TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.100 MEANING OF "GROSS CHARGES"
Section 495.100 Meaning of
"Gross Charges"
a) "Gross charge" means the amount paid for the act
or privilege of originating or receiving telecommunications in this State and
for all services and equipment provided in connection therewith by a retailer,
valued in money, whether paid in money or otherwise, including cash, credits,
services and property of every kind or nature, and shall be determined without
any deduction on account of the cost of those telecommunications, the cost of
materials used, labor or service cost or any other expense whatsoever. (Section
2(a) of the Telecommunications Excise Tax Act ("the Act") [35 ILCS
630/2(a)] A retailer may provide services to customers that are not provided
in connection with originating or receiving telecommunications. If those
services are not necessary for or directly related to the retailer's provision
of telecommunications to customers and the charges for the services are
disaggregated and separately identified from other charges, the charges need
not be included in "Gross charges". Without limitation, examples of
services not included in "Gross charges" are directory advertising;
specialized designing and/or engineering services; specialized security
measures; and consulting services.
b) "Gross charges" shall not include charges for
customer equipment, including such equipment that is leased or rented by the
customer from any source, wherein those charges are disaggregated and
separately identified from other charges. [35
ILCS 630/2(a)(4)] Customer equipment includes, but is not limited to,
all items generally classified as customer equipment or terminal equipment,
such as telephone instruments and station sets, dialers, modems, private branch
exchanges (PBXs), inside wiring, facsimile machines, pagers and non-electronic
associated items such as documentation, manuals and furniture. Items of
customer equipment, including maintenance and miscellaneous services, may be
leased, rented or sold to one customer or a group of customers without being
included in the gross charges, but will be subject to retailers'
occupation or use taxes. To be exempt, the charges for customer equipment must
be disaggregated and separately identified from other charges in the books and
records of the retailer.
c) "Gross
charges" does not include:
1) Any
amounts added to a purchaser's bill because of a charge made pursuant to:
A) the
tax imposed by the Telecommunications Excise Tax Act (35 ILCS 630/1 et seq.);
B) charges
added to customers' bills pursuant to the provisions of Sections 9-221 or 9-222
of the Public Utilities Act (220 ILCS 5/9-221, 222), as amended, or any
similar charges added to customers' bills by retailers who are not subject to
rate regulation by the Illinois Commerce Commission for the purpose of
recovering any of the tax liabilities or other amounts specified in such
provisions of the Public Utilities Act;
C) the
tax imposed by Section 4251 of the Internal Revenue Code (26 U.S.C. 4251);
D) 911
surcharges; or
E) the
tax imposed by the Simplified Municipal Telecommunications Tax Act (35 ILCS
636/5-1 et seq.). [35 ILCS 630/2(a)(1)]
2) Charges
for a sent collect telecommunication received outside of the State. [35
ILCS 630/2(a)(2)]
3) Charges for leased time on
equipment or charges for the storage of data or information for
subsequent retrieval or the processing of data or information intended to
change its form or content . [35 ILCS 630/2(a)(3)]
Charges for answering services, for example, whether provided electronically or
by live operators, represent charges for the storage of information or data for
subsequent retrieval, and are not subject to tax, provided that these charges,
if provided in connection with taxable telecommunications, are disaggregated
and separately identified in the books and records of the retailer. Charges
for automated data storage, retrieval and processing services or for the use of
computer time or other equipment are not included in gross charges. Automated
information retrieval or data processing charges are not included in gross
charges. For example, a customer who accesses an on-line computer data base
would not be subject to tax on the charge for the data processing or inquiry,
but would be subject to tax on the charge for the transmission of the data. If
a telecommunications retailer provides both transmission and data processing
services, the charges for each must be disaggregated and separately identified
in the books and records of the retailer. See 35
ILCS 630/2(a)(10).
4) Charges to business enterprises certified
under Section 9-222.1 of the Public Utilities Act (220 ILCS 5/9-222.1), as amended, or under Section 95 of the Reimagining Energy
and Vehicles in Illinois Act (20 ILCS 686/95),
to the extent of such exemption and during the period of time specified by the
Department of Commerce and Economic Opportunity. [35 ILCS 630/2(a)(5)]
5) Charges to business enterprises certified
under the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act (35
ILCS 45/110-1 et seq.), to the extent of the exemption and during the period
of time specified by the Department of Commerce and Economic Opportunity.
