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90_HB1817enr
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Amends the Environmental Protection Act. Creates a new
Title of the Act relating to the Brownfields Rehabilitation
and Redevelopment Program. Provides that the Department of
Commerce and Community Affairs shall administer a program
that encourages private sector voluntary remediation of
environmentally-distressed and underutilized sites that
demonstrate the potential to contribute to the economic
growth if expanded, rehabilitated, or redeveloped. Provides
that the Department, in cooperation with the Environmental
Protection Agency, the Department of Agriculture, and the
Department of Natural Resources, shall prescribe rules for
the implementation of the program. Provides that the
provisions of the title are repealed 5 years after the
effective date of this amendatory Act. Amends the Illinois
Income Tax Act. Creates the Brownfields Remediation Tax
Credit. Provides that the credit is available to each
taxpayer that has (1) entered into a development agreement
with Department of Commerce and Community Affairs, has
received an allocation for the credit, and has received a
certificate of eligibility for the credit or (2) is a
transferee of the credit. Provides that the Department of
Commerce and Community Affairs shall determine the amount of
the credit. Provides that the credit shall be in an amount
equal to the lesser of (1) 100% of the remediation costs
expended for an approved Brownfields project or (2) 100% of
the projected present value of new State tax revenue
generated by an approved Brownfields project. Exempts this
credit from the sunset provisions. Creates the Small
Business Remediation Tax Credit for taxpayers that employ no
more than 50 employees and undertake the expansion,
rehabilitation, or redevelopment of a Brownfields site
project that generates measurable economic growth resulting
in either a revenue neutral benefit or a net fiscal benefit.
Provides that the Department of Revenue and the Department of
Commerce and Community Affairs shall adopt a tax credit
schedule. Provides that this credit is available for tax
years beginning on or after January 1, 1997. Sunsets this
credit after 5 years. Provides that the Brownfields
Remediation Tax Credit and the Small Business Remediation Tax
Credit may not be taken together. Makes other changes.
Effective immediately.
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1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5 changing Sections 301, 304, and 704 as follows:
6 (35 ILCS 5/301) (from Ch. 120, par. 3-301)
7 Sec. 301. General Rule.
8 (a) Residents. All items of income or deduction which
9 were taken into account in the computation of base income for
10 the taxable year by a resident shall be allocated to this
11 State.
12 (b) Part-year residents. All items of income or
13 deduction which were taken into account in the computation of
14 base income for the taxable year by a part-year resident
15 shall, for that part of the year the part-year resident was a
16 resident of this State, be allocated to this State and, for
17 the remaining part of the year, be allocated to this State
18 only to the extent provided by Section 302, 303 or 304
19 (relating to compensation, nonbusiness income and business
20 income, respectively).
21 (c) Other persons.
22 (1) In general. Any item of income or deduction
23 which was taken into account in the computation of base
24 income for the taxable year by any person other than a
25 resident and which is referred to in Section 302, 303 or
26 304 (relating to compensation, nonbusiness income and
27 business income, respectively) shall be allocated to this
28 State only to the extent provided by such section.
29 (2) Unspecified items. Any item of income or
30 deduction which was taken into account in the computation
31 of base income for the taxable year by any person other
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1 than a resident and which is not otherwise specifically
2 allocated or apportioned pursuant to Section 302, 303 or
3 304 (including, without limitation, interest, dividends,
4 items of income taken into account under the provisions
5 of Sections 401 through 425 of the Internal Revenue Code,
6 and benefit payments received by a beneficiary of a
7 supplemental unemployment benefit trust which is referred
8 to in Section 501(c)(17) of the Internal Revenue Code):
9 (A) in the case of an individual, trust, or
10 estate, shall not be allocated to this State; and
11 (B) in the case of a corporation, trust, or a
12 partnership, shall be allocated to this State if the
13 taxpayer had its commercial domicile in this State
14 at the time such item was paid, incurred or accrued.
15 (Source: P.A. 90-491, eff. 1-1-98.)
16 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
17 Sec. 304. Business income of persons other than
18 residents.
19 (a) In general. The business income of a person other
20 than a resident shall be allocated to this State if such
21 person's business income is derived solely from this State.
22 If a person other than a resident derives business income
23 from this State and one or more other states, then, except as
24 otherwise provided by this Section, such person's business
25 income shall be apportioned to this State by multiplying the
26 income by a fraction, the numerator of which is the sum of
27 the property factor (if any), the payroll factor (if any) and
28 200% of the sales factor (if any), and the denominator of
29 which is 4 reduced by the number of factors other than the
30 sales factor which have a denominator of zero and by an
31 additional 2 if the sales factor has a denominator of zero.
32 (1) Property factor.
33 (A) The property factor is a fraction, the
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1 numerator of which is the average value of the person's
2 real and tangible personal property owned or rented and
3 used in the trade or business in this State during the
4 taxable year and the denominator of which is the average
5 value of all the person's real and tangible personal
6 property owned or rented and used in the trade or
7 business during the taxable year.
8 (B) Property owned by the person is valued at its
9 original cost. Property rented by the person is valued at
10 8 times the net annual rental rate. Net annual rental
11 rate is the annual rental rate paid by the person less
12 any annual rental rate received by the person from
13 sub-rentals.
14 (C) The average value of property shall be
15 determined by averaging the values at the beginning and
16 ending of the taxable year but the Director may require
17 the averaging of monthly values during the taxable year
18 if reasonably required to reflect properly the average
19 value of the person's property.
20 (2) Payroll factor.
21 (A) The payroll factor is a fraction, the numerator
22 of which is the total amount paid in this State during
23 the taxable year by the person for compensation, and the
24 denominator of which is the total compensation paid
25 everywhere during the taxable year.
26 (B) Compensation is paid in this State if:
27 (i) The individual's service is performed
28 entirely within this State;
29 (ii) The individual's service is performed
30 both within and without this State, but the service
31 performed without this State is incidental to the
32 individual's service performed within this State; or
33 (iii) Some of the service is performed within
34 this State and either the base of operations, or if
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1 there is no base of operations, the place from which
2 the service is directed or controlled is within this
3 State, or the base of operations or the place from
4 which the service is directed or controlled is not
5 in any state in which some part of the service is
6 performed, but the individual's residence is in this
7 State.
8 Beginning with taxable years ending on or after
9 December 31, 1992, for residents of states that impose a
10 comparable tax liability on residents of this State, for
11 purposes of item (i) of this paragraph (B), in the case
12 of persons who perform personal services under personal
13 service contracts for sports performances, services by
14 that person at a sporting event taking place in Illinois
15 shall be deemed to be a performance entirely within this
16 State.
17 (3) Sales factor.
18 (A) The sales factor is a fraction, the numerator
19 of which is the total sales of the person in this State
20 during the taxable year, and the denominator of which is
21 the total sales of the person everywhere during the
22 taxable year.
23 (B) Sales of tangible personal property are in this
24 State if:
25 (i) The property is delivered or shipped to a
26 purchaser, other than the United States government,
27 within this State regardless of the f. o. b. point
28 or other conditions of the sale; or
29 (ii) The property is shipped from an office,
30 store, warehouse, factory or other place of storage
31 in this State and either the purchaser is the United
32 States government or the person is not taxable in
33 the state of the purchaser; provided, however, that
34 premises owned or leased by a person who has
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1 independently contracted with the seller for the
2 printing of newspapers, periodicals or books shall
3 not be deemed to be an office, store, warehouse,
4 factory or other place of storage for purposes of
5 this Section. Sales of tangible personal property
6 are not in this State if the seller and purchaser
7 would be members of the same unitary business group
8 but for the fact that either the seller or purchaser
9 is a person with 80% or more of total business
10 activity outside of the United States and the
11 property is purchased for resale.
12 (C) Sales, other than sales of tangible personal
13 property, are in this State if:
14 (i) The income-producing activity is performed
15 in this State; or
16 (ii) The income-producing activity is
17 performed both within and without this State and a
18 greater proportion of the income-producing activity
19 is performed within this State than without this
20 State, based on performance costs.
21 (D) For taxable years ending on or after December
22 31, 1995 and excluding taxable years ending after
23 December 31, 1997, the following items of income shall
24 not be included in the numerator or denominator of the
25 sales factor: dividends; amounts included under Section
26 78 of the Internal Revenue Code; and Subpart F income as
27 defined in Section 952 of the Internal Revenue Code. No
28 inference shall be drawn from the enactment of this
29 paragraph (D) in construing this Section for taxable
30 years ending before December 31, 1995.
31 (b) Insurance companies.
32 (1) In general. Except as otherwise provided by
33 paragraph (2), business income of an insurance company for a
34 taxable year shall be apportioned to this State by
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1 multiplying such income by a fraction, the numerator of which
2 is the direct premiums written for insurance upon property or
3 risk in this State, and the denominator of which is the
4 direct premiums written for insurance upon property or risk
5 everywhere. For purposes of this subsection, the term "direct
6 premiums written" means the total amount of direct premiums
7 written, assessments and annuity considerations as reported
8 for the taxable year on the annual statement filed by the
9 company with the Illinois Director of Insurance in the form
10 approved by the National Convention of Insurance
11 Commissioners or such other form as may be prescribed in lieu
12 thereof.
13 (2) Reinsurance. If the principal source of premiums
14 written by an insurance company consists of premiums for
15 reinsurance accepted by it, the business income of such
16 company shall be apportioned to this State by multiplying
17 such income by a fraction, the numerator of which is the sum
18 of (i) direct premiums written for insurance upon property or
19 risk in this State, plus (ii) premiums written for
20 reinsurance accepted in respect of property or risk in this
21 State, and the denominator of which is the sum of (iii)
22 direct premiums written for insurance upon property or risk
23 everywhere, plus (iv) premiums written for reinsurance
24 accepted in respect of property or risk everywhere. For
25 purposes of this paragraph, premiums written for reinsurance
26 accepted in respect of property or risk in this State,
27 whether or not otherwise determinable, may, at the election
28 of the company, be determined on the basis of the proportion
29 which premiums written for reinsurance accepted from
30 companies commercially domiciled in Illinois bears to
31 premiums written for reinsurance accepted from all sources,
32 or, alternatively, in the proportion which the sum of the
33 direct premiums written for insurance upon property or risk
34 in this State by each ceding company from which reinsurance
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1 is accepted bears to the sum of the total direct premiums
2 written by each such ceding company for the taxable year.
3 (c) Financial organizations.
4 (1) In general. Business income of a financial
5 organization shall be apportioned to this State by
6 multiplying such income by a fraction, the numerator of which
7 is its business income from sources within this State, and
8 the denominator of which is its business income from all
9 sources. For the purposes of this subsection, the business
10 income of a financial organization from sources within this
11 State is the sum of the amounts referred to in subparagraphs
12 (A) through (E) following, but excluding the adjusted income
13 of an international banking facility as determined in
14 paragraph (2):
15 (A) Fees, commissions or other compensation for
16 financial services rendered within this State;
17 (B) Gross profits from trading in stocks, bonds or
18 other securities managed within this State;
19 (C) Dividends, and interest from Illinois
20 customers, which are received within this State;
21 (D) Interest charged to customers at places of
22 business maintained within this State for carrying debit
23 balances of margin accounts, without deduction of any
24 costs incurred in carrying such accounts; and
25 (E) Any other gross income resulting from the
26 operation as a financial organization within this State.
27 In computing the amounts referred to in paragraphs (A)
28 through (E) of this subsection, any amount received by a
29 member of an affiliated group (determined under Section
30 1504(a) of the Internal Revenue Code but without
31 reference to whether any such corporation is an
32 "includible corporation" under Section 1504(b) of the
33 Internal Revenue Code) from another member of such group
34 shall be included only to the extent such amount exceeds
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1 expenses of the recipient directly related thereto.
2 (2) International Banking Facility.
3 (A) Adjusted Income. The adjusted income of an
4 international banking facility is its income reduced by
5 the amount of the floor amount.
6 (B) Floor Amount. The floor amount shall be the
7 amount, if any, determined by multiplying the income of
8 the international banking facility by a fraction, not
9 greater than one, which is determined as follows:
10 (i) The numerator shall be:
11 The average aggregate, determined on a
12 quarterly basis, of the financial organization's
13 loans to banks in foreign countries, to foreign
14 domiciled borrowers (except where secured primarily
15 by real estate) and to foreign governments and other
16 foreign official institutions, as reported for its
17 branches, agencies and offices within the state on
18 its "Consolidated Report of Condition", Schedule A,
19 Lines 2.c., 5.b., and 7.a., which was filed with the
20 Federal Deposit Insurance Corporation and other
21 regulatory authorities, for the year 1980, minus
22 The average aggregate, determined on a
23 quarterly basis, of such loans (other than loans of
24 an international banking facility), as reported by
25 the financial institution for its branches, agencies
26 and offices within the state, on the corresponding
27 Schedule and lines of the Consolidated Report of
28 Condition for the current taxable year, provided,
29 however, that in no case shall the amount determined
30 in this clause (the subtrahend) exceed the amount
31 determined in the preceding clause (the minuend);
32 and
33 (ii) the denominator shall be the average
34 aggregate, determined on a quarterly basis, of the
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1 international banking facility's loans to banks in
2 foreign countries, to foreign domiciled borrowers
3 (except where secured primarily by real estate) and
4 to foreign governments and other foreign official
5 institutions, which were recorded in its financial
6 accounts for the current taxable year.
7 (C) Change to Consolidated Report of Condition and
8 in Qualification. In the event the Consolidated Report
9 of Condition which is filed with the Federal Deposit
10 Insurance Corporation and other regulatory authorities is
11 altered so that the information required for determining
12 the floor amount is not found on Schedule A, lines 2.c.,
13 5.b. and 7.a., the financial institution shall notify the
14 Department and the Department may, by regulations or
15 otherwise, prescribe or authorize the use of an
16 alternative source for such information. The financial
17 institution shall also notify the Department should its
18 international banking facility fail to qualify as such,
19 in whole or in part, or should there be any amendment or
20 change to the Consolidated Report of Condition, as
21 originally filed, to the extent such amendment or change
22 alters the information used in determining the floor
23 amount.
24 (d) Transportation services. Business income derived
25 from furnishing transportation services shall be apportioned
26 to this State in accordance with paragraphs (1) and (2):
27 (1) Such business income (other than that derived
28 from transportation by pipeline) shall be apportioned to
29 this State by multiplying such income by a fraction, the
30 numerator of which is the revenue miles of the person in
31 this State, and the denominator of which is the revenue
32 miles of the person everywhere. For purposes of this
33 paragraph, a revenue mile is the transportation of 1
34 passenger or 1 net ton of freight the distance of 1 mile
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1 for a consideration. Where a person is engaged in the
2 transportation of both passengers and freight, the
3 fraction above referred to shall be determined by means
4 of an average of the passenger revenue mile fraction and
5 the freight revenue mile fraction, weighted to reflect
6 the person's
7 (A) relative railway operating income from
8 total passenger and total freight service, as
9 reported to the Interstate Commerce Commission, in
10 the case of transportation by railroad, and
11 (B) relative gross receipts from passenger and
12 freight transportation, in case of transportation
13 other than by railroad.
14 (2) Such business income derived from
15 transportation by pipeline shall be apportioned to this
16 State by multiplying such income by a fraction, the
17 numerator of which is the revenue miles of the person in
18 this State, and the denominator of which is the revenue
19 miles of the person everywhere. For the purposes of this
20 paragraph, a revenue mile is the transportation by
21 pipeline of 1 barrel of oil, 1,000 cubic feet of gas, or
22 of any specified quantity of any other substance, the
23 distance of 1 mile for a consideration.
24 (e) Combined apportionment. Where 2 or more persons are
25 engaged in a unitary business as described in subsection
26 (a)(27) of Section 1501, a part of which is conducted in this
27 State by one or more members of the group, the business
28 income attributable to this State by any such member or
29 members shall be apportioned by means of the combined
30 apportionment method.
31 (f) Alternative allocation. If the allocation and
32 apportionment provisions of subsections (a) through (e) do
33 not fairly represent the extent of a person's business
34 activity in this State, the person may petition for, or the
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1 Director may require, in respect of all or any part of the
2 person's business activity, if reasonable:
3 (1) Separate accounting;
4 (2) The exclusion of any one or more factors;
5 (3) The inclusion of one or more additional factors
6 which will fairly represent the person's business
7 activities in this State; or
8 (4) The employment of any other method to
9 effectuate an equitable allocation and apportionment of
10 the person's business income.
11 (g) Cross reference. For allocation of business income
12 by residents, see Section 301(a).
13 (Source: P.A. 89-379, eff. 1-1-96; 89-399, eff. 8-20-95;
14 89-626, eff. 8-9-96.)
15 (35 ILCS 5/704) (from Ch. 120, par. 7-704)
16 Sec. 704. Employer's Return and Payment of Tax Withheld.
17 (a) In general, every employer who deducts and withholds
18 or is required to deduct and withhold tax under this Act
19 shall make such payments and returns as hereinafter provided.
20 (b) Quarter Monthly Payments: Returns. Every employer
21 who deducts and withholds or is required to deduct and
22 withhold tax under this Act shall, on or before the third
23 banking day following the close of a quarter monthly period,
24 pay to the Department or to a depositary designated by the
25 Department, pursuant to regulations prescribed by the
26 Department, the taxes so required to be deducted and
27 withheld, whenever the aggregate amount withheld by such
28 employer (together with amounts previously withheld and not
29 paid to the Department) exceeds $1,000. For purposes of this
30 Section, Saturdays, Sundays, legal holidays and local bank
31 holidays are not banking days. A quarter monthly period, for
32 purposes of this subsection, ends on the 7th, 15th, 22nd and
33 last day of each calendar month. Every such employer shall
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1 for each calendar quarter, on or before the last day of the
2 first month following the close of such quarter, and for the
3 calendar year, on or before January 31 of the succeeding
4 calendar year, make a return with respect to such taxes in
5 such form and manner as the Department may by regulations
6 prescribe, and pay to the Department or to a depositary
7 designated by the Department all withheld taxes not
8 previously paid to the Department.
