Public Act 90-0562 of the 90th General Assembly
Public Act 90-0562
HB1817 Enrolled LRB9005182KDpc
AN ACT in relation to taxes, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
changing Sections 301, 304, and 704 as follows:
(35 ILCS 5/301) (from Ch. 120, par. 3-301)
Sec. 301. General Rule.
(a) Residents. All items of income or deduction which
were taken into account in the computation of base income for
the taxable year by a resident shall be allocated to this
State.
(b) Part-year residents. All items of income or
deduction which were taken into account in the computation of
base income for the taxable year by a part-year resident
shall, for that part of the year the part-year resident was a
resident of this State, be allocated to this State and, for
the remaining part of the year, be allocated to this State
only to the extent provided by Section 302, 303 or 304
(relating to compensation, nonbusiness income and business
income, respectively).
(c) Other persons.
(1) In general. Any item of income or deduction
which was taken into account in the computation of base
income for the taxable year by any person other than a
resident and which is referred to in Section 302, 303 or
304 (relating to compensation, nonbusiness income and
business income, respectively) shall be allocated to this
State only to the extent provided by such section.
(2) Unspecified items. Any item of income or
deduction which was taken into account in the computation
of base income for the taxable year by any person other
than a resident and which is not otherwise specifically
allocated or apportioned pursuant to Section 302, 303 or
304 (including, without limitation, interest, dividends,
items of income taken into account under the provisions
of Sections 401 through 425 of the Internal Revenue Code,
and benefit payments received by a beneficiary of a
supplemental unemployment benefit trust which is referred
to in Section 501(c)(17) of the Internal Revenue Code):
(A) in the case of an individual, trust, or
estate, shall not be allocated to this State; and
(B) in the case of a corporation, trust, or a
partnership, shall be allocated to this State if the
taxpayer had its commercial domicile in this State
at the time such item was paid, incurred or accrued.
(Source: P.A. 90-491, eff. 1-1-98.)
(35 ILCS 5/304) (from Ch. 120, par. 3-304)
Sec. 304. Business income of persons other than
residents.
(a) In general. The business income of a person other
than a resident shall be allocated to this State if such
person's business income is derived solely from this State.
If a person other than a resident derives business income
from this State and one or more other states, then, except as
otherwise provided by this Section, such person's business
income shall be apportioned to this State by multiplying the
income by a fraction, the numerator of which is the sum of
the property factor (if any), the payroll factor (if any) and
200% of the sales factor (if any), and the denominator of
which is 4 reduced by the number of factors other than the
sales factor which have a denominator of zero and by an
additional 2 if the sales factor has a denominator of zero.
(1) Property factor.
(A) The property factor is a fraction, the
numerator of which is the average value of the person's
real and tangible personal property owned or rented and
used in the trade or business in this State during the
taxable year and the denominator of which is the average
value of all the person's real and tangible personal
property owned or rented and used in the trade or
business during the taxable year.
(B) Property owned by the person is valued at its
original cost. Property rented by the person is valued at
8 times the net annual rental rate. Net annual rental
rate is the annual rental rate paid by the person less
any annual rental rate received by the person from
sub-rentals.
(C) The average value of property shall be
determined by averaging the values at the beginning and
ending of the taxable year but the Director may require
the averaging of monthly values during the taxable year
if reasonably required to reflect properly the average
value of the person's property.
(2) Payroll factor.
(A) The payroll factor is a fraction, the numerator
of which is the total amount paid in this State during
the taxable year by the person for compensation, and the
denominator of which is the total compensation paid
everywhere during the taxable year.
(B) Compensation is paid in this State if:
(i) The individual's service is performed
entirely within this State;
(ii) The individual's service is performed
both within and without this State, but the service
performed without this State is incidental to the
individual's service performed within this State; or
(iii) Some of the service is performed within
this State and either the base of operations, or if
there is no base of operations, the place from which
the service is directed or controlled is within this
State, or the base of operations or the place from
which the service is directed or controlled is not
in any state in which some part of the service is
performed, but the individual's residence is in this
State.
Beginning with taxable years ending on or after
December 31, 1992, for residents of states that impose a
comparable tax liability on residents of this State, for
purposes of item (i) of this paragraph (B), in the case
of persons who perform personal services under personal
service contracts for sports performances, services by
that person at a sporting event taking place in Illinois
shall be deemed to be a performance entirely within this
State.
(3) Sales factor.
(A) The sales factor is a fraction, the numerator
of which is the total sales of the person in this State
during the taxable year, and the denominator of which is
the total sales of the person everywhere during the
taxable year.