[35 ILCS 630/2(a)(5.1)]
6) Charges for telecommunications and all
services and equipment provided in connection therewith between a
parent corporation and its wholly owned subsidiaries or between wholly owned
subsidiaries when the tax imposed under by the Telecommunications Excise
Tax Act (35 ILCS 630/1 et seq.) has already been paid to a retailer and only
to the extent that the charges between the parent corporation and wholly owned
subsidiaries or between wholly owned subsidiaries represent expense allocation
between the corporations and not the generation of profit for the corporation
rendering such service. [35 ILCS 630/2(a)(6)]
7) Bad debts. Bad debt means any portion of a
debt that is related to a sale at retail for which gross charges
are not otherwise deductible or excludable that has become worthless or
uncollectable, as determined under applicable federal income tax standards. If
the portion of the debt deemed to be bad is subsequently paid, the retailer
shall report and pay the tax on that portion during the reporting period in
which the payment is made. [35 ILCS 630/2(a)(7)]
8) Charges paid by inserting coins in
coin-operated telecommunication devices. [35 ILCS 630/2(a)(8)]
9) Amounts
paid by telecommunications retailers under the Telecommunications Municipal
Infrastructure Maintenance Fee Act (35 ILCS 635/1 et seq.). [35 ILCS
630/2(a)(9)]
10) Charges
for nontaxable services or telecommunications if:
A) those
charges are aggregated with other charges for telecommunications that are
taxable;
B) those
charges are not separately stated on the customer bill or invoice; and
C) the
retailer can reasonably identify the nontaxable charges on the retailer's books
and records kept in the regular course of business. If the nontaxable charges
cannot reasonably be identified, the gross charge from the sale of both taxable
and nontaxable services or telecommunications billed on a combined basis shall
be attributed to the taxable services or telecommunications. The burden of
proving nontaxable charges shall be on the retailer of the telecommunications. [35
ILCS 630/2(a)(10)]
d) Value added services in which computer processing
applications are used to act on the form, content, code and protocol of the
information for purposes other than transmission are exempt. [35 ILCS 630/2(c)] For example, the charges for computer
data, protocol conversions that permit computers to exchange data, no matter
which languages or protocols a computer's out-put may be in, and
packet-switching, which groups data into packets for efficiency of
transmission, would be exempt.
e) Advertising revenue either from online directory sales (e.g., yellow
pages) or from message additions to telecommunications service are not included
in gross charges. For example, revenues from an advertising message preceding
a time/weather call are not included in gross charges.
f) Contributions to a telethon fund-raising campaign are not
included in gross charges.
g) Gross charges shall include, but are not limited to, charges
for unlisted or unpublished numbers, operator assistance, directory information,
call-waiting, call-forwarding, and burglar alarm services provided by
telecommunications retailers.
h) A caller located in Illinois who calls a 900 number and
receives a billing for that call at the caller's service address will have made
a call subject to telecommunications excise tax. The invoice to the caller for
a 900 number call need not separately state the line charge and tax
specifically. However, the telecommunications retailer is responsible for
remitting the tax due on the line charge.
i) Gross charges shall include the transmission charges for
premium services. Time/weather, gab line/party line and other public
announcement services of information and entertainment, and charges for the
message content or information of those services, are not included in gross
charges.
EXAMPLE: A
call to a 900 code number is made to register an opinion in a poll. The caller
is billed $1.00. $.80 is the transmission charge. $.80 is included in gross
charges.
j) Charges for billing and collection received by
telecommunications retailers from persons selling services or products to the
telecommunications retailers' customers, which are billed and collected by the
telecommunications retailers, are not included in gross charges.
EXAMPLE: A
call to a 900 code number to sell a product is billed by the telecommunications
retailer as follows:
|
$25.00
|
service charge to caller for
product or service
|
|
|
|
|
$
.30
|
call charge (15¢ call, 15¢
billing and collection)
|
|
|
|
|
$
.15
|
billing and collection charge
is not included in gross charges
|
|
|
|
|
$25.00
|
is not included in gross
charges
|
|
|
|
|
$
.15
|
is included in gross charge
|
k) Billing and collections charges paid by persons selling
services or products to telecommunications retailers' customers or billing and
collections charges paid by telecommunications retailers to credit card
companies whose holders have charged calls are not includable in gross charges.
l) Taxes imposed on consumers for community 911 service, lifeline
service or other services required by regulatory authorities or government are
not includable in gross charges.
m) Gross charges do not include charges for Internet access as
defined in 47 U.S.C. 151. For example, data plans provided by mobile or
wireless telecommunications providers generally are subject to the federal
moratorium.
