of such
18 payment actually and timely paid, except insofar as the
19 retailer has previously made payments for that month to the
20 Department in excess of the minimum payments previously due.
21 If the Director finds that the information required for
22 the making of an accurate return cannot reasonably be
23 compiled by a retailer within 15 days after the close of the
24 calendar month for which a return is to be made, he may grant
25 an extension of time for the filing of such return for a
26 period of not to exceed 31 calendar days. The granting of
27 such an extension may be conditioned upon the deposit by the
28 retailer with the Department of an amount of money not
29 exceeding the amount estimated by the Director to be due with
30 the return so extended. All such deposits, including any
31 heretofore made with the Department, shall be credited
32 against the retailer's liabilities under this Article. If
33 any such deposit exceeds the retailer's present and probable
34 future liabilities under this Article, the Department shall
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1 issue to the retailer a credit memorandum, which may be
2 assigned by the retailer to a similar retailer under this
3 Article, in accordance with reasonable rules and regulations
4 to be prescribed by the Department.
5 The retailer making the return herein provided for shall,
6 at the time of making such return, pay to the Department the
7 amount of tax herein imposed, less a commission of 1% which
8 is allowed to reimburse the retailer for the expenses
9 incurred in keeping records, billing the customer, preparing
10 and filing returns, remitting the tax, and supplying data to
11 the Department upon request. No commission may be claimed by
12 a retailer for taxes not timely remitted. On and after the
13 effective date of this Article of 1985, $1,000,000 of the
14 moneys received by the Department of Revenue pursuant to this
15 Article shall be paid each month into the Common School Fund
16 and the remainder into the General Revenue Fund. On and after
17 February 1, 1998, however, of the moneys received by the
18 Department of Revenue pursuant to the additional taxes
19 imposed by this amendatory Act of 1997 one-half shall be
20 deposited into the School Infrastructure Fund and one-half
21 shall be deposited into the Common School Fund. On and after
22 the effective date of this amendatory Act of the 91st General
23 Assembly, if in any fiscal year the total of the moneys
24 deposited into the School Infrastructure Fund under this Act
25 is less than the total of the moneys deposited into that Fund
26 from the additional taxes imposed by Public Act 90-548 during
27 fiscal year 1999, then, as soon as possible after the close
28 of the fiscal year, the Comptroller shall order transferred
29 and the Treasurer shall transfer from the General Revenue
30 Fund to the School Infrastructure Fund an amount equal to the
31 difference between the fiscal year total deposits and the
32 total amount deposited into the Fund in fiscal year 1999.
33 (Source: P.A. 90-16, eff. 6-16-97; 90-548, eff. 12-4-97;
34 91-541, eff. 8-13-99; 91-870, 6-22-00.)
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1 (35 ILCS 630/15) (from Ch. 120, par. 2015)
2 Sec. 15. Confidential information. All information
3 received by the Department from returns filed under this
4 Article, or from any investigations conducted under this
5 Article, shall be confidential, except for official purposes,
6 and any person who divulges any such information in any
7 manner, except in accordance with a proper judicial order or
8 as otherwise provided by law, shall be guilty of a Class B
9 misdemeanor.
10 Provided, that nothing contained in this Article shall
11 prevent the Director from publishing or making available to
12 the public the names and addresses of retailers or taxpayers
13 filing returns under this Article, or from publishing or
14 making available reasonable statistics concerning the
15 operation of the tax wherein the contents of returns are
16 grouped into aggregates in such a way that the information
17 contained in any individual return shall not be disclosed.
18 And provided, that nothing contained in this Article
19 shall prevent the Director from making available to the
20 United States Government or the government of any other
21 state, or any officer or agency thereof, for exclusively
22 official purposes, information received by the Department in
23 the administration of this Article, if such other
24 governmental agency agrees to divulge requested tax
25 information to the Department.
26 The furnishing upon request of the Auditor General, or
27 his authorized agents, for official use, of returns filed and
28 information related thereto under this Article is deemed to
29 be an official purpose within the meaning of this Section.
30 The furnishing of financial information to a municipality
31 that has imposed a tax under the Simplified Municipal
32 Telecommunications Tax Act, upon request of the chief
33 executive thereof, is an official purpose within the meaning
34 of this Section, provided that the municipality agrees in
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1 writing to the requirements of this Section. Information so
2 provided shall be subject to all confidentiality provisions
3 of this Section. The written agreement shall provide for
4 reciprocity, limitations on access, disclosure, and
5 procedures for requesting information.
6 The Director shall make available for public inspection
7 in the Department's principal office and for publication, at
8 cost, administrative decisions issued on or after January 1,
9 1995. These decisions are to be made available in a manner so
10 that the following taxpayer information is not disclosed:
11 (1) The names, addresses, and identification
12 numbers of the taxpayer, related entities, and employees.
13 (2) At the sole discretion of the Director, trade
14 secrets or other confidential information identified as
15 such by the taxpayer, no later than 30 days after receipt
16 of an administrative decision, by such means as the
17 Department shall provide by rule.
18 The Director shall determine the appropriate extent of
19 the deletions allowed in paragraph (2). In the event the
20 taxpayer does not submit deletions, the Director shall make
21 only the deletions specified in paragraph (1).
22 The Director shall make available for public inspection
23 and publication an administrative decision within 180 days
24 after the issuance of the administrative decision. The term
25 "administrative decision" has the same meaning as defined in
26 Section 3-101 of Article III of the Code of Civil Procedure.
27 Costs collected under this Section shall be paid into the Tax
28 Compliance and Administration Fund.
29 Nothing contained in this Act shall prevent the Director
30 from divulging information to any person pursuant to a
31 request or authorization made by the taxpayer or by an
32 authorized representative of the taxpayer.
33 (Source: P.A. 90-491, eff. 1-1-98.)
-55- LRB9201430SMpcam
1 Section 90-11. The Telecommunications Excise Tax Act is
2 amended by changing Section 2 as follows:
3 (35 ILCS 630/2) (from Ch. 120, par. 2002)
4 Sec. 2. As used in this Article, unless the context
5 clearly requires otherwise:
6 (a) "Gross charge" means the amount paid for the act or
7 privilege of originating or receiving telecommunications in
8 this State and for all services and equipment provided in
9 connection therewith by a retailer, valued in money whether
10 paid in money or otherwise, including cash, credits, services
11 and property of every kind or nature, and shall be determined
12 without any deduction on account of the cost of such
13 telecommunications, the cost of materials used, labor or
14 service costs or any other expense whatsoever. In case
15 credit is extended, the amount thereof shall be included only
16 as and when paid. "Gross charges" for private line service
17 shall include charges imposed at each channel point within
18 this State, charges for the channel mileage between each
19 channel point within this State, and charges for that portion
20 of the interstate inter-office channel provided within
21 Illinois. However, "gross charges" shall not include:
22 (1) any amounts added to a purchaser's bill because
23 of a charge made pursuant to (i) the tax imposed by this
24 Article; (ii) charges added to customers' bills pursuant
25 to the provisions of Sections 9-221 or 9-222 of the
26 Public Utilities Act, as amended, or any similar charges
27 added to customers' bills by retailers who are not
28 subject to rate regulation by the Illinois Commerce
29 Commission for the purpose of recovering any of the tax
30 liabilities or other amounts specified in such provisions
31 of such Act; or (iii) the tax imposed by Section 4251 of
32 the Internal Revenue Code;
33 (2) charges for a sent collect telecommunication
-56- LRB9201430SMpcam
1 received outside of the State;
2 (3) charges for leased time on equipment or charges
3 for the storage of data or information for subsequent
4 retrieval or the processing of data or information
5 intended to change its form or content. Such equipment
6 includes, but is not limited to, the use of calculators,
7 computers, data processing equipment, tabulating
8 equipment or accounting equipment and also includes the
9 usage of computers under a time-sharing agreement;
10 (4) charges for customer equipment, including such
11 equipment that is leased or rented by the customer from
12 any source, wherein such charges are disaggregated and
13 separately identified from other charges;
14 (5) charges to business enterprises certified under
15 Section 9-222.1 of the Public Utilities Act, as amended,
16 to the extent of such exemption and during the period of
17 time specified by the Department of Commerce and
18 Community Affairs;
19 (6) charges for telecommunications and all services
20 and equipment provided in connection therewith between a
21 parent corporation and its wholly owned subsidiaries or
22 between wholly owned subsidiaries when the tax imposed
23 under this Article has already been paid to a retailer
24 and only to the extent that the charges between the
25 parent corporation and wholly owned subsidiaries or
26 between wholly owned subsidiaries represent expense
27 allocation between the corporations and not the
28 generation of profit for the corporation rendering such
29 service;
30 (7) bad debts. Bad debt means any portion of a debt
31 that is related to a sale at retail for which gross
32 charges are not otherwise deductible or excludable that
33 has become worthless or uncollectable, as determined
34 under applicable federal income tax standards. If the
-57- LRB9201430SMpcam
1 portion of the debt deemed to be bad is subsequently
2 paid, the retailer shall report and pay the tax on that
3 portion during the reporting period in which the payment
4 is made;
5 (8) charges paid by inserting coins in
6 coin-operated telecommunication devices;
7 (9) amounts paid by telecommunications retailers
8 under the Telecommunications Municipal Infrastructure
9 Maintenance Fee Act.
10 (b) "Amount paid" means the amount charged to the
11 taxpayer's service address in this State regardless of where
12 such amount is billed or paid.
13 (c) "Telecommunications", in addition to the meaning
14 ordinarily and popularly ascribed to it, includes, without
15 limitation, messages or information transmitted through use
16 of local, toll and wide area telephone service; private line
17 services; channel services; telegraph services;
18 teletypewriter; computer exchange services; cellular mobile
19 telecommunications service; specialized mobile radio;
20 stationary two way radio; paging service; or any other form
21 of mobile and portable one-way or two-way communications; or
22 any other transmission of messages or information by
23 electronic or similar means, between or among points by wire,
24 cable, fiber-optics, laser, microwave, radio, satellite or
25 similar facilities. As used in this Act, "private line" means
26 a dedicated non-traffic sensitive service for a single
27 customer, that entitles the customer to exclusive or priority
28 use of a communications channel or group of channels, from
29 one or more specified locations to one or more other
30 specified locations. The definition of "telecommunications"
31 shall not include value added services in which computer
32 processing applications are used to act on the form, content,
33 code and protocol of the information for purposes other than
34 transmission. "Telecommunications" shall not include
-58- LRB9201430SMpcam
1 purchases of telecommunications by a telecommunications
2 service provider for use as a component part of the service
3 provided by him to the ultimate retail consumer who
4 originates or terminates the taxable end-to-end
5 communications. Carrier access charges, right of access
6 charges, charges for use of inter-company facilities, and all
7 telecommunications resold in the subsequent provision of,
8 used as a component of, or integrated into end-to-end
9 telecommunications service shall be non-taxable as sales for
10 resale.
11 (d) "Interstate telecommunications" means all
12 telecommunications that either originate or terminate outside
13 this State.
14 (e) "Intrastate telecommunications" means all
15 telecommunications that originate and terminate within this
16 State.
17 (f) "Department" means the Department of Revenue of the
18 State of Illinois.
19 (g) "Director" means the Director of Revenue for the
20 Department of Revenue of the State of Illinois.
21 (h) "Taxpayer" means a person who individually or
22 through his agents, employees or permittees engages in the
23 act or privilege of originating or receiving
24 telecommunications in this State and who incurs a tax
25 liability under this Article.
26 (i) "Person" means any natural individual, firm, trust,
27 estate, partnership, association, joint stock company, joint
28 venture, corporation, limited liability company, or a
29 receiver, trustee, guardian or other representative appointed
30 by order of any court, the Federal and State governments,
31 including State universities created by statute or any city,
32 town, county or other political subdivision of this State.
33 (j) "Purchase at retail" means the acquisition,
34 consumption or use of telecommunication through a sale at
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1 retail.
2 (k) "Sale at retail" means the transmitting, supplying
3 or furnishing of telecommunications and all services and
4 equipment provided in connection therewith for a
5 consideration to persons other than the Federal and State
6 governments, and State universities created by statute and
7 other than between a parent corporation and its wholly owned
8 subsidiaries or between wholly owned subsidiaries for their
9 use or consumption and not for resale.