9 (c) Monthly Payments: Returns. Every employer required
10 to deduct and withhold tax under this Act shall, on or before
11 the 15th day of the second and third months of each calendar
12 quarter, and on or before the last day of the month following
13 the last month of each such quarter, pay to the Department or
14 to a depositary designated by the Department, pursuant to
15 regulations prescribed by the Department, the taxes so
16 required to be deducted and withheld, whenever the aggregate
17 amount withheld by such employer (together with amounts
18 previously withheld and not paid to the Department) exceeds
19 $500 but does not exceed $1,000. Every such employer shall
20 for each calendar quarter, on or before the last day of the
21 first month following the close of such quarter, and for the
22 calendar year, on or before January 31 of the succeeding
23 calendar year, make a return with respect to such taxes in
24 such form and manner as the Department may by regulations
25 prescribe, and pay to the Department or to a depositary
26 designated by the Department all withheld taxes not
27 previously paid to the Department.
28 (d) Annual Payments: Returns. Where the amount of
29 compensation paid by an employer is not sufficient to require
30 the withholding of tax from the compensation of any of its
31 employees (or where the aggregate amount withheld is less
32 than $500), the Department may by regulation permit such
33 employer to file only an annual return and to pay the taxes
34 required to be deducted and withheld at the time of filing
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1 such annual return.
2 (e) Annual Return. The Department may, as it deems
3 appropriate, prescribe by regulation for the filing of annual
4 returns in lieu of quarterly returns described in subsections
5 (b) and (c).
6 (e-5) Annual Return and Payment. On and after January
7 1, 1998, notwithstanding subsections (b) through (d) of this
8 Section, every employer who deducts and withholds or is
9 required to deduct and withhold tax from a person engaged in
10 domestic service employment, as that term is defined in
11 Section 3510 of the Internal Revenue Code, may comply with
12 the requirements of this Section by filing an annual return
13 and paying the taxes required to be deducted and withheld on
14 or before the 15th day of the fourth month following the
15 close of the employer's taxable year. The annual return may
16 be submitted with the employer's individual income tax
17 return. Annual Return. Where the tax is withheld from a
18 person engaged in domestic service employment, as that term
19 is defined in Section 3510 of the Internal Revenue Code,
20 returns shall be filed on or before the 15th day of the
21 fourth month following the close of the employer's taxable
22 year.
23 (f) Magnetic Media Filing. Forms W-2 that, pursuant to
24 the Internal Revenue Code and regulations promulgated
25 thereunder, are required to be submitted to the Internal
26 Revenue Service on magnetic media, must also be submitted to
27 the Department on magnetic media for Illinois purposes, if
28 required by the Department.
29 (Source: P.A. 90-374, eff. 8-14-97.)
30 Section 10. The Use Tax Act is amended by changing
31 Section 19 as follows:
32 (35 ILCS 105/19) (from Ch. 120, par. 439.19)
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1 Sec. 19. If it shall appear that an amount of tax or
2 penalty or interest has been paid in error hereunder to the
3 Department by a purchaser, as distinguished from the
4 retailer, whether such amount be paid through a mistake of
5 fact or an error of law, such purchaser may file a claim for
6 credit or refund with the Department in accordance with
7 Sections 6, 6a, 6b, and 6c of the Retailers' Occupation Tax
8 Act. If it shall appear that an amount of tax or penalty or
9 interest has been paid in error to the Department hereunder
10 by a retailer who is required or authorized to collect and
11 remit the use tax, whether such amount be paid through a
12 mistake of fact or an error of law, such retailer may file a
13 claim for credit or refund with the Department in accordance
14 with Sections 6, 6a, 6b, and 6c of the Retailers' Occupation
15 Tax Act, provided that no credit or refund shall be allowed
16 for any amount paid by any such retailer unless it shall
17 appear that he bore the burden of such amount and did not
18 shift the burden thereof to anyone else (as in the case of a
19 duplicated tax payment which the retailer made to the
20 Department and did not collect from anyone else), or unless
21 it shall appear that he or she or his or her legal
22 representative has unconditionally repaid such amount to his
23 vendee (1) who bore the burden thereof and has not shifted
24 such burden directly or indirectly in any manner whatsoever;
25 (2) who, if he has shifted such burden, has repaid
26 unconditionally such amount to his or her own vendee, and (3)
27 who is not entitled to receive any reimbursement therefor
28 from any other source than from his vendor, nor to be
29 relieved of such burden in any other manner whatsoever. If it
30 shall appear that an amount of tax has been paid in error
31 hereunder by the purchaser to a retailer, who retained such
32 tax as reimbursement for his or her tax liability on the same
33 sale under the Retailers' Occupation Tax Act, and who
34 remitted the amount involved to the Department under the
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1 Retailers' Occupation Tax Act, whether such amount be paid
2 through a mistake of fact or an error of law, the procedure
3 for recovering such tax shall be that prescribed in Sections
4 6, 6a, 6b and 6c of the Retailers' Occupation Tax Act.
5 Any credit or refund that is allowed under this Section
6 shall bear interest at the rate and in the manner specified
7 in the Uniform Penalty and Interest Act.
8 Any claim filed hereunder shall be filed upon a form
9 prescribed and furnished by the Department. The claim shall
10 be signed by the claimant (or by the claimant's legal
11 representative if the claimant shall have died or become a
12 person under legal disability), or by a duly authorized agent
13 of the claimant or his or her legal representative.
14 A claim for credit or refund shall be considered to have
15 been filed with the Department on the date upon which it is
16 received by the Department. Upon receipt of any claim for
17 credit or refund filed under this Act, any officer or
18 employee of the Department, authorized in writing by the
19 Director of Revenue to acknowledge receipt of such claims on
20 behalf of the Department, shall execute on behalf of the
21 Department, and shall deliver or mail to the claimant or his
22 duly authorized agent, a written receipt, acknowledging that
23 the claim has been filed with the Department, describing the
24 claim in sufficient detail to identify it and stating the
25 date upon which the claim was received by the Department.
26 Such written receipt shall be prima facie evidence that the
27 Department received the claim described in such receipt and
28 shall be prima facie evidence of the date when such claim was
29 received by the Department. In the absence of such a written
30 receipt, the records of the Department as to when the claim
31 was received by the Department, or as to whether or not the
32 claim was received at all by the Department, shall be deemed
33 to be prima facie correct upon these questions in the event
34 of any dispute between the claimant (or his or her legal
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1 representative) and the Department concerning these
2 questions.
3 In case the Department determines that the claimant is
4 entitled to a refund, such refund shall be made only from
5 such appropriation as may be available for that purpose. If
6 it appears unlikely that the amount appropriated would permit
7 everyone having a claim allowed during the period covered by
8 such appropriation to elect to receive a cash refund, the
9 Department, by rule or regulation, shall provide for the
10 payment of refunds in hardship cases and shall define what
11 types of cases qualify as hardship cases.
12 If a retailer who has failed to pay use tax on gross
13 receipts from retail sales is required by the Department to
14 pay such tax, such retailer, without filing any formal claim
15 with the Department, shall be allowed to take credit against
16 such use tax liability to the extent, if any, to which such
17 retailer has paid an amount equivalent to retailers'
18 occupation tax or has paid use tax in error to his or her
19 vendor or vendors of the same tangible personal property
20 which such retailer bought for resale and did not first use
21 before selling it, and no penalty or interest shall be
22 charged to such retailer on the amount of such credit.
23 However, when such credit is allowed to the retailer by the
24 Department, the vendor is precluded from refunding any of
25 that tax to the retailer and filing a claim for credit or
26 refund with respect thereto with the Department. The
27 provisions of this amendatory Act shall be applied
28 retroactively, regardless of the date of the transaction.
29 (Source: P.A. 87-205.)
30 Section 15. The Service Occupation Tax Act is amended by
31 changing Section 19 as follows:
32 (35 ILCS 115/19) (from Ch. 120, par. 439.119)
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1 Sec. 19. As to any claim for credit or refund filed with
2 the Department on or and after each January 1 and July 1 but
3 on or before June 30 of any given year, no amount of tax or
4 penalty or interest erroneously paid (either in total or
5 partial liquidation of a tax or penalty or interest under
6 this Act) more than 3 years prior to such January 1 and July
7 1, respectively, shall be credited or refunded, except that
8 if both the Department and taxpayer have agreed to an
9 extension of time to issue a notice of tax liability as
10 provided in Section 4 of the Retailers' Occupation Tax Act,
11 such claim may be filed at any time prior to the expiration
12 of the period agreed upon and as to any such claim filed on
13 and after July 1 but on or before December 31 of any given
14 year, no amount of tax or penalty or interest erroneously
15 paid (either in total or partial liquidation of a tax or
16 penalty under this Act) more than 3 years prior to such July
17 1 shall be credited or refunded. No claim shall be allowed
18 for any amount paid to the Department, whether paid
19 voluntarily or involuntarily, if paid in total or partial
20 liquidation of an assessment which had become final before
21 the claim for credit or refund to recover the amount so paid
22 is filed with the Department, or if paid in total or partial
23 liquidation of a judgment or order of court.
24 (Source: P.A. 79-1365; 79-1366.)
25 Section 18. The Property Tax Code is amended, if and
26 only if the provisions of Senate Bill 51 of the 90th General
27 Assembly that are changed by this amendatory Act of 1997
28 become law, by changing Section 14-15 as follows:
29 (35 ILCS 200/14-15)
30 Sec. 14-15. Certificate of error; counties of 3,000,000
31 or more.
32 (a) In counties with 3,000,000 or more inhabitants, if,
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1 at any time before judgment is rendered in any proceeding to
2 collect or to enjoin the collection of taxes based upon any
3 assessment of any property belonging to any taxpayer, the
4 county assessor discovers an error or mistake in the
5 assessment, the assessor shall execute a certificate setting
6 forth the nature and cause of the error. The certificate when
7 endorsed by the county assessor, or when endorsed by the
8 county assessor and board of appeals (until the first Monday
9 in December 1998 and the board of review beginning the first
10 Monday in December 1998 and thereafter) where the certificate
11 is executed for any assessment which was the subject of a
12 complaint filed in the board of appeals (until the first
13 Monday in December 1998 and the board of review beginning the
14 first Monday in December 1998 and thereafter) for the tax
15 year for which the certificate is issued, may be received in
16 evidence in any court of competent jurisdiction. When so
17 introduced in evidence such certificate shall become a part
18 of the court records, and shall not be removed from the files
19 except upon the order of the court.
20 A certificate executed under this Section may be issued
21 to the person erroneously assessed. A certificate executed
22 under this Section or a list of the parcels for which
23 certificates have been issued may be presented by the
24 assessor to the court as an objection in the application for
25 judgment and order of sale for the year in relation to which
26 the certificate is made. The State's Attorney of the county
27 in which the property is situated shall mail a copy of any
28 final judgment entered by the court regarding the certificate
29 to the taxpayer of record for the year in question.
30 Any unpaid taxes after the entry of the final judgment by
31 the court on certificates issued under this Section may be
32 included in a special tax sale, provided that an
33 advertisement is published and a notice is mailed to the
34 person in whose name the taxes were last assessed, in a form
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1 and manner substantially similar to the advertisement and
2 notice required under Sections 21-110 and 21-135. The
3 advertisement and sale shall be subject to all provisions of
4 law regulating the annual advertisement and sale of
5 delinquent property, to the extent that those provisions may
6 be made applicable.
7 A certificate of error executed under this Section
8 allowing homestead exemptions under Sections 15-170, 15-172,
9 and 15-175 of this Act (formerly Sections 19.23-1 and
10 19.23-1a of the Revenue Act of 1939) not previously allowed
11 shall be given effect by the county treasurer, who shall mark
12 the tax books and, upon receipt of the following certificate
13 from the county assessor, shall issue refunds to the taxpayer
14 accordingly:
15 "CERTIFICATION
16 I, .................., county assessor, hereby certify
17 that the Certificates of Error set out on the attached
18 list have been duly issued to allow homestead exemptions
19 pursuant to Sections 15-170, 15-172, and 15-175 of the
20 Property Tax Code (formerly Sections 19.23-1 and 19.23-1a
21 of the Revenue Act of 1939) which should have been
22 previously allowed; and that a certified copy of the
23 attached list and this certification have been served
24 upon the county State's Attorney."
25 The county treasurer has the power to mark the tax books
26 to reflect the issuance of homestead certificates of error
27 issued up to and including 3 years after the date on which
28 the annual judgment and order of sale for that tax year was
29 first entered first day of January of the second year after
30 the year for which the homestead exemption should have been
31 allowed. The county treasurer has the power to issue refunds
32 to the taxpayer as set forth above from and including the
33 first day of January of the second year after the year for
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1 which the homestead exemption should have been allowed until
2 all refunds authorized by this Section have been completed.
3 The county treasurer has no power to issue refunds to the
4 taxpayer as set forth above unless the Certification set out
5 in this Section has been served upon the county State's
6 Attorney.
7 (b) Nothing in subsection (a) of this Section shall be
8 construed to prohibit the execution, endorsement, issuance,
9 and adjudication of a certificate of error if (i) the annual
10 judgment and order of sale for the tax year in question is
11 reopened for further proceedings upon consent of the county
12 collector and county assessor, represented by the State's
13 Attorney, and (ii) a new final judgment is subsequently
14 entered pursuant to the certificate. This subsection (b)
15 shall be construed as declarative of existing law and not as
16 a new enactment.
17 (c) No certificate of error, other than a certificate to
18 establish an exemption under Section 14-25, shall be executed
19 for any tax year more than 3 years after the date on which
20 the annual judgment and order of sale for that tax year was
21 first entered.
22 (d) The time limitation of subsection (c) shall not
23 apply to a certificate of error correcting an assessment to
24 $1, under Section 10-35, on a parcel that a subdivision or
25 planned development has acquired by adverse possession, if
26 during the tax year for which the certificate is executed the
27 subdivision or planned development used the parcel as common
28 area, as defined in Section 10-35, and if application for the
29 certificate of error is made prior to December 31, 1997.
30 (Source: P.A. 88-225; 88-455; 88-660, eff. 9-16-94; 88-670,
31 eff. 12-2-94; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96;
32 90SB0051 enrolled.)
33 Section 19. The Property Tax Code is amended by changing
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1 Sections 9-195 and 15-100 and adding Section 10-230 and a
2 heading to Division 10 as follows:
3 (35 ILCS 200/9-195)
4 Sec. 9-195. Leasing of exempt property.
5 (a) Except as provided in Section 15-55 and 15-100, when
6 property which is exempt from taxation is leased to another
7 whose property is not exempt, and the leasing of which does
8 not make the property taxable, the leasehold estate and the
9 appurtenances shall be listed as the property of the lessee
10 thereof, or his or her assignee. Taxes on that property shall
11 be collected in the same manner as on property that is not
12 exempt, and the lessee shall be liable for those taxes.
13 However, no tax lien shall attach to the exempt real estate.
14 The changes made by this amendatory Act of 1997 are
15 declaratory of existing law and shall not be construed as a
16 new enactment. The changes made by Public Acts 88-221 and
17 88-420 that are incorporated into this Section by this
18 amendatory Act of 1993 are declarative of existing law and
19 are not a new enactment.
20 (b) The provisions of this Section regarding taxation of
21 leasehold interests in exempt property do not apply to any
22 leasehold interest created pursuant to any transaction
23 described in subsection (b) of Section 15-100.
24 (Source: P.A. 88-455; incorporates 88-221 and 88-420; 88-670,
25 eff. 12-2-94.)
26 (35 ILCS 200/Art. 10, Div. 10, heading new)
27 DIVISION 10. ELECTRIC POWER GENERATING STATIONS
28 (35 ILCS 200/10-230 new)
29 Sec. 10-230. Creation of task force; 1997 through 1999
30 property assessments of certain utility property.
31 (a) This Section establishes an Electric Utility
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1 Property Assessment Task Force to advise the General Assembly
2 with respect to the possible impact of the Electric Service
3 Customer Choice and Rate Relief Law of 1997 on the valuation
4 of the real property component of electric generating
5 stations owned by electric utilities and, therefore, on the
6 taxing districts in this State in which electric generating
7 stations are located.
8 (b) There shall be established and appointed in
9 accordance with this Section an Electric Utility Property
10 Assessment Task Force. Such Task Force shall be chaired by
11 the President of the Taxpayers' Federation of Illinois, who
12 shall be a non-voting member of the Task Force. The Task
13 Force shall be composed of 10 voting members, 6 of whom shall
14 be representatives of taxing districts in which electric
15 generating stations are located and 4 of whom shall be
16 representatives of electric utilities in this State, at least
17 one of whom shall be from an electric utility serving over
18 1,000,000 retail customers in this State and at least one of
19 whom shall be from an electric utility serving over 500,000
20 but less than 1,000,000 retail customers in this State.