n) "Gross charges"
for private line service shall include:
1) charges
imposed at each channel point within this State;
2) charges
for the channel mileage between each channel point within this State; and
3) charges
for that portion of the interstate inter-office channel provided within
Illinois. Charges for that portion of the interstate inter-office
channel provided in Illinois shall be determined by the retailer as follows:
A) For
interstate inter-office channels having 2 channel termination points, only one
of which is in Illinois, tax may be imposed on 50% of the total charge
imposed. For example, tax would be imposed on 50% of the total charge for
a private line with one termination point in Chicago and one termination point
in San Francisco.
B) For
interstate inter-office channels having more than 2 channel termination points,
one or more of which are in Illinois, tax may be imposed on an amount equal to
the total charge multiplied by a fraction, the numerator of which is the number
of channel termination points within Illinois and the denominator of which is
the total number of channel termination points. For example, Illinois
would receive tax on 60% of the total charge for a private line that had 3
termination points in Illinois, 1 termination point in New York and 1
termination point in Los Angeles. Using the same apportionment rule, New York
and Los Angeles would each receive tax on 20% of the total charge.
C) Tax
may be imposed using any other method that reasonably apportions the total
charges for interstate inter-office channels among the states in which channel
termination points are located. [35 ILCS 630/2(a)]
For instance, the Illinois mileage of the channel could be calculated by
determining a fraction, the numerator of which is the actual measured Illinois
miles of that channel and the denominator of which is the actual measured route
miles of the entire channel. If it is impossible for a retailer to measure
actual route miles, a method that accurately approximates the Illinois route
miles of an interstate inter-office channel and accurately approximates the
route miles of the entire channel can be used (e.g., the use of straight-line
air miles). Any method of approximation used by a telecommunications provider
shall be subject to verification by the Department.
(Source: Amended at 48 Ill.
Reg. 16566, effective November 4, 2024)
 | TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.105 EXEMPTIONS
Section 495.105 Exemptions
The exemption for State
Governments and State universities created by statute extends only to
telecommunications purchased by such entities for their own use. Such entities
are not exempt from the obligation to collect and remit tax on sales of
telecommunications to others when they act as retailers of telecommunications.
For example, a university would be exempt from Telecommunications Excise Tax on
purchases, by the university, of telecommunications services for use by its
faculty and staff in the course of their duties. However, the same university
would have an obligation to collect and remit tax on sales of
telecommunications services to students in university dormitories.
(Source: Amended at 22 Ill. Reg. 11886, effective June 29, 1998)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.110 RETAILERS
Section 495.110 Retailers
Retailers of telecommunications
are persons who engage in the business of making sales of telecommunications at
retail. This includes retailers who operate or provide radio repeater services,
paging services, facsimile transmission services and party line services.
Hotels and other traffic aggregators who sell telecommunications to guests or
other persons at retail are retailers of telecommunications.
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.111 REGISTRATION OF RETAILERS
Section 495.111 Registration
of Retailers
a) Every retailer shall apply to the
Department for a certificate of registration. The application to register must
be made on a form prescribed and furnished by the Department for that purpose. Applications
to register may be found and submitted electronically on the Department's
website at www.tax.illinois.gov.
b) Each application shall be signed and
verified and shall state:
1) the name and social security number of the
applicant;
2) the address of the retailer's principal
place of business;
3) the address of the place of business from
which the retailer engages in the business of selling telecommunications in
this State and the addresses of all other places of business, if any (enumerating
such addresses, if any, in a separate list attached to and made a part of the
application) from which the retailer engages in the business of selling
telecommunications in this State;
4) the name and address of the person or
persons who will be responsible for filing returns and payment of taxes due
under the Act;
5) in the case of a publicly traded
corporation, the name and title of the Chief Financial Officer, Chief Operating
Officer, and any other officer or employee with responsibility for preparing
tax returns under the Act; and, in the case of all other corporations, the
name, title, and social security number of each corporate officer; and
6) in the case of a limited liability company,
the name, social security number, and FEIN of each manager and member.
c) Upon completion of the form described in
subsection (a), the Department shall issue to the applicant a certificate of
registration that shall permit the person to whom it is issued to engage in
business as a retailer of telecommunications in this State. If an applicant
engages in the business of telecommunications at another location in this
State, the Department shall furnish the applicant with a sub-certificate of
registration for that place of business, and the applicant shall display the
appropriate sub-certificate of registration at that place of business. The
sub-certificate of registration shall bear the same registration number as that
appearing upon the certificate of registration to which the sub-certificate
relates.
