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90_HB1817sam001
LRB9005182KDksam09
1 AMENDMENT TO HOUSE BILL 1817
2 AMENDMENT NO. . Amend House Bill 1817 by replacing
3 the title with the following:
4 "AN ACT in relation to taxes, amending named Acts."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Income Tax Act is amended by
8 changing Sections 301, 304, and 704 as follows:
9 (35 ILCS 5/301) (from Ch. 120, par. 3-301)
10 Sec. 301. General Rule.
11 (a) Residents. All items of income or deduction which
12 were taken into account in the computation of base income for
13 the taxable year by a resident shall be allocated to this
14 State.
15 (b) Part-year residents. All items of income or
16 deduction which were taken into account in the computation of
17 base income for the taxable year by a part-year resident
18 shall, for that part of the year the part-year resident was a
19 resident of this State, be allocated to this State and, for
20 the remaining part of the year, be allocated to this State
21 only to the extent provided by Section 302, 303 or 304
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1 (relating to compensation, nonbusiness income and business
2 income, respectively).
3 (c) Other persons.
4 (1) In general. Any item of income or deduction
5 which was taken into account in the computation of base
6 income for the taxable year by any person other than a
7 resident and which is referred to in Section 302, 303 or
8 304 (relating to compensation, nonbusiness income and
9 business income, respectively) shall be allocated to this
10 State only to the extent provided by such section.
11 (2) Unspecified items. Any item of income or
12 deduction which was taken into account in the computation
13 of base income for the taxable year by any person other
14 than a resident and which is not otherwise specifically
15 allocated or apportioned pursuant to Section 302, 303 or
16 304 (including, without limitation, interest, dividends,
17 items of income taken into account under the provisions
18 of Sections 401 through 425 of the Internal Revenue Code,
19 and benefit payments received by a beneficiary of a
20 supplemental unemployment benefit trust which is referred
21 to in Section 501(c)(17) of the Internal Revenue Code):
22 (A) in the case of an individual, trust, or
23 estate, shall not be allocated to this State; and
24 (B) in the case of a corporation, trust, or a
25 partnership, shall be allocated to this State if the
26 taxpayer had its commercial domicile in this State
27 at the time such item was paid, incurred or accrued.
28 (Source: P.A. 90-491, eff. 1-1-98.)
29 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
30 Sec. 304. Business income of persons other than
31 residents.
32 (a) In general. The business income of a person other
33 than a resident shall be allocated to this State if such
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1 person's business income is derived solely from this State.
2 If a person other than a resident derives business income
3 from this State and one or more other states, then, except as
4 otherwise provided by this Section, such person's business
5 income shall be apportioned to this State by multiplying the
6 income by a fraction, the numerator of which is the sum of
7 the property factor (if any), the payroll factor (if any) and
8 200% of the sales factor (if any), and the denominator of
9 which is 4 reduced by the number of factors other than the
10 sales factor which have a denominator of zero and by an
11 additional 2 if the sales factor has a denominator of zero.
12 (1) Property factor.
13 (A) The property factor is a fraction, the
14 numerator of which is the average value of the person's
15 real and tangible personal property owned or rented and
16 used in the trade or business in this State during the
17 taxable year and the denominator of which is the average
18 value of all the person's real and tangible personal
19 property owned or rented and used in the trade or
20 business during the taxable year.
21 (B) Property owned by the person is valued at its
22 original cost. Property rented by the person is valued at
23 8 times the net annual rental rate. Net annual rental
24 rate is the annual rental rate paid by the person less
25 any annual rental rate received by the person from
26 sub-rentals.
27 (C) The average value of property shall be
28 determined by averaging the values at the beginning and
29 ending of the taxable year but the Director may require
30 the averaging of monthly values during the taxable year
31 if reasonably required to reflect properly the average
32 value of the person's property.
33 (2) Payroll factor.
34 (A) The payroll factor is a fraction, the numerator
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1 of which is the total amount paid in this State during
2 the taxable year by the person for compensation, and the
3 denominator of which is the total compensation paid
4 everywhere during the taxable year.
5 (B) Compensation is paid in this State if:
6 (i) The individual's service is performed
7 entirely within this State;
8 (ii) The individual's service is performed
9 both within and without this State, but the service
10 performed without this State is incidental to the
11 individual's service performed within this State; or
12 (iii) Some of the service is performed within
13 this State and either the base of operations, or if
14 there is no base of operations, the place from which
15 the service is directed or controlled is within this
16 State, or the base of operations or the place from
17 which the service is directed or controlled is not
18 in any state in which some part of the service is
19 performed, but the individual's residence is in this
20 State.
21 Beginning with taxable years ending on or after
22 December 31, 1992, for residents of states that impose a
23 comparable tax liability on residents of this State, for
24 purposes of item (i) of this paragraph (B), in the case
25 of persons who perform personal services under personal
26 service contracts for sports performances, services by
27 that person at a sporting event taking place in Illinois
28 shall be deemed to be a performance entirely within this
29 State.
30 (3) Sales factor.
31 (A) The sales factor is a fraction, the numerator
32 of which is the total sales of the person in this State
33 during the taxable year, and the denominator of which is
34 the total sales of the person everywhere during the
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1 taxable year.
2 (B) Sales of tangible personal property are in this
3 State if:
4 (i) The property is delivered or shipped to a
5 purchaser, other than the United States government,
6 within this State regardless of the f. o. b. point
7 or other conditions of the sale; or
8 (ii) The property is shipped from an office,
9 store, warehouse, factory or other place of storage
10 in this State and either the purchaser is the United
11 States government or the person is not taxable in
12 the state of the purchaser; provided, however, that
13 premises owned or leased by a person who has
14 independently contracted with the seller for the
15 printing of newspapers, periodicals or books shall
16 not be deemed to be an office, store, warehouse,
17 factory or other place of storage for purposes of
18 this Section. Sales of tangible personal property
19 are not in this State if the seller and purchaser
20 would be members of the same unitary business group
21 but for the fact that either the seller or purchaser
22 is a person with 80% or more of total business
23 activity outside of the United States and the
24 property is purchased for resale.
25 (C) Sales, other than sales of tangible personal
26 property, are in this State if:
27 (i) The income-producing activity is performed
28 in this State; or
29 (ii) The income-producing activity is
30 performed both within and without this State and a
31 greater proportion of the income-producing activity
32 is performed within this State than without this
33 State, based on performance costs.
34 (D) For taxable years ending on or after December
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1 31, 1995 and excluding taxable years ending after
2 December 31, 1997, the following items of income shall
3 not be included in the numerator or denominator of the
4 sales factor: dividends; amounts included under Section
5 78 of the Internal Revenue Code; and Subpart F income as
6 defined in Section 952 of the Internal Revenue Code. No
7 inference shall be drawn from the enactment of this
8 paragraph (D) in construing this Section for taxable
9 years ending before December 31, 1995.
10 (b) Insurance companies.
11 (1) In general. Except as otherwise provided by
12 paragraph (2), business income of an insurance company for a
13 taxable year shall be apportioned to this State by
14 multiplying such income by a fraction, the numerator of which
15 is the direct premiums written for insurance upon property or
16 risk in this State, and the denominator of which is the
17 direct premiums written for insurance upon property or risk
18 everywhere. For purposes of this subsection, the term "direct
19 premiums written" means the total amount of direct premiums
20 written, assessments and annuity considerations as reported
21 for the taxable year on the annual statement filed by the
22 company with the Illinois Director of Insurance in the form
23 approved by the National Convention of Insurance
24 Commissioners or such other form as may be prescribed in lieu
25 thereof.
26 (2) Reinsurance. If the principal source of premiums
27 written by an insurance company consists of premiums for
28 reinsurance accepted by it, the business income of such
29 company shall be apportioned to this State by multiplying
30 such income by a fraction, the numerator of which is the sum
31 of (i) direct premiums written for insurance upon property or
32 risk in this State, plus (ii) premiums written for
33 reinsurance accepted in respect of property or risk in this
34 State, and the denominator of which is the sum of (iii)
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1 direct premiums written for insurance upon property or risk
2 everywhere, plus (iv) premiums written for reinsurance
3 accepted in respect of property or risk everywhere. For
4 purposes of this paragraph, premiums written for reinsurance
5 accepted in respect of property or risk in this State,
6 whether or not otherwise determinable, may, at the election
7 of the company, be determined on the basis of the proportion
8 which premiums written for reinsurance accepted from
9 companies commercially domiciled in Illinois bears to
10 premiums written for reinsurance accepted from all sources,
11 or, alternatively, in the proportion which the sum of the
12 direct premiums written for insurance upon property or risk
13 in this State by each ceding company from which reinsurance
14 is accepted bears to the sum of the total direct premiums
15 written by each such ceding company for the taxable year.
16 (c) Financial organizations.
17 (1) In general. Business income of a financial
18 organization shall be apportioned to this State by
19 multiplying such income by a fraction, the numerator of which
20 is its business income from sources within this State, and
21 the denominator of which is its business income from all
22 sources. For the purposes of this subsection, the business
23 income of a financial organization from sources within this
24 State is the sum of the amounts referred to in subparagraphs
25 (A) through (E) following, but excluding the adjusted income
26 of an international banking facility as determined in
27 paragraph (2):
28 (A) Fees, commissions or other compensation for
29 financial services rendered within this State;
30 (B) Gross profits from trading in stocks, bonds or
31 other securities managed within this State;
32 (C) Dividends, and interest from Illinois
33 customers, which are received within this State;
34 (D) Interest charged to customers at places of
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1 business maintained within this State for carrying debit
2 balances of margin accounts, without deduction of any
3 costs incurred in carrying such accounts; and
4 (E) Any other gross income resulting from the
5 operation as a financial organization within this State.
6 In computing the amounts referred to in paragraphs (A)
7 through (E) of this subsection, any amount received by a
8 member of an affiliated group (determined under Section
9 1504(a) of the Internal Revenue Code but without
10 reference to whether any such corporation is an
11 "includible corporation" under Section 1504(b) of the
12 Internal Revenue Code) from another member of such group
13 shall be included only to the extent such amount exceeds
14 expenses of the recipient directly related thereto.
15 (2) International Banking Facility.
16 (A) Adjusted Income. The adjusted income of an
17 international banking facility is its income reduced by
18 the amount of the floor amount.
19 (B) Floor Amount. The floor amount shall be the
20 amount, if any, determined by multiplying the income of
21 the international banking facility by a fraction, not
22 greater than one, which is determined as follows:
23 (i) The numerator shall be:
24 The average aggregate, determined on a
25 quarterly basis, of the financial organization's
26 loans to banks in foreign countries, to foreign
27 domiciled borrowers (except where secured primarily
28 by real estate) and to foreign governments and other
29 foreign official institutions, as reported for its
30 branches, agencies and offices within the state on
31 its "Consolidated Report of Condition", Schedule A,
32 Lines 2.c., 5.b., and 7.a., which was filed with the
33 Federal Deposit Insurance Corporation and other
34 regulatory authorities, for the year 1980, minus
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1 The average aggregate, determined on a
2 quarterly basis, of such loans (other than loans of
3 an international banking facility), as reported by
4 the financial institution for its branches, agencies
5 and offices within the state, on the corresponding
6 Schedule and lines of the Consolidated Report of
7 Condition for the current taxable year, provided,
8 however, that in no case shall the amount determined
9 in this clause (the subtrahend) exceed the amount
10 determined in the preceding clause (the minuend);
11 and
12 (ii) the denominator shall be the average
13 aggregate, determined on a quarterly basis, of the
14 international banking facility's loans to banks in
15 foreign countries, to foreign domiciled borrowers
16 (except where secured primarily by real estate) and
17 to foreign governments and other foreign official
18 institutions, which were recorded in its financial
19 accounts for the current taxable year.
20 (C) Change to Consolidated Report of Condition and
21 in Qualification. In the event the Consolidated Report
22 of Condition which is filed with the Federal Deposit
23 Insurance Corporation and other regulatory authorities is
24 altered so that the information required for determining
25 the floor amount is not found on Schedule A, lines 2.c.,
26 5.b. and 7.a., the financial institution shall notify the
27 Department and the Department may, by regulations or
28 otherwise, prescribe or authorize the use of an
29 alternative source for such information. The financial
30 institution shall also notify the Department should its
31 international banking facility fail to qualify as such,
32 in whole or in part, or should there be any amendment or
33 change to the Consolidated Report of Condition, as
34 originally filed, to the extent such amendment or change
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1 alters the information used in determining the floor
2 amount.
3 (d) Transportation services. Business income derived
4 from furnishing transportation services shall be apportioned
5 to this State in accordance with paragraphs (1) and (2):
6 (1) Such business income (other than that derived
7 from transportation by pipeline) shall be apportioned to
8 this State by multiplying such income by a fraction, the
9 numerator of which is the revenue miles of the person in
10 this State, and the denominator of which is the revenue
11 miles of the person everywhere. For purposes of this
12 paragraph, a revenue mile is the transportation of 1
13 passenger or 1 net ton of freight the distance of 1 mile
14 for a consideration. Where a person is engaged in the
15 transportation of both passengers and freight, the
16 fraction above referred to shall be determined by means
17 of an average of the passenger revenue mile fraction and
18 the freight revenue mile fraction, weighted to reflect
19 the person's
20 (A) relative railway operating income from
21 total passenger and total freight service, as
22 reported to the Interstate Commerce Commission, in
23 the case of transportation by railroad, and
24 (B) relative gross receipts from passenger and
25 freight transportation, in case of transportation
26 other than by railroad.
27 (2) Such business income derived from
28 transportation by pipeline shall be apportioned to this
29 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 the purposes of this
33 paragraph, a revenue mile is the transportation by
34 pipeline of 1 barrel of oil, 1,000 cubic feet of gas, or
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1 of any specified quantity of any other substance, the
2 distance of 1 mile for a consideration.
3 (e) Combined apportionment. Where 2 or more persons are
4 engaged in a unitary business as described in subsection
5 (a)(27) of Section 1501, a part of which is conducted in this
6 State by one or more members of the group, the business
7 income attributable to this State by any such member or
8 members shall be apportioned by means of the combined
9 apportionment method.
10 (f) Alternative allocation. If the allocation and
11 apportionment provisions of subsections (a) through (e) do
12 not fairly represent the extent of a person's business
13 activity in this State, the person may petition for, or the
14 Director may require, in respect of all or any part of the
15 person's business activity, if reasonable:
16 (1) Separate accounting;
17 (2) The exclusion of any one or more factors;
18 (3) The inclusion of one or more additional factors
19 which will fairly represent the person's business
20 activities in this State; or
21 (4) The employment of any other method to
22 effectuate an equitable allocation and apportionment of
23 the person's business income.
24 (g) Cross reference. For allocation of business income
25 by residents, see Section 301(a).
26 (Source: P.A. 89-379, eff. 1-1-96; 89-399, eff. 8-20-95;
27 89-626, eff. 8-9-96.)
28 (35 ILCS 5/704) (from Ch. 120, par. 7-704)
29 Sec. 704. Employer's Return and Payment of Tax Withheld.
30 (a) In general, every employer who deducts and withholds
31 or is required to deduct and withhold tax under this Act
32 shall make such payments and returns as hereinafter provided.
33 (b) Quarter Monthly Payments: Returns. Every employer
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1 who deducts and withholds or is required to deduct and
2 withhold tax under this Act shall, on or before the third
3 banking day following the close of a quarter monthly period,
4 pay to the Department or to a depositary designated by the
5 Department, pursuant to regulations prescribed by the
6 Department, the taxes so required to be deducted and
7 withheld, whenever the aggregate amount withheld by such
8 employer (together with amounts previously withheld and not
9 paid to the Department) exceeds $1,000. For purposes of this
10 Section, Saturdays, Sundays, legal holidays and local bank
11 holidays are not banking days. A quarter monthly period, for
12 purposes of this subsection, ends on the 7th, 15th, 22nd and
13 last day of each calendar month. Every such employer shall
14 for each calendar quarter, on or before the last day of the
15 first month following the close of such quarter, and for the
16 calendar year, on or before January 31 of the succeeding
17 calendar year, make a return with respect to such taxes in
18 such form and manner as the Department may by regulations
19 prescribe, and pay to the Department or to a depositary
20 designated by the Department all withheld taxes not
21 previously paid to the Department.
22 (c) Monthly Payments: Returns. Every employer required
23 to deduct and withhold tax under this Act shall, on or before
24 the 15th day of the second and third months of each calendar
25 quarter, and on or before the last day of the month following
26 the last month of each such quarter, pay to the Department or
27 to a depositary designated by the Department, pursuant to
28 regulations prescribed by the Department, the taxes so
29 required to be deducted and withheld, whenever the aggregate
30 amount withheld by such employer (together with amounts
31 previously withheld and not paid to the Department) exceeds
32 $500 but does not exceed $1,000. Every such employer shall
33 for each calendar quarter, on or before the last day of the
34 first month following the close of such quarter, and for the
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1 calendar year, on or before January 31 of the succeeding
2 calendar year, make a return with respect to such taxes in
3 such form and manner as the Department may by regulations
4 prescribe, and pay to the Department or to a depositary
5 designated by the Department all withheld taxes not
6 previously paid to the Department.