21 (c) The voting members of this Task Force shall be
22 appointed as follows: (i) 3 of the voting members, one of
23 whom shall be from an electric utility, shall be appointed by
24 the President of the Senate; (ii) 3 of the voting members,
25 one of whom shall be from an electric utility, shall be
26 appointed by the Speaker of the House of Representatives;
27 (iii) 2 of the voting members, one of whom shall be from an
28 electric utility, shall be appointed by the Minority Leader
29 of the Senate; and (iv) 2 of the voting members, one of whom
30 shall be from an electric utility, shall be appointed by the
31 Minority Leader of the House of Representatives. Such
32 appointments shall be made within 30 days after the effective
33 date of this amendatory Act of 1997. Members of the Task
34 Force shall receive no compensation for their services but
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1 shall be entitled to reimbursement of reasonable expenses
2 incurred while performing their duties.
3 (d) The Task Force shall submit a report to the General
4 Assembly by January 1, 1999 which shall: (i) analyze whether,
5 and to what extent, taxing districts throughout this State
6 will experience significant sustained erosions of their
7 property tax bases and property tax revenues as a result of
8 the restructuring of the electric industry in this State; and
9 (ii) make recommendations for legislative changes to address
10 any such impacts.
11 (e) Beginning with the 1997 assessment year through the
12 assessment year of 1999, the fair cash value of any electric
13 power generating plant owned as of November 1, 1997, by an
14 electric utility, as that term is defined in Section 16-102
15 of the Public Utilities Act, shall be determined using
16 original cost less depreciation of the electric power
17 generating plant. When determining original cost less
18 depreciation, including the original cost less depreciation
19 of all new construction, the rate or rates of depreciation
20 applied shall be the same as the rate or rates in effect
21 November 1, 1997, under the Public Utilities Act and the
22 rules and orders of the Illinois Commerce Commission,
23 irrespective of any change in ownership of the property
24 occurring after the effective date of the provisions of the
25 Electric Service Customer Choice and Rate Relief Law of 1997.
26 Nothing in this subsection shall be construed to affect the
27 classification of property as real or personal.
28 Determinations of original cost less depreciation for
29 purposes of this subsection shall be made without regard for
30 the use of any accelerated cost recovery method including
31 accelerated depreciation, accelerated amortization or other
32 capital recovery methods, or reductions to original cost of
33 an electric power generating plant made as a result of the
34 provisions of Senate Amendment No. 2 to House Bill 362,
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1 enacted by the 90th General Assembly.
2 (35 ILCS 200/15-100)
3 Sec. 15-100. Public transportation systems.
4 (a) All property belonging to any municipal corporation
5 created for the sole purpose of owning and operating a
6 transportation system for public service is exempt.
7 (b) Property owned by (i) a municipal corporation of
8 500,000 or more inhabitants, used for public transportation
9 purposes, and operated by the Chicago Transit Authority; (ii)
10 the Regional Transportation Authority; (iii) any service
11 board or division of the Regional Transportation Authority;
12 (iv) the Northeast Illinois Regional Commuter Railroad
13 Corporation; or (v) the Chicago Transit Authority shall be
14 exempt. For purposes of this Section alone, the Regional
15 Transportation Authority, any service board or division of
16 the Regional Transportation Authority, the Northeast Illinois
17 Regional Commuter Railroad Corporation, the Chicago Transit
18 Authority, or a municipal corporation, as defined in item
19 (i), shall be deemed an "eligible transportation authority".
20 The exemption provided in this subsection shall not be
21 affected by any transaction in which, for the purpose of
22 obtaining financing, the eligible transportation authority,
23 directly or indirectly, leases or otherwise transfers such
24 property to another whose property is not exempt and
25 immediately thereafter enters into a leaseback or other
26 agreement that directly or indirectly gives the eligible
27 transportation authority a right to use, control, and possess
28 the property. In the case of a conveyance of such property,
29 the eligible transportation authority must retain an option
30 to purchase the property at a future date or, within the
31 limitations period for reverters, the property must revert
32 back to the eligible transportation authority.
33 (c) If such property has been conveyed as described in
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1 subsection (b), the property will no longer be exempt
2 pursuant to this Section as of the date when:
3 (1) the right of the eligible transportation
4 authority to use, control, and possess the property has
5 been terminated;
6 (2) the eligible transportation authority no longer
7 has an option to purchase or otherwise acquire the
8 property; and
9 (3) there is no provision for a reverter of the
10 property to the eligible transportation authority within
11 the limitations period for reverters.
12 (d) Pursuant to Sections 15-15 and 15-20 of this Code,
13 the eligible transportation authority shall notify the chief
14 county assessment officer of any transaction under subsection
15 (b) of this Section. The chief county assessment officer
16 shall determine initial and continuing compliance with the
17 requirements of this Section for tax exemption. Failure to
18 notify the chief county assessment officer of a transaction
19 under this Section or to otherwise comply with the
20 requirements of Sections 15-15 and 15-20 of this Code shall,
21 in the discretion of the chief county assessment officer,
22 constitute cause to terminate the exemption, notwithstanding
23 any other provision of this Code.
24 (e) No provision of this Section shall be construed to
25 affect the obligation of the eligible transportation
26 authority to which an exemption certificate has been issued
27 under this Section from its obligation under Section 15-10 of
28 this Code to file an annual certificate of status or to
29 notify the chief county assessment officer of transfers of
30 interest or other changes in the status of the property as
31 required by this Code.
32 (f) The changes made by this amendatory Act of 1997 are
33 declarative of existing law and shall not be construed as a
34 new enactment.
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1 (Source: Laws 1959, p. 1549, 1554, 2219, and 2224; P.A.
2 88-455.)
3 Section 20. The Telecommunications Excise Tax Act is
4 amended by changing Section 2 as follows:
5 (35 ILCS 630/2) (from Ch. 120, par. 2002)
6 Sec. 2. As used in this Article, unless the context
7 clearly requires otherwise:
8 (a) "Gross charge" means the amount paid for the act or
9 privilege of originating or receiving telecommunications in
10 this State and for all services and equipment provided in
11 connection therewith by a retailer, valued in money whether
12 paid in money or otherwise, including cash, credits, services
13 and property of every kind or nature, and shall be determined
14 without any deduction on account of the cost of such
15 telecommunications, the cost of materials used, labor or
16 service costs or any other expense whatsoever. In case
17 credit is extended, the amount thereof shall be included only
18 as and when paid. "Gross charges" for private line service
19 shall include charges imposed at each channel point within
20 this State, charges for the channel mileage between each
21 channel point within this State, and charges for that portion
22 of the interstate inter-office channel provided within
23 Illinois. However, "gross charges" shall not include:
24 (1) any amounts added to a purchaser's bill because
25 of a charge made pursuant to (i) the tax imposed by this
26 Article; (ii) charges added to customers' bills pursuant
27 to the provisions of Sections 9-221 or 9-222 of the
28 Public Utilities Act, as amended, or any similar charges
29 added to customers' bills by retailers who are not
30 subject to rate regulation by the Illinois Commerce
31 Commission for the purpose of recovering any of the tax
32 liabilities or other amounts specified in such provisions
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1 of such Act; or (iii) the tax imposed by Section 4251 of
2 the Internal Revenue Code;
3 (2) charges for a sent collect telecommunication
4 received outside of the State;
5 (3) charges for leased time on equipment or charges
6 for the storage of data or information for subsequent
7 retrieval or the processing of data or information
8 intended to change its form or content. Such equipment
9 includes, but is not limited to, the use of calculators,
10 computers, data processing equipment, tabulating
11 equipment or accounting equipment and also includes the
12 usage of computers under a time-sharing agreement;
13 (4) charges for customer equipment, including such
14 equipment that is leased or rented by the customer from
15 any source, wherein such charges are disaggregated and
16 separately identified from other charges;
17 (5) charges to business enterprises certified under
18 Section 9-222.1 of the Public Utilities Act, as amended,
19 to the extent of such exemption and during the period of
20 time specified by the Department of Commerce and
21 Community Affairs;
22 (6) charges for telecommunications and all services
23 and equipment provided in connection therewith between a
24 parent corporation and its wholly owned subsidiaries or
25 between wholly owned subsidiaries when the tax imposed
26 under this Article has already been paid to a retailer
27 and only to the extent that the charges between the
28 parent corporation and wholly owned subsidiaries or
29 between wholly owned subsidiaries represent expense
30 allocation between the corporations and not the
31 generation of profit for the corporation rendering such
32 service;
33 (7) bad debts. Bad debt means any portion of a debt
34 that is related to a sale at retail for which gross
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1 charges are not otherwise deductible or excludable that
2 has become worthless or uncollectable, as determined
3 under applicable federal income tax standards. If the
4 portion of the debt deemed to be bad is subsequently
5 paid, the retailer shall report and pay the tax on that
6 portion during the reporting period in which the payment
7 is made;
8 (8) charges paid by inserting coins in
9 coin-operated telecommunication devices; .
10 (9) amounts paid by telecommunications retailers
11 under the Telecommunications Municipal Infrastructure
12 Maintenance Fee Act.
13 (b) "Amount paid" means the amount charged to the
14 taxpayer's service address in this State regardless of where
15 such amount is billed or paid.
16 (c) "Telecommunications", in addition to the meaning
17 ordinarily and popularly ascribed to it, includes, without
18 limitation, messages or information transmitted through use
19 of local, toll and wide area telephone service; private line
20 services; channel services; telegraph services;
21 teletypewriter; computer exchange services; cellular mobile
22 telecommunications service; specialized mobile radio;
23 stationary two way radio; paging service; or any other form
24 of mobile and portable one-way or two-way communications; or
25 any other transmission of messages or information by
26 electronic or similar means, between or among points by wire,
27 cable, fiber-optics, laser, microwave, radio, satellite or
28 similar facilities. As used in this Act, "private line" means
29 a dedicated non-traffic sensitive service for a single
30 customer, that entitles the customer to exclusive or priority
31 use of a communications channel or group of channels, from
32 one or more specified locations to one or more other
33 specified locations. The definition of "telecommunications"
34 shall not include value added services in which computer
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1 processing applications are used to act on the form, content,
2 code and protocol of the information for purposes other than
3 transmission. "Telecommunications" shall not include
4 purchases of telecommunications by a telecommunications
5 service provider for use as a component part of the service
6 provided by him to the ultimate retail consumer who
7 originates or terminates the taxable end-to-end
8 communications. Carrier access charges, right of access
9 charges, charges for use of inter-company facilities, and all
10 telecommunications resold in the subsequent provision of,
11 used as a component of, or integrated into end-to-end
12 telecommunications service shall be non-taxable as sales for
13 resale.
14 (d) "Interstate telecommunications" means all
15 telecommunications that either originate or terminate outside
16 this State.
17 (e) "Intrastate telecommunications" means all
18 telecommunications that originate and terminate within this
19 State.
20 (f) "Department" means the Department of Revenue of the
21 State of Illinois.
22 (g) "Director" means the Director of Revenue for the
23 Department of Revenue of the State of Illinois.
24 (h) "Taxpayer" means a person who individually or
25 through his agents, employees or permittees engages in the
26 act or privilege of originating or receiving
27 telecommunications in this State and who incurs a tax
28 liability under this Article.
29 (i) "Person" means any natural individual, firm, trust,
30 estate, partnership, association, joint stock company, joint
31 venture, corporation, limited liability company, or a
32 receiver, trustee, guardian or other representative appointed
33 by order of any court, the Federal and State governments,
34 including State universities created by statute or any city,
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1 town, county or other political subdivision of this State.
2 (j) "Purchase at retail" means the acquisition,
3 consumption or use of telecommunication through a sale at
4 retail.
5 (k) "Sale at retail" means the transmitting, supplying
6 or furnishing of telecommunications and all services and
7 equipment provided in connection therewith for a
8 consideration to persons other than the Federal and State
9 governments, and State universities created by statute and
10 other than between a parent corporation and its wholly owned
11 subsidiaries or between wholly owned subsidiaries for their
12 use or consumption and not for resale.
13 (l) "Retailer" means and includes every person engaged
14 in the business of making sales at retail as defined in this
15 Article. The Department may, in its discretion, upon
16 application, authorize the collection of the tax hereby
17 imposed by any retailer not maintaining a place of business
18 within this State, who, to the satisfaction of the
19 Department, furnishes adequate security to insure collection
20 and payment of the tax. Such retailer shall be issued,
21 without charge, a permit to collect such tax. When so
22 authorized, it shall be the duty of such retailer to collect
23 the tax upon all of the gross charges for telecommunications
24 in this State in the same manner and subject to the same
25 requirements as a retailer maintaining a place of business
26 within this State. The permit may be revoked by the
27 Department at its discretion.
28 (m) "Retailer maintaining a place of business in this
29 State", or any like term, means and includes any retailer
30 having or maintaining within this State, directly or by a
31 subsidiary, an office, distribution facilities, transmission
32 facilities, sales office, warehouse or other place of
33 business, or any agent or other representative operating
34 within this State under the authority of the retailer or its
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1 subsidiary, irrespective of whether such place of business or
2 agent or other representative is located here permanently or
3 temporarily, or whether such retailer or subsidiary is
4 licensed to do business in this State.
5 (n) "Service address" means the location of
6 telecommunications equipment from which the
7 telecommunications services are originated or at which
8 telecommunications services are received by a taxpayer. In
9 the event this may not be a defined location, as in the case
10 of mobile phones, paging systems, maritime systems,
11 air-to-ground systems and the like, service address shall
12 mean the location of a taxpayer's primary use of the
13 telecommunications equipment as defined by telephone number,
14 authorization code, or location in Illinois where bills are
15 sent.
16 (Source: P.A. 88-480.)
17 Section 25. The Telecommunications Municipal
18 Infrastructure Maintenance Fee Act is amended by changing
19 Sections 10, 15, 20, and 25 and adding Sections 22, 24, 27,
20 27.5, 27.10, 27.15, 27.20, 27.25, 27.30, 27.35, 27.40, 27.45,
21 27.50, and 27.55 as follows:
22 (35 ILCS 635/10)
23 Sec. 10. Definitions.
24 (a) "Gross charges" means the amount paid to a
25 telecommunications retailer for the act or privilege of
26 originating or receiving telecommunications in this State or
27 the municipality imposing the fee under this Act, as the
28 context requires, and for all services rendered in connection
29 therewith, valued in money whether paid in money or
30 otherwise, including cash, credits, services, and property of
31 every kind or nature, and shall be determined without any
32 deduction on account of the cost of such telecommunications,
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1 the cost of the materials used, labor or service costs, or
2 any other expense whatsoever. In case credit is extended,
3 the amount thereof shall be included only as and when paid.
4 "Gross charges" for private line service shall include
5 charges imposed at each channel point within this State or
6 the municipality imposing the fee under this Act, charges for
7 the channel mileage between each channel point within this
8 State or the municipality imposing the fee under this Act,
9 and charges for that portion of the interstate inter-office
10 channel provided within Illinois or the municipality imposing
11 the fee under this Act. However, "gross charges" shall not
12 include:
13 (1) any amounts added to a purchaser's bill because
14 of a charge made under: (i) the fee imposed by this
15 Section, (ii) additional charges added to a purchaser's
16 bill under Section 9-221 or 9-222 of the Public Utilities
17 Act, (iii) amounts collected under Section 8-11-17 of the
18 Illinois Municipal Code, (iv) the tax imposed by the
19 Telecommunications Excise Tax Act, (v) 911 surcharges, or
20 (vi) the tax imposed by Section 4251 of the Internal
21 Revenue Code;
22 (2) charges for a sent collect telecommunication
23 received outside of this State or the municipality
24 imposing the fee, as the context requires;
25 (3) charges for leased time on equipment or charges
26 for the storage of data or information or subsequent
27 retrieval or the processing of data or information
28 intended to change its form or content. Such equipment
29 includes, but is not limited to, the use of calculators,
30 computers, data processing equipment, tabulating
31 equipment, or accounting equipment and also includes the
32 usage of computers under a time-sharing agreement.
33 (4) charges for customer equipment, including such
34 equipment that is leased or rented by the customer from
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1 any source, wherein such charges are disaggregated and
2 separately identified from other charges;
3 (5) charges to business enterprises certified under
4 Section 9-222.1 of the Public Utilities Act to the extent
5 of such exemption and during the period of time specified
6 by the Department of Commerce and Community Affairs or by
7 the municipality imposing the fee under the Act, as the
8 context requires;
9 (6) charges for telecommunications and all services
10 and equipment provided in connection therewith between a
11 parent corporation and its wholly owned subsidiaries or
12 between wholly owned subsidiaries, and only to the extent
13 that the charges between the parent corporation and
14 wholly owned subsidiaries or between wholly owned
15 subsidiaries represent expense allocation between the
16 corporations and not the generation of profit other than
17 a regulatory required profit for the corporation
18 rendering such services;
19 (7) bad debts ("bad debt" means any portion of a
20 debt that is related to a sale at retail for which gross
21 charges are not otherwise deductible or excludable that
22 has become worthless or uncollectible, as determined
23 under applicable federal income tax standards; if the
24 portion of the debt deemed to be bad is subsequently
25 paid, the retailer shall report and pay the tax on that
26 portion during the reporting period in which the payment
27 is made);
28 (8) charges paid by inserting coins in
29 coin-operated telecommunication devices; or
30 (9) charges for telecommunications and all services
31 and equipment provided to a municipality imposing the
32 infrastructure maintenance fee.
33 (a-5) "Department" means the Illinois Department of
34 Revenue.
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1 (b) "Telecommunications" includes, but is not limited
2 to, messages or information transmitted through use of local,
3 toll, and wide area telephone service, channel services,
4 telegraph services, teletypewriter service, computer exchange
5 services, private line services, specialized mobile radio
6 services, or any other transmission of messages or
7 information by electronic or similar means, between or among
8 points by wire, cable, fiber optics, laser, microwave, radio,
9 satellite, or similar facilities. Unless the context clearly
10 requires otherwise, "telecommunications" shall also include
11 wireless telecommunications as hereinafter defined.