(B) Sales of tangible personal property are in this
State if:
(i) The property is delivered or shipped to a
purchaser, other than the United States government,
within this State regardless of the f. o. b. point
or other conditions of the sale; or
(ii) The property is shipped from an office,
store, warehouse, factory or other place of storage
in this State and either the purchaser is the United
States government or the person is not taxable in
the state of the purchaser; provided, however, that
premises owned or leased by a person who has
independently contracted with the seller for the
printing of newspapers, periodicals or books shall
not be deemed to be an office, store, warehouse,
factory or other place of storage for purposes of
this Section. Sales of tangible personal property
are not in this State if the seller and purchaser
would be members of the same unitary business group
but for the fact that either the seller or purchaser
is a person with 80% or more of total business
activity outside of the United States and the
property is purchased for resale.
(C) Sales, other than sales of tangible personal
property, are in this State if:
(i) The income-producing activity is performed
in this State; or
(ii) The income-producing activity is
performed both within and without this State and a
greater proportion of the income-producing activity
is performed within this State than without this
State, based on performance costs.
(D) For taxable years ending on or after December
31, 1995 and excluding taxable years ending after
December 31, 1997, the following items of income shall
not be included in the numerator or denominator of the
sales factor: dividends; amounts included under Section
78 of the Internal Revenue Code; and Subpart F income as
defined in Section 952 of the Internal Revenue Code. No
inference shall be drawn from the enactment of this
paragraph (D) in construing this Section for taxable
years ending before December 31, 1995.
(b) Insurance companies.
(1) In general. Except as otherwise provided by
paragraph (2), business income of an insurance company for a
taxable year shall be apportioned to this State by
multiplying such income by a fraction, the numerator of which
is the direct premiums written for insurance upon property or
risk in this State, and the denominator of which is the
direct premiums written for insurance upon property or risk
everywhere. For purposes of this subsection, the term "direct
premiums written" means the total amount of direct premiums
written, assessments and annuity considerations as reported
for the taxable year on the annual statement filed by the
company with the Illinois Director of Insurance in the form
approved by the National Convention of Insurance
Commissioners or such other form as may be prescribed in lieu
thereof.
(2) Reinsurance. If the principal source of premiums
written by an insurance company consists of premiums for
reinsurance accepted by it, the business income of such
company shall be apportioned to this State by multiplying
such income by a fraction, the numerator of which is the sum
of (i) direct premiums written for insurance upon property or
risk in this State, plus (ii) premiums written for
reinsurance accepted in respect of property or risk in this
State, and the denominator of which is the sum of (iii)
direct premiums written for insurance upon property or risk
everywhere, plus (iv) premiums written for reinsurance
accepted in respect of property or risk everywhere. For
purposes of this paragraph, premiums written for reinsurance
accepted in respect of property or risk in this State,
whether or not otherwise determinable, may, at the election
of the company, be determined on the basis of the proportion
which premiums written for reinsurance accepted from
companies commercially domiciled in Illinois bears to
premiums written for reinsurance accepted from all sources,
or, alternatively, in the proportion which the sum of the
direct premiums written for insurance upon property or risk
in this State by each ceding company from which reinsurance
is accepted bears to the sum of the total direct premiums
written by each such ceding company for the taxable year.
(c) Financial organizations.
(1) In general. Business income of a financial
organization shall be apportioned to this State by
multiplying such income by a fraction, the numerator of which
is its business income from sources within this State, and
the denominator of which is its business income from all
sources. For the purposes of this subsection, the business
income of a financial organization from sources within this
State is the sum of the amounts referred to in subparagraphs
(A) through (E) following, but excluding the adjusted income
of an international banking facility as determined in
paragraph (2):
(A) Fees, commissions or other compensation for
financial services rendered within this State;
(B) Gross profits from trading in stocks, bonds or
other securities managed within this State;
(C) Dividends, and interest from Illinois
customers, which are received within this State;
(D) Interest charged to customers at places of
business maintained within this State for carrying debit
balances of margin accounts, without deduction of any
costs incurred in carrying such accounts; and
(E) Any other gross income resulting from the
operation as a financial organization within this State.
In computing the amounts referred to in paragraphs (A)
through (E) of this subsection, any amount received by a
member of an affiliated group (determined under Section
1504(a) of the Internal Revenue Code but without
reference to whether any such corporation is an
"includible corporation" under Section 1504(b) of the
Internal Revenue Code) from another member of such group
shall be included only to the extent such amount exceeds
expenses of the recipient directly related thereto.
(2) International Banking Facility.
(A) Adjusted Income. The adjusted income of an
international banking facility is its income reduced by
the amount of the floor amount.