7 (d) Annual Payments: Returns. Where the amount of
8 compensation paid by an employer is not sufficient to require
9 the withholding of tax from the compensation of any of its
10 employees (or where the aggregate amount withheld is less
11 than $500), the Department may by regulation permit such
12 employer to file only an annual return and to pay the taxes
13 required to be deducted and withheld at the time of filing
14 such annual return.
15 (e) Annual Return. The Department may, as it deems
16 appropriate, prescribe by regulation for the filing of annual
17 returns in lieu of quarterly returns described in subsections
18 (b) and (c).
19 (e-5) Annual Return and Payment. On and after January
20 1, 1998, notwithstanding subsections (b) through (d) of this
21 Section, every employer who deducts and withholds or is
22 required to deduct and withhold tax from a person engaged in
23 domestic service employment, as that term is defined in
24 Section 3510 of the Internal Revenue Code, may comply with
25 the requirements of this Section by filing an annual return
26 and paying the taxes required to be deducted and withheld on
27 or before the 15th day of the fourth month following the
28 close of the employer's taxable year. The annual return may
29 be submitted with the employer's individual income tax
30 return. Annual Return. Where the tax is withheld from a
31 person engaged in domestic service employment, as that term
32 is defined in Section 3510 of the Internal Revenue Code,
33 returns shall be filed on or before the 15th day of the
34 fourth month following the close of the employer's taxable
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1 year.
2 (f) Magnetic Media Filing. Forms W-2 that, pursuant to
3 the Internal Revenue Code and regulations promulgated
4 thereunder, are required to be submitted to the Internal
5 Revenue Service on magnetic media, must also be submitted to
6 the Department on magnetic media for Illinois purposes, if
7 required by the Department.
8 (Source: P.A. 90-374, eff. 8-14-97.)
9 Section 10. The Use Tax Act is amended by changing
10 Section 19 as follows:
11 (35 ILCS 105/19) (from Ch. 120, par. 439.19)
12 Sec. 19. If it shall appear that an amount of tax or
13 penalty or interest has been paid in error hereunder to the
14 Department by a purchaser, as distinguished from the
15 retailer, whether such amount be paid through a mistake of
16 fact or an error of law, such purchaser may file a claim for
17 credit or refund with the Department in accordance with
18 Sections 6, 6a, 6b, and 6c of the Retailers' Occupation Tax
19 Act. If it shall appear that an amount of tax or penalty or
20 interest has been paid in error to the Department hereunder
21 by a retailer who is required or authorized to collect and
22 remit the use tax, whether such amount be paid through a
23 mistake of fact or an error of law, such retailer may file a
24 claim for credit or refund with the Department in accordance
25 with Sections 6, 6a, 6b, and 6c of the Retailers' Occupation
26 Tax Act, provided that no credit or refund shall be allowed
27 for any amount paid by any such retailer unless it shall
28 appear that he bore the burden of such amount and did not
29 shift the burden thereof to anyone else (as in the case of a
30 duplicated tax payment which the retailer made to the
31 Department and did not collect from anyone else), or unless
32 it shall appear that he or she or his or her legal
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1 representative has unconditionally repaid such amount to his
2 vendee (1) who bore the burden thereof and has not shifted
3 such burden directly or indirectly in any manner whatsoever;
4 (2) who, if he has shifted such burden, has repaid
5 unconditionally such amount to his or her own vendee, and (3)
6 who is not entitled to receive any reimbursement therefor
7 from any other source than from his vendor, nor to be
8 relieved of such burden in any other manner whatsoever. If it
9 shall appear that an amount of tax has been paid in error
10 hereunder by the purchaser to a retailer, who retained such
11 tax as reimbursement for his or her tax liability on the same
12 sale under the Retailers' Occupation Tax Act, and who
13 remitted the amount involved to the Department under the
14 Retailers' Occupation Tax Act, whether such amount be paid
15 through a mistake of fact or an error of law, the procedure
16 for recovering such tax shall be that prescribed in Sections
17 6, 6a, 6b and 6c of the Retailers' Occupation Tax Act.
18 Any credit or refund that is allowed under this Section
19 shall bear interest at the rate and in the manner specified
20 in the Uniform Penalty and Interest Act.
21 Any claim filed hereunder shall be filed upon a form
22 prescribed and furnished by the Department. The claim shall
23 be signed by the claimant (or by the claimant's legal
24 representative if the claimant shall have died or become a
25 person under legal disability), or by a duly authorized agent
26 of the claimant or his or her legal representative.
27 A claim for credit or refund shall be considered to have
28 been filed with the Department on the date upon which it is
29 received by the Department. Upon receipt of any claim for
30 credit or refund filed under this Act, any officer or
31 employee of the Department, authorized in writing by the
32 Director of Revenue to acknowledge receipt of such claims on
33 behalf of the Department, shall execute on behalf of the
34 Department, and shall deliver or mail to the claimant or his
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1 duly authorized agent, a written receipt, acknowledging that
2 the claim has been filed with the Department, describing the
3 claim in sufficient detail to identify it and stating the
4 date upon which the claim was received by the Department.
5 Such written receipt shall be prima facie evidence that the
6 Department received the claim described in such receipt and
7 shall be prima facie evidence of the date when such claim was
8 received by the Department. In the absence of such a written
9 receipt, the records of the Department as to when the claim
10 was received by the Department, or as to whether or not the
11 claim was received at all by the Department, shall be deemed
12 to be prima facie correct upon these questions in the event
13 of any dispute between the claimant (or his or her legal
14 representative) and the Department concerning these
15 questions.
16 In case the Department determines that the claimant is
17 entitled to a refund, such refund shall be made only from
18 such appropriation as may be available for that purpose. If
19 it appears unlikely that the amount appropriated would permit
20 everyone having a claim allowed during the period covered by
21 such appropriation to elect to receive a cash refund, the
22 Department, by rule or regulation, shall provide for the
23 payment of refunds in hardship cases and shall define what
24 types of cases qualify as hardship cases.
25 If a retailer who has failed to pay use tax on gross
26 receipts from retail sales is required by the Department to
27 pay such tax, such retailer, without filing any formal claim
28 with the Department, shall be allowed to take credit against
29 such use tax liability to the extent, if any, to which such
30 retailer has paid an amount equivalent to retailers'
31 occupation tax or has paid use tax in error to his or her
32 vendor or vendors of the same tangible personal property
33 which such retailer bought for resale and did not first use
34 before selling it, and no penalty or interest shall be
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1 charged to such retailer on the amount of such credit.
2 However, when such credit is allowed to the retailer by the
3 Department, the vendor is precluded from refunding any of
4 that tax to the retailer and filing a claim for credit or
5 refund with respect thereto with the Department. The
6 provisions of this amendatory Act shall be applied
7 retroactively, regardless of the date of the transaction.
8 (Source: P.A. 87-205.)
9 Section 15. The Service Occupation Tax Act is amended by
10 changing Section 19 as follows:
11 (35 ILCS 115/19) (from Ch. 120, par. 439.119)
12 Sec. 19. As to any claim for credit or refund filed with
13 the Department on or and after each January 1 and July 1 but
14 on or before June 30 of any given year, no amount of tax or
15 penalty or interest erroneously paid (either in total or
16 partial liquidation of a tax or penalty or interest under
17 this Act) more than 3 years prior to such January 1 and July
18 1, respectively, shall be credited or refunded, except that
19 if both the Department and taxpayer have agreed to an
20 extension of time to issue a notice of tax liability as
21 provided in Section 4 of the Retailers' Occupation Tax Act,
22 such claim may be filed at any time prior to the expiration
23 of the period agreed upon and as to any such claim filed on
24 and after July 1 but on or before December 31 of any given
25 year, no amount of tax or penalty or interest erroneously
26 paid (either in total or partial liquidation of a tax or
27 penalty under this Act) more than 3 years prior to such July
28 1 shall be credited or refunded. No claim shall be allowed
29 for any amount paid to the Department, whether paid
30 voluntarily or involuntarily, if paid in total or partial
31 liquidation of an assessment which had become final before
32 the claim for credit or refund to recover the amount so paid
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1 is filed with the Department, or if paid in total or partial
2 liquidation of a judgment or order of court.
3 (Source: P.A. 79-1365; 79-1366.)
4 Section 18. The Property Tax Code is amended, if and
5 only if the provisions of Senate Bill 51 of the 90th General
6 Assembly that are changed by this amendatory Act of 1997
7 become law, by changing Section 14-15 as follows:
8 (35 ILCS 200/14-15)
9 Sec. 14-15. Certificate of error; counties of 3,000,000
10 or more.
11 (a) In counties with 3,000,000 or more inhabitants, if,
12 at any time before judgment is rendered in any proceeding to
13 collect or to enjoin the collection of taxes based upon any
14 assessment of any property belonging to any taxpayer, the
15 county assessor discovers an error or mistake in the
16 assessment, the assessor shall execute a certificate setting
17 forth the nature and cause of the error. The certificate when
18 endorsed by the county assessor, or when endorsed by the
19 county assessor and board of appeals (until the first Monday
20 in December 1998 and the board of review beginning the first
21 Monday in December 1998 and thereafter) where the certificate
22 is executed for any assessment which was the subject of a
23 complaint filed in the board of appeals (until the first
24 Monday in December 1998 and the board of review beginning the
25 first Monday in December 1998 and thereafter) for the tax
26 year for which the certificate is issued, may be received in
27 evidence in any court of competent jurisdiction. When so
28 introduced in evidence such certificate shall become a part
29 of the court records, and shall not be removed from the files
30 except upon the order of the court.
31 A certificate executed under this Section may be issued
32 to the person erroneously assessed. A certificate executed
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1 under this Section or a list of the parcels for which
2 certificates have been issued may be presented by the
3 assessor to the court as an objection in the application for
4 judgment and order of sale for the year in relation to which
5 the certificate is made. The State's Attorney of the county
6 in which the property is situated shall mail a copy of any
7 final judgment entered by the court regarding the certificate
8 to the taxpayer of record for the year in question.
9 Any unpaid taxes after the entry of the final judgment by
10 the court on certificates issued under this Section may be
11 included in a special tax sale, provided that an
12 advertisement is published and a notice is mailed to the
13 person in whose name the taxes were last assessed, in a form
14 and manner substantially similar to the advertisement and
15 notice required under Sections 21-110 and 21-135. The
16 advertisement and sale shall be subject to all provisions of
17 law regulating the annual advertisement and sale of
18 delinquent property, to the extent that those provisions may
19 be made applicable.
20 A certificate of error executed under this Section
21 allowing homestead exemptions under Sections 15-170, 15-172,
22 and 15-175 of this Act (formerly Sections 19.23-1 and
23 19.23-1a of the Revenue Act of 1939) not previously allowed
24 shall be given effect by the county treasurer, who shall mark
25 the tax books and, upon receipt of the following certificate
26 from the county assessor, shall issue refunds to the taxpayer
27 accordingly:
28 "CERTIFICATION
29 I, .................., county assessor, hereby certify
30 that the Certificates of Error set out on the attached
31 list have been duly issued to allow homestead exemptions
32 pursuant to Sections 15-170, 15-172, and 15-175 of the
33 Property Tax Code (formerly Sections 19.23-1 and 19.23-1a
34 of the Revenue Act of 1939) which should have been
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1 previously allowed; and that a certified copy of the
2 attached list and this certification have been served
3 upon the county State's Attorney."
4 The county treasurer has the power to mark the tax books
5 to reflect the issuance of homestead certificates of error
6 issued up to and including 3 years after the date on which
7 the annual judgment and order of sale for that tax year was
8 first entered first day of January of the second year after
9 the year for which the homestead exemption should have been
10 allowed. The county treasurer has the power to issue refunds
11 to the taxpayer as set forth above from and including the
12 first day of January of the second year after the year for
13 which the homestead exemption should have been allowed until
14 all refunds authorized by this Section have been completed.
15 The county treasurer has no power to issue refunds to the
16 taxpayer as set forth above unless the Certification set out
17 in this Section has been served upon the county State's
18 Attorney.
19 (b) Nothing in subsection (a) of this Section shall be
20 construed to prohibit the execution, endorsement, issuance,
21 and adjudication of a certificate of error if (i) the annual
22 judgment and order of sale for the tax year in question is
23 reopened for further proceedings upon consent of the county
24 collector and county assessor, represented by the State's
25 Attorney, and (ii) a new final judgment is subsequently
26 entered pursuant to the certificate. This subsection (b)
27 shall be construed as declarative of existing law and not as
28 a new enactment.
29 (c) No certificate of error, other than a certificate to
30 establish an exemption under Section 14-25, shall be executed
31 for any tax year more than 3 years after the date on which
32 the annual judgment and order of sale for that tax year was
33 first entered.
34 (d) The time limitation of subsection (c) shall not
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1 apply to a certificate of error correcting an assessment to
2 $1, under Section 10-35, on a parcel that a subdivision or
3 planned development has acquired by adverse possession, if
4 during the tax year for which the certificate is executed the
5 subdivision or planned development used the parcel as common
6 area, as defined in Section 10-35, and if application for the
7 certificate of error is made prior to December 31, 1997.
8 (Source: P.A. 88-225; 88-455; 88-660, eff. 9-16-94; 88-670,
9 eff. 12-2-94; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96;
10 90SB0051 enrolled.)
11 Section 19. The Property Tax Code is amended by changing
12 Sections 9-195 and 15-100 and adding Section 10-230 and a
13 heading to Division 10 as follows:
14 (35 ILCS 200/9-195)
15 Sec. 9-195. Leasing of exempt property.
16 (a) Except as provided in Section 15-55 and 15-100, when
17 property which is exempt from taxation is leased to another
18 whose property is not exempt, and the leasing of which does
19 not make the property taxable, the leasehold estate and the
20 appurtenances shall be listed as the property of the lessee
21 thereof, or his or her assignee. Taxes on that property shall
22 be collected in the same manner as on property that is not
23 exempt, and the lessee shall be liable for those taxes.
24 However, no tax lien shall attach to the exempt real estate.
25 The changes made by this amendatory Act of 1997 are
26 declaratory of existing law and shall not be construed as a
27 new enactment. The changes made by Public Acts 88-221 and
28 88-420 that are incorporated into this Section by this
29 amendatory Act of 1993 are declarative of existing law and
30 are not a new enactment.
31 (b) The provisions of this Section regarding taxation of
32 leasehold interests in exempt property do not apply to any
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1 leasehold interest created pursuant to any transaction
2 described in subsection (b) of Section 15-100.
3 (Source: P.A. 88-455; incorporates 88-221 and 88-420; 88-670,
4 eff. 12-2-94.)
5 (35 ILCS 200/Art. 10, Div. 10, heading new)
6 DIVISION 10. ELECTRIC POWER GENERATING STATIONS
7 (35 ILCS 200/10-230 new)
8 Sec. 10-230. Creation of task force; 1997 through 1999
9 property assessments of certain utility property.
10 (a) This Section establishes an Electric Utility
11 Property Assessment Task Force to advise the General Assembly
12 with respect to the possible impact of the Electric Service
13 Customer Choice and Rate Relief Law of 1997 on the valuation
14 of the real property component of electric generating
15 stations owned by electric utilities and, therefore, on the
16 taxing districts in this State in which electric generating
17 stations are located.
18 (b) There shall be established and appointed in
19 accordance with this Section an Electric Utility Property
20 Assessment Task Force. Such Task Force shall be chaired by
21 the President of the Taxpayers' Federation of Illinois, who
22 shall be a non-voting member of the Task Force. The Task
23 Force shall be composed of 10 voting members, 6 of whom shall
24 be representatives of taxing districts in which electric
25 generating stations are located and 4 of whom shall be
26 representatives of electric utilities in this State, at least
27 one of whom shall be from an electric utility serving over
28 1,000,000 retail customers in this State and at least one of
29 whom shall be from an electric utility serving over 500,000
30 but less than 1,000,000 retail customers in this State.
31 (c) The voting members of this Task Force shall be
32 appointed as follows: (i) 3 of the voting members, one of
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1 whom shall be from an electric utility, shall be appointed by
2 the President of the Senate; (ii) 3 of the voting members,
3 one of whom shall be from an electric utility, shall be
4 appointed by the Speaker of the House of Representatives;
5 (iii) 2 of the voting members, one of whom shall be from an
6 electric utility, shall be appointed by the Minority Leader
7 of the Senate; and (iv) 2 of the voting members, one of whom
8 shall be from an electric utility, shall be appointed by the
9 Minority Leader of the House of Representatives. Such
10 appointments shall be made within 30 days after the effective
11 date of this amendatory Act of 1997. Members of the Task
12 Force shall receive no compensation for their services but
13 shall be entitled to reimbursement of reasonable expenses
14 incurred while performing their duties.
15 (d) The Task Force shall submit a report to the General
16 Assembly by January 1, 1999 which shall: (i) analyze whether,
17 and to what extent, taxing districts throughout this State
18 will experience significant sustained erosions of their
19 property tax bases and property tax revenues as a result of
20 the restructuring of the electric industry in this State; and
21 (ii) make recommendations for legislative changes to address
22 any such impacts.