12 "Telecommunications" shall not include value added services
13 in which computer processing applications are used to act on
14 the form, content, code, and protocol of the information for
15 purposes other than transmission. "Telecommunications" shall
16 not include purchase of telecommunications by a
17 telecommunications service provider for use as a component
18 part of the service provided by him or her to the ultimate
19 retail consumer who originates or terminates the end-to-end
20 communications. Retailer access charges, right of access
21 charges, charges for use of intercompany facilities, and all
22 telecommunications resold in the subsequent provision and
23 used as a component of, or integrated into, end-to-end
24 telecommunications service shall not be included in gross
25 charges as sales for resale. "Telecommunications" shall not
26 include the provision of cable services through a cable
27 system as defined in the Cable Communications Act of 1984 (47
28 U.S.C. Sections 521 and following) as now or hereafter
29 amended or through an open video system as defined in the
30 Rules of the Federal Communications Commission (47 C.D.F.
31 76.1550 and following) as now or hereafter amended.
32 (c) "Wireless telecommunications" includes cellular
33 mobile telephone services, personal wireless services as
34 defined in Section 704(C) of the Telecommunications Act of
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1 1996 (Public Law No. 104-104) as now or hereafter amended,
2 including all commercial mobile radio services, and paging
3 services.
4 (d) "Telecommunications retailer" or "retailer" or
5 "carrier" means and includes every person engaged in the
6 business of making sales of telecommunications at retail as
7 defined in this Section. The Illinois Department of Revenue
8 or the municipality imposing the fee, as the case may be,
9 may, in its discretion, upon applications, authorize the
10 collection of the fee hereby imposed by any retailer not
11 maintaining a place of business within this State, who, to
12 the satisfaction of the Department or municipality, furnishes
13 adequate security to insure collection and payment of the
14 fee. When so authorized, it shall be the duty of such
15 retailer to pay the fee upon all of the gross charges for
16 telecommunications in the same manner and subject to the same
17 requirements as a retailer maintaining a place of business
18 within the State or municipality imposing the fee.
19 (e) "Retailer maintaining a place of business in this
20 State", or any like term, means and includes any retailer
21 having or maintaining within this State, directly or by a
22 subsidiary, an office, distribution facilities, transmission
23 facilities, sales office, warehouse, or other place of
24 business, or any agent or other representative operating
25 within this State under the authority of the retailer or its
26 subsidiary, irrespective of whether such place of business or
27 agent or other representative is located here permanently or
28 temporarily, or whether such retailer or subsidiary is
29 licensed to do business in this State.
30 (f) "Sale of telecommunications at retail" means the
31 transmitting, supplying, or furnishing of telecommunications
32 and all services rendered in connection therewith for a
33 consideration, other than between a parent corporation and
34 its wholly owned subsidiaries or between wholly owned
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1 subsidiaries, when the gross charge made by one such
2 corporation to another such corporation is not greater than
3 the gross charge paid to the retailer for their use or
4 consumption and not for sale.
5 (g) "Service address" means the location of
6 telecommunications equipment from which telecommunications
7 services are originated or at which telecommunications
8 services are received. If this is not a defined location, as
9 in the case of wireless telecommunications, paging systems,
10 maritime systems, air-to-ground systems, and the like,
11 "service address" shall mean the location of the customer's
12 primary use of the telecommunications equipment as defined by
13 the location in Illinois where bills are sent.
14 (Source: P.A. 90-154, eff. 1-1-98.)
15 (35 ILCS 635/15)
16 Sec. 15. State telecommunications infrastructure
17 maintenance fees.
18 (a) A State infrastructure maintenance fee is hereby
19 imposed upon telecommunications retailers as a replacement
20 for the personal property tax in an amount specified in
21 subsection (b).
22 (b) The amount of the State infrastructure maintenance
23 fee imposed upon a telecommunications retailer under this
24 Section shall be equal to 0.5% of all gross charges charged
25 by the telecommunications retailer to service addresses in
26 this State for telecommunications, other than wireless
27 telecommunications, originating or received in this State.
28 However, the State infrastructure maintenance fee is not
29 imposed in any case in which the imposition of the fee would
30 violate the Constitution or statutes of the United States.
31 (c) An optional infrastructure maintenance fee is hereby
32 created. A telecommunications retailer may elect to pay the
33 optional infrastructure maintenance fee with respect to the
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1 gross charges charged by the telecommunications retailer to
2 service addresses in a particular municipality for
3 telecommunications, other than wireless telecommunications,
4 originating or received in the municipality if (1) the
5 telecommunications retailer is not required to pay any
6 compensation to the municipality under an existing franchise
7 agreement and (2) the municipality has not imposed a
8 municipal infrastructure maintenance fee as authorized in
9 Section 20 of this Act. A telecommunications retailer
10 electing to pay the optional infrastructure maintenance fee
11 shall notify the Department of such election on the
12 application for certificate of registration. If a
13 telecommunications retailer elects to pay this fee with
14 respect to the gross charges charged by the
15 telecommunications retailer to service addresses in a
16 particular municipality, such election shall remain in full
17 force and effect until such time as the municipality imposes
18 a municipal infrastructure maintenance fee.
19 (d) The amount of the optional infrastructure
20 maintenance fee which a telecommunications retailer may elect
21 to pay with respect to a particular municipality shall be
22 equal to 25% of the maximum amount of the municipal
23 infrastructure maintenance fee which the municipality could
24 impose under Section 20 of this Act.
25 (e) The State infrastructure maintenance fee and the
26 optional infrastructure maintenance fee authorized by this
27 Section shall be collected, enforced, and administered as set
28 forth in subsection (b) of Section 25 of this Act.
29 (Source: P.A. 90-154, eff. 1-1-98.)
30 (35 ILCS 635/20)
31 Sec. 20. Municipal telecommunications infrastructure
32 maintenance fee.
33 (a) A municipality may impose a municipal infrastructure
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1 maintenance fee upon telecommunications retailers in an
2 amount specified in subsection (b). On and after the
3 effective date of this amendatory Act of 1997, a certified
4 copy of an ordinance or resolution imposing a fee under this
5 Section shall be filed with the Department within 30 days
6 after the effective date of this amendatory Act or the
7 effective date of the ordinance or resolution imposing such
8 fee, whichever is later. Failure to file a certified copy of
9 the ordinance or resolution imposing a fee under this Section
10 shall have no effect on the validity of the ordinance or
11 resolution. The Department shall create and maintain a list
12 of all ordinances and resolutions filed pursuant to this
13 Section and make that list, as well as copies of the
14 ordinances and resolutions, available to the public for a
15 reasonable fee.
16 (b) The amount of the municipal infrastructure
17 maintenance fee imposed upon a telecommunications retailer
18 under this Section shall not exceed: (i) in a municipality
19 with a population of more than 500,000, 2.0% of all gross
20 charges charged by the telecommunications retailer to service
21 addresses in the municipality for telecommunications
22 originating or received in the municipality; and (ii) in a
23 municipality with a population of 500,000 or less, 1.0% of
24 all gross charges charged by the telecommunications retailer
25 to service addresses in the municipality for
26 telecommunications originating or received in the
27 municipality. If imposed, the municipal telecommunications
28 infrastructure fee must be in 1/4% increments. However, the
29 fee shall not be imposed in any case in which the imposition
30 of the fee would violate the Constitution or statutes of the
31 United States.
32 (c) The municipal telecommunications infrastructure fee
33 authorized by this Section shall be collected, enforced, and
34 administered as set forth in subsection (c) of Section 25 of
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1 this Act.
2 (Source: P.A. 90-154, eff. 1-1-98.)
3 (35 ILCS 635/22 new)
4 Sec. 22. Certificates. It shall be unlawful for any
5 person to engage in business as a telecomunications retailer
6 in this State within the meaning of this Act without first
7 having obtained a certificate of registration to do so from
8 the Department. Application for the certificate shall be made
9 to the Department in a form prescribed and furnished by the
10 Department. Each applicant for a certificate shall furnish to
11 the Department on a form prescribed by the Department and
12 signed by the applicant under penalties of perjury, the
13 following information:
14 (1) The name of the applicant.
15 (2) The address of the location at which the applicant
16 proposes to engage in business as a telecommunications
17 retailer in this State.
18 (3) Other information the Department may reasonably
19 require.
20 The Department, upon receipt of an application in proper
21 form, shall issue to the applicant a certificate, in a form
22 prescribed by the Department, which shall permit the
23 applicant to whom it is issued to engage in business as a
24 telecommunications retailer at the place shown on his or her
25 application. No certificate issued under this Act is
26 transferable or assignable. No certificate shall be issued to
27 any person who is in default to the State of Illinois for
28 moneys due under this Act or any other tax Act administered
29 by the Department. Any person aggrieved by any decision of
30 the Department under this Section may, within 20 days after
31 notice of such decision, protest and request a hearing,
32 whereupon the Department shall give notice to such person of
33 the time and place fixed for such hearing and shall hold a
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1 hearing in conformity with the provisions of this Act and
2 then issue its final administrative decision in the matter to
3 such person. In the absence of such a protest within 20 days,
4 the Department's decision shall become final without any
5 further determination being made or notice given.
6 The Department may, in its discretion, upon application,
7 authorize the payment of the fees imposed under this Act by
8 any telecommunications retailer not otherwise subject to the
9 fees imposed under this Act who, to the satisfaction of the
10 Department, furnishes adequate security to ensure payment of
11 the fees. The telecommunications retailer shall be issued,
12 without charge, a certificate to remit the fees. When so
13 authorized, it shall be the duty of the telecommunications
14 retailer to remit the fees imposed upon the gross charges
15 charged by the telecommunications retailer to service
16 addresses in this State for telecommunications in the same
17 manner and subject to the same requirements as a
18 telecommunications retailer operating within this State.
19 (35 ILCS 635/24 new)
20 Sec. 24. Certificate actions. The Department may, after
21 notice and a hearing, revoke, cancel, or suspend the
22 certificate of registration of any telecommunications
23 retailer who violates any of the provisions of this Act or
24 regulations promulgated thereunder. The notice shall specify
25 the alleged violation or violations upon which the
26 revocation, cancellation, or suspension proceeding is based.
27 The Department may, after notice and a hearing as
28 provided herein, revoke the certificate of registration of
29 any person who violates any of the provisions of this Act.
30 Before revocation of a certificate of registration the
31 Department shall, within 90 days after non-compliance and at
32 least 7 days prior to the date of the hearing, give the
33 person so accused notice in writing of the charge against him
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1 or her, and on the date designated shall conduct a hearing
2 upon this matter. The lapse of such 90 day period shall not
3 preclude the Department from conducting revocation
4 proceedings at a later date if necessary. Any hearing held
5 under this Section shall be conducted by the Director of
6 Revenue or by any officer or employee of the Department
7 designated, in writing, by the Director of Revenue. Upon the
8 hearing of any such proceeding, the Director of Revenue, or
9 any officer or employee of the Department designated, in
10 writing, by the Director of Revenue, may administer oaths and
11 the Department may procure by its subpoena the attendance of
12 witnesses and, by its subpoena duces tecum, the production of
13 relevant books and papers. Any circuit court, upon
14 application either of the accused or of the Department, may,
15 by order duly entered, require the attendance of witnesses
16 and the production of relevant books and papers, before the
17 Department in any hearing relating to the revocation of
18 certificates of registration. Upon refusal or neglect to obey
19 the order of the court, the court may compel obedience
20 thereof by proceedings for contempt. The Department may, by
21 application to any circuit court, obtain an injunction
22 restraining any person who engages in business as a
23 telecommunications retailer without a certificate (either
24 because his or her certificate has been revoked, canceled, or
25 suspended or because of a failure to obtain a certificate in
26 the first instance) from engaging in that business until that
27 person, as if that person were a new applicant for a
28 certificate, complies with all of the conditions,
29 restrictions, and requirements of Section 22 of this Act and
30 qualifies for and obtains a certificate. Refusal or neglect
31 to obey the order of the court may result in punishment for
32 contempt.
33 (35 ILCS 635/25)
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1 Sec. 25. Collection, Enforcement, and administration of
2 telecommunications infrastructure maintenance fees.
3 (a) A telecommunications retailer shall charge each
4 customer an additional charge equal to the sum of (1) an
5 amount equal to the State infrastructure maintenance fee
6 attributable to that customer's service address and (2) an
7 amount equal to the optional infrastructure maintenance fee,
8 if any, attributable to that customer's service address and
9 (3) an amount equal to the municipal infrastructure
10 maintenance fee, if any, attributable to that customer's
11 service address. Such additional charge shall be shown
12 separately on the bill to each customer.
13 (b) The State infrastructure maintenance fee and the
14 optional infrastructure maintenance fee shall be designated
15 as a replacement for the personal property tax and shall be
16 remitted by the telecommunications retailer to the Illinois
17 Department of Revenue; provided, however, that the
18 telecommunications retailer may retain an amount not to
19 exceed 2% of the State infrastructure maintenance fee and the
20 optional infrastructure maintenance fee, if any, paid to the
21 Department, with a timely paid and timely filed return
22 collected by it to reimburse itself for expenses incurred in
23 collecting, accounting for, and remitting the fee. All
24 amounts herein remitted to the Department shall be
25 transferred to the Personal Property Tax Replacement Fund in
26 the State Treasury.
27 (c) The municipal infrastructure maintenance fee shall
28 be remitted by the telecommunications retailer to the
29 municipality imposing the municipal infrastructure
30 maintenance fee; provided, however, that the
31 telecommunications retailer may retain an amount not to
32 exceed 2% of the municipal infrastructure maintenance fee
33 collected by it to reimburse itself for expenses incurred in
34 accounting for and remitting the fee. The municipality
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1 imposing the municipal infrastructure maintenance fee shall
2 -collect, enforce, and administer the fee.
3 (d) Amounts paid under this Act by telecommunications
4 retailers shall not be included in the tax base under any of
5 the following Acts as described immediately below:
6 (1) "gross charges" for purposes of the
7 Telecommunications Excise Tax Act;
8 (2) "gross receipts" for purposes of the municipal
9 utility tax as prescribed in Section 8-11-2 of the
10 Illinois Municipal Code;
11 (3) "gross charge" for purposes of the municipal
12 telecommunications tax as prescribed in Section 8-11-17
13 of the Illinois Municipal Code;
14 (4) "gross revenue" for purposes of the tax on
15 annual gross revenue of public utilities as prescribed in
16 Section 2-202 of the Public Utilities Act.
17 (d) (e) Except as provided in subsection (f), during any
18 period of time when a municipality receives any compensation
19 other than the municipal infrastructure maintenance fee set
20 forth in Section 20, for a telecommunications retailer's use
21 of the public right-of-way, no municipal infrastructure
22 maintenance fee may be imposed by such municipality pursuant
23 to this Act.
24 (e) (f) A municipality that, pursuant to a franchise
25 agreement in existence on the effective date of this Act,
26 receives compensation from a telecommunications retailer for
27 the use of the public right of way, may impose a municipal
28 infrastructure maintenance fee pursuant to this Act only on
29 the condition that such municipality (1) waives its right to
30 receive all fees, charges and other compensation under all
31 existing franchise agreements or the like with
32 telecommunications retailers during the time that the
33 municipality imposes a municipal infrastructure maintenance
34 fee and (2) imposes by ordinance (or other proper means) a
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1 municipal infrastructure maintenance fee which becomes
2 effective no sooner than 90 days after such municipality has
3 provided written notice by certified mail to each
4 telecommunications retailer with whom the municipality has an
5 existing franchise agreement, that the municipality waives
6 all compensation under such existing franchise agreement.
7 (Source: P.A. 90-154, eff. 1-1-98.)
8 (35 ILCS 635/27 new)
9 Sec. 27. Returns by telecommunications retailer;
10 extensions. Except as provided hereinafter in this Section,
11 on or before the 30th day of each month each
12 telecommunications retailer maintaining a place of business
13 in this State shall make a return and payment of fees to the
14 Department for the preceding calendar month on a form
15 prescribed and furnished by the Department. The return shall
16 be signed by the telecommunications retailer under penalties
17 of perjury and shall contain the following information:
18 1. His or her name;
19 2. The address of his or her principal place of
20 business, and the address of the principal place of
21 business (if that is a different address) from which he
22 or she engages in the business of transmitting
23 telecommunications;
24 3. The total amount of gross charges charged by him
25 or her during the preceding calendar month for providing
26 telecommunications during such calendar month;
27 4. The total amount received by him or her during
28 the preceding calendar month on credit extended;
29 5. Deductions allowed by law;
30 6. Gross charges that were charged by him or her
31 during the preceding calendar month and upon the basis of
32 which the State infrastructure maintenance fee is
33 imposed;
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1 7. Gross charges that were charged by him or her
2 during the preceding calendar month and upon the basis of
3 which the optional infrastructure maintenance fee, if
4 any, is imposed for each particular municipality;
5 8. Amounts of fees due;
6 9. Such other reasonable information as the
7 Department may require.
8 If the telecommunications retailer's average monthly
9 liability to the Department does not exceed $100, the
10 Department may authorize his or her returns to be filed on a
11 quarter annual basis, with the return for January, February,
12 and March of a given year being due by April 15 of such year;
13 with the return for April, May, and June of a given year
14 being due by July 15 of such year; with the return for July,
15 August, and September of a given year being due by October 15
16 of such year; and with the return of October, November, and
17 December of a given year being due by January 15 of the
18 following year.