10 (l) "Retailer" means and includes every person engaged
11 in the business of making sales at retail as defined in this
12 Article. The Department may, in its discretion, upon
13 application, authorize the collection of the tax hereby
14 imposed by any retailer not maintaining a place of business
15 within this State, who, to the satisfaction of the
16 Department, furnishes adequate security to insure collection
17 and payment of the tax. Such retailer shall be issued,
18 without charge, a permit to collect such tax. When so
19 authorized, it shall be the duty of such retailer to collect
20 the tax upon all of the gross charges for telecommunications
21 in this State in the same manner and subject to the same
22 requirements as a retailer maintaining a place of business
23 within this State. The permit may be revoked by the
24 Department at its discretion.
25 (m) "Retailer maintaining a place of business in this
26 State", or any like term, means and includes any retailer
27 having or maintaining within this State, directly or by a
28 subsidiary, an office, distribution facilities, transmission
29 facilities, sales office, warehouse or other place of
30 business, or any agent or other representative operating
31 within this State under the authority of the retailer or its
32 subsidiary, irrespective of whether such place of business or
33 agent or other representative is located here permanently or
34 temporarily, or whether such retailer or subsidiary is
-60- LRB9201430SMpcam
1 licensed to do business in this State.
2 (n) "Service address" means the location of
3 telecommunications equipment from which the
4 telecommunications services are originated or at which
5 telecommunications services are received by a taxpayer. In
6 the event this may not be a defined location, as in the case
7 of mobile phones, paging systems, maritime systems, service
8 address means the customer's place of primary use as defined
9 in the Mobile Telecommunications Sourcing Conformity Act.
10 For air-to-ground systems and the like, service address shall
11 mean the location of a taxpayer's primary use of the
12 telecommunications equipment as defined by telephone number,
13 authorization code, or location in Illinois where bills are
14 sent. The changes made to this subsection (n) by this
15 amendatory Act of the 92nd General Assembly are subject to
16 the conditional effectiveness provisions of Section 10-85 of
17 the Mobile Telecommunications Sourcing Conformity Act.
18 (o) "Prepaid telephone calling arrangements" mean the
19 right to exclusively purchase telephone or telecommunications
20 services that must be paid for in advance and enable the
21 origination of one or more intrastate, interstate, or
22 international telephone calls or other telecommunications
23 using an access number, an authorization code, or both,
24 whether manually or electronically dialed, for which payment
25 to a retailer must be made in advance, provided that, unless
26 recharged, no further service is provided once that prepaid
27 amount of service has been consumed. Prepaid telephone
28 calling arrangements include the recharge of a prepaid
29 calling arrangement. For purposes of this subsection,
30 "recharge" means the purchase of additional prepaid telephone
31 or telecommunications services whether or not the purchaser
32 acquires a different access number or authorization code.
33 "Prepaid telephone calling arrangement" does not include an
34 arrangement whereby a customer purchases a payment card and
-61- LRB9201430SMpcam
1 pursuant to which the service provider reflects the amount of
2 such purchase as a credit on an invoice issued to that
3 customer under an existing subscription plan.
4 (Source: P.A. 90-562, eff. 12-16-97; 91-870, eff. 6-22-00.)
5 Section 90-15. The Telecommunications Municipal
6 Infrastructure Maintenance Fee Act is amended by changing
7 Sections 1, 5, 10, 15, 20, 25, 27, 27.35, 30, and 35 as
8 follows:
9 (35 ILCS 635/1)
10 Sec. 1. Short title. This Act may be cited as the
11 Telecommunications Municipal Infrastructure Maintenance Fee
12 Act.
13 (Source: P.A. 90-154, eff. 1-1-98.)
14 (35 ILCS 635/5)
15 Sec. 5. Legislative intent.
16 (a) The General Assembly imposed a tax on invested
17 capital of utilities to partially replace the personal
18 property tax that was abolished by the Illinois Constitution
19 of 1970. Since that tax was imposed, telecommunications
20 retailers have evolved from utility status into an
21 increasingly competitive industry serving the public.
22 (b) This Act is intended to abolish the invested capital
23 tax on telecommunications retailers (that is, persons engaged
24 in the business of transmitting messages and acting as a
25 retailer of telecommunications as defined in Section 2 of the
26 Telecommunications Excise Tax Act). Cellular
27 telecommunications retailers have already been excluded from
28 application of the invested capital tax by earlier
29 legislative action.
30 (c) For the period prior to the effective date of this
31 amendatory Act of the 92nd General Assembly, this Act is also
-62- LRB9201430SMpcam
1 intended to abolish municipal franchise fees with respect to
2 telecommunications retailers, create a uniform system for the
3 collection and distribution of fees associated with the
4 privilege of use of the public right of way for
5 telecommunications activity, and provide municipalities with
6 a comprehensive method of compensation for telecommunications
7 activity including the recovery of reasonable costs of
8 regulating the use of the public rights-of-way for
9 telecommunications activity.
10 (d) For the period from the effective date of this
11 amendatory Act of the 92nd General Assembly through June 30,
12 2002 it is the intent of the General Assembly that the
13 municipal infrastructure maintenance fee and its rate are
14 subject only to the limits prescribed in Section 20, and that
15 the fee and the rate of the fee need not relate to use of the
16 public rights-of-way or the costs associated with maintaining
17 and regulating the use of the public rights-of-way. It is
18 also the intent of the General Assembly that proceeds of the
19 municipal infrastructure maintenance fee may be used for any
20 lawful corporate purpose. It is not the intent of the
21 General Assembly that the municipal infrastructure
22 maintenance fee is in any way compensation for use of the
23 public rights-of-way. It is the intent of the General
24 Assembly that the fee be paid by all telecommunications
25 retailers, regardless of whether they have equipment in the
26 public rights-of-way.
27 (e) On and after July 1, 2002, the enactment by the
28 General Assembly of the Simplified Municipal
29 Telecommunications Tax Act creates a replacement source of
30 revenue for municipalities in substitution for, among other
31 things, the municipal infrastructure maintenance fee and the
32 optional infrastructure maintenance fee. This amendatory Act
33 of the 92nd General Assembly is intended to repeal the
34 municipal infrastructure maintenance fee and the optional
-63- LRB9201430SMpcam
1 infrastructure maintenance fee effective July 1, 2002.
2 (Source: P.A. 90-154, eff. 1-1-98; 91-533, eff. 8-13-99.)
3 (35 ILCS 635/10)
4 Sec. 10. Definitions.
5 (a) "Gross charges" means the amount paid to a
6 telecommunications retailer for the act or privilege of
7 originating or receiving telecommunications in this State or
8 the municipality imposing the fee under this Act, as the
9 context requires, and for all services rendered in connection
10 therewith, valued in money whether paid in money or
11 otherwise, including cash, credits, services, and property of
12 every kind or nature, and shall be determined without any
13 deduction on account of the cost of such telecommunications,
14 the cost of the materials used, labor or service costs, or
15 any other expense whatsoever. In case credit is extended,
16 the amount thereof shall be included only as and when paid.
17 "Gross charges" for private line service shall include
18 charges imposed at each channel point within this State or
19 the municipality imposing the fee under this Act, charges for
20 the channel mileage between each channel point within this
21 State or the municipality imposing the fee under this Act,
22 and charges for that portion of the interstate inter-office
23 channel provided within Illinois or the municipality imposing
24 the fee under this Act. However, "gross charges" shall not
25 include:
26 (1) any amounts added to a purchaser's bill because
27 of a charge made under: (i) the fee imposed by this
28 Section, (ii) additional charges added to a purchaser's
29 bill under Section 9-221 or 9-222 of the Public Utilities
30 Act, (iii) amounts collected under Section 8-11-17 of the
31 Illinois Municipal Code, (iv) the tax imposed by the
32 Telecommunications Excise Tax Act, (iv) (v) 911
33 surcharges, (v) or (vi) the tax imposed by Section 4251
-64- LRB9201430SMpcam
1 of the Internal Revenue Code, or (vi) the Simplified
2 Municipal Telecommunications Tax Act;
3 (2) charges for a sent collect telecommunication
4 received outside of this State or the municipality
5 imposing the fee, as the context requires;
6 (3) charges for leased time on equipment or charges
7 for the storage of data or information or subsequent
8 retrieval or the processing of data or information
9 intended to change its form or content. Such equipment
10 includes, but is not limited to, the use of calculators,
11 computers, data processing equipment, tabulating
12 equipment, or accounting equipment and also includes the
13 usage of computers under a time-sharing agreement.
14 (4) charges for customer equipment, including such
15 equipment that is leased or rented by the customer from
16 any source, wherein such charges are disaggregated and
17 separately identified from other charges;
18 (5) charges to business enterprises certified under
19 Section 9-222.1 of the Public Utilities Act to the extent
20 of such exemption and during the period of time specified
21 by the Department of Commerce and Community Affairs or by
22 the municipality imposing the fee under the Act, as the
23 context requires;
24 (6) charges for telecommunications and all services
25 and equipment provided in connection therewith between a
26 parent corporation and its wholly owned subsidiaries or
27 between wholly owned subsidiaries, and only to the extent
28 that the charges between the parent corporation and
29 wholly owned subsidiaries or between wholly owned
30 subsidiaries represent expense allocation between the
31 corporations and not the generation of profit other than
32 a regulatory required profit for the corporation
33 rendering such services;
34 (7) bad debts ("bad debt" means any portion of a
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1 debt that is related to a sale at retail for which gross
2 charges are not otherwise deductible or excludable that
3 has become worthless or uncollectible, as determined
4 under applicable federal income tax standards; if the
5 portion of the debt deemed to be bad is subsequently
6 paid, the retailer shall report and pay the tax on that
7 portion during the reporting period in which the payment
8 is made); or
9 (8) charges paid by inserting coins in
10 coin-operated telecommunication devices.; or
11 (9) charges for telecommunications and all services
12 and equipment provided to a municipality imposing the
13 infrastructure maintenance fee.
14 (a-5) "Department" means the Illinois Department of
15 Revenue.
16 (b) "Telecommunications" includes, but is not limited
17 to, messages or information transmitted through use of local,
18 toll, and wide area telephone service, channel services,
19 telegraph services, teletypewriter service, computer exchange
20 services, private line services, specialized mobile radio
21 services, or any other transmission of messages or
22 information by electronic or similar means, between or among
23 points by wire, cable, fiber optics, laser, microwave, radio,
24 satellite, or similar facilities. Unless the context clearly
25 requires otherwise, "telecommunications" shall also include
26 wireless telecommunications as hereinafter defined.
27 "Telecommunications" shall not include value added services
28 in which computer processing applications are used to act on
29 the form, content, code, and protocol of the information for
30 purposes other than transmission. "Telecommunications" shall
31 not include purchase of telecommunications by a
32 telecommunications service provider for use as a component
33 part of the service provided by him or her to the ultimate
34 retail consumer who originates or terminates the end-to-end
-66- LRB9201430SMpcam
1 communications. Retailer access charges, right of access
2 charges, charges for use of intercompany facilities, and all
3 telecommunications resold in the subsequent provision and
4 used as a component of, or integrated into, end-to-end
5 telecommunications service shall not be included in gross
6 charges as sales for resale. "Telecommunications" shall not
7 include the provision of cable services through a cable
8 system as defined in the Cable Communications Act of 1984 (47
9 U.S.C. Sections 521 and following) as now or hereafter
10 amended or through an open video system as defined in the
11 Rules of the Federal Communications Commission (47 C.D.F.
12 76.1550 and following) as now or hereafter amended. Beginning
13 January 1, 2001, prepaid telephone calling arrangements shall
14 not be considered "telecommunications" subject to the tax
15 imposed under this Act. For purposes of this Section,
16 "prepaid telephone calling arrangements" means that term as
17 defined in Section 2-27 of the Retailers' Occupation Tax Act.