23 (e) Beginning with the 1997 assessment year through the
24 assessment year of 1999, the fair cash value of any electric
25 power generating plant owned as of November 1, 1997, by an
26 electric utility, as that term is defined in Section 16-102
27 of the Public Utilities Act, shall be determined using
28 original cost less depreciation of the electric power
29 generating plant. When determining original cost less
30 depreciation, including the original cost less depreciation
31 of all new construction, the rate or rates of depreciation
32 applied shall be the same as the rate or rates in effect
33 November 1, 1997, under the Public Utilities Act and the
34 rules and orders of the Illinois Commerce Commission,
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1 irrespective of any change in ownership of the property
2 occurring after the effective date of the provisions of the
3 Electric Service Customer Choice and Rate Relief Law of 1997.
4 Nothing in this subsection shall be construed to affect the
5 classification of property as real or personal.
6 Determinations of original cost less depreciation for
7 purposes of this subsection shall be made without regard for
8 the use of any accelerated cost recovery method including
9 accelerated depreciation, accelerated amortization or other
10 capital recovery methods, or reductions to original cost of
11 an electric power generating plant made as a result of the
12 provisions of Senate Amendment No. 2 to House Bill 362,
13 enacted by the 90th General Assembly.
14 (35 ILCS 200/15-100)
15 Sec. 15-100. Public transportation systems.
16 (a) All property belonging to any municipal corporation
17 created for the sole purpose of owning and operating a
18 transportation system for public service is exempt.
19 (b) Property owned by (i) a municipal corporation of
20 500,000 or more inhabitants, used for public transportation
21 purposes, and operated by the Chicago Transit Authority; (ii)
22 the Regional Transportation Authority; (iii) any service
23 board or division of the Regional Transportation Authority;
24 (iv) the Northeast Illinois Regional Commuter Railroad
25 Corporation; or (v) the Chicago Transit Authority shall be
26 exempt. For purposes of this Section alone, the Regional
27 Transportation Authority, any service board or division of
28 the Regional Transportation Authority, the Northeast Illinois
29 Regional Commuter Railroad Corporation, the Chicago Transit
30 Authority, or a municipal corporation, as defined in item
31 (i), shall be deemed an "eligible transportation authority".
32 The exemption provided in this subsection shall not be
33 affected by any transaction in which, for the purpose of
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1 obtaining financing, the eligible transportation authority,
2 directly or indirectly, leases or otherwise transfers such
3 property to another whose property is not exempt and
4 immediately thereafter enters into a leaseback or other
5 agreement that directly or indirectly gives the eligible
6 transportation authority a right to use, control, and possess
7 the property. In the case of a conveyance of such property,
8 the eligible transportation authority must retain an option
9 to purchase the property at a future date or, within the
10 limitations period for reverters, the property must revert
11 back to the eligible transportation authority.
12 (c) If such property has been conveyed as described in
13 subsection (b), the property will no longer be exempt
14 pursuant to this Section as of the date when:
15 (1) the right of the eligible transportation
16 authority to use, control, and possess the property has
17 been terminated;
18 (2) the eligible transportation authority no longer
19 has an option to purchase or otherwise acquire the
20 property; and
21 (3) there is no provision for a reverter of the
22 property to the eligible transportation authority within
23 the limitations period for reverters.
24 (d) Pursuant to Sections 15-15 and 15-20 of this Code,
25 the eligible transportation authority shall notify the chief
26 county assessment officer of any transaction under subsection
27 (b) of this Section. The chief county assessment officer
28 shall determine initial and continuing compliance with the
29 requirements of this Section for tax exemption. Failure to
30 notify the chief county assessment officer of a transaction
31 under this Section or to otherwise comply with the
32 requirements of Sections 15-15 and 15-20 of this Code shall,
33 in the discretion of the chief county assessment officer,
34 constitute cause to terminate the exemption, notwithstanding
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1 any other provision of this Code.
2 (e) No provision of this Section shall be construed to
3 affect the obligation of the eligible transportation
4 authority to which an exemption certificate has been issued
5 under this Section from its obligation under Section 15-10 of
6 this Code to file an annual certificate of status or to
7 notify the chief county assessment officer of transfers of
8 interest or other changes in the status of the property as
9 required by this Code.
10 (f) The changes made by this amendatory Act of 1997 are
11 declarative of existing law and shall not be construed as a
12 new enactment.
13 (Source: Laws 1959, p. 1549, 1554, 2219, and 2224; P.A.
14 88-455.)
15 Section 20. The Telecommunications Excise Tax Act is
16 amended by changing Section 2 as follows:
17 (35 ILCS 630/2) (from Ch. 120, par. 2002)
18 Sec. 2. As used in this Article, unless the context
19 clearly requires otherwise:
20 (a) "Gross charge" means the amount paid for the act or
21 privilege of originating or receiving telecommunications in
22 this State and for all services and equipment provided in
23 connection therewith by a retailer, valued in money whether
24 paid in money or otherwise, including cash, credits, services
25 and property of every kind or nature, and shall be determined
26 without any deduction on account of the cost of such
27 telecommunications, the cost of materials used, labor or
28 service costs or any other expense whatsoever. In case
29 credit is extended, the amount thereof shall be included only
30 as and when paid. "Gross charges" for private line service
31 shall include charges imposed at each channel point within
32 this State, charges for the channel mileage between each
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1 channel point within this State, and charges for that portion
2 of the interstate inter-office channel provided within
3 Illinois. However, "gross charges" shall not include:
4 (1) any amounts added to a purchaser's bill because
5 of a charge made pursuant to (i) the tax imposed by this
6 Article; (ii) charges added to customers' bills pursuant
7 to the provisions of Sections 9-221 or 9-222 of the
8 Public Utilities Act, as amended, or any similar charges
9 added to customers' bills by retailers 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 or other amounts specified in such provisions
13 of such Act; or (iii) the tax imposed by Section 4251 of
14 the Internal Revenue Code;
15 (2) charges for a sent collect telecommunication
16 received outside of the State;
17 (3) charges for leased time on equipment or charges
18 for the storage of data or information for subsequent
19 retrieval or the processing of data or information
20 intended to change its form or content. Such equipment
21 includes, but is not limited to, the use of calculators,
22 computers, data processing equipment, tabulating
23 equipment or accounting equipment and also includes the
24 usage of computers under a time-sharing agreement;
25 (4) charges for customer equipment, including such
26 equipment that is leased or rented by the customer from
27 any source, wherein such charges are disaggregated and
28 separately identified from other charges;
29 (5) charges to business enterprises certified under
30 Section 9-222.1 of the Public Utilities Act, as amended,
31 to the extent of such exemption and during the period of
32 time specified by the Department of Commerce and
33 Community Affairs;
34 (6) charges for telecommunications and all services
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1 and equipment provided in connection therewith between a
2 parent corporation and its wholly owned subsidiaries or
3 between wholly owned subsidiaries when the tax imposed
4 under this Article has already been paid to a retailer
5 and only to the extent that the charges between the
6 parent corporation and wholly owned subsidiaries or
7 between wholly owned subsidiaries represent expense
8 allocation between the corporations and not the
9 generation of profit for the corporation rendering such
10 service;
11 (7) bad debts. Bad debt means any portion of a debt
12 that is related to a sale at retail for which gross
13 charges are not otherwise deductible or excludable that
14 has become worthless or uncollectable, as determined
15 under applicable federal income tax standards. If the
16 portion of the debt deemed to be bad is subsequently
17 paid, the retailer shall report and pay the tax on that
18 portion during the reporting period in which the payment
19 is made;
20 (8) charges paid by inserting coins in
21 coin-operated telecommunication devices; .
22 (9) amounts paid by telecommunications retailers
23 under the Telecommunications Municipal Infrastructure
24 Maintenance Fee Act.
25 (b) "Amount paid" means the amount charged to the
26 taxpayer's service address in this State regardless of where
27 such amount is billed or paid.
28 (c) "Telecommunications", in addition to the meaning
29 ordinarily and popularly ascribed to it, includes, without
30 limitation, messages or information transmitted through use
31 of local, toll and wide area telephone service; private line
32 services; channel services; telegraph services;
33 teletypewriter; computer exchange services; cellular mobile
34 telecommunications service; specialized mobile radio;
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1 stationary two way radio; paging service; or any other form
2 of mobile and portable one-way or two-way communications; or
3 any other transmission of messages or information by
4 electronic or similar means, between or among points by wire,
5 cable, fiber-optics, laser, microwave, radio, satellite or
6 similar facilities. As used in this Act, "private line" means
7 a dedicated non-traffic sensitive service for a single
8 customer, that entitles the customer to exclusive or priority
9 use of a communications channel or group of channels, from
10 one or more specified locations to one or more other
11 specified locations. The definition of "telecommunications"
12 shall not include value added services in which computer
13 processing applications are used to act on the form, content,
14 code and protocol of the information for purposes other than
15 transmission. "Telecommunications" shall not include
16 purchases of telecommunications by a telecommunications
17 service provider for use as a component part of the service
18 provided by him to the ultimate retail consumer who
19 originates or terminates the taxable end-to-end
20 communications. Carrier access charges, right of access
21 charges, charges for use of inter-company facilities, and all
22 telecommunications resold in the subsequent provision of,
23 used as a component of, or integrated into end-to-end
24 telecommunications service shall be non-taxable as sales for
25 resale.
26 (d) "Interstate telecommunications" means all
27 telecommunications that either originate or terminate outside
28 this State.
29 (e) "Intrastate telecommunications" means all
30 telecommunications that originate and terminate within this
31 State.
32 (f) "Department" means the Department of Revenue of the
33 State of Illinois.
34 (g) "Director" means the Director of Revenue for the
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1 Department of Revenue of the State of Illinois.
2 (h) "Taxpayer" means a person who individually or
3 through his agents, employees or permittees engages in the
4 act or privilege of originating or receiving
5 telecommunications in this State and who incurs a tax
6 liability under this Article.
7 (i) "Person" means any natural individual, firm, trust,
8 estate, partnership, association, joint stock company, joint
9 venture, corporation, limited liability company, or a
10 receiver, trustee, guardian or other representative appointed
11 by order of any court, the Federal and State governments,
12 including State universities created by statute or any city,
13 town, county or other political subdivision of this State.
14 (j) "Purchase at retail" means the acquisition,
15 consumption or use of telecommunication through a sale at
16 retail.
17 (k) "Sale at retail" means the transmitting, supplying
18 or furnishing of telecommunications and all services and
19 equipment provided in connection therewith for a
20 consideration to persons other than the Federal and State
21 governments, and State universities created by statute and
22 other than between a parent corporation and its wholly owned
23 subsidiaries or between wholly owned subsidiaries for their
24 use or consumption and not for resale.
25 (l) "Retailer" means and includes every person engaged
26 in the business of making sales at retail as defined in this
27 Article. The Department may, in its discretion, upon
28 application, authorize the collection of the tax hereby
29 imposed by any retailer not maintaining a place of business
30 within this State, who, to the satisfaction of the
31 Department, furnishes adequate security to insure collection
32 and payment of the tax. Such retailer shall be issued,
33 without charge, a permit to collect such tax. When so
34 authorized, it shall be the duty of such retailer to collect
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1 the tax upon all of the gross charges for telecommunications
2 in this State in the same manner and subject to the same
3 requirements as a retailer maintaining a place of business
4 within this State. The permit may be revoked by the
5 Department at its discretion.
6 (m) "Retailer maintaining a place of business in this
7 State", or any like term, means and includes any retailer
8 having or maintaining within this State, directly or by a
9 subsidiary, an office, distribution facilities, transmission
10 facilities, sales office, warehouse or other place of
11 business, or any agent or other representative operating
12 within this State under the authority of the retailer or its
13 subsidiary, irrespective of whether such place of business or
14 agent or other representative is located here permanently or
15 temporarily, or whether such retailer or subsidiary is
16 licensed to do business in this State.
17 (n) "Service address" means the location of
18 telecommunications equipment from which the
19 telecommunications services are originated or at which
20 telecommunications services are received by a taxpayer. In
21 the event this may not be a defined location, as in the case
22 of mobile phones, paging systems, maritime systems,
23 air-to-ground systems and the like, service address shall
24 mean the location of a taxpayer's primary use of the
25 telecommunications equipment as defined by telephone number,
26 authorization code, or location in Illinois where bills are
27 sent.
28 (Source: P.A. 88-480.)
29 Section 25. The Telecommunications Municipal
30 Infrastructure Maintenance Fee Act is amended by changing
31 Sections 10, 15, 20, and 25 and adding Sections 22, 24, 27,
32 27.5, 27.10, 27.15, 27.20, 27.25, 27.30, 27.35, 27.40, 27.45,
33 27.50, and 27.55 as follows:
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1 (35 ILCS 635/10)
2 Sec. 10. Definitions.
3 (a) "Gross charges" means the amount paid to a
4 telecommunications retailer for the act or privilege of
5 originating or receiving telecommunications in this State or
6 the municipality imposing the fee under this Act, as the
7 context requires, and for all services rendered in connection
8 therewith, valued in money whether paid in money or
9 otherwise, including cash, credits, services, and property of
10 every kind or nature, and shall be determined without any
11 deduction on account of the cost of such telecommunications,
12 the cost of the materials used, labor or service costs, or
13 any other expense whatsoever. In case credit is extended,
14 the amount thereof shall be included only as and when paid.
15 "Gross charges" for private line service shall include
16 charges imposed at each channel point within this State or
17 the municipality imposing the fee under this Act, charges for
18 the channel mileage between each channel point within this
19 State or the municipality imposing the fee under this Act,
20 and charges for that portion of the interstate inter-office
21 channel provided within Illinois or the municipality imposing
22 the fee under this Act. However, "gross charges" shall not
23 include:
24 (1) any amounts added to a purchaser's bill because
25 of a charge made under: (i) the fee imposed by this
26 Section, (ii) additional charges added to a purchaser's
27 bill under Section 9-221 or 9-222 of the Public Utilities
28 Act, (iii) amounts collected under Section 8-11-17 of the
29 Illinois Municipal Code, (iv) the tax imposed by the
30 Telecommunications Excise Tax Act, (v) 911 surcharges, or
31 (vi) the tax imposed by Section 4251 of the Internal
32 Revenue Code;
33 (2) charges for a sent collect telecommunication
34 received outside of this State or the municipality
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1 imposing the fee, as the context requires;
2 (3) charges for leased time on equipment or charges
3 for the storage of data or information or subsequent
4 retrieval or the processing of data or information
5 intended to change its form or content. Such equipment
6 includes, but is not limited to, the use of calculators,
7 computers, data processing equipment, tabulating
8 equipment, or accounting equipment and also includes the
9 usage of computers under a time-sharing agreement.
10 (4) charges for customer equipment, including such
11 equipment that is leased or rented by the customer from
12 any source, wherein such charges are disaggregated and
13 separately identified from other charges;
14 (5) charges to business enterprises certified under
15 Section 9-222.1 of the Public Utilities Act to the extent
16 of such exemption and during the period of time specified
17 by the Department of Commerce and Community Affairs or by
18 the municipality imposing the fee under the Act, as the
19 context requires;
20 (6) charges for telecommunications and all services
21 and equipment provided in connection therewith between a
22 parent corporation and its wholly owned subsidiaries or
23 between wholly owned subsidiaries, and only to the extent
24 that the charges between the parent corporation and
25 wholly owned subsidiaries or between wholly owned
26 subsidiaries represent expense allocation between the
27 corporations and not the generation of profit other than
28 a regulatory required profit for the corporation
29 rendering such services;
30 (7) bad debts ("bad debt" means any portion of a
31 debt that is related to a sale at retail for which gross
32 charges are not otherwise deductible or excludable that
33 has become worthless or uncollectible, as determined
34 under applicable federal income tax standards; if the
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1 portion of the debt deemed to be bad is subsequently
2 paid, the retailer shall report and pay the tax on that
3 portion during the reporting period in which the payment
4 is made);
5 (8) charges paid by inserting coins in
6 coin-operated telecommunication devices; or
7 (9) charges for telecommunications and all services
8 and equipment provided to a municipality imposing the
9 infrastructure maintenance fee.
10 (a-5) "Department" means the Illinois Department of
11 Revenue.
12 (b) "Telecommunications" includes, but is not limited
13 to, messages or information transmitted through use of local,
14 toll, and wide area telephone service, channel services,
15 telegraph services, teletypewriter service, computer exchange
16 services, private line services, specialized mobile radio
17 services, or any other transmission of messages or
18 information by electronic or similar means, between or among
19 points by wire, cable, fiber optics, laser, microwave, radio,
20 satellite, or similar facilities. Unless the context clearly
21 requires otherwise, "telecommunications" shall also include
22 wireless telecommunications as hereinafter defined.
23 "Telecommunications" shall not include value added services
24 in which computer processing applications are used to act on
25 the form, content, code, and protocol of the information for
26 purposes other than transmission. "Telecommunications" shall
27 not include purchase of telecommunications by a
28 telecommunications service provider for use as a component
29 part of the service provided by him or her to the ultimate
30 retail consumer who originates or terminates the end-to-end
31 communications. Retailer access charges, right of access
32 charges, charges for use of intercompany facilities, and all
33 telecommunications resold in the subsequent provision and
34 used as a component of, or integrated into, end-to-end
-35- LRB9005182KDksam09
1 telecommunications service shall not be included in gross
2 charges as sales for resale. "Telecommunications" shall not
3 include the provision of cable services through a cable
4 system as defined in the Cable Communications Act of 1984 (47
5 U.S.C. Sections 521 and following) as now or hereafter
6 amended or through an open video system as defined in the
7 Rules of the Federal Communications Commission (47 C.D.F.
8 76.1550 and following) as now or hereafter amended.