d) A certificate of
registration will be valid for 1 year and will automatically be renewed,
subject to revocation as provided by Section 495.112, in 1 year increments from
the date of its expiration, unless otherwise notified by the Department as
provided in this Section.
e) The Department may refuse to issue,
reissue, or renew a certificate of registration, permit, or license authorized
to be issued by the Department if a person who is named as the owner, a
partner, a corporate officer, or, in the case of a limited liability company, a
manager or member, of the applicant on the application for the certificate of
registration, permit, or license is or has been named as the owner, a partner,
a corporate officer, or, in the case of a limited liability company, a manager
or member, on the application for the certificate of registration of a person
that is in default for moneys due under the tax or fee Act upon which the
certificate of registration, permit, or license is required or any other tax or
fee Act administered by the Department. For purposes of this Section only, in
determining whether a person is in default for moneys due, the Department shall
include only amounts established as a final liability within the 23 years prior
to the date of the Department's notice of refusal to issue or reissue the
certificate of registration, permit, or license. [20 ILCS 2505/2505-380(b)]
f) When a taxpayer to whom a certificate of
registration is issued under the Act is in default to the State of Illinois for
delinquent returns or for moneys due under the Act or any other State tax or
fee Act or municipal or county ordinance administered or enforced by the
Department, the Department shall, not less than 60 days before the expiration
of the certificate of registration, give notice to the taxpayer to whom the
certificate was issued, of the following:
1) the account period of the delinquent
returns;
2) the amount of tax, penalty and interest due
and owing from the taxpayer; and
3) that the certificate of registration shall
not be automatically renewed upon its expiration date unless the taxpayer, on
or before the date of expiration, has filed and paid the delinquent returns or
paid the defaulted amount in full.
g) The Department shall approve renewal by a
taxpayer who is in default if, at the time of renewal, the taxpayer files all
of the delinquent returns or pays to the Department the percentage of the
defaulted amount as may be determined by the Department and agrees in writing
to a payment plan for paying the balance of the defaulted amount.
h) Any person aggrieved by any decision of the
Department under this Section may, within 20 days after notice of the decision,
protest and request a hearing pursuant to procedures outlined in 86 Ill. Adm.
Code 200 et seq. After receipt of the request for a hearing, the Department
shall give notice to the person of the time and place fixed for the hearing,
shall hold a hearing, and shall issue its final administrative decision in the
matter to the person. In the absence of a protest within 20 days, the
Department's decision shall become final without any further determination
being made or notice given.
(Source:
Amended at 47 Ill. Reg. 1467, effective January 17, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.112 REVOCATION OF CERTIFICATE OF REGISTRATION
Section 495.112
Revocation of Certificate of Registration
a) The Department has the power, after
notice and an opportunity for a hearing, to revoke a certificate of
registration, permit, or license issued by the Department if the holder of the
certificate of registration, permit, or license fails to file a return, or to
pay the tax, fee, penalty, or interest shown in a filed return, or to pay any
final assessment of tax, fee, penalty, or interest, as required by the tax or
fee Act under which the certificate of registration, permit, or license is
required or any other tax or fee Act administered by the Department. [20
ILCS 2505/2505-380(a)]
b) The Department, after notice and hearing,
shall revoke the certificate of registration (including all sub-certificates of
registration, if any, issued under Section 495.111) of any retailer who
violates any of the provisions of the Act or this Part. Before revocation of a
certificate of registration, the Department shall, within 90 days after
non-compliance and at least 7 days prior to the date of the hearing, give the
retailer notice in writing of the charge against the retailer, and on the date
designated shall conduct a hearing upon this matter pursuant to procedures
outlined in 86 Ill. Adm. Code 200 et seq. The lapse of the 90-day period shall
not preclude the Department from conducting revocation proceedings at a later
date if necessary.
(Source:
Added at 45 Ill. Reg. 14494, effective November 2, 2021)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.115 INTERSTATE
Section 495.115 Interstate
Interstate telecommunications
means all telecommunications that either originate or terminate outside the
State. This includes telecommunications that originate or terminate outside of
the United States. Consumers paying foreign taxes on telecommunications may
take credit for such taxes in the same manner as taxes paid to other states.