18 (c) "Wireless telecommunications" includes cellular
19 mobile telephone services, personal wireless services as
20 defined in Section 704(C) of the Telecommunications Act of
21 1996 (Public Law No. 104-104) as now or hereafter amended,
22 including all commercial mobile radio services, and paging
23 services.
24 (d) "Telecommunications retailer" or "retailer" or
25 "carrier" means and includes every person engaged in the
26 business of making sales of telecommunications at retail as
27 defined in this Section. The Illinois Department of Revenue
28 or the municipality imposing the fee, as the case may be,
29 may, in its discretion, upon applications, authorize the
30 collection of the fee hereby imposed by any retailer not
31 maintaining a place of business within this State, who, to
32 the satisfaction of the Department or municipality, furnishes
33 adequate security to insure collection and payment of the
34 fee. When so authorized, it shall be the duty of such
-67- LRB9201430SMpcam
1 retailer to pay the fee upon all of the gross charges for
2 telecommunications in the same manner and subject to the same
3 requirements as a retailer maintaining a place of business
4 within this the State or municipality imposing the fee.
5 (e) "Retailer maintaining a place of business in this
6 State", or any like term, means and includes any retailer
7 having or maintaining within this State, directly or by a
8 subsidiary, an office, distribution facilities, transmission
9 facilities, sales office, warehouse, or other place of
10 business, or any agent or other representative operating
11 within this State under the authority of the retailer or its
12 subsidiary, irrespective of whether such place of business or
13 agent or other representative is located here permanently or
14 temporarily, or whether such retailer or subsidiary is
15 licensed to do business in this State.
16 (f) "Sale of telecommunications at retail" means the
17 transmitting, supplying, or furnishing of telecommunications
18 and all services rendered in connection therewith for a
19 consideration, other than between a parent corporation and
20 its wholly owned subsidiaries or between wholly owned
21 subsidiaries, when the gross charge made by one such
22 corporation to another such corporation is not greater than
23 the gross charge paid to the retailer for their use or
24 consumption and not for sale.
25 (g) "Service address" means the location of
26 telecommunications equipment from which telecommunications
27 services are originated or at which telecommunications
28 services are received. If this is not a defined location, as
29 in the case of wireless telecommunications, paging systems,
30 maritime systems, air-to-ground systems, and the like,
31 "service address" shall mean the location of the customer's
32 primary use of the telecommunications equipment as defined by
33 the location in Illinois where bills are sent.
34 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97;
-68- LRB9201430SMpcam
1 91-870, eff. 6-22-00.)
2 (35 ILCS 635/15)
3 Sec. 15. State telecommunications infrastructure
4 maintenance fees.
5 (a) A State infrastructure maintenance fee is hereby
6 imposed upon telecommunications retailers as a replacement
7 for the personal property tax in an amount specified in
8 subsection (b).
9 (b) The amount of the State infrastructure maintenance
10 fee imposed upon a telecommunications retailer under this
11 Section shall be equal to 0.5% of all gross charges charged
12 by the telecommunications retailer to service addresses in
13 this State for telecommunications, other than wireless
14 telecommunications, originating or received in this State.
15 However, the State infrastructure maintenance fee is not
16 imposed in any case in which the imposition of the fee would
17 violate the Constitution or statutes of the United States.
18 (c) (Blank). An optional infrastructure maintenance fee
19 is hereby created. A telecommunications retailer may elect
20 to pay the optional infrastructure maintenance fee with
21 respect to the gross charges charged by the
22 telecommunications retailer to service addresses in a
23 particular municipality for telecommunications, other than
24 wireless telecommunications, originating or received in the
25 municipality if (1) the telecommunications retailer is not
26 required to pay any compensation to the municipality under an
27 existing franchise agreement and (2) the municipality has not
28 imposed a municipal infrastructure maintenance fee as
29 authorized in Section 20 of this Act. A telecommunications
30 retailer electing to pay the optional infrastructure
31 maintenance fee shall notify the Department of such election
32 on the application for certificate of registration. If a
33 telecommunications retailer elects to pay this fee with
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1 respect to the gross charges charged by the
2 telecommunications retailer to service addresses in a
3 particular municipality, such election shall remain in full
4 force and effect until such time as the municipality imposes
5 a municipal infrastructure maintenance fee.
6 (d) (Blank). The amount of the optional infrastructure
7 maintenance fee which a telecommunications retailer may elect
8 to pay with respect to a particular municipality shall be
9 equal to 25% of the maximum amount of the municipal
10 infrastructure maintenance fee which the municipality could
11 impose under Section 20 of this Act.
12 (e) The State infrastructure maintenance fee and the
13 optional infrastructure maintenance fee authorized by this
14 Section shall be collected, enforced, and administered as set
15 forth in subsection (b) of Section 25 of this Act.
16 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97.)
17 (35 ILCS 635/20)
18 Sec. 20. Municipal telecommunications infrastructure
19 maintenance fee.
20 (a) A municipality may impose a municipal infrastructure
21 maintenance fee upon telecommunications retailers in an
22 amount specified in subsection (b). On and after the
23 effective date of this amendatory Act of 1997, a certified
24 copy of an ordinance or resolution imposing a fee under this
25 Section shall be filed with the Department within 30 days
26 after the effective date of this amendatory Act or the
27 effective date of the ordinance or resolution imposing such
28 fee, whichever is later. Failure to file a certified copy of
29 the ordinance or resolution imposing a fee under this Section
30 shall have no effect on the validity of the ordinance or
31 resolution. The Department shall create and maintain a list
32 of all ordinances and resolutions filed pursuant to this
33 Section and make that list, as well as copies of the
-70- LRB9201430SMpcam
1 ordinances and resolutions, available to the public for a
2 reasonable fee.
3 (b) The amount of the municipal infrastructure
4 maintenance fee imposed upon a telecommunications retailer
5 under this Section shall not exceed: (i) in a municipality
6 with a population of more than 500,000, 2.0% of all gross
7 charges charged by the telecommunications retailer to service
8 addresses in the municipality for telecommunications
9 originating or received in the municipality; and (ii) in a
10 municipality with a population of 500,000 or less, 1.0% of
11 all gross charges charged by the telecommunications retailer
12 to service addresses in the municipality for
13 telecommunications originating or received in the
14 municipality. If imposed, the municipal telecommunications
15 infrastructure fee must be in 1/4% increments. However, the
16 fee shall not be imposed in any case in which the imposition
17 of the fee would violate the Constitution or statutes of the
18 United States.
19 (c) The municipal telecommunications infrastructure fee
20 authorized by this Section shall be collected, enforced, and
21 administered as set forth in subsection (c) of Section 25 of
22 this Act.
23 (d) A municipality with a population of more than
24 500,000 that imposes a municipal infrastructure maintenance
25 fee under this Section may, by ordinance, exempt from the fee
26 all charges for the inbound toll-free telecommunications
27 service commonly known as "800", "877", or "888" or for a
28 similar service.
29 (e) This Section is repealed on July 1, 2002.
30 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97;
31 91-870, eff. 6-22-00.)
32 (35 ILCS 635/25)
33 Sec. 25. Collection, enforcement, and administration of
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1 telecommunications infrastructure maintenance fees.
2 (a) A telecommunications retailer shall charge each
3 customer an additional charge equal to the sum of (1) an
4 amount equal to the State infrastructure maintenance fee
5 attributable to that customer's service address and (2) an
6 amount equal to the optional infrastructure maintenance fee,
7 if any, attributable to that customer's service address and
8 (3) an amount equal to the municipal infrastructure
9 maintenance fee, if any, attributable to that customer's
10 service address. Such additional charge shall be shown
11 separately on the bill to each customer.
12 (b) The State infrastructure maintenance fee and the
13 optional infrastructure maintenance fee shall be designated
14 as a replacement for the personal property tax and shall be
15 remitted by the telecommunications retailer to the Illinois
16 Department of Revenue; provided, however, that the
17 telecommunications retailer may retain an amount not to
18 exceed 2% of the State infrastructure maintenance fee and the
19 optional infrastructure maintenance fee, if any, paid to the
20 Department, with a timely paid and timely filed return to
21 reimburse itself for expenses incurred in collecting,
22 accounting for, and remitting the fee. All amounts herein
23 remitted to the Department shall be transferred to the
24 Personal Property Tax Replacement Fund in the State Treasury.
25 (c) The municipal infrastructure maintenance fee shall
26 be remitted by the telecommunications retailer to the
27 municipality imposing the municipal infrastructure
28 maintenance fee; provided, however, that the
29 telecommunications retailer may retain an amount not to
30 exceed 2% of the municipal infrastructure maintenance fee
31 collected by it to reimburse itself for expenses incurred in
32 accounting for and remitting the fee. The municipality
33 imposing the municipal infrastructure maintenance fee shall
34 collect, enforce, and administer the fee.
-72- LRB9201430SMpcam
1 (d) Except as provided in subsection (e), During any
2 period of time when a municipality receives any compensation
3 other than the municipal infrastructure maintenance fee set
4 forth in Section 20, for a telecommunications retailer's use
5 of the public right-of-way, no municipal infrastructure
6 maintenance fee may be imposed by such municipality pursuant
7 to this Act.
8 (e) A municipality that, pursuant to a franchise
9 agreement in existence on the effective date of this Act,
10 receives compensation from a telecommunications retailer for
11 the use of the public right of way, may impose a municipal
12 infrastructure maintenance fee pursuant to this Act only on
13 the condition that such municipality (1) waives its right to
14 receive all fees, charges and other compensation under all
15 existing franchise agreements or the like with
16 telecommunications retailers during the time that the
17 municipality imposes a municipal infrastructure maintenance
18 fee and (2) imposes by ordinance (or other proper means) a
19 municipal infrastructure maintenance fee which becomes
20 effective no sooner than 90 days after such municipality has
21 provided written notice by certified mail to each
22 telecommunications retailer with whom the municipality has an
23 existing franchise agreement, that the municipality waives
24 all compensation under such existing franchise agreement.
25 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97;
26 90-655, eff. 7-30-98.)
27 (35 ILCS 635/27)
28 Sec. 27. Returns by telecommunications retailer;
29 extensions. Except as provided hereinafter in this Section,
30 on or before the 30th day of each month each
31 telecommunications retailer maintaining a place of business
32 in this State shall make a return and payment of fees to the
33 Department for the preceding calendar month on a form
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1 prescribed and furnished by the Department. The return shall
2 be signed by the telecommunications retailer under penalties
3 of perjury and shall contain the following information:
4 1. His or her name;
5 2. The address of his or her principal place of
6 business, and the address of the principal place of
7 business (if that is a different address) from which he
8 or she engages in the business of transmitting
9 telecommunications;
10 3. The total amount of gross charges charged by him
11 or her during the preceding calendar month for providing
12 telecommunications during such calendar month;
13 4. The total amount received by him or her during
14 the preceding calendar month on credit extended;
15 5. Deductions allowed by law;
16 6. Gross charges that were charged by him or her
17 during the preceding calendar month and upon the basis of
18 which the State infrastructure maintenance fee is
19 imposed;
20 7. (Blank) Gross charges that were charged by him
21 or her during the preceding calendar month and upon the
22 basis of which the optional infrastructure maintenance
23 fee, if any, is imposed for each particular municipality;
24 8. Amounts of fees due;
25 9. Such other reasonable information as the
26 Department may require.
27 If the telecommunications retailer's average monthly
28 liability to the Department does not exceed $100, the
29 Department may authorize his or her returns to be filed on a
30 quarter annual basis, with the return for January, February,
31 and March of a given year being due by April 15 of such year;
32 with the return for April, May, and June of a given year
33 being due by July 15 of such year; with the return for July,
34 August, and September of a given year being due by October 15
-74- LRB9201430SMpcam
1 of such year; and with the return of October, November, and
2 December of a given year being due by January 15 of the
3 following year.
4 Notwithstanding any other provision of this Act
5 concerning the time within which a telecommunications
6 retailer may file his or her return, in the case of any
7 telecommunications retailer who ceases to engage in a kind of
8 business which makes him or her responsible for filing
9 returns under this Act, such telecommunications retailer
10 shall file a final return under this Act with the Department
11 not more than one month after discontinuing such business.