9 (c) "Wireless telecommunications" includes cellular
10 mobile telephone services, personal wireless services as
11 defined in Section 704(C) of the Telecommunications Act of
12 1996 (Public Law No. 104-104) as now or hereafter amended,
13 including all commercial mobile radio services, and paging
14 services.
15 (d) "Telecommunications retailer" or "retailer" or
16 "carrier" means and includes every person engaged in the
17 business of making sales of telecommunications at retail as
18 defined in this Section. The Illinois Department of Revenue
19 or the municipality imposing the fee, as the case may be,
20 may, in its discretion, upon applications, authorize the
21 collection of the fee hereby imposed by any retailer not
22 maintaining a place of business within this State, who, to
23 the satisfaction of the Department or municipality, furnishes
24 adequate security to insure collection and payment of the
25 fee. When so authorized, it shall be the duty of such
26 retailer to pay the fee upon all of the gross charges for
27 telecommunications in the same manner and subject to the same
28 requirements as a retailer maintaining a place of business
29 within the State or municipality imposing the fee.
30 (e) "Retailer maintaining a place of business in this
31 State", or any like term, means and includes any retailer
32 having or maintaining within this State, directly or by a
33 subsidiary, an office, distribution facilities, transmission
34 facilities, sales office, warehouse, or other place of
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1 business, or any agent or other representative operating
2 within this State under the authority of the retailer or its
3 subsidiary, irrespective of whether such place of business or
4 agent or other representative is located here permanently or
5 temporarily, or whether such retailer or subsidiary is
6 licensed to do business in this State.
7 (f) "Sale of telecommunications at retail" means the
8 transmitting, supplying, or furnishing of telecommunications
9 and all services rendered in connection therewith for a
10 consideration, other than between a parent corporation and
11 its wholly owned subsidiaries or between wholly owned
12 subsidiaries, when the gross charge made by one such
13 corporation to another such corporation is not greater than
14 the gross charge paid to the retailer for their use or
15 consumption and not for sale.
16 (g) "Service address" means the location of
17 telecommunications equipment from which telecommunications
18 services are originated or at which telecommunications
19 services are received. If this is not a defined location, as
20 in the case of wireless telecommunications, paging systems,
21 maritime systems, air-to-ground systems, and the like,
22 "service address" shall mean the location of the customer's
23 primary use of the telecommunications equipment as defined by
24 the location in Illinois where bills are sent.
25 (Source: P.A. 90-154, eff. 1-1-98.)
26 (35 ILCS 635/15)
27 Sec. 15. State telecommunications infrastructure
28 maintenance fees.
29 (a) A State infrastructure maintenance fee is hereby
30 imposed upon telecommunications retailers as a replacement
31 for the personal property tax in an amount specified in
32 subsection (b).
33 (b) The amount of the State infrastructure maintenance
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1 fee imposed upon a telecommunications retailer under this
2 Section shall be equal to 0.5% of all gross charges charged
3 by the telecommunications retailer to service addresses in
4 this State for telecommunications, other than wireless
5 telecommunications, originating or received in this State.
6 However, the State infrastructure maintenance fee is not
7 imposed in any case in which the imposition of the fee would
8 violate the Constitution or statutes of the United States.
9 (c) An optional infrastructure maintenance fee is hereby
10 created. A telecommunications retailer may elect to pay the
11 optional infrastructure maintenance fee with respect to the
12 gross charges charged by the telecommunications retailer to
13 service addresses in a particular municipality for
14 telecommunications, other than wireless telecommunications,
15 originating or received in the municipality if (1) the
16 telecommunications retailer is not required to pay any
17 compensation to the municipality under an existing franchise
18 agreement and (2) the municipality has not imposed a
19 municipal infrastructure maintenance fee as authorized in
20 Section 20 of this Act. A telecommunications retailer
21 electing to pay the optional infrastructure maintenance fee
22 shall notify the Department of such election on the
23 application for certificate of registration. If a
24 telecommunications retailer elects to pay this fee with
25 respect to the gross charges charged by the
26 telecommunications retailer to service addresses in a
27 particular municipality, such election shall remain in full
28 force and effect until such time as the municipality imposes
29 a municipal infrastructure maintenance fee.
30 (d) The amount of the optional infrastructure
31 maintenance fee which a telecommunications retailer may elect
32 to pay with respect to a particular municipality shall be
33 equal to 25% of the maximum amount of the municipal
34 infrastructure maintenance fee which the municipality could
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1 impose under Section 20 of this Act.
2 (e) The State infrastructure maintenance fee and the
3 optional infrastructure maintenance fee authorized by this
4 Section shall be collected, enforced, and administered as set
5 forth in subsection (b) of Section 25 of this Act.
6 (Source: P.A. 90-154, eff. 1-1-98.)
7 (35 ILCS 635/20)
8 Sec. 20. Municipal telecommunications infrastructure
9 maintenance fee.
10 (a) A municipality may impose a municipal infrastructure
11 maintenance fee upon telecommunications retailers in an
12 amount specified in subsection (b). On and after the
13 effective date of this amendatory Act of 1997, a certified
14 copy of an ordinance or resolution imposing a fee under this
15 Section shall be filed with the Department within 30 days
16 after the effective date of this amendatory Act or the
17 effective date of the ordinance or resolution imposing such
18 fee, whichever is later. Failure to file a certified copy of
19 the ordinance or resolution imposing a fee under this Section
20 shall have no effect on the validity of the ordinance or
21 resolution. The Department shall create and maintain a list
22 of all ordinances and resolutions filed pursuant to this
23 Section and make that list, as well as copies of the
24 ordinances and resolutions, available to the public for a
25 reasonable fee.
26 (b) The amount of the municipal infrastructure
27 maintenance fee imposed upon a telecommunications retailer
28 under this Section shall not exceed: (i) in a municipality
29 with a population of more than 500,000, 2.0% of all gross
30 charges charged by the telecommunications retailer to service
31 addresses in the municipality for telecommunications
32 originating or received in the municipality; and (ii) in a
33 municipality with a population of 500,000 or less, 1.0% of
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1 all gross charges charged by the telecommunications retailer
2 to service addresses in the municipality for
3 telecommunications originating or received in the
4 municipality. If imposed, the municipal telecommunications
5 infrastructure fee must be in 1/4% increments. However, the
6 fee shall not be imposed in any case in which the imposition
7 of the fee would violate the Constitution or statutes of the
8 United States.
9 (c) The municipal telecommunications infrastructure fee
10 authorized by this Section shall be collected, enforced, and
11 administered as set forth in subsection (c) of Section 25 of
12 this Act.
13 (Source: P.A. 90-154, eff. 1-1-98.)
14 (35 ILCS 635/22 new)
15 Sec. 22. Certificates. It shall be unlawful for any
16 person to engage in business as a telecomunications retailer
17 in this State within the meaning of this Act without first
18 having obtained a certificate of registration to do so from
19 the Department. Application for the certificate shall be made
20 to the Department in a form prescribed and furnished by the
21 Department. Each applicant for a certificate shall furnish to
22 the Department on a form prescribed by the Department and
23 signed by the applicant under penalties of perjury, the
24 following information:
25 (1) The name of the applicant.
26 (2) The address of the location at which the applicant
27 proposes to engage in business as a telecommunications
28 retailer in this State.
29 (3) Other information the Department may reasonably
30 require.
31 The Department, upon receipt of an application in proper
32 form, shall issue to the applicant a certificate, in a form
33 prescribed by the Department, which shall permit the
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1 applicant to whom it is issued to engage in business as a
2 telecommunications retailer at the place shown on his or her
3 application. No certificate issued under this Act is
4 transferable or assignable. No certificate shall be issued to
5 any person who is in default to the State of Illinois for
6 moneys due under this Act or any other tax Act administered
7 by the Department. Any person aggrieved by any decision of
8 the Department under this Section may, within 20 days after
9 notice of such decision, protest and request a hearing,
10 whereupon the Department shall give notice to such person of
11 the time and place fixed for such hearing and shall hold a
12 hearing in conformity with the provisions of this Act and
13 then issue its final administrative decision in the matter to
14 such person. In the absence of such a protest within 20 days,
15 the Department's decision shall become final without any
16 further determination being made or notice given.
17 The Department may, in its discretion, upon application,
18 authorize the payment of the fees imposed under this Act by
19 any telecommunications retailer not otherwise subject to the
20 fees imposed under this Act who, to the satisfaction of the
21 Department, furnishes adequate security to ensure payment of
22 the fees. The telecommunications retailer shall be issued,
23 without charge, a certificate to remit the fees. When so
24 authorized, it shall be the duty of the telecommunications
25 retailer to remit the fees imposed upon the gross charges
26 charged by the telecommunications retailer to service
27 addresses in this State for telecommunications in the same
28 manner and subject to the same requirements as a
29 telecommunications retailer operating within this State.
30 (35 ILCS 635/24 new)
31 Sec. 24. Certificate actions. The Department may, after
32 notice and a hearing, revoke, cancel, or suspend the
33 certificate of registration of any telecommunications
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1 retailer who violates any of the provisions of this Act or
2 regulations promulgated thereunder. The notice shall specify
3 the alleged violation or violations upon which the
4 revocation, cancellation, or suspension proceeding is based.
5 The Department may, after notice and a hearing as
6 provided herein, revoke the certificate of registration of
7 any person who violates any of the provisions of this Act.
8 Before revocation of a certificate of registration the
9 Department shall, within 90 days after non-compliance and at
10 least 7 days prior to the date of the hearing, give the
11 person so accused notice in writing of the charge against him
12 or her, and on the date designated shall conduct a hearing
13 upon this matter. The lapse of such 90 day period shall not
14 preclude the Department from conducting revocation
15 proceedings at a later date if necessary. Any hearing held
16 under this Section shall be conducted by the Director of
17 Revenue or by any officer or employee of the Department
18 designated, in writing, by the Director of Revenue. Upon the
19 hearing of any such proceeding, the Director of Revenue, or
20 any officer or employee of the Department designated, in
21 writing, by the Director of Revenue, may administer oaths and
22 the Department may procure by its subpoena the attendance of
23 witnesses and, by its subpoena duces tecum, the production of
24 relevant books and papers. Any circuit court, upon
25 application either of the accused or of the Department, may,
26 by order duly entered, require the attendance of witnesses
27 and the production of relevant books and papers, before the
28 Department in any hearing relating to the revocation of
29 certificates of registration. Upon refusal or neglect to obey
30 the order of the court, the court may compel obedience
31 thereof by proceedings for contempt. The Department may, by
32 application to any circuit court, obtain an injunction
33 restraining any person who engages in business as a
34 telecommunications retailer without a certificate (either
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1 because his or her certificate has been revoked, canceled, or
2 suspended or because of a failure to obtain a certificate in
3 the first instance) from engaging in that business until that
4 person, as if that person were a new applicant for a
5 certificate, complies with all of the conditions,
6 restrictions, and requirements of Section 22 of this Act and
7 qualifies for and obtains a certificate. Refusal or neglect
8 to obey the order of the court may result in punishment for
9 contempt.
10 (35 ILCS 635/25)
11 Sec. 25. Collection, Enforcement, and administration of
12 telecommunications infrastructure maintenance fees.
13 (a) A telecommunications retailer shall charge each
14 customer an additional charge equal to the sum of (1) an
15 amount equal to the State infrastructure maintenance fee
16 attributable to that customer's service address and (2) an
17 amount equal to the optional infrastructure maintenance fee,
18 if any, attributable to that customer's service address and
19 (3) an amount equal to the municipal infrastructure
20 maintenance fee, if any, attributable to that customer's
21 service address. Such additional charge shall be shown
22 separately on the bill to each customer.
23 (b) The State infrastructure maintenance fee and the
24 optional infrastructure maintenance fee shall be designated
25 as a replacement for the personal property tax and shall be
26 remitted by the telecommunications retailer to the Illinois
27 Department of Revenue; provided, however, that the
28 telecommunications retailer may retain an amount not to
29 exceed 2% of the State infrastructure maintenance fee and the
30 optional infrastructure maintenance fee, if any, paid to the
31 Department, with a timely paid and timely filed return
32 collected by it to reimburse itself for expenses incurred in
33 collecting, accounting for, and remitting the fee. All
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1 amounts herein remitted to the Department shall be
2 transferred to the Personal Property Tax Replacement Fund in
3 the State Treasury.
4 (c) The municipal infrastructure maintenance fee shall
5 be remitted by the telecommunications retailer to the
6 municipality imposing the municipal infrastructure
7 maintenance fee; provided, however, that the
8 telecommunications retailer may retain an amount not to
9 exceed 2% of the municipal infrastructure maintenance fee
10 collected by it to reimburse itself for expenses incurred in
11 accounting for and remitting the fee. The municipality
12 imposing the municipal infrastructure maintenance fee shall
13 -collect, enforce, and administer the fee.
14 (d) Amounts paid under this Act by telecommunications
15 retailers shall not be included in the tax base under any of
16 the following Acts as described immediately below:
17 (1) "gross charges" for purposes of the
18 Telecommunications Excise Tax Act;
19 (2) "gross receipts" for purposes of the municipal
20 utility tax as prescribed in Section 8-11-2 of the
21 Illinois Municipal Code;
22 (3) "gross charge" for purposes of the municipal
23 telecommunications tax as prescribed in Section 8-11-17
24 of the Illinois Municipal Code;
25 (4) "gross revenue" for purposes of the tax on
26 annual gross revenue of public utilities as prescribed in
27 Section 2-202 of the Public Utilities Act.
28 (d) (e) Except as provided in subsection (f), during any
29 period of time when a municipality receives any compensation
30 other than the municipal infrastructure maintenance fee set
31 forth in Section 20, for a telecommunications retailer's use
32 of the public right-of-way, no municipal infrastructure
33 maintenance fee may be imposed by such municipality pursuant
34 to this Act.
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1 (e) (f) A municipality that, pursuant to a franchise
2 agreement in existence on the effective date of this Act,
3 receives compensation from a telecommunications retailer for
4 the use of the public right of way, may impose a municipal
5 infrastructure maintenance fee pursuant to this Act only on
6 the condition that such municipality (1) waives its right to
7 receive all fees, charges and other compensation under all
8 existing franchise agreements or the like with
9 telecommunications retailers during the time that the
10 municipality imposes a municipal infrastructure maintenance
11 fee and (2) imposes by ordinance (or other proper means) a
12 municipal infrastructure maintenance fee which becomes
13 effective no sooner than 90 days after such municipality has
14 provided written notice by certified mail to each
15 telecommunications retailer with whom the municipality has an
16 existing franchise agreement, that the municipality waives
17 all compensation under such existing franchise agreement.
18 (Source: P.A. 90-154, eff. 1-1-98.)
19 (35 ILCS 635/27 new)
20 Sec. 27. Returns by telecommunications retailer;
21 extensions. Except as provided hereinafter in this Section,
22 on or before the 30th day of each month each
23 telecommunications retailer maintaining a place of business
24 in this State shall make a return and payment of fees to the
25 Department for the preceding calendar month on a form
26 prescribed and furnished by the Department. The return shall
27 be signed by the telecommunications retailer under penalties
28 of perjury and shall contain the following information:
29 1. His or her name;
30 2. The address of his or her principal place of
31 business, and the address of the principal place of
32 business (if that is a different address) from which he
33 or she engages in the business of transmitting
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1 telecommunications;
2 3. The total amount of gross charges charged by him
3 or her during the preceding calendar month for providing
4 telecommunications during such calendar month;
5 4. The total amount received by him or her during
6 the preceding calendar month on credit extended;
7 5. Deductions allowed by law;
8 6. Gross charges that were charged by him or her
9 during the preceding calendar month and upon the basis of
10 which the State infrastructure maintenance fee is
11 imposed;
12 7. Gross charges that were charged by him or her
13 during the preceding calendar month and upon the basis of
14 which the optional infrastructure maintenance fee, if
15 any, is imposed for each particular municipality;
16 8. Amounts of fees due;
17 9. Such other reasonable information as the
18 Department may require.
19 If the telecommunications retailer's average monthly
20 liability to the Department does not exceed $100, the
21 Department may authorize his or her returns to be filed on a
22 quarter annual basis, with the return for January, February,
23 and March of a given year being due by April 15 of such year;
24 with the return for April, May, and June of a given year
25 being due by July 15 of such year; with the return for July,
26 August, and September of a given year being due by October 15
27 of such year; and with the return of October, November, and
28 December of a given year being due by January 15 of the
29 following year.
30 Notwithstanding any other provision of this Act
31 concerning the time within which a telecommunications
32 retailer may file his or her return, in the case of any
33 telecommunications retailer who ceases to engage in a kind of
34 business which makes him or her responsible for filing
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1 returns under this Act, such telecommunications retailer
2 shall file a final return under this Act with the Department
3 not more than one month after discontinuing such business.
4 In making such return, the telecommunications retailer
5 shall determine the value of any consideration other than
6 money received by him or her and he or she shall include such
7 value in his or her return. Such determination shall be
8 subject to review and revision by the Department in the
9 manner hereinafter provided for the correction of returns.
