92nd General Assembly
Summary of HB1273
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Senate Sponsors:

Short description: 
TELECOMMUNICATIONS EXCISE TAX                                              

Synopsis of Bill as introduced:
        Amends  the  Retailers'  Occupation  Tax  Act.   Makes  technical      
   changes in a Section concerning the short title.                            
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          35 ILCS 120/14                                                       
          Adds reference to:                                                   
          35 ILCS 630/2                   from Ch. 120, par. 2002              
          35 ILCS 635/10                                                       
          35 ILCS 636/5-7                                                      
        Deletes  everything  after  the  enacting  clause.   Amends   the      
   Telecommunications    Excise    Tax    Act,   the   Telecommunications      
   Infrastructure Maintenance  Fee  Act,  and  the  Simplified  Municipal      
   Telecommunications  Tax  Act.   Provides that "gross charges" for that      
   portion of the interstate inter-office channel  provided  in  Illinois      
   for  private  line  service  shall  be determined as follows:  (i) for      
   interstate inter-office channels having 2 channel termination  points,      
   only  one  of  which  is in Illinois, 50% of the total charge imposed;      
   (ii) for interstate inter-office channels having more than  2  channel      
   termination points, one or more of which are in Illinois, an amount in      
   proportion  to  the  number  of  channel points in Illinois; (iii) any      
   other  method  that  reasonably  apportions  the  total  charges   for      
   interstate  inter-office  channels  among  the states in which channel      
   termination points are located; and (iv) prior to June  1,  2003,  any      
   apportionment  method consistent with the methods described here shall      
   be accepted as a reasonable method.  Provides  that  the  term  "gross      
   charges"   does   not  include  charges  for  nontaxable  services  or      
   telecommunications if (i) those  charges  are  aggregated  with  other      
   charges  for  telecommunications  that are taxable, (ii) those charges      
   are not separately stated on the customer bill or invoice,  and  (iii)      
   the  retailer  can  reasonably  identify the nontaxable charges on the      
   retailer's books and records kept in the regular course  of  business.      
        SENATE AMENDMENT NO. 2.                                                
        Provides that the entity that determines the "gross charges"           
   for that portion of the interstate inter-office channel provided in         
   Illinois for private line service is the retailer. Provides that if         
   nontaxable charges cannot reasonably be identified, the gross charge        
   from the sale of both taxable and nontaxable services or telecommuni-       
   cations billed on a combined basis shall be attributed to the taxable       
   services or telecommunications (now, to the taxable telecommunica-          
Last action on Bill: PUBLIC ACT.............................. 92-0878

   Last action date: JAN-10-2003

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   2


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