101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4669

 

Introduced 2/18/2020, by Rep. Kelly M. Burke

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/2-27

    Amends the Retailers' Occupation Tax Act. Provides that the term "prepaid telephone calling arrangements" includes only telephone or telecommunications services obtained through the purchase of a prepaid phone, calling card, or other item of tangible personal property. Effective immediately.


LRB101 16497 HLH 65878 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4669LRB101 16497 HLH 65878 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 2-27 as follows:
 
6    (35 ILCS 120/2-27)
7    Sec. 2-27. Prepaid telephone calling arrangements.
8"Prepaid telephone calling arrangements" mean the right to
9exclusively purchase telephone or telecommunications services
10that must be paid for in advance and enable the origination of
11one or more intrastate, interstate, or international telephone
12calls or other telecommunications using an access number, an
13authorization code, or both, whether manually or
14electronically dialed, for which payment to a retailer must be
15made in advance, provided that (i) , unless recharged, no
16further service is provided once that prepaid amount of service
17has been consumed and (ii) the telephone or telecommunications
18services included in such arrangement are obtained through the
19purchase of a prepaid phone, calling card, or other item of
20tangible personal property. Prepaid telephone calling
21arrangements include the recharge of a prepaid calling
22arrangement. For purposes of this Section, "recharge" means the
23purchase of additional prepaid telephone or telecommunications

 

 

HB4669- 2 -LRB101 16497 HLH 65878 b

1services whether or not the purchaser acquires a different
2access number or authorization code. For purposes of this
3Section, "telecommunications" means that term as defined in
4Section 2 of the Telecommunications Excise Tax Act. "Prepaid
5telephone calling arrangement" does not include an arrangement
6whereby the service provider reflects the amount of the
7purchase as a credit on an account for a customer under an
8existing subscription plan, nor does it include recharging that
9is not obtained through the purchase of a prepaid phone,
10calling card, or other item of tangible personal property.
11(Source: P.A. 91-870, eff. 6-22-00.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.