10 If any payment provided for in this Section exceeds the
11 telecommunications retailer's liabilities under this Act, as
12 shown on an original monthly return, the Department may
13 authorize the telecommunications retailer to credit such
14 excess payment against liability subsequently to be remitted
15 to the Department under this Act, in accordance with
16 reasonable rules and regulations prescribed by the
17 Department. If the Department subsequently determines that
18 all or any part of the credit taken was not actually due to
19 the telecommunications retailer, the telecommunications
20 retailer's 2% discount shall be reduced by 2% of the
21 difference between the credit taken and that actually due,
22 and that telecommunications retailer shall be liable for
23 penalties and interest on such difference.
24 If the Director finds that the information required for
25 the making of an accurate return cannot reasonably be
26 compiled by a telecommunications retailer within 15 days
27 after the close of the calendar month for which a return is
28 to be made, he or she may grant an extension of time for the
29 filing of such return for a period of not to exceed 31
30 calendar days. The granting of such an extension may be
31 conditioned upon the deposit by the telecommunications
32 retailer with the Department of an amount of money not
33 exceeding the amount estimated by the Director to be due with
34 the return so extended. All such deposits, including any
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1 heretofore made with the Department, shall be credited
2 against the telecommunications retailer's liabilities under
3 this Act. If any such deposit exceeds the telecommunications
4 retailer's present and probable future liabilities under this
5 Act, the Department shall issue to the telecommunications
6 retailer a credit memorandum, which may be assigned by the
7 telecommunications retailer to a similar telecommunications
8 retailer under this Act, in accordance with reasonable rules
9 and regulations to be prescribed by the Department.
10 Any telecommunications retailer required to make payments
11 under this Section may make the payments by electronic funds
12 transfer. The Department shall adopt rules necessary to
13 effectuate a program of electronic funds transfer.
14 (35 ILCS 635/27.5 new)
15 Sec. 27.5. Books and Records. Every telecommunications
16 retailer under this Act shall keep books, records, papers,
17 and other documents that are adequate to reflect the
18 information which such telecommunications retailers are
19 required by this Act to report to the Department by filing
20 monthly returns with the Department. All books and records
21 and other papers and documents required by this Act to be
22 kept shall be kept in the English language and shall, at all
23 times during business hours of the day, be subject to
24 inspection by the Department or its duly authorized agents
25 and employees. Books and records reflecting gross charges
26 received during any period with respect to which the
27 Department is authorized to establish liability as provided
28 by this Act shall be preserved until the expiration of such
29 period unless the Department, in writing, authorizes their
30 destruction or disposal at an earlier date.
31 The Department may, upon written authorization of the
32 Director, destroy any returns or any records, papers, or
33 memoranda pertaining to such returns upon the expiration of
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1 any period covered by such returns with respect to which the
2 Department is authorized to establish liability.
3 (35 ILCS 635/27.10 new)
4 Sec. 27.10. Investigations and hearings. For the purpose
5 of administering and enforcing the provisions of this Act,
6 the Department or any officer or employee of the Department
7 designated, in writing, by the Director thereof, may hold
8 investigations and hearings concerning any matters covered by
9 this Act and may examine any books, papers, records, or
10 memoranda bearing upon the business transacted by any such
11 telecommunications retailer and may require the attendance of
12 such telecommunications retailer or any officer or employee
13 of such telecommunications retailer, or of any person having
14 knowledge of such business, and may take testimony and
15 require proof for its information. In the conduct of any
16 investigation or hearing, neither the Department nor any
17 officer or employee thereof shall be bound by the technical
18 rules of evidence, and no informality in any proceeding, or
19 in the manner of taking testimony, shall invalidate any
20 order, decision, rule, or regulation made, approved, or
21 confirmed by the Department. The Director or any officer or
22 employee thereof shall have power to administer oaths to any
23 such persons. The books, papers, records, and memoranda of
24 the Department, or parts thereof, may be proved in any
25 hearing, investigation, or legal proceeding by a reproduced
26 copy thereof under the certificate of the Director. Such
27 reproduced copy shall without further proof, be admitted into
28 evidence before the Department or in any legal proceeding.
29 (35 ILCS 635/27.15 new)
30 Sec. 27.15. Incriminating evidence; immunity; perjury. No
31 person shall be excused from testifying or from producing any
32 books, papers, records, or memoranda in any investigation or
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1 upon any hearing, when ordered to do so by the Department or
2 any officer or employee thereof, upon the ground that the
3 testimony or evidence, documentary or otherwise, may tend to
4 incriminate him or her or subject him or her to a criminal
5 penalty, but no person shall be prosecuted or subjected to
6 any criminal penalty for, or on account of, any transaction
7 made or thing concerning which he or she may testify or
8 produce evidence, documentary or otherwise, before the
9 Department or any officer or employee thereof; provided, that
10 such immunity shall extend only to a natural person who, in
11 obedience to a subpoena, gives testimony under oath or
12 produces evidence, documentary or otherwise, under oath. No
13 person so testifying shall be exempt from prosecution and
14 punishment for perjury committed in so testifying.
15 (35 ILCS 635/27.20 new)
16 Sec. 27.20. Subpoenas; witness fees; depositions. The
17 Department or any officer or employee of the Department
18 designated, in writing, by the Director thereof, shall at its
19 or his or her own instance, or on the written request of any
20 party to the proceeding, issue subpoenas requiring the
21 attendance of and the giving of testimony by witnesses, and
22 subpoenas duces tecum requiring the production of books,
23 papers, records, or memoranda. All subpoenas issued under
24 this Act may be served by any person of full age. The fees of
25 witnesses for attendance and travel shall be the same as the
26 fees of witnesses before the circuit court of this State;
27 such fees to be paid when the witness is excused from further
28 attendance. When the witness is subpoenaed at the instance of
29 the Department or any officer or employee thereof, such fees
30 shall be paid in the same manner as other expenses of the
31 Department, and when the witness is subpoenaed at the
32 instance of any telecommunications retailer to any such
33 proceeding the Department may require that the cost of
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1 service of the subpoena and the fee of the witness be borne
2 by the telecommunications retailer at whose instance the
3 witness is summoned. In such case, the Department, in its
4 discretion, may require a deposit to cover the cost of such
5 service and witness fees. A subpoena issued as aforesaid
6 shall be served in the same manner as a subpoena issued out
7 of a court.
8 Any circuit court of this State, upon the application of
9 the Department or any officer or employee thereof may, in its
10 discretion, compel the attendance of witnesses, the
11 production of books, papers, records, or memoranda and the
12 giving of testimony before the Department or any officer or
13 employee thereof conducting an investigation or holding a
14 hearing authorized by this Act, by an attachment for
15 contempt, or otherwise, in the same manner as production of
16 evidence may be compelled before the court.
17 The Department or any officer or employee thereof, or any
18 party in an investigation or hearing before the Department,
19 may cause the depositions of witnesses residing within or
20 without the State to be taken in the manner prescribed by law
21 for like depositions in civil actions in courts of this
22 State, and, to that end, compel the attendance of witnesses
23 and the production of books, papers, records, or memoranda.
24 (35 ILCS 635/27.25 new)
25 Sec. 27.25. Confidential information; exceptions. All
26 information received by the Department from returns filed
27 under this Act, or from any investigations conducted under
28 this Act, shall be confidential, except for official
29 purposes, and any person who divulges any such information in
30 any manner, except in accordance with a proper judicial order
31 or as otherwise provided by law, shall be guilty of a Class B
32 misdemeanor.
33 Provided, that nothing contained in this Act shall
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1 prevent the Director from publishing or making available to
2 the public the names and addresses of telecommunications
3 retailers filing returns under this Act, or from publishing
4 or making available reasonable statistics concerning the
5 operation of the fees wherein the contents of returns are
6 grouped into aggregates in such a way that the information
7 contained in any individual return shall not be disclosed.
8 And provided, that nothing contained in this Act shall
9 prevent the Director from making available to the United
10 States Government or any officer or agency thereof, for
11 exclusively official purposes, information received by the
12 Department in the administration of this Act.
13 The furnishing upon request of the Auditor General, or
14 his or her authorized agents, for official use, of returns
15 filed and information related thereto under this Act is
16 deemed to be an official purpose within the meaning of this
17 Section.
18 The Director may make available to any State agency,
19 including the Illinois Supreme Court, which licenses persons
20 to engage in any occupation, information that a person
21 licensed by such agency has failed to file returns under this
22 Act or pay the fees, penalty, and interest shown therein, or
23 has failed to pay any final assessment of fees, penalty, or
24 interest due under this Act. An assessment is final when all
25 proceedings in court for review of such assessment have
26 terminated or the time for the taking thereof has expired
27 without such proceedings being instituted.
28 The Director shall make available for public inspection
29 in the Department's principal office and for publication, at
30 cost, administrative decisions issued on or after January 1,
31 1998. These decisions are to be made available in a manner
32 so that the following taxpayer information is not disclosed:
33 (1) The names, addresses, and identification numbers of
34 the taxpayer, related entities, and employees.
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1 (2) At the sole discretion of the Director, trade
2 secrets or other confidential information identified as such
3 by the taxpayer, no later than 30 days after receipt of an
4 administrative decision, by such means as the Department
5 shall provide by rule.
6 The Director shall determine the appropriate extent of
7 the deletions allowed in paragraph (2). In the event the
8 taxpayer does not submit deletions, the Director shall make
9 only the deletions specified in paragraph (1).
10 The Director shall make available for public inspection
11 and publication an administrative decision within 180 days
12 after the issuance of the administrative decision. The term
13 "administrative decision" has the same meaning as defined in
14 Section 3-101 of Article III of the Code of Civil Procedure.
15 Costs collected under this Section shall be paid into the Tax
16 Compliance and Administration Fund.
17 (35 ILCS 635/27.30 new)
18 Sec. 27.30. Review under Administrative Review Law. The
19 Circuit Court of the county wherein a hearing is held shall
20 have power to review all final administrative decisions of
21 the Department in administering the provisions of this Act:
22 Provided that if the administrative proceeding that is to be
23 reviewed judicially is a claim for refund proceeding
24 commenced in accordance with this Act and Section 2a of the
25 State Officers and Employees Money Disposition Act, the
26 Circuit Court having jurisdiction of the action for judicial
27 review under this Section and under the Administrative Review
28 Law shall be the same court that entered the temporary
29 restraining order or preliminary injunction that is provided
30 for in Section 2a of the State Officers and Employees Money
31 Disposition Act and that enables such claim proceeding to be
32 processed and disposed of as a claim for refund proceeding
33 rather than as a claim for credit proceeding.
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1 The provisions of the Administrative Review Law, and the
2 rules adopted pursuant thereto, shall apply to and govern all
3 proceedings for the judicial review of final administrative
4 decisions of the Department hereunder. The term
5 "administrative decision" is defined as in Section 3-101 of
6 the Code of Civil Procedure.
7 Service upon the Director or Assistant Director of the
8 Department of Revenue of summons issued in any action to
9 review a final administrative decision shall be service upon
10 the Department. The Department shall certify the record of
11 its proceedings if the telecommunications retailer shall pay
12 to it the sum of 75¢ per page of testimony taken before the
13 Department and 25¢ per page of all other matters contained in
14 such record, except that these charges may be waived where
15 the Department is satisfied that the aggrieved party is a
16 poor person who cannot afford to pay such charges.
17 (35 ILCS 635/27.35 new)
18 Sec. 27.35. Rules and regulations; notice to
19 telecommunications retailer; hearings. The Department may
20 make, promulgate, and enforce such reasonable rules and
21 regulations relating to the administration and enforcement of
22 only the State infrastructure maintenance fee and the
23 optional infrastructure maintenance fee authorized by this
24 Act. Such rules and regulations shall not apply to the
25 administration and enforcement of the municipal
26 infrastructure maintenance fee authorized by this Act.
27 Whenever notice to a telecommunications retailer is
28 required by this Act, such notice may be given by United
29 States certified or registered mail, addressed to the
30 telecommunications retailer concerned at his or her last
31 known address, and proof of such mailing shall be sufficient
32 for the purposes of this Act. In the case of a notice of
33 hearing, such notice shall be mailed not less than 7 days
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1 prior to the day fixed for the hearing.
2 All hearings provided for in this Act with respect to a
3 telecommunications retailer having his or her principal place
4 of business other than in Cook County shall be held at the
5 Department's office nearest to the location of the
6 telecommunications retailer's principal place of business:
7 Provided that if the telecommunications retailer has his or
8 her principal place of business in Cook County, such hearing
9 shall be held in Cook County; and provided further that if
10 the telecommunications retailer does not have his principal
11 place of business in this State, such hearings shall be held
12 in Sangamon County.
13 Whenever any proceeding provided by this Act has been
14 begun by the Department or by a person subject thereto and
15 such person thereafter dies or becomes a person under legal
16 disability before the proceeding has been concluded, the
17 legal representative of the deceased person or a person under
18 legal disability shall notify the Department of such death or
19 legal disability. The legal representative, as such, shall
20 then be substituted by the Department in place of and for the
21 person. Within 20 days after notice to the legal
22 representative of the time fixed for that purpose, the
23 proceeding may proceed in all respects and with like effect
24 as though the person had not died or become a person under
25 legal disability.
26 (35 ILCS 635/27.40 new)
27 Sec. 27.40. Application of Illinois Administrative
28 Procedure Act. The Illinois Administrative Procedure Act is
29 hereby expressly adopted and shall apply to all
30 administrative rules and procedures of the Department of
31 Revenue under this Act, except that (i) paragraph (b) of
32 Section 5-10 of the Administrative Procedure Act does not
33 apply to final orders, decisions, and opinions of the
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1 Department, (ii) subparagraph (a)(ii) of Section 5-10 of the
2 Administrative Procedure Act does not apply to forms
3 established by the Department for use under this Act, and
4 (iii) the provisions of Section 10-45 of the Administrative
5 Procedure Act regarding proposals for decision are excluded
6 and not applicable to the Department under this Act.
7 (35 ILCS 635/27.45 new)
8 Sec. 27.45. Failure to make a return. Any
9 telecommunications retailer who fails to make a return, or
10 who makes a fraudulent return, or who willfully violates any
11 other provision of this Act or any rule or regulation of the
12 Department for the administration and enforcement of this
13 Act, is guilty of a business offense and, upon conviction
14 thereof, shall be fined not less than $1,000 nor more than
15 $7,500.
16 (35 ILCS 635/27.50 new)
17 Sec. 27.50. Additional fees. The fees herein imposed
18 shall be in addition to all other occupation or privilege
19 taxes or fees imposed by the State of Illinois or by any
20 municipal corporation or political subdivision thereof.
21 (35 ILCS 635/27.55 new)
22 Sec. 27.55. Applicability of Retailers' Occupation Tax
23 Act and Uniform Penalty and Interest Act. All of the
24 provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
25 5j, 6, 6a, 6b, and 6c of the Retailers' Occupation Tax Act
26 that are not inconsistent with this Act, and all provisions
27 of the Uniform Penalty and Interest Act shall apply, as far
28 as practicable, to the subject matter of this Act to the same
29 extent as if such provisions were included herein. References
30 in the incorporated Sections of the Retailers' Occupation Tax
31 Act to retailers, to sellers, or to persons engaged in the
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1 business of selling tangible personal property mean persons
2 engaged in the business of transmitting messages when used in
3 this Act. References in the incorporated Sections of the
4 Retailers' Occupation Tax Act to purchasers of tangible
5 personal property mean purchasers of the service of
6 transmitting messages when used in this Act. References in
7 the incorporated Sections of the Retailers' Occupation Tax
8 Act to sales of tangible personal property mean the
9 transmitting of messages when used in this Act. References to
10 "taxes" in these incorporated Sections shall be construed to
11 apply to the administration, payment, and remittance of all
12 fees under this Act.
13 Section 30. The Counties Code is amended by changing
14 Section 5-1006.5 as follows:
15 (55 ILCS 5/5-1006.5)
16 Sec. 5-1006.5. Special County Retailers' Occupation Tax
17 For Public Safety.
18 (a) The county board of any county may impose a tax upon
19 all persons engaged in the business of selling tangible
20 personal property, other than personal property titled or
21 registered with an agency of this State's government, at
22 retail in the county on the gross receipts from the sales
23 made in the course of business to provide revenue to be used
24 exclusively for public safety purposes in that county, if a
25 proposition for the tax has been submitted to the electors of
26 that county and approved by a majority of those voting on the
27 question. If imposed, this tax shall be imposed only in
28 one-quarter percent increments. By resolution, the county
29 board may order the proposition to be submitted at any
30 election. The county clerk shall certify the question to the
31 proper election authority, who shall submit the proposition
32 at an election in accordance with the general election law.
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1 The proposition shall be in substantially the following
2 form:
3 "Shall (name of county) be authorized to impose a
4 public safety tax at the rate of .... upon all persons
5 engaged in the business of selling tangible personal
6 property at retail in the county on gross receipts from
7 the sales made in the course of their business to be used
8 for crime prevention, detention, and other public safety
9 purposes?"
10 Votes shall be recorded as Yes or No. If a majority of the
11 electors voting on the proposition vote in favor of it, the
12 county may impose the tax.
