HB5440sam002 97TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 5/30/2012

09700HB5440sam002 LRB097 17684 HLH 70315 a

AMENDMENT TO HOUSE BILL 5440

AMENDMENT NO. ______. Amend House Bill 5440 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Direct Broadcast Satellite Service Providers Fee Act.

Section 5. Definitions.

"Department" means the Department of Revenue of the State of Illinois.

"Direct broadcast satellite service" means the distribution or broadcasting of video programming or services by satellite to receiving equipment located at a subscriber's or customer's premises, including, but not limited to, the provision of premium channels, the provision of music or other audio services or channels, and any other service received in connection with the provision of that video programming or those services. However, "direct broadcast satellite service" does not include satellite radio service or subscription radio service whereby a digital radio signal is broadcast without any corresponding or related video programming or services.

"Gross revenue" means all consideration of any kind or nature received by a provider, or an affiliate of the provider, in connection with the provision of direct broadcast satellite service to subscribers or customers, including recurring monthly charges for direct broadcast satellite service and pay-per-view, video-on-demand, and other event-based charges for direct broadcast satellite service; provided, however, that gross revenues shall not include:

(1) revenue not actually received, regardless of whether it is billed, including, but not limited to, bad debts;

(2) revenue received by an affiliate or other person in exchange for supplying goods and services used by a provider;

(3) refunds, rebates, or discounts made to subscribers or customers, to advertisers, or to other persons;

(4) revenue from any service that is subject to tax under the Service Occupation Tax Act, Retailers' Occupation Tax Act, Service Use Tax Act, or Use Tax Act;

(5) the fee imposed by this Act or any tax of general applicability imposed on a provider or a purchaser of direct broadcast satellite service, by a federal, State, or local governmental entity and required to be collected by a person and remitted to the taxing entity;

(6) charges, other than those charges specifically described in this Act, that are aggregated or bundled with such specifically-described charges on a subscriber or customer's bill, if the provider can reasonably identify the charges in its books and records kept in the regular course of business;

(7) revenue from advertising services; or

(8) charges that may not be taxed pursuant to the Internet Tax Freedom Act.

"Person" means any natural individual, firm, trust, estate, partnership, association, joint stock company, joint venture, corporation, limited liability company, or a receiver, trustee, guardian, or other representative appointed by order of any court, the federal government and State governments, including State universities created by statute or any city, town, county, or other political subdivision of this State.

"Provider" means a person who transmits, broadcasts, sells, or distributes direct broadcast satellite service to subscribers or customers in the State.

"Subscriber" or "customer" means a member of the general public who receives direct broadcast satellite service from a provider and does not further distribute such service in the ordinary course of business.

"Video programming" means programming provided by, or programming comparable to programming provided by, a television broadcast station or multichannel video service provider, including, but not limited to, video programming provided by local networks, national broadcast networks, and all forms of pay-per-view video entertainment.

Section 10. Imposition of a service provider fee.

(a) A fee is imposed upon the act or privilege of providing direct broadcast satellite service to a subscriber or customer in this State by any provider at the rate of 5% of the provider's gross revenues derived from or attributable to that customer or subscriber.

(b) The fee imposed by subsection (a) may be passed through to, and collected from, the provider's customers in Illinois. To the extent allowed under federal or State law, a provider may identify as a separate line item on each regular bill issued to a subscriber or customer the amount of the total bill assessed as a fee under this Act.

Section 15. Remittances.

(a) On or before the twentieth day of each calendar month, every provider of direct broadcast satellite service to a subscriber or customer in this State during the preceding calendar month shall file a return with the Department, in a form prescribed by the Department, stating:

(1) the name of the provider;

(2) the address of the provider's principal place of business;

(3) total amount of gross revenues received by the provider during the preceding calendar month, quarter, or year, as the case may be, from the provision of direct broadcast satellite service during that preceding calendar month, quarter, or year and upon the basis of which the fee is imposed;

(4) the amount of fee due;

(5) the signature of the provider; and

(6) such other reasonable information as the Department may require.

(b) If a provider fails to sign a return within 30 days after the proper notice and demand for signature by the Department is received by the provider, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

(c) If the provider is otherwise required to file a monthly return, and if the provider's average monthly fee liability to the Department under this Act does not exceed $200, the Department may authorize the provider's 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 20 of that year; with the return for April, May, and June of a given year being due by July 20 of that year; with the return for July, August, and September of a given year being due by October 20 of that year; and with the return for October, November, and December of a given year being due by January 20 of the following year.

(d) If the provider is otherwise required to file a monthly or quarterly return, and if the provider's average monthly fee liability with the Department under this Act does not exceed $50, the Department may authorize the provider's returns to be filed on an annual basis, with the return for a given year being due by January 20 of the following year.

(e) Those quarterly and annual returns shall be subject to the same requirements as to form and substance as monthly returns.

(f) A provider who has a fee liability that exceeds the amount set forth in subsection (b) of Section 2505-210 of the Department of Revenue Law for tax liabilities shall make all payments required by rules of the Department by electronic funds transfer.

(g) Any provider not required to make payments by electronic funds transfer may make payments by electronic funds transfer with the permission of the Department.

(h) All providers required to make payment by electronic funds transfer and any providers authorized to voluntarily make payments by electronic funds transfer shall make those payments in the manner authorized by the Department.

Section 20. Records.

(a) A provider on whom a fee is imposed by this Act shall maintain the necessary records, and any other information required by the Department, to determine the amount of the fee that the provider is required to remit and any credit that the provider is entitled to claim under this Act.

(b) The records shall be open at all times to inspection by the Department.

Section 25. Distribution of proceeds. The proceeds of the fee collected shall be deposited into the Education Assistance Fund in the State treasury.

Section 30. Department's authority to adopt rules. The Department is authorized to make, promulgate, and enforce such reasonable rules, and to prescribe such forms relating to the administration and enforcement of this Act, as it may deem appropriate.

Section 35. Applicability. This Act becomes operative on July 1, 2012, and applies to the provision of direct broadcast satellite service on or after that date.

Section 99. Effective date. This Act takes effect upon becoming law.".