19 Notwithstanding any other provision of this Act
20 concerning the time within which a telecommunications
21 retailer may file his or her return, in the case of any
22 telecommunications retailer who ceases to engage in a kind of
23 business which makes him or her responsible for filing
24 returns under this Act, such telecommunications retailer
25 shall file a final return under this Act with the Department
26 not more than one month after discontinuing such business.
27 In making such return, the telecommunications retailer
28 shall determine the value of any consideration other than
29 money received by him or her and he or she shall include such
30 value in his or her return. Such determination shall be
31 subject to review and revision by the Department in the
32 manner hereinafter provided for the correction of returns.
33 If any payment provided for in this Section exceeds the
34 telecommunications retailer's liabilities under this Act, as
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1 shown on an original monthly return, the Department may
2 authorize the telecommunications retailer to credit such
3 excess payment against liability subsequently to be remitted
4 to the Department under this Act, in accordance with
5 reasonable rules and regulations prescribed by the
6 Department. If the Department subsequently determines that
7 all or any part of the credit taken was not actually due to
8 the telecommunications retailer, the telecommunications
9 retailer's 2% discount shall be reduced by 2% of the
10 difference between the credit taken and that actually due,
11 and that telecommunications retailer shall be liable for
12 penalties and interest on such difference.
13 If the Director finds that the information required for
14 the making of an accurate return cannot reasonably be
15 compiled by a telecommunications retailer within 15 days
16 after the close of the calendar month for which a return is
17 to be made, he or she may grant an extension of time for the
18 filing of such return for a period of not to exceed 31
19 calendar days. The granting of such an extension may be
20 conditioned upon the deposit by the telecommunications
21 retailer with the Department of an amount of money not
22 exceeding the amount estimated by the Director to be due with
23 the return so extended. All such deposits, including any
24 heretofore made with the Department, shall be credited
25 against the telecommunications retailer's liabilities under
26 this Act. If any such deposit exceeds the telecommunications
27 retailer's present and probable future liabilities under this
28 Act, the Department shall issue to the telecommunications
29 retailer a credit memorandum, which may be assigned by the
30 telecommunications retailer to a similar telecommunications
31 retailer under this Act, in accordance with reasonable rules
32 and regulations to be prescribed by the Department.
33 Any telecommunications retailer required to make payments
34 under this Section may make the payments by electronic funds
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1 transfer. The Department shall adopt rules necessary to
2 effectuate a program of electronic funds transfer.
3 (35 ILCS 635/27.5 new)
4 Sec. 27.5. Books and Records. Every telecommunications
5 retailer under this Act shall keep books, records, papers,
6 and other documents that are adequate to reflect the
7 information which such telecommunications retailers are
8 required by this Act to report to the Department by filing
9 monthly returns with the Department. All books and records
10 and other papers and documents required by this Act to be
11 kept shall be kept in the English language and shall, at all
12 times during business hours of the day, be subject to
13 inspection by the Department or its duly authorized agents
14 and employees. Books and records reflecting gross charges
15 received during any period with respect to which the
16 Department is authorized to establish liability as provided
17 by this Act shall be preserved until the expiration of such
18 period unless the Department, in writing, authorizes their
19 destruction or disposal at an earlier date.
20 The Department may, upon written authorization of the
21 Director, destroy any returns or any records, papers, or
22 memoranda pertaining to such returns upon the expiration of
23 any period covered by such returns with respect to which the
24 Department is authorized to establish liability.
25 (35 ILCS 635/27.10 new)
26 Sec. 27.10. Investigations and hearings. For the purpose
27 of administering and enforcing the provisions of this Act,
28 the Department or any officer or employee of the Department
29 designated, in writing, by the Director thereof, may hold
30 investigations and hearings concerning any matters covered by
31 this Act and may examine any books, papers, records, or
32 memoranda bearing upon the business transacted by any such
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1 telecommunications retailer and may require the attendance of
2 such telecommunications retailer or any officer or employee
3 of such telecommunications retailer, or of any person having
4 knowledge of such business, and may take testimony and
5 require proof for its information. In the conduct of any
6 investigation or hearing, neither the Department nor any
7 officer or employee thereof shall be bound by the technical
8 rules of evidence, and no informality in any proceeding, or
9 in the manner of taking testimony, shall invalidate any
10 order, decision, rule, or regulation made, approved, or
11 confirmed by the Department. The Director or any officer or
12 employee thereof shall have power to administer oaths to any
13 such persons. The books, papers, records, and memoranda of
14 the Department, or parts thereof, may be proved in any
15 hearing, investigation, or legal proceeding by a reproduced
16 copy thereof under the certificate of the Director. Such
17 reproduced copy shall without further proof, be admitted into
18 evidence before the Department or in any legal proceeding.
19 (35 ILCS 635/27.15 new)
20 Sec. 27.15. Incriminating evidence; immunity; perjury. No
21 person shall be excused from testifying or from producing any
22 books, papers, records, or memoranda in any investigation or
23 upon any hearing, when ordered to do so by the Department or
24 any officer or employee thereof, upon the ground that the
25 testimony or evidence, documentary or otherwise, may tend to
26 incriminate him or her or subject him or her to a criminal
27 penalty, but no person shall be prosecuted or subjected to
28 any criminal penalty for, or on account of, any transaction
29 made or thing concerning which he or she may testify or
30 produce evidence, documentary or otherwise, before the
31 Department or any officer or employee thereof; provided, that
32 such immunity shall extend only to a natural person who, in
33 obedience to a subpoena, gives testimony under oath or
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1 produces evidence, documentary or otherwise, under oath. No
2 person so testifying shall be exempt from prosecution and
3 punishment for perjury committed in so testifying.
4 (35 ILCS 635/27.20 new)
5 Sec. 27.20. Subpoenas; witness fees; depositions. The
6 Department or any officer or employee of the Department
7 designated, in writing, by the Director thereof, shall at its
8 or his or her own instance, or on the written request of any
9 party to the proceeding, issue subpoenas requiring the
10 attendance of and the giving of testimony by witnesses, and
11 subpoenas duces tecum requiring the production of books,
12 papers, records, or memoranda. All subpoenas issued under
13 this Act may be served by any person of full age. The fees of
14 witnesses for attendance and travel shall be the same as the
15 fees of witnesses before the circuit court of this State;
16 such fees to be paid when the witness is excused from further
17 attendance. When the witness is subpoenaed at the instance of
18 the Department or any officer or employee thereof, such fees
19 shall be paid in the same manner as other expenses of the
20 Department, and when the witness is subpoenaed at the
21 instance of any telecommunications retailer to any such
22 proceeding the Department may require that the cost of
23 service of the subpoena and the fee of the witness be borne
24 by the telecommunications retailer at whose instance the
25 witness is summoned. In such case, the Department, in its
26 discretion, may require a deposit to cover the cost of such
27 service and witness fees. A subpoena issued as aforesaid
28 shall be served in the same manner as a subpoena issued out
29 of a court.
30 Any circuit court of this State, upon the application of
31 the Department or any officer or employee thereof may, in its
32 discretion, compel the attendance of witnesses, the
33 production of books, papers, records, or memoranda and the
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1 giving of testimony before the Department or any officer or
2 employee thereof conducting an investigation or holding a
3 hearing authorized by this Act, by an attachment for
4 contempt, or otherwise, in the same manner as production of
5 evidence may be compelled before the court.
6 The Department or any officer or employee thereof, or any
7 party in an investigation or hearing before the Department,
8 may cause the depositions of witnesses residing within or
9 without the State to be taken in the manner prescribed by law
10 for like depositions in civil actions in courts of this
11 State, and, to that end, compel the attendance of witnesses
12 and the production of books, papers, records, or memoranda.
13 (35 ILCS 635/27.25 new)
14 Sec. 27.25. Confidential information; exceptions. All
15 information received by the Department from returns filed
16 under this Act, or from any investigations conducted under
17 this Act, shall be confidential, except for official
18 purposes, and any person who divulges any such information in
19 any manner, except in accordance with a proper judicial order
20 or as otherwise provided by law, shall be guilty of a Class B
21 misdemeanor.
22 Provided, that nothing contained in this Act shall
23 prevent the Director from publishing or making available to
24 the public the names and addresses of telecommunications
25 retailers filing returns under this Act, or from publishing
26 or making available reasonable statistics concerning the
27 operation of the fees wherein the contents of returns are
28 grouped into aggregates in such a way that the information
29 contained in any individual return shall not be disclosed.
30 And provided, that nothing contained in this Act shall
31 prevent the Director from making available to the United
32 States Government or any officer or agency thereof, for
33 exclusively official purposes, information received by the
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1 Department in the administration of this Act.
2 The furnishing upon request of the Auditor General, or
3 his or her authorized agents, for official use, of returns
4 filed and information related thereto under this Act is
5 deemed to be an official purpose within the meaning of this
6 Section.
7 The Director may make available to any State agency,
8 including the Illinois Supreme Court, which licenses persons
9 to engage in any occupation, information that a person
10 licensed by such agency has failed to file returns under this
11 Act or pay the fees, penalty, and interest shown therein, or
12 has failed to pay any final assessment of fees, penalty, or
13 interest due under this Act. An assessment is final when all
14 proceedings in court for review of such assessment have
15 terminated or the time for the taking thereof has expired
16 without such proceedings being instituted.
17 The Director shall make available for public inspection
18 in the Department's principal office and for publication, at
19 cost, administrative decisions issued on or after January 1,
20 1998. These decisions are to be made available in a manner
21 so that the following taxpayer information is not disclosed:
22 (1) The names, addresses, and identification numbers of
23 the taxpayer, related entities, and employees.
24 (2) At the sole discretion of the Director, trade
25 secrets or other confidential information identified as such
26 by the taxpayer, no later than 30 days after receipt of an
27 administrative decision, by such means as the Department
28 shall provide by rule.
29 The Director shall determine the appropriate extent of
30 the deletions allowed in paragraph (2). In the event the
31 taxpayer does not submit deletions, the Director shall make
32 only the deletions specified in paragraph (1).
33 The Director shall make available for public inspection
34 and publication an administrative decision within 180 days
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1 after the issuance of the administrative decision. The term
2 "administrative decision" has the same meaning as defined in
3 Section 3-101 of Article III of the Code of Civil Procedure.
4 Costs collected under this Section shall be paid into the Tax
5 Compliance and Administration Fund.
6 (35 ILCS 635/27.30 new)
7 Sec. 27.30. Review under Administrative Review Law. The
8 Circuit Court of the county wherein a hearing is held shall
9 have power to review all final administrative decisions of
10 the Department in administering the provisions of this Act:
11 Provided that if the administrative proceeding that is to be
12 reviewed judicially is a claim for refund proceeding
13 commenced in accordance with this Act and Section 2a of the
14 State Officers and Employees Money Disposition Act, the
15 Circuit Court having jurisdiction of the action for judicial
16 review under this Section and under the Administrative Review
17 Law shall be the same court that entered the temporary
18 restraining order or preliminary injunction that is provided
19 for in Section 2a of the State Officers and Employees Money
20 Disposition Act and that enables such claim proceeding to be
21 processed and disposed of as a claim for refund proceeding
22 rather than as a claim for credit proceeding.
23 The provisions of the Administrative Review Law, and the
24 rules adopted pursuant thereto, shall apply to and govern all
25 proceedings for the judicial review of final administrative
26 decisions of the Department hereunder. The term
27 "administrative decision" is defined as in Section 3-101 of
28 the Code of Civil Procedure.
29 Service upon the Director or Assistant Director of the
30 Department of Revenue of summons issued in any action to
31 review a final administrative decision shall be service upon
32 the Department. The Department shall certify the record of
33 its proceedings if the telecommunications retailer shall pay
HB1817 Enrolled -53- LRB9005182KDpc
1 to it the sum of 75¢ per page of testimony taken before the
2 Department and 25¢ per page of all other matters contained in
3 such record, except that these charges may be waived where
4 the Department is satisfied that the aggrieved party is a
5 poor person who cannot afford to pay such charges.
6 (35 ILCS 635/27.35 new)
7 Sec. 27.35. Rules and regulations; notice to
8 telecommunications retailer; hearings. The Department may
9 make, promulgate, and enforce such reasonable rules and
10 regulations relating to the administration and enforcement of
11 only the State infrastructure maintenance fee and the
12 optional infrastructure maintenance fee authorized by this
13 Act. Such rules and regulations shall not apply to the
14 administration and enforcement of the municipal
15 infrastructure maintenance fee authorized by this Act.
16 Whenever notice to a telecommunications retailer is
17 required by this Act, such notice may be given by United
18 States certified or registered mail, addressed to the
19 telecommunications retailer concerned at his or her last
20 known address, and proof of such mailing shall be sufficient
21 for the purposes of this Act. In the case of a notice of
22 hearing, such notice shall be mailed not less than 7 days
23 prior to the day fixed for the hearing.
24 All hearings provided for in this Act with respect to a
25 telecommunications retailer having his or her principal place
26 of business other than in Cook County shall be held at the
27 Department's office nearest to the location of the
28 telecommunications retailer's principal place of business:
29 Provided that if the telecommunications retailer has his or
30 her principal place of business in Cook County, such hearing
31 shall be held in Cook County; and provided further that if
32 the telecommunications retailer does not have his principal
33 place of business in this State, such hearings shall be held
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1 in Sangamon County.
2 Whenever any proceeding provided by this Act has been
3 begun by the Department or by a person subject thereto and
4 such person thereafter dies or becomes a person under legal
5 disability before the proceeding has been concluded, the
6 legal representative of the deceased person or a person under
7 legal disability shall notify the Department of such death or
8 legal disability. The legal representative, as such, shall
9 then be substituted by the Department in place of and for the
10 person. Within 20 days after notice to the legal
11 representative of the time fixed for that purpose, the
12 proceeding may proceed in all respects and with like effect
13 as though the person had not died or become a person under
14 legal disability.
15 (35 ILCS 635/27.40 new)
16 Sec. 27.40. Application of Illinois Administrative
17 Procedure Act. The Illinois Administrative Procedure Act is
18 hereby expressly adopted and shall apply to all
19 administrative rules and procedures of the Department of
20 Revenue under this Act, except that (i) paragraph (b) of
21 Section 5-10 of the Administrative Procedure Act does not
22 apply to final orders, decisions, and opinions of the
23 Department, (ii) subparagraph (a)(ii) of Section 5-10 of the
24 Administrative Procedure Act does not apply to forms
25 established by the Department for use under this Act, and
26 (iii) the provisions of Section 10-45 of the Administrative
27 Procedure Act regarding proposals for decision are excluded
28 and not applicable to the Department under this Act.
29 (35 ILCS 635/27.45 new)
30 Sec. 27.45. Failure to make a return. Any
31 telecommunications retailer who fails to make a return, or
32 who makes a fraudulent return, or who willfully violates any
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1 other provision of this Act or any rule or regulation of the
2 Department for the administration and enforcement of this
3 Act, is guilty of a business offense and, upon conviction
4 thereof, shall be fined not less than $1,000 nor more than
5 $7,500.
6 (35 ILCS 635/27.50 new)
7 Sec. 27.50. Additional fees. The fees herein imposed
8 shall be in addition to all other occupation or privilege
9 taxes or fees imposed by the State of Illinois or by any
10 municipal corporation or political subdivision thereof.
11 (35 ILCS 635/27.55 new)
12 Sec. 27.55. Applicability of Retailers' Occupation Tax
13 Act and Uniform Penalty and Interest Act. All of the
14 provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
15 5j, 6, 6a, 6b, and 6c of the Retailers' Occupation Tax Act
16 that are not inconsistent with this Act, and all provisions
17 of the Uniform Penalty and Interest Act shall apply, as far
18 as practicable, to the subject matter of this Act to the same
19 extent as if such provisions were included herein. References
20 in the incorporated Sections of the Retailers' Occupation Tax
21 Act to retailers, to sellers, or to persons engaged in the
22 business of selling tangible personal property mean persons
23 engaged in the business of transmitting messages when used in
24 this Act. References in the incorporated Sections of the
25 Retailers' Occupation Tax Act to purchasers of tangible
26 personal property mean purchasers of the service of
27 transmitting messages when used in this Act. References in
28 the incorporated Sections of the Retailers' Occupation Tax
29 Act to sales of tangible personal property mean the
30 transmitting of messages when used in this Act. References to
31 "taxes" in these incorporated Sections shall be construed to
32 apply to the administration, payment, and remittance of all
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1 fees under this Act.
2 Section 30. The Counties Code is amended by changing
3 Section 5-1006.5 as follows:
4 (55 ILCS 5/5-1006.5)
5 Sec. 5-1006.5. Special County Retailers' Occupation Tax
6 For Public Safety.
7 (a) The county board of any county may impose a tax upon
8 all persons engaged in the business of selling tangible
9 personal property, other than personal property titled or
10 registered with an agency of this State's government, at
11 retail in the county on the gross receipts from the sales
12 made in the course of business to provide revenue to be used
13 exclusively for public safety purposes in that county, if a
14 proposition for the tax has been submitted to the electors of
15 that county and approved by a majority of those voting on the
16 question. If imposed, this tax shall be imposed only in
17 one-quarter percent increments. By resolution, the county
18 board may order the proposition to be submitted at any
19 election. The county clerk shall certify the question to the
20 proper election authority, who shall submit the proposition
21 at an election in accordance with the general election law.
22 The proposition shall be in substantially the following
23 form:
24 "Shall (name of county) be authorized to impose a
25 public safety tax at the rate of .... upon all persons
26 engaged in the business of selling tangible personal
27 property at retail in the county on gross receipts from
28 the sales made in the course of their business to be used
29 for crime prevention, detention, and other public safety
30 purposes?"