13 This additional tax may not be imposed on the sales of
14 food for human consumption that is to be consumed off the
15 premises where it is sold (other than alcoholic beverages,
16 soft drinks, and food which has been prepared for immediate
17 consumption) and prescription and non-prescription medicines,
18 drugs, medical appliances and insulin, urine testing
19 materials, syringes, and needles used by diabetics. The tax
20 imposed by a county under this Section and all civil
21 penalties that may be assessed as an incident of the tax
22 shall be collected and enforced by the Illinois Department of
23 Revenue. The certificate of registration that is issued by
24 the Department to a retailer under the Retailers' Occupation
25 Tax Act shall permit the retailer to engage in a business
26 that is taxable without registering separately with the
27 Department under an ordinance or resolution under this
28 Section. The Department has full power to administer and
29 enforce this Section, to collect all taxes and penalties due
30 under this Section, to dispose of taxes and penalties so
31 collected in the manner provided in this Section, and to
32 determine all rights to credit memoranda arising on account
33 of the erroneous payment of a tax or penalty under this
34 Section. In the administration of and compliance with this
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1 Section, the Department and persons who are subject to this
2 Section shall (i) have the same rights, remedies, privileges,
3 immunities, powers, and duties, (ii) be subject to the same
4 conditions, restrictions, limitations, penalties, and
5 definitions of terms, and (iii) employ the same modes of
6 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
7 1f, 1i, 1j, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
8 contained in those Sections other than the State rate of
9 tax), 2-15 through 2-70 2-40, 2a, 2b, 2c, 3 (except
10 provisions relating to transaction returns and quarter
11 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
12 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
13 of the Retailers' Occupation Tax Act and Section 3-7 of the
14 Uniform Penalty and Interest Act as if those provisions were
15 set forth in this Section.
16 Persons subject to any tax imposed under the authority
17 granted in this Section may reimburse themselves for their
18 sellers' tax liability by separately stating the tax as an
19 additional charge, which charge may be stated in combination,
20 in a single amount, with State tax which sellers are required
21 to collect under the Use Tax Act, pursuant to such bracketed
22 schedules as the Department may prescribe.
23 Whenever the Department determines that a refund should
24 be made under this Section to a claimant instead of issuing a
25 credit memorandum, the Department shall notify the State
26 Comptroller, who shall cause the order to be drawn for the
27 amount specified and to the person named in the notification
28 from the Department. The refund shall be paid by the State
29 Treasurer out of the County Public Safety Retailers'
30 Occupation Tax Fund.
31 (b) If a tax has been imposed under subsection (a), a
32 service occupation tax shall also be imposed at the same rate
33 upon all persons engaged, in the county, in the business of
34 making sales of service, who, as an incident to making those
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1 sales of service, transfer tangible personal property within
2 the county as an incident to a sale of service. This tax may
3 not be imposed on sales of food for human consumption that is
4 to be consumed off the premises where it is sold (other than
5 alcoholic beverages, soft drinks, and food prepared for
6 immediate consumption) and prescription and non-prescription
7 medicines, drugs, medical appliances and insulin, urine
8 testing materials, syringes, and needles used by diabetics.
9 The tax imposed under this subsection and all civil penalties
10 that may be assessed as an incident thereof shall be
11 collected and enforced by the Department of Revenue. The
12 Department has full power to administer and enforce this
13 subsection; to collect all taxes and penalties due hereunder;
14 to dispose of taxes and penalties so collected in the manner
15 hereinafter provided; and to determine all rights to credit
16 memoranda arising on account of the erroneous payment of tax
17 or penalty hereunder. In the administration of, and
18 compliance with this subsection, the Department and persons
19 who are subject to this paragraph shall (i) have the same
20 rights, remedies, privileges, immunities, powers, and duties,
21 (ii) be subject to the same conditions, restrictions,
22 limitations, penalties, exclusions, exemptions, and
23 definitions of terms, and (iii) employ the same modes of
24 procedure as are prescribed in Sections 1a-1, 2 (except that
25 the reference to State in the definition of supplier
26 maintaining a place of business in this State shall mean the
27 county), 2a, 3 through 3-50 (in respect to all provisions
28 therein other than the State rate of tax), 4 (except that the
29 reference to the State shall be to the county), 5, 7, 8
30 (except that the jurisdiction to which the tax shall be a
31 debt to the extent indicated in that Section 8 shall be the
32 county), 9 (except as to the disposition of taxes and
33 penalties collected, and except that the returned merchandise
34 credit for this tax may not be taken against any State tax),
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1 10, 11, 12 (except the reference therein to Section 2b of the
2 Retailers' Occupation Tax Act), 13 (except that any reference
3 to the State shall mean the county), the first paragraph of
4 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
5 Tax Act and Section 3-7 of the Uniform Penalty and Interest
6 Act, as fully as if those provisions were set forth herein.
7 Persons subject to any tax imposed under the authority
8 granted in this subsection may reimburse themselves for their
9 serviceman's tax liability by separately stating the tax as
10 an additional charge, which charge may be stated in
11 combination, in a single amount, with State tax that
12 servicemen are authorized to collect under the Service Use
13 Tax Act, in accordance with such bracket schedules as the
14 Department may prescribe.
15 Whenever the Department determines that a refund should
16 be made under this subsection to a claimant instead of
17 issuing a credit memorandum, the Department shall notify the
18 State Comptroller, who shall cause the warrant to be drawn
19 for the amount specified, and to the person named, in the
20 notification from the Department. The refund shall be paid
21 by the State Treasurer out of the County Public Safety
22 Retailers' Occupation Fund.
23 Nothing in this subsection shall be construed to
24 authorize the county to impose a tax upon the privilege of
25 engaging in any business which under the Constitution of the
26 United States may not be made the subject of taxation by the
27 State.
28 (c) The Department shall immediately pay over to the
29 State Treasurer, Ex Officio, as trustee, all taxes and
30 penalties collected under this Section to be deposited into
31 the County Public Safety Retailers' Occupation Tax Fund,
32 which is created in the State treasury. On or before the
33 25th day of each calendar month, the Department shall prepare
34 and certify to the Comptroller the disbursement of stated
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1 sums of money to the counties from which retailers have paid
2 taxes or penalties to the Department during the second
3 preceding calendar month. The amount to be paid to each
4 county shall be the amount (not including credit memoranda)
5 collected under this Section during the second preceding
6 calendar month by the Department plus an amount the
7 Department determines is necessary to offset any amounts that
8 were erroneously paid to a different taxing body, and not
9 including (i) an amount equal to the amount of refunds made
10 during the second preceding calendar month by the Department
11 on behalf of the county and (ii) any amount that the
12 Department determines is necessary to offset any amounts that
13 were payable to a different taxing body but were erroneously
14 paid to the county. Within 10 days after receipt by the
15 Comptroller of the disbursement certification to the counties
16 provided for in this Section to be given to the Comptroller
17 by the Department, the Comptroller shall cause the orders to
18 be drawn for the respective amounts in accordance with
19 directions contained in the certification.
20 In addition to the disbursement required by the preceding
21 paragraph, an allocation shall be made in March of each year
22 to each county that received more than $500,000 in
23 disbursements under the preceding paragraph in the preceding
24 calendar year. The allocation shall be in an amount equal to
25 the average monthly distribution made to each such county
26 under the preceding paragraph during the preceding calendar
27 year (excluding the 2 months of highest receipts). The
28 distribution made in March of each year subsequent to the
29 year in which an allocation was made pursuant to this
30 paragraph and the preceding paragraph shall be reduced by the
31 amount allocated and disbursed under this paragraph in the
32 preceding calendar year. The Department shall prepare and
33 certify to the Comptroller for disbursement the allocations
34 made in accordance with this paragraph.
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1 (d) For the purpose of determining the local
2 governmental unit whose tax is applicable, a retail sale by a
3 producer of coal or another mineral mined in Illinois is a
4 sale at retail at the place where the coal or other mineral
5 mined in Illinois is extracted from the earth. This
6 paragraph does not apply to coal or another mineral when it
7 is delivered or shipped by the seller to the purchaser at a
8 point outside Illinois so that the sale is exempt under the
9 United States Constitution as a sale in interstate or foreign
10 commerce.
11 (e) Nothing in this Section shall be construed to
12 authorize a county to impose a tax upon the privilege of
13 engaging in any business that under the Constitution of the
14 United States may not be made the subject of taxation by this
15 State.
16 (e-5) If a county imposes a tax under this Section, the
17 county board may, by ordinance, discontinue or lower the rate
18 of the tax. If the county board lowers the tax rate or
19 discontinues the tax, a referendum must be held in accordance
20 with subsection (a) of this Section in order to increase the
21 rate of the tax or to reimpose the discontinued tax.
22 (f) The results of any election authorizing a
23 proposition to impose a tax under this Section or effecting a
24 change in the rate of tax, or any ordinance lowering the rate
25 or discontinuing the tax, shall be certified by the county
26 clerk and filed with the Illinois Department of Revenue on or
27 before the first day of June. The Illinois Department of
28 Revenue shall then proceed to administer and enforce this
29 Section or to lower the rate or discontinue the tax, as the
30 case may be, as of the first day of January next following
31 the filing.
32 (g) When certifying the amount of a monthly disbursement
33 to a county under this Section, the Department shall increase
34 or decrease the amounts by an amount necessary to offset any
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1 miscalculation of previous disbursements. The offset amount
2 shall be the amount erroneously disbursed within the previous
3 6 months from the time a miscalculation is discovered.
4 (h) This Section may be cited as the "Special County
5 Occupation Tax For Public Safety Law".
6 (i) For purposes of this Section, "public safety"
7 includes but is not limited to fire fighting, police,
8 medical, ambulance, or other emergency services.
9 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
10 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; revised 10-8-97.)
11 Section 35. The Illinois Municipal Code is amended by
12 changing Sections 8-11-2, 8-11-6, and 8-11-17 as follows:
13 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
14 Sec. 8-11-2. The corporate authorities of any
15 municipality may tax any or all of the following occupations
16 or privileges:
17 1. Persons engaged in the business of transmitting
18 messages by means of electricity or radio magnetic waves,
19 or fiber optics, at a rate not to exceed 5% of the gross
20 receipts from that business originating within the
21 corporate limits of the municipality.
22 2. Persons engaged in the business of distributing,
23 supplying, furnishing, or selling gas for use or
24 consumption within the corporate limits of a municipality
25 of 500,000 or fewer population, and not for resale, at a
26 rate not to exceed 5% of the gross receipts therefrom.
27 2a. Persons engaged in the business of
28 distributing, supplying, furnishing, or selling gas for
29 use or consumption within the corporate limits of a
30 municipality of over 500,000 population, and not for
31 resale, at a rate not to exceed 8% of the gross receipts
32 therefrom. If imposed, this tax shall be paid in monthly
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1 payments.
2 3. Persons engaged in the business of distributing,
3 supplying, furnishing, or selling electricity for use or
4 consumption within the corporate limits of the
5 municipality, and not for resale, at a rate not to exceed
6 5% of the gross receipts therefrom.
7 4. Persons engaged in the business of distributing,
8 supplying, furnishing, or selling water for use or
9 consumption within the corporate limits of the
10 municipality, and not for resale, at a rate not to exceed
11 5% of the gross receipts therefrom.
12 None of the taxes authorized by this Section may be
13 imposed with respect to any transaction in interstate
14 commerce or otherwise to the extent to which the business may
15 not, under the constitution and statutes of the United
16 States, be made the subject of taxation by this State or any
17 political sub-division thereof; nor shall any persons engaged
18 in the business of distributing, supplying, furnishing, or
19 selling gas, water, or electricity, or engaged in the
20 business of transmitting messages be subject to taxation
21 under the provisions of this Section for those transactions
22 that are or may become subject to taxation under the
23 provisions of the "Municipal Retailers' Occupation Tax Act"
24 authorized by Section 8-11-1; nor shall any tax authorized by
25 this Section be imposed upon any person engaged in a business
26 unless the tax is imposed in like manner and at the same rate
27 upon all persons engaged in businesses of the same class in
28 the municipality, whether privately or municipally owned or
29 operated.
30 Any of the taxes enumerated in this Section may be in
31 addition to the payment of money, or value of products or
32 services furnished to the municipality by the taxpayer as
33 compensation for the use of its streets, alleys, or other
34 public places, or installation and maintenance therein,
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1 thereon or thereunder of poles, wires, pipes or other
2 equipment used in the operation of the taxpayer's business.
3 (a) If the corporate authorities of any home rule
4 municipality have adopted an ordinance that imposed a tax on
5 public utility customers, between July 1, 1971, and October
6 1, 1981, on the good faith belief that they were exercising
7 authority pursuant to Section 6 of Article VII of the 1970
8 Illinois Constitution, that action of the corporate
9 authorities shall be declared legal and valid,
10 notwithstanding a later decision of a judicial tribunal
11 declaring the ordinance invalid. No municipality shall be
12 required to rebate, refund, or issue credits for any taxes
13 described in this paragraph, and those taxes shall be deemed
14 to have been levied and collected in accordance with the
15 Constitution and laws of this State.
16 (b) In any case in which (i) prior to October 19, 1979,
17 the corporate authorities of any municipality have adopted an
18 ordinance imposing a tax authorized by this Section (or by
19 the predecessor provision of the "Revised Cities and Villages
20 Act") and have explicitly or in practice interpreted gross
21 receipts to include either charges added to customers' bills
22 pursuant to the provision of paragraph (a) of Section 36 of
23 the Public Utilities Act or charges added to customers' bills
24 by taxpayers who are not subject to rate regulation by the
25 Illinois Commerce Commission for the purpose of recovering
26 any of the tax liabilities or other amounts specified in such
27 paragraph (a) of Section 36 of that Act, and (ii) on or after
28 October 19, 1979, a judicial tribunal has construed gross
29 receipts to exclude all or part of those charges, then
30 neither those municipality nor any taxpayer who paid the tax
31 shall be required to rebate, refund, or issue credits for any
32 tax imposed or charge collected from customers pursuant to
33 the municipality's interpretation prior to October 19, 1979.
34 This paragraph reflects a legislative finding that it would
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1 be contrary to the public interest to require a municipality
2 or its taxpayers to refund taxes or charges attributable to
3 the municipality's more inclusive interpretation of gross
4 receipts prior to October 19, 1979, and is not intended to
5 prescribe or limit judicial construction of this Section. The
6 legislative finding set forth in this subsection does not
7 apply to taxes imposed after the effective date of this
8 amendatory Act of 1995.
9 (c) (Blank).
10 (d) For the purpose of the taxes enumerated in this
11 Section:
12 "Gross receipts" means the consideration received for the
13 transmission of messages, the consideration received for
14 distributing, supplying, furnishing or selling gas for use or
15 consumption and not for resale, and the consideration
16 received for distributing, supplying, furnishing or selling
17 electricity for use or consumption and not for resale, and
18 the consideration received for distributing, supplying,
19 furnishing or selling water for use or consumption and not
20 for resale, and for all services rendered in connection
21 therewith valued in money, whether received in money or
22 otherwise, including cash, credit, services and property of
23 every kind and material and for all services rendered
24 therewith, and shall be determined without any deduction on
25 account of the cost of transmitting such messages, without
26 any deduction on account of the cost of the service, product
27 or commodity supplied, the cost of materials used, labor or
28 service cost, or any other expenses whatsoever. "Gross
29 receipts" shall not include that portion of the consideration
30 received for distributing, supplying, furnishing, or selling
31 gas, electricity, or water to, or for the transmission of
32 messages for, business enterprises described in paragraph (e)
33 of this Section to the extent and during the period in which
34 the exemption authorized by paragraph (e) is in effect or for
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1 school districts or units of local government described in
2 paragraph (f) during the period in which the exemption
3 authorized in paragraph (f) is in effect. "Gross receipts"
4 shall not include amounts paid by telecommunications
5 retailers under the Telecommunications Municipal
6 Infrastructure Maintenance Fee Act.
7 For utility bills issued on or after May 1, 1996, but
8 before May 1, 1997, and for receipts from those utility
9 bills, "gross receipts" does not include one-third of (i)
10 amounts added to customers' bills under Section 9-222 of the
11 Public Utilities Act, or (ii) amounts added to customers'
12 bills by taxpayers who are not subject to rate regulation by
13 the Illinois Commerce Commission for the purpose of
14 recovering any of the tax liabilities described in Section
15 9-222 of the Public Utilities Act. For utility bills issued
16 on or after May 1, 1997, but before May 1, 1998, and for
17 receipts from those utility bills, "gross receipts" does not
18 include two-thirds of (i) amounts added to customers' bills
19 under Section 9-222 of the Public Utilities Act, or (ii)
20 amount added to customers' bills by taxpayers who are not
21 subject to rate regulation by the Illinois Commerce
22 Commission for the purpose of recovering any of the tax
23 liabilities described in Section 9-222 of the Public
24 Utilities Act. For utility bills issued on or after May 1,
25 1998, and for receipts from those utility bills, "gross
26 receipts" does not include (i) amounts added to customers'
27 bills under Section 9-222 of the Public Utilities Act, or
28 (ii) amounts added to customers' bills by taxpayers who are
29 not subject to rate regulation by the Illinois Commerce
30 Commission for the purpose of recovering any of the tax
31 liabilities described in Section 9-222 of the Public
32 Utilities Act.
33 For purposes of this Section "gross receipts" shall not
34 include (i) amounts added to customers' bills under Section
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1 9-221 of the Public Utilities Act, or (ii) charges added to
2 customers' bills to recover the surcharge imposed under the
3 Emergency Telephone System Act. This paragraph is not
4 intended to nor does it make any change in the meaning of
5 "gross receipts" for the purposes of this Section, but is
6 intended to remove possible ambiguities, thereby confirming
7 the existing meaning of "gross receipts" prior to the
8 effective date of this amendatory Act of 1995.