12 In making such return, the telecommunications retailer
13 shall determine the value of any consideration other than
14 money received by him or her and he or she shall include such
15 value in his or her return. Such determination shall be
16 subject to review and revision by the Department in the
17 manner hereinafter provided for the correction of returns.
18 If any payment provided for in this Section exceeds the
19 telecommunications retailer's liabilities under this Act, as
20 shown on an original monthly return, the Department may
21 authorize the telecommunications retailer to credit such
22 excess payment against liability subsequently to be remitted
23 to the Department under this Act, in accordance with
24 reasonable rules and regulations prescribed by the
25 Department. If the Department subsequently determines that
26 all or any part of the credit taken was not actually due to
27 the telecommunications retailer, the telecommunications
28 retailer's 2% discount shall be reduced by 2% of the
29 difference between the credit taken and that actually due,
30 and that telecommunications retailer shall be liable for
31 penalties and interest on such difference.
32 If the Director finds that the information required for
33 the making of an accurate return cannot reasonably be
34 compiled by a telecommunications retailer within 15 days
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1 after the close of the calendar month for which a return is
2 to be made, he or she may grant an extension of time for the
3 filing of such return for a period of not to exceed 31
4 calendar days. The granting of such an extension may be
5 conditioned upon the deposit by the telecommunications
6 retailer with the Department of an amount of money not
7 exceeding the amount estimated by the Director to be due with
8 the return so extended. All such deposits, including any
9 heretofore made with the Department, shall be credited
10 against the telecommunications retailer's liabilities under
11 this Act. If any such deposit exceeds the telecommunications
12 retailer's present and probable future liabilities under this
13 Act, the Department shall issue to the telecommunications
14 retailer a credit memorandum, which may be assigned by the
15 telecommunications retailer to a similar telecommunications
16 retailer under this Act, in accordance with reasonable rules
17 and regulations to be prescribed by the Department.
18 Any telecommunications retailer required to make payments
19 under this Section may make the payments by electronic funds
20 transfer. The Department shall adopt rules necessary to
21 effectuate a program of electronic funds transfer.
22 (Source: P.A. 90-562, eff. 12-16-97.)
23 (35 ILCS 635/27.35)
24 Sec. 27.35. Rules and regulations; notice to
25 telecommunications retailer; hearings. The Department may
26 make, promulgate, and enforce such reasonable rules and
27 regulations relating to the administration and enforcement of
28 only the State infrastructure maintenance fee and the
29 optional infrastructure maintenance fee authorized by this
30 Act. Such rules and regulations shall not apply to the
31 administration and enforcement of the municipal
32 infrastructure maintenance fee authorized by this Act.
33 Whenever notice to a telecommunications retailer is
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1 required by this Act, such notice may be given by United
2 States certified or registered mail, addressed to the
3 telecommunications retailer concerned at his or her last
4 known address, and proof of such mailing shall be sufficient
5 for the purposes of this Act. In the case of a notice of
6 hearing, such notice shall be mailed not less than 7 days
7 prior to the day fixed for the hearing.
8 All hearings provided for in this Act with respect to a
9 telecommunications retailer having his or her principal place
10 of business other than in Cook County shall be held at the
11 Department's office nearest to the location of the
12 telecommunications retailer's principal place of business:
13 Provided that if the telecommunications retailer has his or
14 her principal place of business in Cook County, such hearing
15 shall be held in Cook County; and provided further that if
16 the telecommunications retailer does not have his principal
17 place of business in this State, such hearings shall be held
18 in Sangamon County.
19 Whenever any proceeding provided by this Act has been
20 begun by the Department or by a person subject thereto and
21 such person thereafter dies or becomes a person under legal
22 disability before the proceeding has been concluded, the
23 legal representative of the deceased person or a person under
24 legal disability shall notify the Department of such death or
25 legal disability. The legal representative, as such, shall
26 then be substituted by the Department in place of and for the
27 person. Within 20 days after notice to the legal
28 representative of the time fixed for that purpose, the
29 proceeding may proceed in all respects and with like effect
30 as though the person had not died or become a person under
31 legal disability.
32 (Source: P.A. 90-562, eff. 12-16-97.)
33 (35 ILCS 635/30)
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1 Sec. 30. Validity of existing franchise fees and
2 agreements.
3 (a) Upon the effective date of this Act, the municipal
4 infrastructure maintenance fee authorized by this Act shall
5 be the only fee or compensation for recovering the reasonable
6 costs of regulating the use of the public rights-of-way and
7 for the use of public rights-of-way that may be levied by or
8 otherwise required by ordinance, resolution, or contract to
9 be paid to a municipality for the use of its public way by
10 telecommunications retailers. No new franchise fees or other
11 charges for the use of the public rights-of-way, including
12 charges for the recovery of reasonable costs of regulating
13 the use of the public rights-of-way, shall be imposed upon
14 levied on, or otherwise required of telecommunications
15 retailers by ordinance, resolution, or contract, nor shall
16 any or other new charges be required from telecommunications
17 retailers by municipalities from and after the effective date
18 of this Act. No telecommunications retailer paying either
19 the applicable municipal infrastructure maintenance fee or
20 the optional infrastructure maintenance fee authorized by
21 this Act may be denied the use, directly or indirectly, of
22 the public way of the municipality either imposing the
23 municipal infrastructure maintenance fee or to which the
24 optional infrastructure maintenance fee relates, as the case
25 may be, as authorized under the Telephone Company Act.
26 Nothing in this Act shall excuse any person or entity from
27 obligations imposed under any law concerning generally
28 applicable taxes or standards for construction on, over,
29 under, or within, use of or repair of the public
30 rights-of-way, including standards relating to free standing
31 towers and other structures upon the public way, nor shall
32 any person or entity be excused from any liability imposed by
33 any such law for the failure to comply with such generally
34 applicable taxes or standards governing construction on,
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1 over, under, or within, use of or repair of the public
2 rights-of-way.
3 (b) Agreements between telecommunications retailers and
4 municipalities entered into before the effective date of this
5 Act regarding use of the public ways shall remain valid
6 according to and for their stated terms, except as to fees or
7 charges waived under Section 5-60 of the Simplified Municipal
8 Telecommunications Tax Act. If, following the effective date
9 of this Act, such an agreement is renewed automatically or by
10 agreement of the parties, the compensation or fee under the
11 agreement shall be equal to the maximum amount of the
12 municipal infrastructure maintenance fee which the
13 municipality could impose under Section 20 of this Act.
14 (c) The regulation of the terms and conditions upon
15 which poles, conduits, and other facilities located in the
16 public way may be shared by or between telecommunications
17 retailers shall be committed exclusively to the jurisdiction
18 of the Illinois Commerce Commission and the Federal
19 Communications Commission, and such regulation shall not be
20 among the home rule powers and functions described in
21 subsection (h) of Section 6 of Article VII of the Illinois
22 Constitution. Moreover, no municipality may enter into any
23 contract or agreement with a telecommunications retailer with
24 respect to the terms and conditions upon which poles,
25 conduits, and other facilities located in the public way may
26 be shared by or between telecommunications retailers.
27 (Source: P.A. 90-154, eff. 1-1-98.)
28 (35 ILCS 635/35)
29 Sec. 35. Home rule. The authorization of infrastructure
30 maintenance fees and other fees relating to the use of the
31 public right-of-way for telecommunications activity imposed
32 upon telecommunications retailers is an exclusive power and
33 function of the State. A home rule municipality may not
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1 impose franchise or other fees upon or require other
2 compensation from telecommunications retailers for use of the
3 public way, other than the municipal infrastructure
4 maintenance fee authorized by this Act. This Act is a denial
5 and limitation of municipal home rule powers and functions
6 under subsection (h) of Section 6 of Article VII of the
7 Illinois Constitution.
8 (Source: P.A. 90-154, eff. 1-1-98.)
9 Section 90-20. The Emergency Telephone System Act is
10 amended by changing Section 15.3 as follows:
11 (50 ILCS 750/15.3) (from Ch. 134, par. 45.3)
12 Sec. 15.3. (a) The corporate authorities of any
13 municipality or any county may, subject to the limitations of
14 subsections (c), (d), and (h), and in addition to any tax
15 levied pursuant to the Simplified Municipal
16 Telecommunications Tax Act Section 8-11-2 of the Illinois
17 Municipal Code, impose a monthly surcharge on billed
18 subscribers of network connection provided by
19 telecommunication carriers engaged in the business of
20 transmitting messages by means of electricity originating
21 within the corporate limits of the municipality or county
22 imposing the surcharge at a rate per network connection
23 determined in accordance with subsection (c). A municipality
24 may enter into an intergovernmental agreement with any county
25 in which it is partially located, when the county has adopted
26 an ordinance to impose a surcharge as provided in subsection
27 (c), to include that portion of the municipality lying
28 outside the county in that county's surcharge referendum. If
29 the county's surcharge referendum is approved, the portion of
30 the municipality identified in the intergovernmental
31 agreement shall automatically be disconnected from the county
32 in which it lies and connected to the county which approved
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1 the referendum for purposes of a surcharge on
2 telecommunications carriers.
3 (b) For purposes of computing the surcharge imposed by
4 subsection (a), the network connections to which the
5 surcharge shall apply shall be those in-service network
6 connections, other than those network connections assigned to
7 the municipality or county, where the service address for
8 each such network connection or connections is located within
9 the corporate limits of the municipality or county levying
10 the surcharge. The "service address" shall mean the location
11 of the primary use of the network connection or connections.
12 With respect to network connections provided for use with pay
13 telephone services for which there is no billed subscriber,
14 the telecommunications carrier providing the network
15 connection shall be deemed to be its own billed subscriber
16 for purposes of applying the surcharge.
17 (c) Upon the passage of an ordinance to impose a
18 surcharge under this Section the clerk of the municipality or
19 county shall certify the question of whether the surcharge
20 may be imposed to the proper election authority who shall
21 submit the public question to the electors of the
22 municipality or county in accordance with the general
23 election law; provided that such question shall not be
24 submitted at a consolidated primary election. The public
25 question shall be in substantially the following form:
26 -------------------------------------------------------------
27 Shall the county (or city, village
28 or incorporated town) of.....impose YES
29 a surcharge of up to...¢ per month per
30 network connection, which surcharge will
31 be added to the monthly bill you receive ------------------
32 for telephone or telecommunications
33 charges, for the purpose of installing
34 (or improving) a 9-1-1 Emergency NO
-81- LRB9201430SMpcam
1 Telephone System?
2 -------------------------------------------------------------
3 If a majority of the votes cast upon the public question
4 are in favor thereof, the surcharge shall be imposed.
5 However, if a Joint Emergency Telephone System Board is
6 to be created pursuant to an intergovernmental agreement
7 under Section 15.4, the ordinance to impose the surcharge
8 shall be subject to the approval of a majority of the total
9 number of votes cast upon the public question by the electors
10 of all of the municipalities or counties, or combination
11 thereof, that are parties to the intergovernmental agreement.
12 The referendum requirement of this subsection (c) shall
13 not apply to any municipality with a population over 500,000
14 or to any county in which a proposition as to whether a
15 sophisticated 9-1-1 Emergency Telephone System should be
16 installed in the county, at a cost not to exceed a specified
17 monthly amount per network connection, has previously been
18 approved by a majority of the electors of the county voting
19 on the proposition at an election conducted before the
20 effective date of this amendatory Act of 1987.
21 (d) A county may not impose a surcharge, unless
22 requested by a municipality, in any incorporated area which
23 has previously approved a surcharge as provided in subsection
24 (c) or in any incorporated area where the corporate
25 authorities of the municipality have previously entered into
26 a binding contract or letter of intent with a
27 telecommunications carrier to provide sophisticated 9-1-1
28 service through municipal funds.
29 (e) A municipality or county may at any time by
30 ordinance change the rate of the surcharge imposed under this
31 Section if the new rate does not exceed the rate specified in
32 the referendum held pursuant to subsection (c).
33 (f) The surcharge authorized by this Section shall be
34 collected from the subscriber by the telecommunications
-82- LRB9201430SMpcam
1 carrier providing the subscriber the network connection as a
2 separately stated item on the subscriber's bill.