31 Votes shall be recorded as Yes or No. If a majority of the
32 electors voting on the proposition vote in favor of it, the
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1 county may impose the tax.
2 This additional tax may not be imposed on the sales of
3 food for human consumption that is to be consumed off the
4 premises where it is sold (other than alcoholic beverages,
5 soft drinks, and food which has been prepared for immediate
6 consumption) and prescription and non-prescription medicines,
7 drugs, medical appliances and insulin, urine testing
8 materials, syringes, and needles used by diabetics. The tax
9 imposed by a county under this Section and all civil
10 penalties that may be assessed as an incident of the tax
11 shall be collected and enforced by the Illinois Department of
12 Revenue. The certificate of registration that is issued by
13 the Department to a retailer under the Retailers' Occupation
14 Tax Act shall permit the retailer to engage in a business
15 that is taxable without registering separately with the
16 Department under an ordinance or resolution under this
17 Section. The Department has full power to administer and
18 enforce this Section, to collect all taxes and penalties due
19 under this Section, to dispose of taxes and penalties so
20 collected in the manner provided in this Section, and to
21 determine all rights to credit memoranda arising on account
22 of the erroneous payment of a tax or penalty under this
23 Section. In the administration of and compliance with this
24 Section, the Department and persons who are subject to this
25 Section shall (i) have the same rights, remedies, privileges,
26 immunities, powers, and duties, (ii) be subject to the same
27 conditions, restrictions, limitations, penalties, and
28 definitions of terms, and (iii) employ the same modes of
29 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
30 1f, 1i, 1j, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
31 contained in those Sections other than the State rate of
32 tax), 2-15 through 2-70 2-40, 2a, 2b, 2c, 3 (except
33 provisions relating to transaction returns and quarter
34 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
HB1817 Enrolled -58- LRB9005182KDpc
1 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
2 of the Retailers' Occupation Tax Act and Section 3-7 of the
3 Uniform Penalty and Interest Act as if those provisions were
4 set forth in this Section.
5 Persons subject to any tax imposed under the authority
6 granted in this Section may reimburse themselves for their
7 sellers' tax liability by separately stating the tax as an
8 additional charge, which charge may be stated in combination,
9 in a single amount, with State tax which sellers are required
10 to collect under the Use Tax Act, pursuant to such bracketed
11 schedules as the Department may prescribe.
12 Whenever the Department determines that a refund should
13 be made under this Section to a claimant instead of issuing a
14 credit memorandum, the Department shall notify the State
15 Comptroller, who shall cause the order to be drawn for the
16 amount specified and to the person named in the notification
17 from the Department. The refund shall be paid by the State
18 Treasurer out of the County Public Safety Retailers'
19 Occupation Tax Fund.
20 (b) If a tax has been imposed under subsection (a), a
21 service occupation tax shall also be imposed at the same rate
22 upon all persons engaged, in the county, in the business of
23 making sales of service, who, as an incident to making those
24 sales of service, transfer tangible personal property within
25 the county as an incident to a sale of service. This tax may
26 not be imposed on sales of food for human consumption that is
27 to be consumed off the premises where it is sold (other than
28 alcoholic beverages, soft drinks, and food prepared for
29 immediate consumption) and prescription and non-prescription
30 medicines, drugs, medical appliances and insulin, urine
31 testing materials, syringes, and needles used by diabetics.
32 The tax imposed under this subsection and all civil penalties
33 that may be assessed as an incident thereof shall be
34 collected and enforced by the Department of Revenue. The
HB1817 Enrolled -59- LRB9005182KDpc
1 Department has full power to administer and enforce this
2 subsection; to collect all taxes and penalties due hereunder;
3 to dispose of taxes and penalties so collected in the manner
4 hereinafter provided; and to determine all rights to credit
5 memoranda arising on account of the erroneous payment of tax
6 or penalty hereunder. In the administration of, and
7 compliance with this subsection, the Department and persons
8 who are subject to this paragraph shall (i) have the same
9 rights, remedies, privileges, immunities, powers, and duties,
10 (ii) be subject to the same conditions, restrictions,
11 limitations, penalties, exclusions, exemptions, and
12 definitions of terms, and (iii) employ the same modes of
13 procedure as are prescribed in Sections 1a-1, 2 (except that
14 the reference to State in the definition of supplier
15 maintaining a place of business in this State shall mean the
16 county), 2a, 3 through 3-50 (in respect to all provisions
17 therein other than the State rate of tax), 4 (except that the
18 reference to the State shall be to the county), 5, 7, 8
19 (except that the jurisdiction to which the tax shall be a
20 debt to the extent indicated in that Section 8 shall be the
21 county), 9 (except as to the disposition of taxes and
22 penalties collected, and except that the returned merchandise
23 credit for this tax may not be taken against any State tax),
24 10, 11, 12 (except the reference therein to Section 2b of the
25 Retailers' Occupation Tax Act), 13 (except that any reference
26 to the State shall mean the county), the first paragraph of
27 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
28 Tax Act and Section 3-7 of the Uniform Penalty and Interest
29 Act, as fully as if those provisions were set forth herein.
30 Persons subject to any tax imposed under the authority
31 granted in this subsection may reimburse themselves for their
32 serviceman's tax liability by separately stating the tax as
33 an additional charge, which charge may be stated in
34 combination, in a single amount, with State tax that
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1 servicemen are authorized to collect under the Service Use
2 Tax Act, in accordance with such bracket schedules as the
3 Department may prescribe.
4 Whenever the Department determines that a refund should
5 be made under this subsection to a claimant instead of
6 issuing a credit memorandum, the Department shall notify the
7 State Comptroller, who shall cause the warrant to be drawn
8 for the amount specified, and to the person named, in the
9 notification from the Department. The refund shall be paid
10 by the State Treasurer out of the County Public Safety
11 Retailers' Occupation Fund.
12 Nothing in this subsection shall be construed to
13 authorize the county to impose a tax upon the privilege of
14 engaging in any business which under the Constitution of the
15 United States may not be made the subject of taxation by the
16 State.
17 (c) The Department shall immediately pay over to the
18 State Treasurer, Ex Officio, as trustee, all taxes and
19 penalties collected under this Section to be deposited into
20 the County Public Safety Retailers' Occupation Tax Fund,
21 which is created in the State treasury. On or before the
22 25th day of each calendar month, the Department shall prepare
23 and certify to the Comptroller the disbursement of stated
24 sums of money to the counties from which retailers have paid
25 taxes or penalties to the Department during the second
26 preceding calendar month. The amount to be paid to each
27 county shall be the amount (not including credit memoranda)
28 collected under this Section during the second preceding
29 calendar month by the Department plus an amount the
30 Department determines is necessary to offset any amounts that
31 were erroneously paid to a different taxing body, and not
32 including (i) an amount equal to the amount of refunds made
33 during the second preceding calendar month by the Department
34 on behalf of the county and (ii) any amount that the
HB1817 Enrolled -61- LRB9005182KDpc
1 Department determines is necessary to offset any amounts that
2 were payable to a different taxing body but were erroneously
3 paid to the county. Within 10 days after receipt by the
4 Comptroller of the disbursement certification to the counties
5 provided for in this Section to be given to the Comptroller
6 by the Department, the Comptroller shall cause the orders to
7 be drawn for the respective amounts in accordance with
8 directions contained in the certification.
9 In addition to the disbursement required by the preceding
10 paragraph, an allocation shall be made in March of each year
11 to each county that received more than $500,000 in
12 disbursements under the preceding paragraph in the preceding
13 calendar year. The allocation shall be in an amount equal to
14 the average monthly distribution made to each such county
15 under the preceding paragraph during the preceding calendar
16 year (excluding the 2 months of highest receipts). The
17 distribution made in March of each year subsequent to the
18 year in which an allocation was made pursuant to this
19 paragraph and the preceding paragraph shall be reduced by the
20 amount allocated and disbursed under this paragraph in the
21 preceding calendar year. The Department shall prepare and
22 certify to the Comptroller for disbursement the allocations
23 made in accordance with this paragraph.
24 (d) For the purpose of determining the local
25 governmental unit whose tax is applicable, a retail sale by a
26 producer of coal or another mineral mined in Illinois is a
27 sale at retail at the place where the coal or other mineral
28 mined in Illinois is extracted from the earth. This
29 paragraph does not apply to coal or another mineral when it
30 is delivered or shipped by the seller to the purchaser at a
31 point outside Illinois so that the sale is exempt under the
32 United States Constitution as a sale in interstate or foreign
33 commerce.
34 (e) Nothing in this Section shall be construed to
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1 authorize a county to impose a tax upon the privilege of
2 engaging in any business that under the Constitution of the
3 United States may not be made the subject of taxation by this
4 State.
5 (e-5) If a county imposes a tax under this Section, the
6 county board may, by ordinance, discontinue or lower the rate
7 of the tax. If the county board lowers the tax rate or
8 discontinues the tax, a referendum must be held in accordance
9 with subsection (a) of this Section in order to increase the
10 rate of the tax or to reimpose the discontinued tax.
11 (f) The results of any election authorizing a
12 proposition to impose a tax under this Section or effecting a
13 change in the rate of tax, or any ordinance lowering the rate
14 or discontinuing the tax, shall be certified by the county
15 clerk and filed with the Illinois Department of Revenue on or
16 before the first day of June. The Illinois Department of
17 Revenue shall then proceed to administer and enforce this
18 Section or to lower the rate or discontinue the tax, as the
19 case may be, as of the first day of January next following
20 the filing.
21 (g) When certifying the amount of a monthly disbursement
22 to a county under this Section, the Department shall increase
23 or decrease the amounts by an amount necessary to offset any
24 miscalculation of previous disbursements. The offset amount
25 shall be the amount erroneously disbursed within the previous
26 6 months from the time a miscalculation is discovered.
27 (h) This Section may be cited as the "Special County
28 Occupation Tax For Public Safety Law".
29 (i) For purposes of this Section, "public safety"
30 includes but is not limited to fire fighting, police,
31 medical, ambulance, or other emergency services.
32 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
33 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; revised 10-8-97.)
HB1817 Enrolled -63- LRB9005182KDpc
1 Section 35. The Illinois Municipal Code is amended by
2 changing Sections 8-11-2, 8-11-6, and 8-11-17 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. Persons engaged in the business of transmitting
8 messages by means of electricity or radio magnetic waves,
9 or fiber optics, at a rate not to exceed 5% of the gross
10 receipts from that business originating within the
11 corporate limits of the municipality.
12 2. Persons engaged in the business of distributing,
13 supplying, furnishing, or selling gas for use or
14 consumption within the corporate limits of a municipality
15 of 500,000 or fewer population, and not for resale, at a
16 rate not to exceed 5% of the gross receipts therefrom.
17 2a. Persons engaged in the business of
18 distributing, supplying, furnishing, or selling gas for
19 use or consumption within the corporate limits of a
20 municipality of over 500,000 population, and not for
21 resale, at a rate not to exceed 8% of the gross receipts
22 therefrom. If imposed, this tax shall be paid in monthly
23 payments.
24 3. Persons engaged in the business of distributing,
25 supplying, furnishing, or selling electricity for use or
26 consumption within the corporate limits of the
27 municipality, and not for resale, at a rate not to exceed
28 5% of the gross receipts therefrom.
29 4. Persons engaged in the business of distributing,
30 supplying, furnishing, or selling water for use or
31 consumption within the corporate limits of the
32 municipality, and not for resale, at a rate not to exceed
33 5% of the gross receipts therefrom.
HB1817 Enrolled -64- LRB9005182KDpc
1 None of the taxes authorized by this Section may be
2 imposed with respect to any transaction in interstate
3 commerce or otherwise to the extent to which the business may
4 not, under the constitution and statutes of the United
5 States, be made the subject of taxation by this State or any
6 political sub-division thereof; nor shall any persons engaged
7 in the business of distributing, supplying, furnishing, or
8 selling gas, water, or electricity, or engaged in the
9 business of transmitting messages be subject to taxation
10 under the provisions of this Section for those transactions
11 that are or may become subject to taxation under the
12 provisions of the "Municipal Retailers' Occupation Tax Act"
13 authorized by Section 8-11-1; nor shall any tax authorized by
14 this Section be imposed upon any person engaged in a business
15 unless the tax is imposed in like manner and at the same rate
16 upon all persons engaged in businesses of the same class in
17 the municipality, whether privately or municipally owned or
18 operated.
19 Any of the taxes enumerated in this Section may be in
20 addition to the payment of money, or value of products or
21 services furnished to the municipality by the taxpayer as
22 compensation for the use of its streets, alleys, or other
23 public places, or installation and maintenance therein,
24 thereon or thereunder of poles, wires, pipes or other
25 equipment used in the operation of the taxpayer's business.
26 (a) If the corporate authorities of any home rule
27 municipality have adopted an ordinance that imposed a tax on
28 public utility customers, between July 1, 1971, and October
29 1, 1981, on the good faith belief that they were exercising
30 authority pursuant to Section 6 of Article VII of the 1970
31 Illinois Constitution, that action of the corporate
32 authorities shall be declared legal and valid,
33 notwithstanding a later decision of a judicial tribunal
34 declaring the ordinance invalid. No municipality shall be
HB1817 Enrolled -65- LRB9005182KDpc
1 required to rebate, refund, or issue credits for any taxes
2 described in this paragraph, and those taxes shall be deemed
3 to have been levied and collected in accordance with the
4 Constitution and laws of this State.
5 (b) In any case in which (i) prior to October 19, 1979,
6 the corporate authorities of any municipality have adopted an
7 ordinance imposing a tax authorized by this Section (or by
8 the predecessor provision of the "Revised Cities and Villages
9 Act") and have explicitly or in practice interpreted gross
10 receipts to include either charges added to customers' bills
11 pursuant to the provision of paragraph (a) of Section 36 of
12 the Public Utilities Act or charges added to customers' bills
13 by taxpayers who are not subject to rate regulation by the
14 Illinois Commerce Commission for the purpose of recovering
15 any of the tax liabilities or other amounts specified in such
16 paragraph (a) of Section 36 of that Act, and (ii) on or after
17 October 19, 1979, a judicial tribunal has construed gross
18 receipts to exclude all or part of those charges, then
19 neither those municipality nor any taxpayer who paid the tax
20 shall be required to rebate, refund, or issue credits for any
21 tax imposed or charge collected from customers pursuant to
22 the municipality's interpretation prior to October 19, 1979.
23 This paragraph reflects a legislative finding that it would
24 be contrary to the public interest to require a municipality
25 or its taxpayers to refund taxes or charges attributable to
26 the municipality's more inclusive interpretation of gross
27 receipts prior to October 19, 1979, and is not intended to
28 prescribe or limit judicial construction of this Section. The
29 legislative finding set forth in this subsection does not
30 apply to taxes imposed after the effective date of this
31 amendatory Act of 1995.
32 (c) (Blank).
33 (d) For the purpose of the taxes enumerated in this
34 Section:
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1 "Gross receipts" means the consideration received for the
2 transmission of messages, the consideration received for
3 distributing, supplying, furnishing or selling gas for use or
4 consumption and not for resale, and the consideration
5 received for distributing, supplying, furnishing or selling
6 electricity for use or consumption and not for resale, and
7 the consideration received for distributing, supplying,
8 furnishing or selling water for use or consumption and not
9 for resale, and for all services rendered in connection
10 therewith valued in money, whether received in money or
11 otherwise, including cash, credit, services and property of
12 every kind and material and for all services rendered
13 therewith, and shall be determined without any deduction on
14 account of the cost of transmitting such messages, without
15 any deduction on account of the cost of the service, product
16 or commodity supplied, the cost of materials used, labor or
17 service cost, or any other expenses whatsoever. "Gross
18 receipts" shall not include that portion of the consideration
19 received for distributing, supplying, furnishing, or selling
20 gas, electricity, or water to, or for the transmission of
21 messages for, business enterprises described in paragraph (e)
22 of this Section to the extent and during the period in which
23 the exemption authorized by paragraph (e) is in effect or for
24 school districts or units of local government described in
25 paragraph (f) during the period in which the exemption
26 authorized in paragraph (f) is in effect. "Gross receipts"
27 shall not include amounts paid by telecommunications
28 retailers under the Telecommunications Municipal
29 Infrastructure Maintenance Fee Act.
30 For utility bills issued on or after May 1, 1996, but
31 before May 1, 1997, and for receipts from those utility
32 bills, "gross receipts" does not include one-third of (i)
33 amounts added to customers' bills under Section 9-222 of the
34 Public Utilities Act, or (ii) amounts added to customers'
HB1817 Enrolled -67- LRB9005182KDpc
1 bills by taxpayers who are not subject to rate regulation by
2 the Illinois Commerce Commission for the purpose of
3 recovering any of the tax liabilities described in Section
4 9-222 of the Public Utilities Act. For utility bills issued
5 on or after May 1, 1997, but before May 1, 1998, and for
6 receipts from those utility bills, "gross receipts" does not
7 include two-thirds of (i) amounts added to customers' bills
8 under Section 9-222 of the Public Utilities Act, or (ii)
9 amount added to customers' bills by taxpayers who are not
10 subject to rate regulation by the Illinois Commerce
11 Commission for the purpose of recovering any of the tax
12 liabilities described in Section 9-222 of the Public
13 Utilities Act. For utility bills issued on or after May 1,
14 1998, and for receipts from those utility bills, "gross
15 receipts" does not include (i) amounts added to customers'
16 bills under Section 9-222 of the Public Utilities Act, or
17 (ii) amounts added to customers' bills by taxpayers who are
18 not subject to rate regulation by the Illinois Commerce
19 Commission for the purpose of recovering any of the tax
20 liabilities described in Section 9-222 of the Public
21 Utilities Act.
22 For purposes of this Section "gross receipts" shall not
23 include (i) amounts added to customers' bills under Section
24 9-221 of the Public Utilities Act, or (ii) charges added to
25 customers' bills to recover the surcharge imposed under the
26 Emergency Telephone System Act. This paragraph is not
27 intended to nor does it make any change in the meaning of
28 "gross receipts" for the purposes of this Section, but is
29 intended to remove possible ambiguities, thereby confirming
30 the existing meaning of "gross receipts" prior to the
31 effective date of this amendatory Act of 1995.