9 The words "transmitting messages", in addition to the
10 usual and popular meaning of person to person communication,
11 shall include the furnishing, for a consideration, of
12 services or facilities (whether owned or leased), or both, to
13 persons in connection with the transmission of messages where
14 those persons do not, in turn, receive any consideration in
15 connection therewith, but shall not include such furnishing
16 of services or facilities to persons for the transmission of
17 messages to the extent that any such services or facilities
18 for the transmission of messages are furnished for a
19 consideration, by those persons to other persons, for the
20 transmission of messages.
21 "Person" as used in this Section means any natural
22 individual, firm, trust, estate, partnership, association,
23 joint stock company, joint adventure, corporation, municipal
24 corporation or political subdivision of this State, or a
25 receiver, trustee, guardian or other representative appointed
26 by order of any court.
27 "Public utility" shall have the meaning ascribed to it in
28 Section 3-105 of the Public Utilities Act and shall include
29 telecommunications carriers as defined in Section 13-202 of
30 that Act.
31 In the case of persons engaged in the business of
32 transmitting messages through the use of mobile equipment,
33 such as cellular phones and paging systems, the gross
34 receipts from the business shall be deemed to originate
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1 within the corporate limits of a municipality only if the
2 address to which the bills for the service are sent is within
3 those corporate limits. If, however, that address is not
4 located within a municipality that imposes a tax under this
5 Section, then (i) if the party responsible for the bill is
6 not an individual, the gross receipts from the business shall
7 be deemed to originate within the corporate limits of the
8 municipality where that party's principal place of business
9 in Illinois is located, and (ii) if the party responsible for
10 the bill is an individual, the gross receipts from the
11 business shall be deemed to originate within the corporate
12 limits of the municipality where that party's principal
13 residence in Illinois is located.
14 (e) Any municipality that imposes taxes upon public
15 utilities pursuant to this Section whose territory includes
16 any part of an enterprise zone or federally designated
17 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
18 corporate authorities, exempt from those taxes for a period
19 not exceeding 20 years any specified percentage of gross
20 receipts of public utilities received from business
21 enterprises that:
22 (1) either (i) make investments that cause the
23 creation of a minimum of 200 full-time equivalent jobs in
24 Illinois, (ii) make investments of at least $175,000,000
25 that cause the creation of a minimum of 150 full-time
26 equivalent jobs in Illinois, or (iii) make investments
27 that cause the retention of a minimum of 1,000 full-time
28 jobs in Illinois; and
29 (2) are either (i) located in an Enterprise Zone
30 established pursuant to the Illinois Enterprise Zone Act
31 or (ii) Department of Commerce and Community Affairs
32 designated High Impact Businesses located in a federally
33 designated Foreign Trade Zone or Sub-Zone; and
34 (3) are certified by the Department of Commerce and
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1 Community Affairs as complying with the requirements
2 specified in clauses (1) and (2) of this paragraph (e).
3 Upon adoption of the ordinance authorizing the exemption,
4 the municipal clerk shall transmit a copy of that ordinance
5 to the Department of Commerce and Community Affairs. The
6 Department of Commerce and Community Affairs shall determine
7 whether the business enterprises located in the municipality
8 meet the criteria prescribed in this paragraph. If the
9 Department of Commerce and Community Affairs determines that
10 the business enterprises meet the criteria, it shall grant
11 certification. The Department of Commerce and Community
12 Affairs shall act upon certification requests within 30 days
13 after receipt of the ordinance.
14 Upon certification of the business enterprise by the
15 Department of Commerce and Community Affairs, the Department
16 of Commerce and Community Affairs shall notify the Department
17 of Revenue of the certification. The Department of Revenue
18 shall notify the public utilities of the exemption status of
19 the gross receipts received from the certified business
20 enterprises. Such exemption status shall be effective within
21 3 months after certification.
22 (f) A municipality that imposes taxes upon public
23 utilities under this Section and whose territory includes
24 part of another unit of local government or a school district
25 may by ordinance exempt the other unit of local government or
26 school district from those taxes.
27 (g) The amendment of this Section by Public Act 84-127
28 shall take precedence over any other amendment of this
29 Section by any other amendatory Act passed by the 84th
30 General Assembly before the effective date of Public Act
31 84-127.
32 (h) In any case in which, before July 1, 1992, a person
33 engaged in the business of transmitting messages through the
34 use of mobile equipment, such as cellular phones and paging
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1 systems, has determined the municipality within which the
2 gross receipts from the business originated by reference to
3 the location of its transmitting or switching equipment, then
4 (i) neither the municipality to which tax was paid on that
5 basis nor the taxpayer that paid tax on that basis shall be
6 required to rebate, refund, or issue credits for any such tax
7 or charge collected from customers to reimburse the taxpayer
8 for the tax and (ii) no municipality to which tax would have
9 been paid with respect to those gross receipts if the
10 provisions of this amendatory Act of 1991 had been in effect
11 before July 1, 1992, shall have any claim against the
12 taxpayer for any amount of the tax.
13 (Source: P.A. 89-325, eff. 1-1-96; 90-16, eff. 6-16-97.)
14 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
15 Sec. 8-11-6. (a) The corporate authorities of a home rule
16 municipality may impose a tax upon the privilege of using, in
17 such municipality, any item of tangible personal property
18 which is purchased at retail from a retailer, and which is
19 titled or registered at a location within the corporate
20 limits of such home rule municipality with an agency of this
21 State's government, at a rate which is an increment of 1/4%
22 and based on the selling price of such tangible personal
23 property, as "selling price" is defined in the Use Tax Act.
24 In home rule municipalities with less than 2,000,000
25 inhabitants, the tax shall be collected by the municipality
26 imposing the tax from persons whose Illinois address for
27 titling or registration purposes is given as being in such
28 municipality.
29 (b) In home rule municipalities with 2,000,000 or more
30 inhabitants, the corporate authorities of the municipality
31 may additionally impose a tax beginning July 1, 1991 upon the
32 privilege of using in the municipality, any item of tangible
33 personal property, other than tangible personal property
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1 titled or registered with an agency of the State's
2 government, that is purchased at retail from a retailer
3 located outside the corporate limits of the municipality, at
4 a rate that is an increment of 1/4% not to exceed 1% and
5 based on the selling price of the tangible personal property,
6 as "selling price" is defined in the Use Tax Act. Such tax
7 shall be collected from the purchaser by the municipality
8 imposing such tax.
9 To prevent multiple home rule taxation, the use in a home
10 rule municipality of tangible personal property that is
11 acquired outside the municipality and caused to be brought
12 into the municipality by a person who has already paid a home
13 rule municipal tax in another municipality in respect to the
14 sale, purchase, or use of that property, shall be exempt to
15 the extent of the amount of the tax properly due and paid in
16 the other home rule municipality.
17 (c) If a municipality having 2,000,000 or more
18 inhabitants imposes the tax authorized by subsection (a),
19 then the tax shall be collected by the Illinois Department of
20 Revenue when the property is purchased at retail from a
21 retailer in the county in which the home rule municipality
22 imposing the tax is located, and in all contiguous counties.
23 The tax shall be remitted to the State, or an exemption
24 determination must be obtained from the Department before the
25 title or certificate of registration for the property may be
26 issued. The tax or proof of exemption may be transmitted to
27 the Department by way of the State agency with which, or
28 State officer with whom, the tangible personal property must
29 be titled or registered if the Department and that agency or
30 State officer determine that this procedure will expedite the
31 processing of applications for title or registration.
32 The Department shall have full power to administer and
33 enforce this Section to collect all taxes, penalties and
34 interest due hereunder, to dispose of taxes, penalties and
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1 interest so collected in the manner hereinafter provided, and
2 determine all rights to credit memoranda or refunds arising
3 on account of the erroneous payment of tax, penalty or
4 interest hereunder. In the administration of and compliance
5 with this Section the Department and persons who are subject
6 to this Section shall have the same rights, remedies,
7 privileges, immunities, powers and duties, and be subject to
8 the same conditions, restrictions, limitations, penalties and
9 definitions of terms, and employ the same modes of procedure
10 as are prescribed in Sections 2 (except the definition of
11 "retailer maintaining a place of business in this State"), 3
12 (except provisions pertaining to the State rate of tax, and
13 except provisions concerning collection or refunding of the
14 tax by retailers), 4, 11, 12, 12a, 14, 15, 19 (except the
15 portions pertaining to claims by retailers and except the
16 last paragraph concerning refunds), 20, 21 and 22 of the Use
17 Tax Act, which are not inconsistent with this Section, as
18 fully as if provisions contained in those Sections of the Use
19 Tax Act were set forth herein.
20 Whenever the Department determines that a refund shall be
21 made under this Section to a claimant instead of issuing a
22 credit memorandum, the Department shall notify the State
23 Comptroller, who shall cause the order to be drawn for the
24 amount specified, and to the person named, in such
25 notification from the Department. Such refund shall be paid
26 by the State Treasurer out of the home rule municipal
27 retailers' occupation tax fund.
28 The Department shall forthwith pay over to the State
29 Treasurer, ex officio, as trustee, all taxes, penalties and
30 interest collected hereunder. On or before the 25th day of
31 each calendar month, the Department shall prepare and certify
32 to the State Comptroller the disbursement of stated sums of
33 money to named municipalities, the municipality in each
34 instance to be that municipality from which the Department
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1 during the second preceding calendar month, collected
2 municipal use tax from any person whose Illinois address for
3 titling or registration purposes is given as being in such
4 municipality. The amount to be paid to each municipality
5 shall be the amount (not including credit memoranda)
6 collected hereunder during the second preceding calendar
7 month by the Department, and not including an amount equal to
8 the amount of refunds made during the second preceding
9 calendar month by the Department on behalf of such
10 municipality, less the amount expended during the second
11 preceding month by the Department to be paid from the
12 appropriation to the Department from the Home Rule Municipal
13 Retailers' Occupation Tax Trust Fund. The appropriation to
14 cover the costs incurred by the Department in administering
15 and enforcing this Section shall not exceed 2% of the amount
16 estimated to be deposited into the Home Rule Municipal
17 Retailers' Occupation Tax Trust Fund during the fiscal year
18 for which the appropriation is made. Within 10 days after
19 receipt by the State Comptroller of the disbursement
20 certification to the municipalities provided for in this
21 Section to be given to the State Comptroller by the
22 Department, the State Comptroller shall cause the orders to
23 be drawn for the respective amounts in accordance with the
24 directions contained in that certification.
25 Any ordinance imposing or discontinuing any tax to be
26 collected and enforced by the Department under this Section
27 shall be adopted and a certified copy thereof filed with the
28 Department on or before October 1, whereupon the Department
29 of Revenue shall proceed to administer and enforce this
30 Section on behalf of the municipalities as of January 1 next
31 following such adoption and filing.
32 Nothing in this subsection (c) shall prevent a home rule
33 municipality from collecting the tax pursuant to subsection
34 (a) in any situation where such tax is not collected by the
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1 Department of Revenue under this subsection (c).
2 (d) Any unobligated balance remaining in the Municipal
3 Retailers' Occupation Tax Fund on December 31, 1989, which
4 fund was abolished by Public Act 85-1135, and all receipts of
5 municipal tax as a result of audits of liability periods
6 prior to January 1, 1990, shall be paid into the Local
7 Government Tax Fund, for distribution as provided by this
8 Section prior to the enactment of Public Act 85-1135. All
9 receipts of municipal tax as a result of an assessment not
10 arising from an audit, for liability periods prior to January
11 1, 1990, shall be paid into the Local Government Tax Fund for
12 distribution before July 1, 1990, as provided by this Section
13 prior to the enactment of Public Act 85-1135, and on and
14 after July 1, 1990, all such receipts shall be distributed as
15 provided in Section 6z-18 of the State Finance Act.
16 (e) As used in this Section, "Municipal" and
17 "Municipality" means a city, village or incorporated town,
18 including an incorporated town which has superseded a civil
19 township.
20 (f) This Section shall be known and may be cited as the
21 "Home Rule Municipal Use Tax Act".
22 (Source: P.A. 87-14; 87-876; 88-116.)
23 (65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17)
24 Sec. 8-11-17. Municipal telecommunications tax.
25 (a) Beginning on the effective date of this amendatory
26 Act of 1991, the corporate authorities of any municipality in
27 this State may tax any or all of the following acts or
28 privileges:
29 (1) The act or privilege of originating in such
30 municipality or receiving in such municipality intrastate
31 telecommunications by a person at a rate not to exceed 5%
32 of the gross charge for such telecommunications purchased
33 at retail from a retailer by such person. However, such
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1 tax is not imposed on such act or privilege to the extent
2 such act or privilege may not, under the Constitution and
3 statutes of the United States, be made the subject of
4 taxation by municipalities in this State.
5 (2) The act or privilege of originating in such
6 municipality or receiving in such municipality interstate
7 telecommunications by a person at a rate not to exceed 5%
8 of the gross charge for such telecommunications purchased
9 at retail from a retailer by such person. To prevent
10 actual multi-state taxation of the act or privilege that
11 is subject to taxation under this paragraph, any
12 taxpayer, upon proof that the taxpayer has paid a tax in
13 another state on such event, shall be allowed a credit
14 against any tax enacted pursuant to an ordinance
15 authorized by this paragraph to the extent of the amount
16 of such tax properly due and paid in such other state
17 which was not previously allowed as a credit against any
18 other state or local tax in this State. However, such
19 tax is not imposed on the act or privilege to the extent
20 such act or privilege may not, under the Constitution and
21 statutes of the United States, be made the subject of
22 taxation by municipalities in this State.
23 (3) The taxes authorized by paragraphs (1) and (2)
24 of subsection (a) of this Section may only be levied if
25 such municipality does not then have in effect an
26 occupation tax imposed on persons engaged in the business
27 of transmitting messages by means of electricity as
28 authorized by Section 8-11-2 of the Illinois Municipal
29 Code.
30 (b) The tax authorized by this Section shall be
31 collected from the taxpayer by a retailer maintaining a place
32 of business in this State and making or effectuating the sale
33 at retail and shall be remitted by such retailer to the
34 municipality. Any tax required to be collected pursuant to
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1 an ordinance authorized by this Section and any such tax
2 collected by such retailer shall constitute a debt owed by
3 the retailer to such municipality. Retailers shall collect
4 the tax from the taxpayer by adding the tax to the gross
5 charge for the act or privilege of originating or receiving
6 telecommunications when sold for use, in the manner
7 prescribed by the municipality. The tax authorized by this
8 Section shall constitute a debt of the purchaser to the
9 retailer who provides such taxable services until paid and,
10 if unpaid, is recoverable at law in the same manner as the
11 original charge for such taxable services. If the retailer
12 fails to collect the tax from the taxpayer, then the taxpayer
13 shall be required to pay the tax directly to the municipality
14 in the manner provided by the municipality. The municipality
15 imposing the tax shall provide for its administration and
16 enforcement.
17 Beginning January 1, 1994, retailers filing tax returns
18 pursuant to this Section shall, at the time of filing such
19 return, pay to the municipality the amount of the tax imposed
20 by this Section, less a commission of 1.75% which is allowed
21 to reimburse the retailer for the expenses incurred in
22 keeping records, billing the customer, preparing and filing
23 returns, remitting the tax and supplying data to the
24 municipality upon request. No commission may be claimed by a
25 retailer for tax not timely remitted to the municipality.
26 Whenever possible, the tax authorized by this Section
27 shall, when collected, be stated as a distinct item separate
28 and apart from the gross charge for telecommunications.
29 (c) For the purpose of the taxes authorized by this
30 Section:
31 (1) "Amount paid" means the amount charged to the
32 taxpayer's service address in such municipality
33 regardless of where such amount is billed or paid.
34 (2) "Gross charge" means the amount paid for the
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1 act or privilege of originating or receiving
2 telecommunications in such municipality and for all
3 services rendered in connection therewith, valued in
4 money whether paid in money or otherwise, including cash,
5 credits, services and property of every kind or nature,
6 and shall be determined without any deduction on account
7 of the cost of such telecommunications, the cost of the
8 materials used, labor or service costs or any other
9 expense whatsoever. In case credit is extended, the
10 amount thereof shall be included only as and when paid.
11 However, "gross charge" shall not include:
12 (A) any amounts added to a purchaser's bill
13 because of a charge made pursuant to: (i) the tax
14 imposed by this Section, (ii) additional charges
15 added to a purchaser's bill pursuant to Section
16 9-222 of the Public Utilities Act, (iii) the tax
17 imposed by the Telecommunications Excise Tax Act, or
18 (iv) the tax imposed by Section 4251 of the Internal
19 Revenue Code;
20 (B) charges for a sent collect
21 telecommunication received outside of such
22 municipality;
23 (C) charges for leased time on equipment or
24 charges for the storage of data or information or
25 subsequent retrieval or the processing of data or
26 information intended to change its form or content.