3 (g) The amount of surcharge collected by the
4 telecommunications carrier shall be paid to the particular
5 municipality or county or Joint Emergency Telephone System
6 Board not later than 30 days after the surcharge is
7 collected, net of any network or other 9-1-1 or sophisticated
8 9-1-1 system charges then due the particular
9 telecommunications carrier, as shown on an itemized bill.
10 The telecommunications carrier collecting the surcharge shall
11 also be entitled to deduct 3% of the gross amount of
12 surcharge collected to reimburse the telecommunications
13 carrier for the expense of accounting and collecting the
14 surcharge.
15 (h) A municipality with a population over 500,000 may
16 not impose a monthly surcharge in excess of $1.25 per network
17 connection.
18 (i) Any municipality or county or joint emergency
19 telephone system board that has imposed a surcharge pursuant
20 to this Section prior to the effective date of this
21 amendatory Act of 1990 shall hereafter impose the surcharge
22 in accordance with subsection (b) of this Section.
23 (j) The corporate authorities of any municipality or
24 county may issue, in accordance with Illinois law, bonds,
25 notes or other obligations secured in whole or in part by the
26 proceeds of the surcharge described in this Section.
27 Notwithstanding any change in law subsequent to the issuance
28 of any bonds, notes or other obligations secured by the
29 surcharge, every municipality or county issuing such bonds,
30 notes or other obligations shall be authorized to impose the
31 surcharge as though the laws relating to the imposition of
32 the surcharge in effect at the time of issuance of the bonds,
33 notes or other obligations were in full force and effect
34 until the bonds, notes or other obligations are paid in full.
-83- LRB9201430SMpcam
1 The State of Illinois pledges and agrees that it will not
2 limit or alter the rights and powers vested in municipalities
3 and counties by this Section to impose the surcharge so as to
4 impair the terms of or affect the security for bonds, notes
5 or other obligations secured in whole or in part with the
6 proceeds of the surcharge described in this Section.
7 (k) Any surcharge collected by or imposed on a
8 telecommunications carrier pursuant to this Section shall be
9 held to be a special fund in trust for the municipality,
10 county or Joint Emergency Telephone Board imposing the
11 surcharge. Except for the 3% deduction provided in
12 subsection (g) above, the special fund shall not be subject
13 to the claims of creditors of the telecommunication carrier.
14 (Source: P.A. 86-101; 86-1344.)
15 Section 90-21. The Emergency Telephone System Act is
16 amended by changing Section 15.3 as follows:
17 (50 ILCS 750/15.3) (from Ch. 134, par. 45.3)
18 Sec. 15.3. (a) The corporate authorities of any
19 municipality or any county may, subject to the limitations of
20 subsections (c), (d), and (h), and in addition to any tax
21 levied pursuant to Section 8-11-2 of the Illinois Municipal
22 Code, impose a monthly surcharge on billed subscribers of
23 network connection provided by telecommunication carriers
24 engaged in the business of transmitting messages by means of
25 electricity originating within the corporate limits of the
26 municipality or county imposing the surcharge at a rate per
27 network connection determined in accordance with subsection
28 (c). For mobile telecommunications services, if a surcharge
29 is imposed it shall be imposed based upon the municipality or
30 county that encompasses the customer's place of primary use
31 as defined in the Mobile Telecommunications Sourcing
32 Conformity Act. A municipality may enter into an
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1 intergovernmental agreement with any county in which it is
2 partially located, when the county has adopted an ordinance
3 to impose a surcharge as provided in subsection (c), to
4 include that portion of the municipality lying outside the
5 county in that county's surcharge referendum. If the
6 county's surcharge referendum is approved, the portion of the
7 municipality identified in the intergovernmental agreement
8 shall automatically be disconnected from the county in which
9 it lies and connected to the county which approved the
10 referendum for purposes of a surcharge on telecommunications
11 carriers. The changes made to this subsection (a) by this
12 amendatory Act of the 92nd General Assembly are subject to
13 the conditional effectiveness provisions of Section 10-85 of
14 the Mobile Telecommunications Sourcing Conformity Act.
15 (b) For purposes of computing the surcharge imposed by
16 subsection (a), the network connections to which the
17 surcharge shall apply shall be those in-service network
18 connections, other than those network connections assigned to
19 the municipality or county, where the service address for
20 each such network connection or connections is located within
21 the corporate limits of the municipality or county levying
22 the surcharge. Except for mobile telecommunication services,
23 the "service address" shall mean the location of the primary
24 use of the network connection or connections. For mobile
25 telecommunication services, "service address" means the
26 customer's place of primary use as defined in the Mobile
27 Telecommunications Sourcing Conformity Act. With respect to
28 network connections provided for use with pay telephone
29 services for which there is no billed subscriber, the
30 telecommunications carrier providing the network connection
31 shall be deemed to be its own billed subscriber for purposes
32 of applying the surcharge. The changes made to this
33 subsection (b) by this amendatory Act of the 92nd General
34 Assembly are subject to the conditional effectiveness
-85- LRB9201430SMpcam
1 provisions of Section 10-85 of the Mobile Telecommunications
2 Sourcing Conformity Act.
3 (c) Upon the passage of an ordinance to impose a
4 surcharge under this Section the clerk of the municipality or
5 county shall certify the question of whether the surcharge
6 may be imposed to the proper election authority who shall
7 submit the public question to the electors of the
8 municipality or county in accordance with the general
9 election law; provided that such question shall not be
10 submitted at a consolidated primary election. The public
11 question shall be in substantially the following form:
12 -------------------------------------------------------------
13 Shall the county (or city, village
14 or incorporated town) of.....impose YES
15 a surcharge of up to...¢ per month per
16 network connection, which surcharge will
17 be added to the monthly bill you receive ------------------
18 for telephone or telecommunications
19 charges, for the purpose of installing
20 (or improving) a 9-1-1 Emergency NO
21 Telephone System?
22 -------------------------------------------------------------
23 If a majority of the votes cast upon the public question
24 are in favor thereof, the surcharge shall be imposed.
25 However, if a Joint Emergency Telephone System Board is
26 to be created pursuant to an intergovernmental agreement
27 under Section 15.4, the ordinance to impose the surcharge
28 shall be subject to the approval of a majority of the total
29 number of votes cast upon the public question by the electors
30 of all of the municipalities or counties, or combination
31 thereof, that are parties to the intergovernmental agreement.
32 The referendum requirement of this subsection (c) shall
33 not apply to any municipality with a population over 500,000
34 or to any county in which a proposition as to whether a
-86- LRB9201430SMpcam
1 sophisticated 9-1-1 Emergency Telephone System should be
2 installed in the county, at a cost not to exceed a specified
3 monthly amount per network connection, has previously been
4 approved by a majority of the electors of the county voting
5 on the proposition at an election conducted before the
6 effective date of this amendatory Act of 1987.
7 (d) A county may not impose a surcharge, unless
8 requested by a municipality, in any incorporated area which
9 has previously approved a surcharge as provided in subsection
10 (c) or in any incorporated area where the corporate
11 authorities of the municipality have previously entered into
12 a binding contract or letter of intent with a
13 telecommunications carrier to provide sophisticated 9-1-1
14 service through municipal funds.
15 (e) A municipality or county may at any time by
16 ordinance change the rate of the surcharge imposed under this
17 Section if the new rate does not exceed the rate specified in
18 the referendum held pursuant to subsection (c).
19 (f) The surcharge authorized by this Section shall be
20 collected from the subscriber by the telecommunications
21 carrier providing the subscriber the network connection as a
22 separately stated item on the subscriber's bill.
23 (g) The amount of surcharge collected by the
24 telecommunications carrier shall be paid to the particular
25 municipality or county or Joint Emergency Telephone System
26 Board not later than 30 days after the surcharge is
27 collected, net of any network or other 9-1-1 or sophisticated
28 9-1-1 system charges then due the particular
29 telecommunications carrier, as shown on an itemized bill.
30 The telecommunications carrier collecting the surcharge shall
31 also be entitled to deduct 3% of the gross amount of
32 surcharge collected to reimburse the telecommunications
33 carrier for the expense of accounting and collecting the
34 surcharge.
-87- LRB9201430SMpcam
1 (h) A municipality with a population over 500,000 may
2 not impose a monthly surcharge in excess of $1.25 per network
3 connection.
4 (i) Any municipality or county or joint emergency
5 telephone system board that has imposed a surcharge pursuant
6 to this Section prior to the effective date of this
7 amendatory Act of 1990 shall hereafter impose the surcharge
8 in accordance with subsection (b) of this Section.
9 (j) The corporate authorities of any municipality or
10 county may issue, in accordance with Illinois law, bonds,
11 notes or other obligations secured in whole or in part by the
12 proceeds of the surcharge described in this Section.
13 Notwithstanding any change in law subsequent to the issuance
14 of any bonds, notes or other obligations secured by the
15 surcharge, every municipality or county issuing such bonds,
16 notes or other obligations shall be authorized to impose the
17 surcharge as though the laws relating to the imposition of
18 the surcharge in effect at the time of issuance of the bonds,
19 notes or other obligations were in full force and effect
20 until the bonds, notes or other obligations are paid in full.
21 The State of Illinois pledges and agrees that it will not
22 limit or alter the rights and powers vested in municipalities
23 and counties by this Section to impose the surcharge so as to
24 impair the terms of or affect the security for bonds, notes
25 or other obligations secured in whole or in part with the
26 proceeds of the surcharge described in this Section.
27 (k) Any surcharge collected by or imposed on a
28 telecommunications carrier pursuant to this Section shall be
29 held to be a special fund in trust for the municipality,
30 county or Joint Emergency Telephone Board imposing the
31 surcharge. Except for the 3% deduction provided in
32 subsection (g) above, the special fund shall not be subject
33 to the claims of creditors of the telecommunication carrier.
34 (Source: P.A. 86-101; 86-1344.)
-88- LRB9201430SMpcam
1 Section 90-25. The Illinois Municipal Code is amended by
2 changing Section 8-11-2 as follows:
3 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
4 Sec. 8-11-2. The corporate authorities of any
5 municipality may tax any or all of the following occupations
6 or privileges:
7 1. (Blank). Persons engaged in the business of
8 transmitting messages by means of electricity or radio
9 magnetic waves, or fiber optics, at a rate not to exceed
10 5% of the gross receipts from that business originating
11 within the corporate limits of the municipality.
12 Beginning January 1, 2001, prepaid telephone calling
13 arrangements shall not be subject to the tax imposed
14 under this Section. For purposes of this Section,
15 "prepaid telephone calling arrangements" means that term
16 as defined in Section 2-27 of the Retailers' Occupation
17 Tax Act.
18 2. Persons engaged in the business of distributing,
19 supplying, furnishing, or selling gas for use or
20 consumption within the corporate limits of a municipality
21 of 500,000 or fewer population, and not for resale, at a
22 rate not to exceed 5% of the gross receipts therefrom.
23 2a. Persons engaged in the business of
24 distributing, supplying, furnishing, or selling gas for
25 use or consumption within the corporate limits of a
26 municipality of over 500,000 population, and not for
27 resale, at a rate not to exceed 8% of the gross receipts
28 therefrom. If imposed, this tax shall be paid in monthly
29 payments.
30 3. The privilege of using or consuming electricity
31 acquired in a purchase at retail and used or consumed
32 within the corporate limits of the municipality at rates
33 not to exceed the following maximum rates, calculated on
-89- LRB9201430SMpcam
1 a monthly basis for each purchaser:
2 (i) For the first 2,000 kilowatt-hours used or
3 consumed in a month; 0.61 cents per kilowatt-hour;
4 (ii) For the next 48,000 kilowatt-hours used or
5 consumed in a month; 0.40 cents per kilowatt-hour;
6 (iii) For the next 50,000 kilowatt-hours used or
7 consumed in a month; 0.36 cents per kilowatt-hour;
8 (iv) For the next 400,000 kilowatt-hours used or
9 consumed in a month; 0.35 cents per kilowatt-hour;
10 (v) For the next 500,000 kilowatt-hours used or
11 consumed in a month; 0.34 cents per kilowatt-hour;
12 (vi) For the next 2,000,000 kilowatt-hours used or
13 consumed in a month; 0.32 cents per kilowatt-hour;
14 (vii) For the next 2,000,000 kilowatt-hours used or
15 consumed in a month; 0.315 cents per kilowatt-hour;
16 (viii) For the next 5,000,000 kilowatt-hours used
17 or consumed in a month; 0.31 cents per kilowatt-hour;
18 (ix) For the next 10,000,000 kilowatt-hours used or
19 consumed in a month; 0.305 cents per kilowatt-hour; and
20 (x) For all electricity used or consumed in excess
21 of 20,000,000 kilowatt-hours in a month, 0.30 cents per
22 kilowatt-hour.