32 The words "transmitting messages", in addition to the
33 usual and popular meaning of person to person communication,
34 shall include the furnishing, for a consideration, of
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1 services or facilities (whether owned or leased), or both, to
2 persons in connection with the transmission of messages where
3 those persons do not, in turn, receive any consideration in
4 connection therewith, but shall not include such furnishing
5 of services or facilities to persons for the transmission of
6 messages to the extent that any such services or facilities
7 for the transmission of messages are furnished for a
8 consideration, by those persons to other persons, for the
9 transmission of messages.
10 "Person" as used in this Section means any natural
11 individual, firm, trust, estate, partnership, association,
12 joint stock company, joint adventure, corporation, municipal
13 corporation or political subdivision of this State, or a
14 receiver, trustee, guardian or other representative appointed
15 by order of any court.
16 "Public utility" shall have the meaning ascribed to it in
17 Section 3-105 of the Public Utilities Act and shall include
18 telecommunications carriers as defined in Section 13-202 of
19 that Act.
20 In the case of persons engaged in the business of
21 transmitting messages through the use of mobile equipment,
22 such as cellular phones and paging systems, the gross
23 receipts from the business shall be deemed to originate
24 within the corporate limits of a municipality only if the
25 address to which the bills for the service are sent is within
26 those corporate limits. If, however, that address is not
27 located within a municipality that imposes a tax under this
28 Section, then (i) if the party responsible for the bill is
29 not an individual, the gross receipts from the business shall
30 be deemed to originate within the corporate limits of the
31 municipality where that party's principal place of business
32 in Illinois is located, and (ii) if the party responsible for
33 the bill is an individual, the gross receipts from the
34 business shall be deemed to originate within the corporate
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1 limits of the municipality where that party's principal
2 residence in Illinois is located.
3 (e) Any municipality that imposes taxes upon public
4 utilities pursuant to this Section whose territory includes
5 any part of an enterprise zone or federally designated
6 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
7 corporate authorities, exempt from those taxes for a period
8 not exceeding 20 years any specified percentage of gross
9 receipts of public utilities received from business
10 enterprises that:
11 (1) either (i) make investments that cause the
12 creation of a minimum of 200 full-time equivalent jobs in
13 Illinois, (ii) make investments of at least $175,000,000
14 that cause the creation of a minimum of 150 full-time
15 equivalent jobs in Illinois, or (iii) make investments
16 that cause the retention of a minimum of 1,000 full-time
17 jobs in Illinois; and
18 (2) are either (i) located in an Enterprise Zone
19 established pursuant to the Illinois Enterprise Zone Act
20 or (ii) Department of Commerce and Community Affairs
21 designated High Impact Businesses located in a federally
22 designated Foreign Trade Zone or Sub-Zone; and
23 (3) are certified by the Department of Commerce and
24 Community Affairs as complying with the requirements
25 specified in clauses (1) and (2) of this paragraph (e).
26 Upon adoption of the ordinance authorizing the exemption,
27 the municipal clerk shall transmit a copy of that ordinance
28 to the Department of Commerce and Community Affairs. The
29 Department of Commerce and Community Affairs shall determine
30 whether the business enterprises located in the municipality
31 meet the criteria prescribed in this paragraph. If the
32 Department of Commerce and Community Affairs determines that
33 the business enterprises meet the criteria, it shall grant
34 certification. The Department of Commerce and Community
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1 Affairs shall act upon certification requests within 30 days
2 after receipt of the ordinance.
3 Upon certification of the business enterprise by the
4 Department of Commerce and Community Affairs, the Department
5 of Commerce and Community Affairs shall notify the Department
6 of Revenue of the certification. The Department of Revenue
7 shall notify the public utilities of the exemption status of
8 the gross receipts received from the certified business
9 enterprises. Such exemption status shall be effective within
10 3 months after certification.
11 (f) A municipality that imposes taxes upon public
12 utilities under this Section and whose territory includes
13 part of another unit of local government or a school district
14 may by ordinance exempt the other unit of local government or
15 school district from those taxes.
16 (g) The amendment of this Section by Public Act 84-127
17 shall take precedence over any other amendment of this
18 Section by any other amendatory Act passed by the 84th
19 General Assembly before the effective date of Public Act
20 84-127.
21 (h) In any case in which, before July 1, 1992, a person
22 engaged in the business of transmitting messages through the
23 use of mobile equipment, such as cellular phones and paging
24 systems, has determined the municipality within which the
25 gross receipts from the business originated by reference to
26 the location of its transmitting or switching equipment, then
27 (i) neither the municipality to which tax was paid on that
28 basis nor the taxpayer that paid tax on that basis shall be
29 required to rebate, refund, or issue credits for any such tax
30 or charge collected from customers to reimburse the taxpayer
31 for the tax and (ii) no municipality to which tax would have
32 been paid with respect to those gross receipts if the
33 provisions of this amendatory Act of 1991 had been in effect
34 before July 1, 1992, shall have any claim against the
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1 taxpayer for any amount of the tax.
2 (Source: P.A. 89-325, eff. 1-1-96; 90-16, eff. 6-16-97.)
3 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
4 Sec. 8-11-6. (a) The corporate authorities of a home rule
5 municipality may impose a tax upon the privilege of using, in
6 such municipality, any item of tangible personal property
7 which is purchased at retail from a retailer, and which is
8 titled or registered at a location within the corporate
9 limits of such home rule municipality with an agency of this
10 State's government, at a rate which is an increment of 1/4%
11 and based on the selling price of such tangible personal
12 property, as "selling price" is defined in the Use Tax Act.
13 In home rule municipalities with less than 2,000,000
14 inhabitants, the tax shall be collected by the municipality
15 imposing the tax from persons whose Illinois address for
16 titling or registration purposes is given as being in such
17 municipality.
18 (b) In home rule municipalities with 2,000,000 or more
19 inhabitants, the corporate authorities of the municipality
20 may additionally impose a tax beginning July 1, 1991 upon the
21 privilege of using in the municipality, any item of tangible
22 personal property, other than tangible personal property
23 titled or registered with an agency of the State's
24 government, that is purchased at retail from a retailer
25 located outside the corporate limits of the municipality, at
26 a rate that is an increment of 1/4% not to exceed 1% and
27 based on the selling price of the tangible personal property,
28 as "selling price" is defined in the Use Tax Act. Such tax
29 shall be collected from the purchaser by the municipality
30 imposing such tax.
31 To prevent multiple home rule taxation, the use in a home
32 rule municipality of tangible personal property that is
33 acquired outside the municipality and caused to be brought
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1 into the municipality by a person who has already paid a home
2 rule municipal tax in another municipality in respect to the
3 sale, purchase, or use of that property, shall be exempt to
4 the extent of the amount of the tax properly due and paid in
5 the other home rule municipality.
6 (c) If a municipality having 2,000,000 or more
7 inhabitants imposes the tax authorized by subsection (a),
8 then the tax shall be collected by the Illinois Department of
9 Revenue when the property is purchased at retail from a
10 retailer in the county in which the home rule municipality
11 imposing the tax is located, and in all contiguous counties.
12 The tax shall be remitted to the State, or an exemption
13 determination must be obtained from the Department before the
14 title or certificate of registration for the property may be
15 issued. The tax or proof of exemption may be transmitted to
16 the Department by way of the State agency with which, or
17 State officer with whom, the tangible personal property must
18 be titled or registered if the Department and that agency or
19 State officer determine that this procedure will expedite the
20 processing of applications for title or registration.
21 The Department shall have full power to administer and
22 enforce this Section to collect all taxes, penalties and
23 interest due hereunder, to dispose of taxes, penalties and
24 interest so collected in the manner hereinafter provided, and
25 determine all rights to credit memoranda or refunds arising
26 on account of the erroneous payment of tax, penalty or
27 interest hereunder. In the administration of and compliance
28 with this Section the Department and persons who are subject
29 to this Section shall have the same rights, remedies,
30 privileges, immunities, powers and duties, and be subject to
31 the same conditions, restrictions, limitations, penalties and
32 definitions of terms, and employ the same modes of procedure
33 as are prescribed in Sections 2 (except the definition of
34 "retailer maintaining a place of business in this State"), 3
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1 (except provisions pertaining to the State rate of tax, and
2 except provisions concerning collection or refunding of the
3 tax by retailers), 4, 11, 12, 12a, 14, 15, 19 (except the
4 portions pertaining to claims by retailers and except the
5 last paragraph concerning refunds), 20, 21 and 22 of the Use
6 Tax Act, which are not inconsistent with this Section, as
7 fully as if provisions contained in those Sections of the Use
8 Tax Act were set forth herein.
9 Whenever the Department determines that a refund shall be
10 made under this Section to a claimant instead of issuing a
11 credit memorandum, the Department shall notify the State
12 Comptroller, who shall cause the order to be drawn for the
13 amount specified, and to the person named, in such
14 notification from the Department. Such refund shall be paid
15 by the State Treasurer out of the home rule municipal
16 retailers' occupation tax fund.
17 The Department shall forthwith pay over to the State
18 Treasurer, ex officio, as trustee, all taxes, penalties and
19 interest collected hereunder. On or before the 25th day of
20 each calendar month, the Department shall prepare and certify
21 to the State Comptroller the disbursement of stated sums of
22 money to named municipalities, the municipality in each
23 instance to be that municipality from which the Department
24 during the second preceding calendar month, collected
25 municipal use tax from any person whose Illinois address for
26 titling or registration purposes is given as being in such
27 municipality. The amount to be paid to each municipality
28 shall be the amount (not including credit memoranda)
29 collected hereunder during the second preceding calendar
30 month by the Department, and not including an amount equal to
31 the amount of refunds made during the second preceding
32 calendar month by the Department on behalf of such
33 municipality, less the amount expended during the second
34 preceding month by the Department to be paid from the
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1 appropriation to the Department from the Home Rule Municipal
2 Retailers' Occupation Tax Trust Fund. The appropriation to
3 cover the costs incurred by the Department in administering
4 and enforcing this Section shall not exceed 2% of the amount
5 estimated to be deposited into the Home Rule Municipal
6 Retailers' Occupation Tax Trust Fund during the fiscal year
7 for which the appropriation is made. Within 10 days after
8 receipt by the State Comptroller of the disbursement
9 certification to the municipalities provided for in this
10 Section to be given to the State Comptroller by the
11 Department, the State Comptroller shall cause the orders to
12 be drawn for the respective amounts in accordance with the
13 directions contained in that certification.
14 Any ordinance imposing or discontinuing any tax to be
15 collected and enforced by the Department under this Section
16 shall be adopted and a certified copy thereof filed with the
17 Department on or before October 1, whereupon the Department
18 of Revenue shall proceed to administer and enforce this
19 Section on behalf of the municipalities as of January 1 next
20 following such adoption and filing.
21 Nothing in this subsection (c) shall prevent a home rule
22 municipality from collecting the tax pursuant to subsection
23 (a) in any situation where such tax is not collected by the
24 Department of Revenue under this subsection (c).
25 (d) Any unobligated balance remaining in the Municipal
26 Retailers' Occupation Tax Fund on December 31, 1989, which
27 fund was abolished by Public Act 85-1135, and all receipts of
28 municipal tax as a result of audits of liability periods
29 prior to January 1, 1990, shall be paid into the Local
30 Government Tax Fund, for distribution as provided by this
31 Section prior to the enactment of Public Act 85-1135. All
32 receipts of municipal tax as a result of an assessment not
33 arising from an audit, for liability periods prior to January
34 1, 1990, shall be paid into the Local Government Tax Fund for
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1 distribution before July 1, 1990, as provided by this Section
2 prior to the enactment of Public Act 85-1135, and on and
3 after July 1, 1990, all such receipts shall be distributed as
4 provided in Section 6z-18 of the State Finance Act.
5 (e) As used in this Section, "Municipal" and
6 "Municipality" means a city, village or incorporated town,
7 including an incorporated town which has superseded a civil
8 township.
9 (f) This Section shall be known and may be cited as the
10 "Home Rule Municipal Use Tax Act".
11 (Source: P.A. 87-14; 87-876; 88-116.)
12 (65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17)
13 Sec. 8-11-17. Municipal telecommunications tax.
14 (a) Beginning on the effective date of this amendatory
15 Act of 1991, the corporate authorities of any municipality in
16 this State may tax any or all of the following acts or
17 privileges:
18 (1) The act or privilege of originating in such
19 municipality or receiving in such municipality intrastate
20 telecommunications by a person at a rate not to exceed 5%
21 of the gross charge for such telecommunications purchased
22 at retail from a retailer by such person. However, such
23 tax is not imposed on such act or privilege to the extent
24 such act or privilege may not, under the Constitution and
25 statutes of the United States, be made the subject of
26 taxation by municipalities in this State.
27 (2) The act or privilege of originating in such
28 municipality or receiving in such municipality interstate
29 telecommunications by a person at a rate not to exceed 5%
30 of the gross charge for such telecommunications purchased
31 at retail from a retailer by such person. To prevent
32 actual multi-state taxation of the act or privilege that
33 is subject to taxation under this paragraph, any
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1 taxpayer, upon proof that the taxpayer has paid a tax in
2 another state on such event, shall be allowed a credit
3 against any tax enacted pursuant to an ordinance
4 authorized by this paragraph to the extent of the amount
5 of such tax properly due and paid in such other state
6 which was not previously allowed as a credit against any
7 other state or local tax in this State. However, such
8 tax is not imposed on the act or privilege to the extent
9 such act or privilege may not, under the Constitution and
10 statutes of the United States, be made the subject of
11 taxation by municipalities in this State.
12 (3) The taxes authorized by paragraphs (1) and (2)
13 of subsection (a) of this Section may only be levied if
14 such municipality does not then have in effect an
15 occupation tax imposed on persons engaged in the business
16 of transmitting messages by means of electricity as
17 authorized by Section 8-11-2 of the Illinois Municipal
18 Code.
19 (b) The tax authorized by this Section shall be
20 collected from the taxpayer by a retailer maintaining a place
21 of business in this State and making or effectuating the sale
22 at retail and shall be remitted by such retailer to the
23 municipality. Any tax required to be collected pursuant to
24 an ordinance authorized by this Section and any such tax
25 collected by such retailer shall constitute a debt owed by
26 the retailer to such municipality. Retailers shall collect
27 the tax from the taxpayer by adding the tax to the gross
28 charge for the act or privilege of originating or receiving
29 telecommunications when sold for use, in the manner
30 prescribed by the municipality. The tax authorized by this
31 Section shall constitute a debt of the purchaser to the
32 retailer who provides such taxable services until paid and,
33 if unpaid, is recoverable at law in the same manner as the
34 original charge for such taxable services. If the retailer
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1 fails to collect the tax from the taxpayer, then the taxpayer
2 shall be required to pay the tax directly to the municipality
3 in the manner provided by the municipality. The municipality
4 imposing the tax shall provide for its administration and
5 enforcement.
6 Beginning January 1, 1994, retailers filing tax returns
7 pursuant to this Section shall, at the time of filing such
8 return, pay to the municipality the amount of the tax imposed
9 by this Section, less a commission of 1.75% which is allowed
10 to reimburse the retailer for the expenses incurred in
11 keeping records, billing the customer, preparing and filing
12 returns, remitting the tax and supplying data to the
13 municipality upon request. No commission may be claimed by a
14 retailer for tax not timely remitted to the municipality.
15 Whenever possible, the tax authorized by this Section
16 shall, when collected, be stated as a distinct item separate
17 and apart from the gross charge for telecommunications.
18 (c) For the purpose of the taxes authorized by this
19 Section:
20 (1) "Amount paid" means the amount charged to the
21 taxpayer's service address in such municipality
22 regardless of where such amount is billed or paid.
23 (2) "Gross charge" means the amount paid for the
24 act or privilege of originating or receiving
25 telecommunications in such municipality and for all
26 services rendered in connection therewith, valued in
27 money whether paid in money or otherwise, including cash,
28 credits, services and property of every kind or nature,
29 and shall be determined without any deduction on account
30 of the cost of such telecommunications, the cost of the
31 materials used, labor or service costs or any other
32 expense whatsoever. In case credit is extended, the
33 amount thereof shall be included only as and when paid.
34 However, "gross charge" shall not include:
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1 (A) any amounts added to a purchaser's bill
2 because of a charge made pursuant to: (i) the tax
3 imposed by this Section, (ii) additional charges
4 added to a purchaser's bill pursuant to Section
5 9-222 of the Public Utilities Act, (iii) the tax
6 imposed by the Telecommunications Excise Tax Act, or
7 (iv) the tax imposed by Section 4251 of the Internal
8 Revenue Code;
9 (B) charges for a sent collect
10 telecommunication received outside of such
11 municipality;
12 (C) charges for leased time on equipment or
13 charges for the storage of data or information or
14 subsequent retrieval or the processing of data or
15 information intended to change its form or content.