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.120 MOBILE OPERATIONS SERVICE ADDRESS
Section 495.120 Mobile
Operations – Service Address
When the "service
address" is not a defined location, as in the case of mobile phones,
paging systems, or maritime systems, "service address" means the
customer's place of primary use as defined in the Mobile Telecommunications
Sourcing Conformity Act [35 ILCS 638]. (Section 2(n) of the Act)
(Source: Amended at 42 Ill. Reg. 19044, effective October 3, 2018)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.125 RESPONSIBILITY FOR ACCOUNTING AND PAYMENT OF TAX
Section 495.125
Responsibility for Accounting and Payment of Tax
If a local exchange carrier acts
as an agent of a long distance carrier, inter-exchange carrier, alternative
operator service, or billing and collections contractor and bills local
customers for long distance service and local service as well as the tax applicable
for such services, and remits a part of the collections to its principal, the
local exchange carrier or retailer is liable only for such amounts as it
retains, but is required to maintain and provide billing data and accounting
data to the other party and the Department of Revenue. Amounts remitted to
principals are their responsibility. Long distance carriers, inter-exchange
carriers and other retailers who retain local exchange carriers, or other
agents in Illinois to bill and collect gross charges from customers in
Illinois, are considered to be retailers maintaining a place of business in
Illinois and must register with the Department and file returns.
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.130 CREDITS
Section 495.130 Credits
a) Retailers who have paid Telecommunications Excise Tax to a
local exchange carrier, or other retailers, on basic line charges or other
services, and who have resold those services, may take a direct deduction of
such taxes without filing a claim with the Department. Consumers who have paid
tax to Illinois and another jurisdiction on a particular call may file a direct
claim with the Department.
b) As
to any claim for credit or refund filed with the Department on or after each
January 1 and July 1, no amounts erroneously paid more than 3 years prior to
such January 1 and July 1,
respectively, shall be credited or refunded, except that if both the Department
and the taxpayer have agreed to an extension of time to issue a notice of tax
liability under this Act, the claim may be filed at any time prior to the
expiration of the period agreed upon.
c) Beginning
June 25, 2021, for any period included in a claim for credit or refund for
which the statute of limitations for issuing a notice of tax liability under this
Act will expire less than 6 months after the date a taxpayer files the claim
for credit or refund, the statute of limitations is automatically extended for
6 months from the date it would have otherwise expired. [35 ILCS 630/10].
d) The claim must be accompanied by documentation which would
include the billing reflecting tax charged to the taxpayer and relating the tax
charges to specific calls or transactions.
e) For example, a corporation might have its service address in
Illinois and its billing address in a state which imposes tax based upon its
billing address. If the same call is subject to tax in Illinois because it
originated in Illinois, and was charged to a service address in Illinois, and
is subject to tax in another state because it terminated in the other state,
and was billed to a billing address in that other state, a credit is available
in Illinois to the extent of the tax imposed by the other state, but not
exceeding the tax due on that call in Illinois.
(Source: Amended at 47 Ill. Reg. 5816, effective April 4, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.135 TAX RETURNS WHEN DUE CONTENTS
Section 495.135 Tax Returns
– When Due – Contents
a) Monthly Returns
On or before the 15th day of each calendar month, each
retailer maintaining a place of business in this State shall make a return to
the Department for the preceding calendar month, stating the following:
1) Retailer's name.
2) The address of the principal place of business, and the
address of the principal place of business (if that is a different address)
from which the retailer engages in the business of transmitting
telecommunications.
3) Total amount of gross charges billed by the retailer during
the preceding calendar month for providing telecommunications during such
calendar month.
4) Total amount received by the retailer during the preceding
calendar month on credit extended.
5) Deductions allowed by law.
6) Gross charges billed by the retailer during the preceding
calendar month and upon the basis of which the tax is imposed.
7) Amount of tax (computed upon Item 6).
b) Quarterly Returns
If the retailer's average monthly tax billings due to the
Department do not exceed $200, the Department may authorize the returns to be
filed on a quarter annual basis, with the return for January, February, and
March of a given year being due by April 15 of such year; with the return for
April, May, and June of a given year being due by July 15 of such year; with
the return for July, August, and September of a given year being due by October
15 of such year; and with the return for October, November, and December of a
given year being due by January 15 of the following year. Such quarterly
returns, as to form and substance, shall be subject to the same requirements as
monthly returns.
c) Annual Returns
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax billings due to the
Department do not exceed $50, the Department may authorize the return to be
filed on an annual basis, with the return for a given year being due by January
15 of the following year. Such annual returns, as to form and substance, shall
be subject to the same requirements as monthly returns.