23 If a municipality imposes a tax at rates lower than
24 either the maximum rates specified in this Section or the
25 alternative maximum rates promulgated by the Illinois
26 Commerce Commission, as provided below, the tax rates
27 shall be imposed upon the kilowatt hour categories set
28 forth above with the same proportional relationship as
29 that which exists among such maximum rates.
30 Notwithstanding the foregoing, until December 31, 2008,
31 no municipality shall establish rates that are in excess
32 of rates reasonably calculated to produce revenues that
33 equal the maximum total revenues such municipality could
34 have received under the tax authorized by this
-90- LRB9201430SMpcam
1 subparagraph in the last full calendar year prior to the
2 effective date of Section 65 of this amendatory Act of
3 1997; provided that this shall not be a limitation on the
4 amount of tax revenues actually collected by such
5 municipality.
6 Upon the request of the corporate authorities of a
7 municipality, the Illinois Commerce Commission shall,
8 within 90 days after receipt of such request, promulgate
9 alternative rates for each of these kilowatt-hour
10 categories that will reflect, as closely as reasonably
11 practical for that municipality, the distribution of the
12 tax among classes of purchasers as if the tax were based
13 on a uniform percentage of the purchase price of
14 electricity. A municipality that has adopted an
15 ordinance imposing a tax pursuant to subparagraph 3 as it
16 existed prior to the effective date of Section 65 of this
17 amendatory Act of 1997 may, rather than imposing the tax
18 permitted by this amendatory Act of 1997, continue to
19 impose the tax pursuant to that ordinance with respect to
20 gross receipts received from residential customers
21 through July 31, 1999, and with respect to gross receipts
22 from any non-residential customer until the first bill
23 issued to such customer for delivery services in
24 accordance with Section 16-104 of the Public Utilities
25 Act but in no case later than the last bill issued to
26 such customer before December 31, 2000. No ordinance
27 imposing the tax permitted by this amendatory Act of 1997
28 shall be applicable to any non-residential customer until
29 the first bill issued to such customer for delivery
30 services in accordance with Section 16-104 of the Public
31 Utilities Act but in no case later than the last bill
32 issued to such non-residential customer before December
33 31, 2000.
34 4. Persons engaged in the business of distributing,
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1 supplying, furnishing, or selling water for use or
2 consumption within the corporate limits of the
3 municipality, and not for resale, at a rate not to exceed
4 5% of the gross receipts therefrom.
5 None of the taxes authorized by this Section may be
6 imposed with respect to any transaction in interstate
7 commerce or otherwise to the extent to which the business or
8 privilege may not, under the constitution and statutes of the
9 United States, be made the subject of taxation by this State
10 or any political sub-division thereof; nor shall any persons
11 engaged in the business of distributing, supplying,
12 furnishing, selling or transmitting gas, water, or
13 electricity, or engaged in the business of transmitting
14 messages, or using or consuming electricity acquired in a
15 purchase at retail, be subject to taxation under the
16 provisions of this Section for those transactions that are or
17 may become subject to taxation under the provisions of the
18 "Municipal Retailers' Occupation Tax Act" authorized by
19 Section 8-11-1; nor shall any tax authorized by this Section
20 be imposed upon any person engaged in a business or on any
21 privilege unless the tax is imposed in like manner and at the
22 same rate upon all persons engaged in businesses of the same
23 class in the municipality, whether privately or municipally
24 owned or operated, or exercising the same privilege within
25 the municipality.
26 Any of the taxes enumerated in this Section may be in
27 addition to the payment of money, or value of products or
28 services furnished to the municipality by the taxpayer as
29 compensation for the use of its streets, alleys, or other
30 public places, or installation and maintenance therein,
31 thereon or thereunder of poles, wires, pipes or other
32 equipment used in the operation of the taxpayer's business.
33 (a) If the corporate authorities of any home rule
34 municipality have adopted an ordinance that imposed a tax on
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1 public utility customers, between July 1, 1971, and October
2 1, 1981, on the good faith belief that they were exercising
3 authority pursuant to Section 6 of Article VII of the 1970
4 Illinois Constitution, that action of the corporate
5 authorities shall be declared legal and valid,
6 notwithstanding a later decision of a judicial tribunal
7 declaring the ordinance invalid. No municipality shall be
8 required to rebate, refund, or issue credits for any taxes
9 described in this paragraph, and those taxes shall be deemed
10 to have been levied and collected in accordance with the
11 Constitution and laws of this State.
12 (b) In any case in which (i) prior to October 19, 1979,
13 the corporate authorities of any municipality have adopted an
14 ordinance imposing a tax authorized by this Section (or by
15 the predecessor provision of the "Revised Cities and Villages
16 Act") and have explicitly or in practice interpreted gross
17 receipts to include either charges added to customers' bills
18 pursuant to the provision of paragraph (a) of Section 36 of
19 the Public Utilities Act or charges added to customers' bills
20 by taxpayers who are not subject to rate regulation by the
21 Illinois Commerce Commission for the purpose of recovering
22 any of the tax liabilities or other amounts specified in such
23 paragraph (a) of Section 36 of that Act, and (ii) on or after
24 October 19, 1979, a judicial tribunal has construed gross
25 receipts to exclude all or part of those charges, then
26 neither those municipality nor any taxpayer who paid the tax
27 shall be required to rebate, refund, or issue credits for any
28 tax imposed or charge collected from customers pursuant to
29 the municipality's interpretation prior to October 19, 1979.
30 This paragraph reflects a legislative finding that it would
31 be contrary to the public interest to require a municipality
32 or its taxpayers to refund taxes or charges attributable to
33 the municipality's more inclusive interpretation of gross
34 receipts prior to October 19, 1979, and is not intended to
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1 prescribe or limit judicial construction of this Section. The
2 legislative finding set forth in this subsection does not
3 apply to taxes imposed after the effective date of this
4 amendatory Act of 1995.
5 (c) The tax authorized by subparagraph 3 shall be
6 collected from the purchaser by the person maintaining a
7 place of business in this State who delivers the electricity
8 to the purchaser. This tax shall constitute a debt of the
9 purchaser to the person who delivers the electricity to the
10 purchaser and if unpaid, is recoverable in the same manner as
11 the original charge for delivering the electricity. Any tax
12 required to be collected pursuant to an ordinance authorized
13 by subparagraph 3 and any such tax collected by a person
14 delivering electricity shall constitute a debt owed to the
15 municipality by such person delivering the electricity,
16 provided, that the person delivering electricity shall be
17 allowed credit for such tax related to deliveries of
18 electricity the charges for which are written off as
19 uncollectible, and provided further, that if such charges are
20 thereafter collected, the delivering supplier shall be
21 obligated to remit such tax. For purposes of this subsection
22 (c), any partial payment not specifically identified by the
23 purchaser shall be deemed to be for the delivery of
24 electricity. Persons delivering electricity shall collect the
25 tax from the purchaser by adding such tax to the gross charge
26 for delivering the electricity, in the manner prescribed by
27 the municipality. Persons delivering electricity shall also
28 be authorized to add to such gross charge an amount equal to
29 3% of the tax to reimburse the person delivering electricity
30 for the expenses incurred in keeping records, billing
31 customers, preparing and filing returns, remitting the tax
32 and supplying data to the municipality upon request. If the
33 person delivering electricity fails to collect the tax from
34 the purchaser, then the purchaser shall be required to pay
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1 the tax directly to the municipality in the manner prescribed
2 by the municipality. Persons delivering electricity who file
3 returns pursuant to this paragraph (c) shall, at the time of
4 filing such return, pay the municipality the amount of the
5 tax collected pursuant to subparagraph 3.
6 (d) For the purpose of the taxes enumerated in this
7 Section:
8 "Gross receipts" means the consideration received for the
9 transmission of messages, the consideration received for
10 distributing, supplying, furnishing or selling gas for use or
11 consumption and not for resale, and the consideration
12 received for distributing, supplying, furnishing or selling
13 water for use or consumption and not for resale, and for all
14 services rendered in connection therewith valued in money,
15 whether received in money or otherwise, including cash,
16 credit, services and property of every kind and material and
17 for all services rendered therewith, and shall be determined
18 without any deduction on account of the cost of transmitting
19 such messages, without any deduction on account of the cost
20 of the service, product or commodity supplied, the cost of
21 materials used, labor or service cost, or any other expenses
22 whatsoever. "Gross receipts" shall not include that portion
23 of the consideration received for distributing, supplying,
24 furnishing, or selling gas or water to, or for the
25 transmission of messages for, business enterprises described
26 in paragraph (e) of this Section to the extent and during the
27 period in which the exemption authorized by paragraph (e) is
28 in effect or for school districts or units of local
29 government described in paragraph (f) during the period in
30 which the exemption authorized in paragraph (f) is in effect.
31 "Gross receipts" shall not include amounts paid by
32 telecommunications retailers under the Telecommunications
33 Municipal Infrastructure Maintenance Fee Act.
34 For utility bills issued on or after May 1, 1996, but
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1 before May 1, 1997, and for receipts from those utility
2 bills, "gross receipts" does not include one-third of (i)
3 amounts added to customers' bills under Section 9-222 of the
4 Public Utilities Act, or (ii) amounts added to customers'
5 bills by taxpayers who are not subject to rate regulation by
6 the Illinois Commerce Commission for the purpose of
7 recovering any of the tax liabilities described in Section
8 9-222 of the Public Utilities Act. For utility bills issued
9 on or after May 1, 1997, but before May 1, 1998, and for
10 receipts from those utility bills, "gross receipts" does not
11 include two-thirds of (i) amounts added to customers' bills
12 under Section 9-222 of the Public Utilities Act, or (ii)
13 amount added to customers' bills by taxpayers who are not
14 subject to rate regulation by the Illinois Commerce
15 Commission for the purpose of recovering any of the tax
16 liabilities described in Section 9-222 of the Public
17 Utilities Act. For utility bills issued on or after May 1,
18 1998, and for receipts from those utility bills, "gross
19 receipts" does not include (i) amounts added to customers'
20 bills under Section 9-222 of the Public Utilities Act, or
21 (ii) amounts added to customers' bills by taxpayers who are
22 not subject to rate regulation by the Illinois Commerce
23 Commission for the purpose of recovering any of the tax
24 liabilities described in Section 9-222 of the Public
25 Utilities Act.
26 For purposes of this Section "gross receipts" shall not
27 include (i) amounts added to customers' bills under Section
28 9-221 of the Public Utilities Act, or (ii) charges added to
29 customers' bills to recover the surcharge imposed under the
30 Emergency Telephone System Act. This paragraph is not
31 intended to nor does it make any change in the meaning of
32 "gross receipts" for the purposes of this Section, but is
33 intended to remove possible ambiguities, thereby confirming
34 the existing meaning of "gross receipts" prior to the
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1 effective date of this amendatory Act of 1995.
2 The words "transmitting messages", in addition to the
3 usual and popular meaning of person to person communication,
4 shall include the furnishing, for a consideration, of
5 services or facilities (whether owned or leased), or both, to
6 persons in connection with the transmission of messages where
7 those persons do not, in turn, receive any consideration in
8 connection therewith, but shall not include such furnishing
9 of services or facilities to persons for the transmission of
10 messages to the extent that any such services or facilities
11 for the transmission of messages are furnished for a
12 consideration, by those persons to other persons, for the
13 transmission of messages.