16 Such equipment includes, but is not limited to, the
17 use of calculators, computers, data processing
18 equipment, tabulating equipment or accounting
19 equipment and also includes the usage of computers
20 under a time-sharing agreement;
21 (D) charges for customer equipment, including
22 such equipment that is leased or rented by the
23 customer from any source, wherein such charges are
24 disaggregated and separately identified from other
25 charges;
26 (E) charges to business enterprises certified
27 under Section 9-222.1 of the Public Utilities Act to
28 the extent of such exemption and during the period
29 of time specified by the Department of Commerce and
30 Community Affairs;
31 (F) charges for telecommunications and all
32 services and equipment provided in connection
33 therewith between a parent corporation and its
34 wholly owned subsidiaries or between wholly owned
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1 subsidiaries when the tax imposed under this Section
2 has already been paid to a retailer and only to the
3 extent that the charges between the parent
4 corporation and wholly owned subsidiaries or between
5 wholly owned subsidiaries represent expense
6 allocation between the corporations and not the
7 generation of profit for the corporation rendering
8 such service;
9 (G) bad debts ("bad debt" means any portion of
10 a debt that is related to a sale at retail for which
11 gross charges are not otherwise deductible or
12 excludable that has become worthless or
13 uncollectable, as determined under applicable
14 federal income tax standards; if the portion of the
15 debt deemed to be bad is subsequently paid, the
16 retailer shall report and pay the tax on that
17 portion during the reporting period in which the
18 payment is made); or
19 (H) charges paid by inserting coins in
20 coin-operated telecommunication devices; or .
21 (I) amounts paid by telecommunications
22 retailers under the Telecommunications Municipal
23 Infrastructure Maintenance Fee Act.
24 (3) "Interstate telecommunications" means all
25 telecommunications that either originate or terminate
26 outside this State.
27 (4) "Intrastate telecommunications" means all
28 telecommunications that originate and terminate within
29 this State.
30 (5) "Person" means any natural individual, firm,
31 trust, estate, partnership, association, joint stock
32 company, joint venture, corporation, limited liability
33 company, or a receiver, trustee, guardian or other
34 representative appointed by order of any court, the
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1 Federal and State governments, including State
2 universities created by statute, or any city, town,
3 county, or other political subdivision of this State.
4 (6) "Purchase at retail" means the acquisition,
5 consumption or use of telecommunications through a sale
6 at retail.
7 (7) "Retailer" means and includes every person
8 engaged in the business of making sales at retail as
9 defined in this Section. A municipality may, in its
10 discretion, upon application, authorize the collection of
11 the tax hereby imposed by any retailer not maintaining a
12 place of business within this State, who to the
13 satisfaction of the municipality, furnishes adequate
14 security to insure collection and payment of the tax.
15 Such retailer shall be issued, without charge, a permit
16 to collect such tax. When so authorized, it shall be the
17 duty of such retailer to collect the tax upon all of the
18 gross charges for telecommunications in such municipality
19 in the same manner and subject to the same requirements
20 as a retailer maintaining a place of business within such
21 municipality.
22 (8) "Retailer maintaining a place of business in
23 this State", or any like term, means and includes any
24 retailer having or maintaining within this State,
25 directly or by a subsidiary, an office, distribution
26 facilities, transmission facilities, sales office,
27 warehouse or other place of business, or any agent or
28 other representative operating within this State under
29 the authority of the retailer or its subsidiary,
30 irrespective of whether such place of business or agent
31 or other representative is located here permanently or
32 temporarily, or whether such retailer or subsidiary is
33 licensed to do business in this State.
34 (9) "Sale at retail" means the transmitting,
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1 supplying or furnishing of telecommunications and all
2 services rendered in connection therewith for a
3 consideration, to persons other than the Federal and
4 State governments, and State universities created by
5 statute and other than between a parent corporation and
6 its wholly owned subsidiaries or between wholly owned
7 subsidiaries, when the tax has already been paid to a
8 retailer and the gross charge made by one such
9 corporation to another such corporation is not greater
10 than the gross charge paid to the retailer for their use
11 or consumption and not for resale.
12 (10) "Service address" means the location of
13 telecommunications equipment from which
14 telecommunications services are originated or at which
15 telecommunications services are received by a taxpayer.
16 If this is not a defined location, as in the case of
17 mobile phones, paging systems, maritime systems,
18 air-to-ground systems and the like, "service address"
19 shall mean the location of a taxpayer's primary use of
20 the telecommunication equipment as defined by telephone
21 number, authorization code, or location in Illinois where
22 bills are sent.
23 (11) "Taxpayer" means a person who individually or
24 through his agents, employees, or permittees engages in
25 the act or privilege of originating in such municipality
26 or receiving in such municipality telecommunications and
27 who incurs a tax liability under any ordinance authorized
28 by this Section.
29 (12) "Telecommunications", in addition to the usual
30 and popular meaning, includes, but is not limited to,
31 messages or information transmitted through use of local,
32 toll and wide area telephone service, channel services,
33 telegraph services, teletypewriter service, computer
34 exchange services; cellular mobile telecommunications
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1 service, specialized mobile radio services, paging
2 service, or any other form of mobile and portable one-way
3 or two-way communications, or any other transmission of
4 messages or information by electronic or similar means,
5 between or among points by wire, cable, fiber optics,
6 laser, microwave, radio, satellite or similar facilities.
7 The definition of "telecommunications" shall not include
8 value added services in which computer processing
9 applications are used to act on the form, content, code
10 and protocol of the information for purposes other than
11 transmission. "Telecommunications" shall not include
12 purchase of telecommunications by a telecommunications
13 service provider for use as a component part of the
14 service provided by him to the ultimate retail consumer
15 who originates or terminates the taxable end-to-end
16 communications. Carrier access charges, right of access
17 charges, charges for use of inter-company facilities, and
18 all telecommunications resold in the subsequent provision
19 used as a component of, or integrated into, end-to-end
20 telecommunications service shall be non-taxable as sales
21 for resale.
22 (d) If a person, who originates or receives
23 telecommunications in such municipality claims to be a
24 reseller of such telecommunications, such person shall apply
25 to the municipality for a resale number. Such applicant
26 shall state facts which will show the municipality why such
27 applicant is not liable for tax under any ordinance
28 authorized by this Section on any of such purchases and shall
29 furnish such additional information as the municipality may
30 reasonably require.
31 Upon approval of the application, the municipality shall
32 assign a resale number to the applicant and shall certify
33 such number to the applicant. The municipality may cancel
34 any number which is obtained through misrepresentation, or
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1 which is used to send or receive such telecommunication
2 tax-free when such actions in fact are not for resale, or
3 which no longer applies because of the person's having
4 discontinued the making of resales.
5 Except as provided hereinabove in this Section, the act
6 or privilege of sending or receiving telecommunications in
7 this State shall not be made tax-free on the ground of being
8 a sale for resale unless the person has an active resale
9 number from the municipality and furnishes that number to the
10 retailer in connection with certifying to the retailer that
11 any sale to such person is non-taxable because of being a
12 sale for resale.
13 (e) A municipality that imposes taxes upon
14 telecommunications under this Section and whose territory
15 includes part of another unit of local government or a school
16 district may, by ordinance, exempt the other unit of local
17 government or school district from those taxes.
18 (f) A municipality that imposes taxes upon
19 telecommunications under this Section may, by ordinance, (i)
20 reduce the rate of the tax for persons 65 years of age or
21 older or (ii) exempt persons 65 years of age or older from
22 those taxes. Taxes related to such rate reductions or
23 exemptions shall be rebated from the municipality directly to
24 persons qualified for the rate reduction or exemption as
25 determined by the municipality's ordinance.
26 (Source: P.A. 90-357, eff. 1-1-98.)
27 Section 40. The Public Utilities Act is amended by
28 changing Section 2-202 as follows:
29 (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
30 Sec. 2-202. (a) It is declared to be the public policy of
31 this State that in order to maintain and foster the effective
32 regulation of public utilities under this Act in the
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1 interests of the People of the State of Illinois and the
2 public utilities as well, the public utilities subject to
3 regulation under this Act and which enjoy the privilege of
4 operating as public utilities in this State, shall bear the
5 expense of administering this Act by means of a tax on such
6 privilege measured by the annual gross revenue of such public
7 utilities in the manner provided in this Section. For
8 purposes of this Section, "expense of administering this Act"
9 includes any costs incident to studies, whether made by the
10 Commission or under contract entered into by the Commission,
11 concerning environmental pollution problems caused or
12 contributed to by public utilities and the means for
13 eliminating or abating those problems. Such proceeds shall be
14 deposited in the Public Utility Fund in the State treasury.
15 (b) All of the ordinary and contingent expenses of the
16 Commission incident to the administration of this Act shall
17 be paid out of the Public Utility Fund except the
18 compensation of the members of the Commission which shall be
19 paid from the General Revenue Fund. Notwithstanding other
20 provisions of this Act to the contrary, the ordinary and
21 contingent expenses of the Commission incident to the
22 administration of the Illinois Commercial Transportation Law
23 may be paid from appropriations from the Public Utility Fund
24 through the end of fiscal year 1986.
25 (c) A tax is imposed upon each public utility subject to
26 the provisions of this Act equal to .08% of its gross revenue
27 for each calendar year commencing with the calendar year
28 beginning January 1, 1982, except that the Commission may, by
29 rule, establish a different rate no greater than 0.1%.
30 "Gross revenue" shall not include amounts paid by
31 telecommunications retailers under the Telecommunications
32 Municipal Infrastructure Maintenance Fee Act.
33 (d) Annual gross revenue returns shall be filed in
34 accordance with paragraph (1) or (2) of this subsection (d).
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1 (1) Except as provided in paragraph (2) of this
2 subsection (d), on or before January 10 of each year each
3 public utility subject to the provisions of this Act
4 shall file with the Commission an estimated annual gross
5 revenue return containing an estimate of the amount of
6 its gross revenue for the calendar year commencing
7 January 1 of said year and a statement of the amount of
8 tax due for said calendar year on the basis of that
9 estimate. Public utilities may also file revised returns
10 containing updated estimates and updated amounts of tax
11 due during the calendar year. These revised returns, if
12 filed, shall form the basis for quarterly payments due
13 during the remainder of the calendar year. In addition,
14 on or before February 15 of each year, each public
15 utility shall file an amended return showing the actual
16 amount of gross revenues shown by the company's books and
17 records as of December 31 of the previous year. Forms and
18 instructions for such estimated, revised, and amended
19 returns shall be devised and supplied by the Commission.
20 (2) Beginning January 1, 1993, the requirements of
21 paragraph (1) of this subsection (d) shall not apply to
22 any public utility in any calendar year for which the
23 total tax the public utility owes under this Section is
24 less than $1,000. For such public utilities with respect
25 to such years, the public utility shall file with the
26 Commission, on or before January 31 of the following
27 year, an annual gross revenue return for the year and a
28 statement of the amount of tax due for that year on the
29 basis of such a return. Forms and instructions for such
30 returns and corrected returns shall be devised and
31 supplied by the Commission.
32 (e) All returns submitted to the Commission by a public
33 utility as provided in this subsection (e) or subsection (d)
34 of this Section shall contain or be verified by a written
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1 declaration by an appropriate officer of the public utility
2 that the return is made under the penalties of perjury. The
3 Commission may audit each such return submitted and may,
4 under the provisions of Section 5-101 of this Act, take such
5 measures as are necessary to ascertain the correctness of the
6 returns submitted. The Commission has the power to direct the
7 filing of a corrected return by any utility which has filed
8 an incorrect return and to direct the filing of a return by
9 any utility which has failed to submit a return. A
10 taxpayer's signing a fraudulent return under this Section is
11 perjury, as defined in Section 32-2 of the Criminal Code of
12 1961.
13 (f) (1) For all public utilities subject to paragraph
14 (1) of subsection (d), at least one quarter of the annual
15 amount of tax due under subsection (c) shall be paid to the
16 Commission on or before the tenth day of January, April,
17 July, and October of the calendar year subject to tax. In
18 the event that an adjustment in the amount of tax due should
19 be necessary as a result of the filing of an amended or
20 corrected return under subsection (d) or subsection (e) of
21 this Section, the amount of any deficiency shall be paid by
22 the public utility together with the amended or corrected
23 return and the amount of any excess shall, after the filing
24 of a claim for credit by the public utility, be returned to
25 the public utility in the form of a credit memorandum in the
26 amount of such excess or be refunded to the public utility in
27 accordance with the provisions of subsection (k) of this
28 Section. However, if such deficiency or excess is less than
29 $1, then the public utility need not pay the deficiency and
30 may not claim a credit.
31 (2) Any public utility subject to paragraph (2) of
32 subsection (d) shall pay the amount of tax due under
33 subsection (c) on or before January 31 next following the end
34 of the calendar year subject to tax. In the event that an
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1 adjustment in the amount of tax due should be necessary as a
2 result of the filing of a corrected return under subsection
3 (e), the amount of any deficiency shall be paid by the public
4 utility at the time the corrected return is filed. Any excess
5 tax payment by the public utility shall be returned to it
6 after the filing of a claim for credit, in the form of a
7 credit memorandum in the amount of the excess. However, if
8 such deficiency or excess is less than $1, the public utility
9 need not pay the deficiency and may not claim a credit.
10 (g) Each installment or required payment of the tax
11 imposed by subsection (c) becomes delinquent at midnight of
12 the date that it is due. Failure to make a payment as
13 required by this Section shall result in the imposition of a
14 late payment penalty, an underestimation penalty, or both, as
15 provided by this subsection. The late payment penalty shall
16 be the greater of:
17 (1) $25 for each month or portion of a month that
18 the installment or required payment is unpaid or
19 (2) an amount equal to the difference between what
20 should have been paid on the due date, based upon the
21 most recently filed estimate, and what was actually paid,
22 times one percent, for each month or portion of a month
23 that the installment or required payment goes unpaid.
24 This penalty may be assessed as soon as the installment
25 or required payment becomes delinquent.
26 The underestimation penalty shall apply to those public
27 utilities subject to paragraph (1) of subsection (d) and
28 shall be calculated after the filing of the amended return.
29 It shall be imposed if the amount actually paid on any of the
30 dates specified in subsection (f) is not equal to at least
31 one-fourth of the amount actually due for the year, and shall
32 equal the greater of:
33 (1) $25 for each month or portion of a month that
34 the amount due is unpaid or
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1 (2) an amount equal to the difference between what
2 should have been paid, based on the amended return, and
3 what was actually paid as of the date specified in
4 subsection (f), times a percentage equal to 1/12 of the
5 sum of 10% and the percentage most recently established
6 by the Commission for interest to be paid on customer
7 deposits under 83 Ill. Adm. Code 280.70(e)(1), for each
8 month or portion of a month that the amount due goes
9 unpaid, except that no underestimation penalty shall be
10 assessed if the amount actually paid on each of the dates
11 specified in subsection (f) was based on an estimate of
12 gross revenues at least equal to the actual gross
13 revenues for the previous year. The Commission may
14 enforce the collection of any delinquent installment or
15 payment, or portion thereof by legal action or in any
16 other manner by which the collection of debts due the
17 State of Illinois may be enforced under the laws of this
18 State. The executive director or his designee may excuse
19 the payment of an assessed penalty if he determines that
20 enforced collection of the penalty would be unjust.
21 (h) All sums collected by the Commission under the
22 provisions of this Section shall be paid promptly after the
23 receipt of the same, accompanied by a detailed statement
24 thereof, into the Public Utility Fund in the State treasury.
25 (i) During the month of October of each odd-numbered
26 year the Commission shall:
27 (1) determine the amount of all moneys deposited in
28 the Public Utility Fund during the preceding fiscal
29 biennium plus the balance, if any, in that fund at the
30 beginning of that biennium;
31 (2) determine the sum total of the following items:
32 (A) all moneys expended or obligated against
33 appropriations made from the Public Utility Fund during
34 the preceding fiscal biennium, plus (B) the sum of the
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1 credit memoranda then outstanding against the Public
2 Utility Fund, if any; and
3 (3) determine the amount, if any, by which the sum
4 determined as provided in item (1) exceeds the amount
5 determined as provided in item (2).
6 If the amount determined as provided in item (3) of this
7 subsection exceeds $2,500,000, the Commission shall then
8 compute the proportionate amount, if any, which the tax paid
9 hereunder by each utility during the preceding biennium bears
10 to the difference between the amount determined as provided
11 in item (3) of this subsection (i) and $2,500,000, and notify
12 each public utility that it may file during the 3 month
13 period after the date of notification a claim for credit in
14 such proportionate amount. If the proportionate amount is
15 less than $10, no notification will be sent by the
16 Commission, and no right to a claim exists as to that amount.
17 Upon the filing of a claim for credit within the period
18 provided, the Commission shall issue a credit memorandum in
19 such amount to such public utility. Any claim for credit
20 filed after the period provided for in this Section is void.
21 (j) Credit memoranda issued pursuant to subsection (f)
22 and credit memoranda issued after notification and filing
23 pursuant to subsection (i) may be applied for the 2 year
24 period from the date of issuance, against the payment of any
25 amount due during that period under the tax imposed by
26 subsection (c), or, subject to reasonable rule of the
27 Commission including requirement of notification, may be
28 assigned to any other public utility subject to regulation
29 under this Act. Any application of credit memoranda after the
30 period provided for in this Section is void.
31 (k) The chairman or executive director may make refund
32 of fees, taxes or other charges whenever he shall determine
33 that the person or public utility will not be liable for
34 payment of such fees, taxes or charges during the next 24
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1 months and he determines that the issuance of a credit
2 memorandum would be unjust.
3 (Source: P.A. 86-209; 87-971.)
4 (35 ILCS 110/19 rep.)
5 Section 45. The Service Use Tax Act is amended by
6 repealing Section 19.
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.