d) Quarter Monthly Payments in Certain Instances
Each retailer whose average monthly liability to the
Department was $10,000 or more during the preceding calendar year, excluding
the month of highest liability and the month of lowest liability in such
calendar year, and who is not operated by a unit of local government, shall
make estimated payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which tax collection liability to the Department
is incurred in an amount not less than the lower of either 22.5% of the
retailer's actual tax collections for the month or 25% of the retailer's actual
tax collections for the same calendar month of the preceding year. The amount
of such quarter monthly payments shall be credited against the final liability
of the retailer's return for that month. Any outstanding credit, approved by
the Department, arising from the retailer's overpayment of its final liability
for any month may be applied to reduce the amount of any subsequent quarter
monthly payment or credited against the final liability of the retailer's return
for any subsequent month. If any quarter monthly payment is not paid at the
time or in the amount required by this Section, the retailer shall be liable
for penalty and interest on the difference between the minimum amount due as a
payment and the amount of such payment actually and timely paid, except insofar
as the retailer has previously made payments for that month to the Department
in excess of the minimum payments previously due.
e) Direct Return by Taxpayer
When a taxpayer does not pay the Telecommunications Excise
Tax to a retailer, such taxpayer shall file a return with the Department and
pay the tax upon that portion of gross charges so paid to the retailer during
the preceding calendar month by the 15th day of the month following that month.
When a taxpayer pays the Telecommunications Excise Tax directly to the
Department, the Department (upon request from the taxpayer) shall issue an
appropriate receipt to the taxpayer showing that the taxpayer has paid the tax
to the Department. The receipt shall be sufficient to relieve the taxpayer from
further liability for the amount of tax to which the receipt may refer.
(Source: Added at 24 Ill. Reg. 12082, effective July 28, 2000)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 495
TELECOMMUNICATIONS EXCISE TAX
SECTION 495.140 IMPOSITION OF TELECOMMUNICATIONS EXCISE TAX
Section 495.140 Imposition
of Telecommunications Excise Tax
a) The Telecommunications Excise Tax is imposed upon the act or
privilege of originating or receiving intrastate or interstate
telecommunications in Illinois at the rate of 7% of the gross charge for such
telecommunications purchased at retail from retailers. On and after January
1, 2001, prepaid telephone calling arrangements shall not be considered
telecommunications subject to the Telecommunications Excise Tax. (Sections
3 and 4 of the Act) "Prepaid telephone calling arrangements" means
the right to exclusively purchase telephone or telecommunications services that
must be paid for in advance and enable the origination of one or more
intrastate, interstate, or international telephone calls or other
telecommunications using an access number, an authorization code, or both,
whether manually or electronically dialed, for which payment to a retailer must
be made in advance, provided that, unless recharged, no further service is
provided once that prepaid amount of service has been consumed. Prepaid
telephone calling arrangements include the recharge of a prepaid calling
arrangement. For purposes of this Section, "recharge" means the
purchase of additional prepaid telephone or telecommunications services whether
or not the purchaser acquires a different access number or authorization code.
For purposes of this Section, "telecommunications" means that term as
defined in Section 2 of the Telecommunications Excise Tax Act [35 ILCS
630]. "Prepaid telephone calling arrangement" does not include an
arrangement whereby a customer purchases a payment card and pursuant to which
the service provider reflects the amount of the purchase as a credit on an
account for a customer under an existing subscription plan. (Section 2 of
the Act)
b) The Telecommunications Excise Tax must be collected from a
taxpayer by a "retailer maintaining a place of business in this
State".
1) "Retailer maintaining a place of business in this
State" means and includes any retailer having or maintaining within this
State, directly or by a subsidiary, an office, distribution facilities,
transmission facilities, sales office, warehouse or other place of business, or
any agent or other representative operating within this State under the
authority of the retailer or its subsidiary, irrespective of whether such place
of business or agent or other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is licensed to do business
in this State. (Section 2(m) of the Act)
2) Retailers maintaining a place of business in this State shall
collect the tax from the taxpayer by adding the tax to the gross charge for the
act or privilege of originating or receiving telecommunications in this State,
when sold for use. Whenever possible, the tax shall be stated as a distinct
item separate and apart from the gross charge for telecommunications.
(Source: Amended at 25 Ill. Reg. 5034, effective March 19, 2001)
|
|
|
|
|
|
|
|
|
|
|