14 "Person" as used in this Section means any natural
15 individual, firm, trust, estate, partnership, association,
16 joint stock company, joint adventure, corporation, limited
17 liability company, municipal corporation, the State or any of
18 its political subdivisions, any State university created by
19 statute, or a receiver, trustee, guardian or other
20 representative appointed by order of any court.
21 "Person maintaining a place of business in this State"
22 shall mean any person having or maintaining within this
23 State, directly or by a subsidiary or other affiliate, an
24 office, generation facility, distribution facility,
25 transmission facility, sales office or other place of
26 business, or any employee, agent, or other representative
27 operating within this State under the authority of the person
28 or its subsidiary or other affiliate, irrespective of whether
29 such place of business or agent or other representative is
30 located in this State permanently or temporarily, or whether
31 such person, subsidiary or other affiliate is licensed or
32 qualified to do business in this State.
33 "Public utility" shall have the meaning ascribed to it in
34 Section 3-105 of the Public Utilities Act and shall include
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1 telecommunications carriers as defined in Section 13-202 of
2 that Act and alternative retail electric suppliers as defined
3 in Section 16-102 of that Act.
4 "Purchase at retail" shall mean any acquisition of
5 electricity by a purchaser for purposes of use or
6 consumption, and not for resale, but shall not include the
7 use of electricity by a public utility directly in the
8 generation, production, transmission, delivery or sale of
9 electricity.
10 "Purchaser" shall mean any person who uses or consumes,
11 within the corporate limits of the municipality, electricity
12 acquired in a purchase at retail.
13 In the case of persons engaged in the business of
14 transmitting messages through the use of mobile equipment,
15 such as cellular phones and paging systems, the gross
16 receipts from the business shall be deemed to originate
17 within the corporate limits of a municipality only if the
18 address to which the bills for the service are sent is within
19 those corporate limits. If, however, that address is not
20 located within a municipality that imposes a tax under this
21 Section, then (i) if the party responsible for the bill is
22 not an individual, the gross receipts from the business shall
23 be deemed to originate within the corporate limits of the
24 municipality where that party's principal place of business
25 in Illinois is located, and (ii) if the party responsible for
26 the bill is an individual, the gross receipts from the
27 business shall be deemed to originate within the corporate
28 limits of the municipality where that party's principal
29 residence in Illinois is located.
30 (e) Any municipality that imposes taxes upon public
31 utilities or upon the privilege of using or consuming
32 electricity pursuant to this Section whose territory includes
33 any part of an enterprise zone or federally designated
34 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
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1 corporate authorities, exempt from those taxes for a period
2 not exceeding 20 years any specified percentage of gross
3 receipts of public utilities received from, or electricity
4 used or consumed by, business enterprises that:
5 (1) either (i) make investments that cause the
6 creation of a minimum of 200 full-time equivalent jobs in
7 Illinois, (ii) make investments of at least $175,000,000
8 that cause the creation of a minimum of 150 full-time
9 equivalent jobs in Illinois, or (iii) make investments
10 that cause the retention of a minimum of 1,000 full-time
11 jobs in Illinois; and
12 (2) are either (i) located in an Enterprise Zone
13 established pursuant to the Illinois Enterprise Zone Act
14 or (ii) Department of Commerce and Community Affairs
15 designated High Impact Businesses located in a federally
16 designated Foreign Trade Zone or Sub-Zone; and
17 (3) are certified by the Department of Commerce and
18 Community Affairs as complying with the requirements
19 specified in clauses (1) and (2) of this paragraph (e).
20 Upon adoption of the ordinance authorizing the exemption,
21 the municipal clerk shall transmit a copy of that ordinance
22 to the Department of Commerce and Community Affairs. The
23 Department of Commerce and Community Affairs shall determine
24 whether the business enterprises located in the municipality
25 meet the criteria prescribed in this paragraph. If the
26 Department of Commerce and Community Affairs determines that
27 the business enterprises meet the criteria, it shall grant
28 certification. The Department of Commerce and Community
29 Affairs shall act upon certification requests within 30 days
30 after receipt of the ordinance.
31 Upon certification of the business enterprise by the
32 Department of Commerce and Community Affairs, the Department
33 of Commerce and Community Affairs shall notify the Department
34 of Revenue of the certification. The Department of Revenue
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1 shall notify the public utilities of the exemption status of
2 the gross receipts received from, and the electricity used or
3 consumed by, the certified business enterprises. Such
4 exemption status shall be effective within 3 months after
5 certification.
6 (f) A municipality that imposes taxes upon public
7 utilities or upon the privilege of using or consuming
8 electricity under this Section and whose territory includes
9 part of another unit of local government or a school district
10 may by ordinance exempt the other unit of local government or
11 school district from those taxes.
12 (g) The amendment of this Section by Public Act 84-127
13 shall take precedence over any other amendment of this
14 Section by any other amendatory Act passed by the 84th
15 General Assembly before the effective date of Public Act
16 84-127.
17 (h) In any case in which, before July 1, 1992, a person
18 engaged in the business of transmitting messages through the
19 use of mobile equipment, such as cellular phones and paging
20 systems, has determined the municipality within which the
21 gross receipts from the business originated by reference to
22 the location of its transmitting or switching equipment, then
23 (i) neither the municipality to which tax was paid on that
24 basis nor the taxpayer that paid tax on that basis shall be
25 required to rebate, refund, or issue credits for any such tax
26 or charge collected from customers to reimburse the taxpayer
27 for the tax and (ii) no municipality to which tax would have
28 been paid with respect to those gross receipts if the
29 provisions of this amendatory Act of 1991 had been in effect
30 before July 1, 1992, shall have any claim against the
31 taxpayer for any amount of the tax.
32 (Source: P.A. 90-16, eff. 6-16-97; 90-561, eff. 8-1-98;
33 90-562, eff. 12-16-97; 90-655, eff. 7-30-98; 91-870, eff.
34 6-22-00.)
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1 (65 ILCS 5/8-11-17 rep.)
2 Section 90-30. The Illinois Municipal Code is amended by
3 repealing Section 8-11-17.
4 Section 90-35. The Public Utilities Act is amended by
5 changing Sections 2-202 and 13-511 as follows:
6 (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
7 Sec. 2-202. (a) It is declared to be the public policy of
8 this State that in order to maintain and foster the effective
9 regulation of public utilities under this Act in the
10 interests of the People of the State of Illinois and the
11 public utilities as well, the public utilities subject to
12 regulation under this Act and which enjoy the privilege of
13 operating as public utilities in this State, shall bear the
14 expense of administering this Act by means of a tax on such
15 privilege measured by the annual gross revenue of such public
16 utilities in the manner provided in this Section. For
17 purposes of this Section, "expense of administering this Act"
18 includes any costs incident to studies, whether made by the
19 Commission or under contract entered into by the Commission,
20 concerning environmental pollution problems caused or
21 contributed to by public utilities and the means for
22 eliminating or abating those problems. Such proceeds shall be
23 deposited in the Public Utility Fund in the State treasury.
24 (b) All of the ordinary and contingent expenses of the
25 Commission incident to the administration of this Act shall
26 be paid out of the Public Utility Fund except the
27 compensation of the members of the Commission which shall be
28 paid from the General Revenue Fund. Notwithstanding other
29 provisions of this Act to the contrary, the ordinary and
30 contingent expenses of the Commission incident to the
31 administration of the Illinois Commercial Transportation Law
32 may be paid from appropriations from the Public Utility Fund
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1 through the end of fiscal year 1986.
2 (c) A tax is imposed upon each public utility subject to
3 the provisions of this Act equal to .08% of its gross revenue
4 for each calendar year commencing with the calendar year
5 beginning January 1, 1982, except that the Commission may, by
6 rule, establish a different rate no greater than 0.1%. For
7 purposes of this Section, "gross revenue" shall not include
8 revenue from the production, transmission, distribution,
9 sale, delivery, or furnishing of electricity. "Gross revenue"
10 shall not include amounts paid by telecommunications
11 retailers under the Telecommunications Municipal
12 Infrastructure Maintenance Fee Act.
13 (d) Annual gross revenue returns shall be filed in
14 accordance with paragraph (1) or (2) of this subsection (d).
15 (1) Except as provided in paragraph (2) of this
16 subsection (d), on or before January 10 of each year each
17 public utility subject to the provisions of this Act
18 shall file with the Commission an estimated annual gross
19 revenue return containing an estimate of the amount of
20 its gross revenue for the calendar year commencing
21 January 1 of said year and a statement of the amount of
22 tax due for said calendar year on the basis of that
23 estimate. Public utilities may also file revised returns
24 containing updated estimates and updated amounts of tax
25 due during the calendar year. These revised returns, if
26 filed, shall form the basis for quarterly payments due
27 during the remainder of the calendar year. In addition,
28 on or before February 15 of each year, each public
29 utility shall file an amended return showing the actual
30 amount of gross revenues shown by the company's books and
31 records as of December 31 of the previous year. Forms and
32 instructions for such estimated, revised, and amended
33 returns shall be devised and supplied by the Commission.
34 (2) Beginning January 1, 1993, the requirements of
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1 paragraph (1) of this subsection (d) shall not apply to
2 any public utility in any calendar year for which the
3 total tax the public utility owes under this Section is
4 less than $1,000. For such public utilities with respect
5 to such years, the public utility shall file with the
6 Commission, on or before January 31 of the following
7 year, an annual gross revenue return for the year and a
8 statement of the amount of tax due for that year on the
9 basis of such a return. Forms and instructions for such
10 returns and corrected returns shall be devised and
11 supplied by the Commission.
12 (e) All returns submitted to the Commission by a public
13 utility as provided in this subsection (e) or subsection (d)
14 of this Section shall contain or be verified by a written
15 declaration by an appropriate officer of the public utility
16 that the return is made under the penalties of perjury. The
17 Commission may audit each such return submitted and may,
18 under the provisions of Section 5-101 of this Act, take such
19 measures as are necessary to ascertain the correctness of the
20 returns submitted. The Commission has the power to direct the
21 filing of a corrected return by any utility which has filed
22 an incorrect return and to direct the filing of a return by
23 any utility which has failed to submit a return. A
24 taxpayer's signing a fraudulent return under this Section is
25 perjury, as defined in Section 32-2 of the Criminal Code of
26 1961.
27 (f) (1) For all public utilities subject to paragraph
28 (1) of subsection (d), at least one quarter of the annual
29 amount of tax due under subsection (c) shall be paid to the
30 Commission on or before the tenth day of January, April,
31 July, and October of the calendar year subject to tax. In
32 the event that an adjustment in the amount of tax due should
33 be necessary as a result of the filing of an amended or
34 corrected return under subsection (d) or subsection (e) of
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1 this Section, the amount of any deficiency shall be paid by
2 the public utility together with the amended or corrected
3 return and the amount of any excess shall, after the filing
4 of a claim for credit by the public utility, be returned to
5 the public utility in the form of a credit memorandum in the
6 amount of such excess or be refunded to the public utility in
7 accordance with the provisions of subsection (k) of this
8 Section. However, if such deficiency or excess is less than
9 $1, then the public utility need not pay the deficiency and
10 may not claim a credit.
11 (2) Any public utility subject to paragraph (2) of
12 subsection (d) shall pay the amount of tax due under
13 subsection (c) on or before January 31 next following the end
14 of the calendar year subject to tax. In the event that an
15 adjustment in the amount of tax due should be necessary as a
16 result of the filing of a corrected return under subsection
17 (e), the amount of any deficiency shall be paid by the public
18 utility at the time the corrected return is filed. Any excess
19 tax payment by the public utility shall be returned to it
20 after the filing of a claim for credit, in the form of a
21 credit memorandum in the amount of the excess. However, if
22 such deficiency or excess is less than $1, the public utility
23 need not pay the deficiency and may not claim a credit.