27 Such equipment includes, but is not limited to, the
28 use of calculators, computers, data processing
29 equipment, tabulating equipment or accounting
30 equipment and also includes the usage of computers
31 under a time-sharing agreement;
32 (D) charges for customer equipment, including
33 such equipment that is leased or rented by the
34 customer from any source, wherein such charges are
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1 disaggregated and separately identified from other
2 charges;
3 (E) charges to business enterprises certified
4 under Section 9-222.1 of the Public Utilities Act to
5 the extent of such exemption and during the period
6 of time specified by the Department of Commerce and
7 Community Affairs;
8 (F) charges for telecommunications and all
9 services and equipment provided in connection
10 therewith between a parent corporation and its
11 wholly owned subsidiaries or between wholly owned
12 subsidiaries when the tax imposed under this Section
13 has already been paid to a retailer and only to the
14 extent that the charges between the parent
15 corporation and wholly owned subsidiaries or between
16 wholly owned subsidiaries represent expense
17 allocation between the corporations and not the
18 generation of profit for the corporation rendering
19 such service;
20 (G) bad debts ("bad debt" means any portion of
21 a debt that is related to a sale at retail for which
22 gross charges are not otherwise deductible or
23 excludable that has become worthless or
24 uncollectable, as determined under applicable
25 federal income tax standards; if the portion of the
26 debt deemed to be bad is subsequently paid, the
27 retailer shall report and pay the tax on that
28 portion during the reporting period in which the
29 payment is made); or
30 (H) charges paid by inserting coins in
31 coin-operated telecommunication devices; or .
32 (I) amounts paid by telecommunications
33 retailers under the Telecommunications Municipal
34 Infrastructure Maintenance Fee Act.
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1 (3) "Interstate telecommunications" means all
2 telecommunications that either originate or terminate
3 outside this State.
4 (4) "Intrastate telecommunications" means all
5 telecommunications that originate and terminate within
6 this State.
7 (5) "Person" means any natural individual, firm,
8 trust, estate, partnership, association, joint stock
9 company, joint venture, corporation, limited liability
10 company, or a receiver, trustee, guardian or other
11 representative appointed by order of any court, the
12 Federal and State governments, including State
13 universities created by statute, or any city, town,
14 county, or other political subdivision of this State.
15 (6) "Purchase at retail" means the acquisition,
16 consumption or use of telecommunications through a sale
17 at retail.
18 (7) "Retailer" means and includes every person
19 engaged in the business of making sales at retail as
20 defined in this Section. A municipality may, in its
21 discretion, upon application, authorize the collection of
22 the tax hereby imposed by any retailer not maintaining a
23 place of business within this State, who to the
24 satisfaction of the municipality, furnishes adequate
25 security to insure collection and payment of the tax.
26 Such retailer shall be issued, without charge, a permit
27 to collect such tax. When so authorized, it shall be the
28 duty of such retailer to collect the tax upon all of the
29 gross charges for telecommunications in such municipality
30 in the same manner and subject to the same requirements
31 as a retailer maintaining a place of business within such
32 municipality.
33 (8) "Retailer maintaining a place of business in
34 this State", or any like term, means and includes any
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1 retailer having or maintaining within this State,
2 directly or by a subsidiary, an office, distribution
3 facilities, transmission facilities, sales office,
4 warehouse or other place of business, or any agent or
5 other representative operating within this State under
6 the authority of the retailer or its subsidiary,
7 irrespective of whether such place of business or agent
8 or other representative is located here permanently or
9 temporarily, or whether such retailer or subsidiary is
10 licensed to do business in this State.
11 (9) "Sale at retail" means the transmitting,
12 supplying or furnishing of telecommunications and all
13 services rendered in connection therewith for a
14 consideration, to persons other than the Federal and
15 State governments, and State universities created by
16 statute and other than between a parent corporation and
17 its wholly owned subsidiaries or between wholly owned
18 subsidiaries, when the tax has already been paid to a
19 retailer and the gross charge made by one such
20 corporation to another such corporation is not greater
21 than the gross charge paid to the retailer for their use
22 or consumption and not for resale.
23 (10) "Service address" means the location of
24 telecommunications equipment from which
25 telecommunications services are originated or at which
26 telecommunications services are received by a taxpayer.
27 If this is not a defined location, as in the case of
28 mobile phones, paging systems, maritime systems,
29 air-to-ground systems and the like, "service address"
30 shall mean the location of a taxpayer's primary use of
31 the telecommunication equipment as defined by telephone
32 number, authorization code, or location in Illinois where
33 bills are sent.
34 (11) "Taxpayer" means a person who individually or
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1 through his agents, employees, or permittees engages in
2 the act or privilege of originating in such municipality
3 or receiving in such municipality telecommunications and
4 who incurs a tax liability under any ordinance authorized
5 by this Section.
6 (12) "Telecommunications", in addition to the usual
7 and popular meaning, includes, but is not limited to,
8 messages or information transmitted through use of local,
9 toll and wide area telephone service, channel services,
10 telegraph services, teletypewriter service, computer
11 exchange services; cellular mobile telecommunications
12 service, specialized mobile radio services, paging
13 service, or any other form of mobile and portable one-way
14 or two-way communications, or any other transmission of
15 messages or information by electronic or similar means,
16 between or among points by wire, cable, fiber optics,
17 laser, microwave, radio, satellite or similar facilities.
18 The definition of "telecommunications" shall not include
19 value added services in which computer processing
20 applications are used to act on the form, content, code
21 and protocol of the information for purposes other than
22 transmission. "Telecommunications" shall not include
23 purchase of telecommunications by a telecommunications
24 service provider for use as a component part of the
25 service provided by him to the ultimate retail consumer
26 who originates or terminates the taxable end-to-end
27 communications. Carrier access charges, right of access
28 charges, charges for use of inter-company facilities, and
29 all telecommunications resold in the subsequent provision
30 used as a component of, or integrated into, end-to-end
31 telecommunications service shall be non-taxable as sales
32 for resale.
33 (d) If a person, who originates or receives
34 telecommunications in such municipality claims to be a
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1 reseller of such telecommunications, such person shall apply
2 to the municipality for a resale number. Such applicant
3 shall state facts which will show the municipality why such
4 applicant is not liable for tax under any ordinance
5 authorized by this Section on any of such purchases and shall
6 furnish such additional information as the municipality may
7 reasonably require.
8 Upon approval of the application, the municipality shall
9 assign a resale number to the applicant and shall certify
10 such number to the applicant. The municipality may cancel
11 any number which is obtained through misrepresentation, or
12 which is used to send or receive such telecommunication
13 tax-free when such actions in fact are not for resale, or
14 which no longer applies because of the person's having
15 discontinued the making of resales.
16 Except as provided hereinabove in this Section, the act
17 or privilege of sending or receiving telecommunications in
18 this State shall not be made tax-free on the ground of being
19 a sale for resale unless the person has an active resale
20 number from the municipality and furnishes that number to the
21 retailer in connection with certifying to the retailer that
22 any sale to such person is non-taxable because of being a
23 sale for resale.
24 (e) A municipality that imposes taxes upon
25 telecommunications under this Section and whose territory
26 includes part of another unit of local government or a school
27 district may, by ordinance, exempt the other unit of local
28 government or school district from those taxes.
29 (f) A municipality that imposes taxes upon
30 telecommunications under this Section may, by ordinance, (i)
31 reduce the rate of the tax for persons 65 years of age or
32 older or (ii) exempt persons 65 years of age or older from
33 those taxes. Taxes related to such rate reductions or
34 exemptions shall be rebated from the municipality directly to
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1 persons qualified for the rate reduction or exemption as
2 determined by the municipality's ordinance.
3 (Source: P.A. 90-357, eff. 1-1-98.)
4 Section 40. The Public Utilities Act is amended by
5 changing Section 2-202 as follows:
6 (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
7 Sec. 2-202. (a) It is declared to be the public policy of
8 this State that in order to maintain and foster the effective
9 regulation of public utilities under this Act in the
10 interests of the People of the State of Illinois and the
11 public utilities as well, the public utilities subject to
12 regulation under this Act and which enjoy the privilege of
13 operating as public utilities in this State, shall bear the
14 expense of administering this Act by means of a tax on such
15 privilege measured by the annual gross revenue of such public
16 utilities in the manner provided in this Section. For
17 purposes of this Section, "expense of administering this Act"
18 includes any costs incident to studies, whether made by the
19 Commission or under contract entered into by the Commission,
20 concerning environmental pollution problems caused or
21 contributed to by public utilities and the means for
22 eliminating or abating those problems. Such proceeds shall be
23 deposited in the Public Utility Fund in the State treasury.
24 (b) All of the ordinary and contingent expenses of the
25 Commission incident to the administration of this Act shall
26 be paid out of the Public Utility Fund except the
27 compensation of the members of the Commission which shall be
28 paid from the General Revenue Fund. Notwithstanding other
29 provisions of this Act to the contrary, the ordinary and
30 contingent expenses of the Commission incident to the
31 administration of the Illinois Commercial Transportation Law
32 may be paid from appropriations from the Public Utility Fund
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1 through the end of fiscal year 1986.
2 (c) A tax is imposed upon each public utility subject to
3 the provisions of this Act equal to .08% of its gross revenue
4 for each calendar year commencing with the calendar year
5 beginning January 1, 1982, except that the Commission may, by
6 rule, establish a different rate no greater than 0.1%.
7 "Gross revenue" shall not include amounts paid by
8 telecommunications retailers under the Telecommunications
9 Municipal Infrastructure Maintenance Fee Act.
10 (d) Annual gross revenue returns shall be filed in
11 accordance with paragraph (1) or (2) of this subsection (d).
12 (1) Except as provided in paragraph (2) of this
13 subsection (d), on or before January 10 of each year each
14 public utility subject to the provisions of this Act
15 shall file with the Commission an estimated annual gross
16 revenue return containing an estimate of the amount of
17 its gross revenue for the calendar year commencing
18 January 1 of said year and a statement of the amount of
19 tax due for said calendar year on the basis of that
20 estimate. Public utilities may also file revised returns
21 containing updated estimates and updated amounts of tax
22 due during the calendar year. These revised returns, if
23 filed, shall form the basis for quarterly payments due
24 during the remainder of the calendar year. In addition,
25 on or before February 15 of each year, each public
26 utility shall file an amended return showing the actual
27 amount of gross revenues shown by the company's books and
28 records as of December 31 of the previous year. Forms and
29 instructions for such estimated, revised, and amended
30 returns shall be devised and supplied by the Commission.
31 (2) Beginning January 1, 1993, the requirements of
32 paragraph (1) of this subsection (d) shall not apply to
33 any public utility in any calendar year for which the
34 total tax the public utility owes under this Section is
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1 less than $1,000. For such public utilities with respect
2 to such years, the public utility shall file with the
3 Commission, on or before January 31 of the following
4 year, an annual gross revenue return for the year and a
5 statement of the amount of tax due for that year on the
6 basis of such a return. Forms and instructions for such
7 returns and corrected returns shall be devised and
8 supplied by the Commission.
9 (e) All returns submitted to the Commission by a public
10 utility as provided in this subsection (e) or subsection (d)
11 of this Section shall contain or be verified by a written
12 declaration by an appropriate officer of the public utility
13 that the return is made under the penalties of perjury. The
14 Commission may audit each such return submitted and may,
15 under the provisions of Section 5-101 of this Act, take such
16 measures as are necessary to ascertain the correctness of the
17 returns submitted. The Commission has the power to direct the
18 filing of a corrected return by any utility which has filed
19 an incorrect return and to direct the filing of a return by
20 any utility which has failed to submit a return. A
21 taxpayer's signing a fraudulent return under this Section is
22 perjury, as defined in Section 32-2 of the Criminal Code of
23 1961.
24 (f) (1) For all public utilities subject to paragraph
25 (1) of subsection (d), at least one quarter of the annual
26 amount of tax due under subsection (c) shall be paid to the
27 Commission on or before the tenth day of January, April,
28 July, and October of the calendar year subject to tax. In
29 the event that an adjustment in the amount of tax due should
30 be necessary as a result of the filing of an amended or
31 corrected return under subsection (d) or subsection (e) of
32 this Section, the amount of any deficiency shall be paid by
33 the public utility together with the amended or corrected
34 return and the amount of any excess shall, after the filing
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1 of a claim for credit by the public utility, be returned to
2 the public utility in the form of a credit memorandum in the
3 amount of such excess or be refunded to the public utility in
4 accordance with the provisions of subsection (k) of this
5 Section. However, if such deficiency or excess is less than
6 $1, then the public utility need not pay the deficiency and
7 may not claim a credit.
8 (2) Any public utility subject to paragraph (2) of
9 subsection (d) shall pay the amount of tax due under
10 subsection (c) on or before January 31 next following the end
11 of the calendar year subject to tax. In the event that an
12 adjustment in the amount of tax due should be necessary as a
13 result of the filing of a corrected return under subsection
14 (e), the amount of any deficiency shall be paid by the public
15 utility at the time the corrected return is filed. Any excess
16 tax payment by the public utility shall be returned to it
17 after the filing of a claim for credit, in the form of a
18 credit memorandum in the amount of the excess. However, if
19 such deficiency or excess is less than $1, the public utility
20 need not pay the deficiency and may not claim a credit.
21 (g) Each installment or required payment of the tax
22 imposed by subsection (c) becomes delinquent at midnight of
23 the date that it is due. Failure to make a payment as
24 required by this Section shall result in the imposition of a
25 late payment penalty, an underestimation penalty, or both, as
26 provided by this subsection. The late payment penalty shall
27 be the greater of:
28 (1) $25 for each month or portion of a month that
29 the installment or required payment is unpaid or
30 (2) an amount equal to the difference between what
31 should have been paid on the due date, based upon the
32 most recently filed estimate, and what was actually paid,
33 times one percent, for each month or portion of a month
34 that the installment or required payment goes unpaid.
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1 This penalty may be assessed as soon as the installment
2 or required payment becomes delinquent.
3 The underestimation penalty shall apply to those public
4 utilities subject to paragraph (1) of subsection (d) and
5 shall be calculated after the filing of the amended return.
6 It shall be imposed if the amount actually paid on any of the
7 dates specified in subsection (f) is not equal to at least
8 one-fourth of the amount actually due for the year, and shall
9 equal the greater of:
10 (1) $25 for each month or portion of a month that
11 the amount due is unpaid or
12 (2) an amount equal to the difference between what
13 should have been paid, based on the amended return, and
14 what was actually paid as of the date specified in
15 subsection (f), times a percentage equal to 1/12 of the
16 sum of 10% and the percentage most recently established
17 by the Commission for interest to be paid on customer
18 deposits under 83 Ill. Adm. Code 280.70(e)(1), for each
19 month or portion of a month that the amount due goes
20 unpaid, except that no underestimation penalty shall be
21 assessed if the amount actually paid on each of the dates
22 specified in subsection (f) was based on an estimate of
23 gross revenues at least equal to the actual gross
24 revenues for the previous year. The Commission may
25 enforce the collection of any delinquent installment or
26 payment, or portion thereof by legal action or in any
27 other manner by which the collection of debts due the
28 State of Illinois may be enforced under the laws of this
29 State. The executive director or his designee may excuse
30 the payment of an assessed penalty if he determines that
31 enforced collection of the penalty would be unjust.
32 (h) All sums collected by the Commission under the
33 provisions of this Section shall be paid promptly after the
34 receipt of the same, accompanied by a detailed statement
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1 thereof, into the Public Utility Fund in the State treasury.
2 (i) During the month of October of each odd-numbered
3 year the Commission shall:
4 (1) determine the amount of all moneys deposited in
5 the Public Utility Fund during the preceding fiscal
6 biennium plus the balance, if any, in that fund at the
7 beginning of that biennium;
8 (2) determine the sum total of the following items:
9 (A) all moneys expended or obligated against
10 appropriations made from the Public Utility Fund during
11 the preceding fiscal biennium, plus (B) the sum of the
12 credit memoranda then outstanding against the Public
13 Utility Fund, if any; and
14 (3) determine the amount, if any, by which the sum
15 determined as provided in item (1) exceeds the amount
16 determined as provided in item (2).
17 If the amount determined as provided in item (3) of this
18 subsection exceeds $2,500,000, the Commission shall then
19 compute the proportionate amount, if any, which the tax paid
20 hereunder by each utility during the preceding biennium bears
21 to the difference between the amount determined as provided
22 in item (3) of this subsection (i) and $2,500,000, and notify
23 each public utility that it may file during the 3 month
24 period after the date of notification a claim for credit in
25 such proportionate amount. If the proportionate amount is
26 less than $10, no notification will be sent by the
27 Commission, and no right to a claim exists as to that amount.
28 Upon the filing of a claim for credit within the period
29 provided, the Commission shall issue a credit memorandum in
30 such amount to such public utility. Any claim for credit
31 filed after the period provided for in this Section is void.
32 (j) Credit memoranda issued pursuant to subsection (f)
33 and credit memoranda issued after notification and filing
34 pursuant to subsection (i) may be applied for the 2 year
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1 period from the date of issuance, against the payment of any
2 amount due during that period under the tax imposed by
3 subsection (c), or, subject to reasonable rule of the
4 Commission including requirement of notification, may be
5 assigned to any other public utility subject to regulation
6 under this Act. Any application of credit memoranda after the
7 period provided for in this Section is void.
8 (k) The chairman or executive director may make refund
9 of fees, taxes or other charges whenever he shall determine
10 that the person or public utility will not be liable for
11 payment of such fees, taxes or charges during the next 24
12 months and he determines that the issuance of a credit
13 memorandum would be unjust.
14 (Source: P.A. 86-209; 87-971.)
15 (35 ILCS 110/19 rep.)
16 Section 45. The Service Use Tax Act is amended by
17 repealing Section 19.
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.".