24 (g) Each installment or required payment of the tax
25 imposed by subsection (c) becomes delinquent at midnight of
26 the date that it is due. Failure to make a payment as
27 required by this Section shall result in the imposition of a
28 late payment penalty, an underestimation penalty, or both, as
29 provided by this subsection. The late payment penalty shall
30 be the greater of:
31 (1) $25 for each month or portion of a month that
32 the installment or required payment is unpaid or
33 (2) an amount equal to the difference between what
34 should have been paid on the due date, based upon the
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1 most recently filed estimate, and what was actually paid,
2 times 1%, for each month or portion of a month that the
3 installment or required payment goes unpaid. This
4 penalty may be assessed as soon as the installment or
5 required payment becomes delinquent.
6 The underestimation penalty shall apply to those public
7 utilities subject to paragraph (1) of subsection (d) and
8 shall be calculated after the filing of the amended return.
9 It shall be imposed if the amount actually paid on any of the
10 dates specified in subsection (f) is not equal to at least
11 one-fourth of the amount actually due for the year, and shall
12 equal the greater of:
13 (1) $25 for each month or portion of a month that
14 the amount due is unpaid or
15 (2) an amount equal to the difference between what
16 should have been paid, based on the amended return, and
17 what was actually paid as of the date specified in
18 subsection (f), times a percentage equal to 1/12 of the
19 sum of 10% and the percentage most recently established
20 by the Commission for interest to be paid on customer
21 deposits under 83 Ill. Adm. Code 280.70(e)(1), for each
22 month or portion of a month that the amount due goes
23 unpaid, except that no underestimation penalty shall be
24 assessed if the amount actually paid on each of the dates
25 specified in subsection (f) was based on an estimate of
26 gross revenues at least equal to the actual gross
27 revenues for the previous year. The Commission may
28 enforce the collection of any delinquent installment or
29 payment, or portion thereof by legal action or in any
30 other manner by which the collection of debts due the
31 State of Illinois may be enforced under the laws of this
32 State. The executive director or his designee may excuse
33 the payment of an assessed penalty if he determines that
34 enforced collection of the penalty would be unjust.
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1 (h) All sums collected by the Commission under the
2 provisions of this Section shall be paid promptly after the
3 receipt of the same, accompanied by a detailed statement
4 thereof, into the Public Utility Fund in the State treasury.
5 (i) During the month of October of each odd-numbered
6 year the Commission shall:
7 (1) determine the amount of all moneys deposited in
8 the Public Utility Fund during the preceding fiscal
9 biennium plus the balance, if any, in that fund at the
10 beginning of that biennium;
11 (2) determine the sum total of the following items:
12 (A) all moneys expended or obligated against
13 appropriations made from the Public Utility Fund during
14 the preceding fiscal biennium, plus (B) the sum of the
15 credit memoranda then outstanding against the Public
16 Utility Fund, if any; and
17 (3) determine the amount, if any, by which the sum
18 determined as provided in item (1) exceeds the amount
19 determined as provided in item (2).
20 If the amount determined as provided in item (3) of this
21 subsection exceeds $2,500,000, the Commission shall then
22 compute the proportionate amount, if any, which (x) the tax
23 paid hereunder by each utility during the preceding biennium,
24 and (y) the amount paid into the Public Utility Fund during
25 the preceding biennium by the Department of Revenue pursuant
26 to Sections 2-9 and 2-11 of the Electricity Excise Tax Law,
27 bears to the difference between the amount determined as
28 provided in item (3) of this subsection (i) and $2,500,000.
29 The Commission shall cause the proportionate amount
30 determined with respect to payments made under the
31 Electricity Excise Tax Law to be transferred into the General
32 Revenue Fund in the State Treasury, and notify each public
33 utility that it may file during the 3 month period after the
34 date of notification a claim for credit for the proportionate
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1 amount determined with respect to payments made hereunder by
2 the public utility. If the proportionate amount is less than
3 $10, no notification will be sent by the Commission, and no
4 right to a claim exists as to that amount. Upon the filing of
5 a claim for credit within the period provided, the Commission
6 shall issue a credit memorandum in such amount to such public
7 utility. Any claim for credit filed after the period provided
8 for in this Section is void.
9 (j) Credit memoranda issued pursuant to subsection (f)
10 and credit memoranda issued after notification and filing
11 pursuant to subsection (i) may be applied for the 2 year
12 period from the date of issuance, against the payment of any
13 amount due during that period under the tax imposed by
14 subsection (c), or, subject to reasonable rule of the
15 Commission including requirement of notification, may be
16 assigned to any other public utility subject to regulation
17 under this Act. Any application of credit memoranda after the
18 period provided for in this Section is void.
19 (k) The chairman or executive director may make refund
20 of fees, taxes or other charges whenever he shall determine
21 that the person or public utility will not be liable for
22 payment of such fees, taxes or charges during the next 24
23 months and he determines that the issuance of a credit
24 memorandum would be unjust.
25 (Source: P.A. 90-561, eff. 8-1-98; 90-562, 12-16-97; 90-655,
26 eff. 7-30-98.)
27 (220 ILCS 5/13-511)
28 (Section scheduled to be repealed on July 1, 2001)
29 Sec. 13-511. Telecommunications Municipal Infrastructure
30 Maintenance Fee Act; rate adjustments. With respect to any
31 telecommunications retailer that is regulated by the Illinois
32 Commerce Commission, the Commission shall order such rate
33 adjustments as shall be necessary to assure that the
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1 implementation of the Telecommunications Municipal
2 Infrastructure Maintenance Fee Act, including the payment of
3 the State infrastructure maintenance fee, optional
4 infrastructure maintenance fee, and municipal infrastructure
5 maintenance fee, if any, net of (1) the termination of any
6 fee, license fee, rent, or lease payment subject to the
7 Telecommunications Municipal Infrastructure Maintenance Fee
8 Act, and (2) the repeal of any invested capital tax subject
9 to the Telecommunications Municipal Infrastructure
10 Maintenance Fee Act, shall have no significant impact on the
11 net income of each such telecommunications retailer.
12 Beginning with the effective date of the Telecommunications
13 Municipal Infrastructure Maintenance Fee Act, each such
14 telecommunications retailer shall maintain such records and
15 accounts as will enable the Commission to make such findings
16 and determinations as are necessary to such order.
17 (Source: P.A. 90-154, eff. 1-1-98.)
18 Section 90-40. The Telephone Company Act is amended by
19 changing Section 4 as follows:
20 (220 ILCS 65/4) (from Ch. 134, par. 20)
21 Sec. 4. Right of condemnation. Every telecommunications
22 telecommunciations carrier as defined in the
23 Telecommunications Municipal Infrastructure Maintenance Fee
24 Act may, when it shall be necessary for the construction,
25 maintenance, alteration or extension of its
26 telecommunications system, or any part thereof, enter upon,
27 take or damage private property in the manner provided for
28 in, and the compensation therefor shall be ascertained and
29 made in conformity to the provisions of the Telegraph Act and
30 every telecommunications carrier is authorized to construct,
31 maintain, alter and extend its poles, wires, and other
32 appliances as a proper use of highways, along, upon, under
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1 and across any highway, street, alley, public right-of-way
2 dedicated or commonly used for utility purposes, or water in
3 this State, but so as not to incommode the public in the use
4 thereof: Provided, that nothing in this act shall interfere
5 with the control now vested in cities, incorporated towns and
6 villages in relation to the regulation of the poles, wires,
7 cables and other appliances, and provided, that before any
8 such lines shall be constructed along any such highway,
9 street, alley, public right-of-way dedicated or commonly used
10 for utility purposes, or water it shall be the duty of the
11 telecommunications carrier proposing to construct any such
12 line, to give (in the case of cities, villages, and
13 incorporated towns) to the corporate authorities of the
14 municipality or their designees (hereinafter, municipal
15 corporate authorities) or (in other cases) to the highway
16 commissioners having jurisdiction and control over the road
17 or part thereof along and over which such line is proposed to
18 be constructed, notice in writing in the form of plans,
19 specifications, and documentation of the purpose and
20 intention of the company to construct such line over and
21 along the highway, street, alley, public right-of-way
22 dedicated or commonly used for utility purposes, or water,
23 which notice shall be served at least 10 days before the line
24 shall be placed or constructed over and along the highway,
25 street, alley, public right-of-way dedicated or commonly used
26 for utility purposes, or water (30 days in the case of any
27 notice providing for excavation relating to new construction
28 in a public highway, street, alley, public right-of-way
29 dedicated or commonly used for utility purposes, or water);
30 and upon the giving of the notice it shall be the duty of the
31 municipal corporate authorities or the highway commissioners
32 to specify the portion of such highway, street, alley, public
33 right-of-way dedicated or commonly used for utility purposes,
34 or water upon which the line may be placed, used, and
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1 constructed, and it shall thereupon be the duty of the
2 telecommunications retailer to provide the municipal
3 authorities or highway commissioners with any and all plans,
4 specifications, and documentation available and to construct
5 its line in accordance with such specifications; but in the
6 event that the municipal corporate authorities or the highway
7 commissioners fail to provide such specification within 10
8 days after the service of such notice, (25 days in the case
9 of excavation relating to new construction) then the
10 telecommunications retailer, without such specification
11 having been made, may proceed to place and erect its line
12 along the highway, street, alley, public right-of-way
13 dedicated or commonly used for utility purposes, or water by
14 placing its posts, poles and abutments so as not to interfere
15 with other proper uses of the highway, street, alley, public
16 right-of-way dedicated or commonly used for utility purposes,
17 or water. The telecommunications carrier proposing to
18 construct any such line shall comply with the provisions of
19 Section 9-113 of the Illinois Highway Code. Provided, that
20 the telecommunications carrier shall not have the right to
21 condemn any portion of the right-of-way of any railroad
22 company except as much thereof as is necessary to cross the
23 same.
24 The Illinois Commerce Commission may adopt reasonable
25 rules governing the negotiation procedures that are used by a
26 telecommunications carrier during precondemnation
27 negotiations for the purchase of land rights-of-way and
28 easements, including procedures for providing information to
29 the public and affected landowners concerning the project and
30 the right-of-way easements sought in connection therewith.
31 Such rules may be made applicable to interstate,
32 competitive intrastate and noncompetitive intrastate
33 facilities, without regard to whether such facilities or the
34 telecommunications carrier proposing to construct and operate
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1 them would otherwise be subject to the Illinois Commerce
2 Commission's jurisdiction under The Public Utilities Act, as
3 now or hereafter amended. However, as to facilities used to
4 provide exclusively interstate services or competitive
5 intrastate services or both, nothing in this Section confers
6 any power upon the Commission (i) to require the disclosure
7 of proprietary, competitively sensitive, or cost information
8 or information not known to the telecommunications carrier,
9 (ii) to determine whether, or conduct hearings regarding
10 whether, any proposed fiber optic or other facilities should
11 or should not be constructed and operated, or (iii) to
12 determine or specify, or conduct hearings concerning, the
13 price or other terms or conditions of the purchase of the
14 right-of-way easements sought. With respect to facilities
15 used to provide any intrastate services classified in the
16 condemnor's tariff as noncompetitive under Section 13-502 of
17 The Public Utilities Act, the rulemaking powers conferred
18 upon the Commission under this Section are in addition to any
19 rulemaking powers arising under The Public Utilities Act.
20 No telecommunications carrier shall exercise the power to
21 condemn private property until it has first substantially
22 complied with such rules with respect to the property sought
23 to be condemned. If such rules call for providing notice or
24 information before or during negotiations, a failure to
25 provide such notice or information shall not constitute a
26 waiver of the rights granted in this Section, but the
27 telecommunications carrier shall be liable for all reasonable
28 attorney's fees of that landowner resulting from such
29 failure.
30 (Source: P.A. 90-154, eff. 1-1-98.)
31 ARTICLE 99
32 Section 99-99. Effective date. This Act takes effect
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1 upon becoming law, except that (i) Article 5 of this Act
2 takes effect on January 1, 2002, (ii) the changes made to
3 Sections 1, 10, 15, 20, 25, 27, 27.35, 30 and 35 of the
4 Telecommunications Municipal Infrastructure Maintenance Fee
5 Act and Sections 90-5, 90-10, 90-20, 90-25, 90-30, 90-35, and
6 90-40 of this Act take effect on July 1, 2002, and (iii)
7 Article 10 and Sections 90-11 and 90-21 of this Act take
8 effect on August 1, 2002.".