(B) Floor Amount. The floor amount shall be the
amount, if any, determined by multiplying the income of
the international banking facility by a fraction, not
greater than one, which is determined as follows:
(i) The numerator shall be:
The average aggregate, determined on a
quarterly basis, of the financial organization's
loans to banks in foreign countries, to foreign
domiciled borrowers (except where secured primarily
by real estate) and to foreign governments and other
foreign official institutions, as reported for its
branches, agencies and offices within the state on
its "Consolidated Report of Condition", Schedule A,
Lines 2.c., 5.b., and 7.a., which was filed with the
Federal Deposit Insurance Corporation and other
regulatory authorities, for the year 1980, minus
The average aggregate, determined on a
quarterly basis, of such loans (other than loans of
an international banking facility), as reported by
the financial institution for its branches, agencies
and offices within the state, on the corresponding
Schedule and lines of the Consolidated Report of
Condition for the current taxable year, provided,
however, that in no case shall the amount determined
in this clause (the subtrahend) exceed the amount
determined in the preceding clause (the minuend);
and
(ii) the denominator shall be the average
aggregate, determined on a quarterly basis, of the
international banking facility's loans to banks in
foreign countries, to foreign domiciled borrowers
(except where secured primarily by real estate) and
to foreign governments and other foreign official
institutions, which were recorded in its financial
accounts for the current taxable year.
(C) Change to Consolidated Report of Condition and
in Qualification. In the event the Consolidated Report
of Condition which is filed with the Federal Deposit
Insurance Corporation and other regulatory authorities is
altered so that the information required for determining
the floor amount is not found on Schedule A, lines 2.c.,
5.b. and 7.a., the financial institution shall notify the
Department and the Department may, by regulations or
otherwise, prescribe or authorize the use of an
alternative source for such information. The financial
institution shall also notify the Department should its
international banking facility fail to qualify as such,
in whole or in part, or should there be any amendment or
change to the Consolidated Report of Condition, as
originally filed, to the extent such amendment or change
alters the information used in determining the floor
amount.
(d) Transportation services. Business income derived
from furnishing transportation services shall be apportioned
to this State in accordance with paragraphs (1) and (2):
(1) Such business income (other than that derived
from transportation by pipeline) shall be apportioned to
this State by multiplying such income by a fraction, the
numerator of which is the revenue miles of the person in
this State, and the denominator of which is the revenue
miles of the person everywhere. For purposes of this
paragraph, a revenue mile is the transportation of 1
passenger or 1 net ton of freight the distance of 1 mile
for a consideration. Where a person is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall be determined by means
of an average of the passenger revenue mile fraction and
the freight revenue mile fraction, weighted to reflect
the person's
(A) relative railway operating income from
total passenger and total freight service, as
reported to the Interstate Commerce Commission, in
the case of transportation by railroad, and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(2) Such business income derived from
transportation by pipeline shall be apportioned to this
State by multiplying such income by a fraction, the
numerator of which is the revenue miles of the person in
this State, and the denominator of which is the revenue
miles of the person everywhere. For the purposes of this
paragraph, a revenue mile is the transportation by
pipeline of 1 barrel of oil, 1,000 cubic feet of gas, or
of any specified quantity of any other substance, the
distance of 1 mile for a consideration.
(e) Combined apportionment. Where 2 or more persons are
engaged in a unitary business as described in subsection
(a)(27) of Section 1501, a part of which is conducted in this
State by one or more members of the group, the business
income attributable to this State by any such member or
members shall be apportioned by means of the combined
apportionment method.
(f) Alternative allocation. If the allocation and
apportionment provisions of subsections (a) through (e) do
not fairly represent the extent of a person's business
activity in this State, the person may petition for, or the
Director may require, in respect of all or any part of the
person's business activity, if reasonable:
(1) Separate accounting;
(2) The exclusion of any one or more factors;
(3) The inclusion of one or more additional factors
which will fairly represent the person's business
activities in this State; or
(4) The employment of any other method to
effectuate an equitable allocation and apportionment of
the person's business income.
(g) Cross reference. For allocation of business income
by residents, see Section 301(a).
(Source: P.A. 89-379, eff. 1-1-96; 89-399, eff. 8-20-95;
89-626, eff. 8-9-96.)
(35 ILCS 5/704) (from Ch. 120, par. 7-704)
Sec. 704. Employer's Return and Payment of Tax Withheld.
(a) In general, every employer who deducts and withholds
or is required to deduct and withhold tax under this Act
shall make such payments and returns as hereinafter provided.
(b) Quarter Monthly Payments: Returns. Every employer
who deducts and withholds or is required to deduct and
withhold tax under this Act shall, on or before the third
banking day following the close of a quarter monthly period,
pay to the Department or to a depositary designated by the
Department, pursuant to regulations prescribed by the
Department, the taxes so required to be deducted and
withheld, whenever the aggregate amount withheld by such
employer (together with amounts previously withheld and not
paid to the Department) exceeds $1,000. For purposes of this
Section, Saturdays, Sundays, legal holidays and local bank
holidays are not banking days. A quarter monthly period, for
purposes of this subsection, ends on the 7th, 15th, 22nd and
last day of each calendar month. Every such employer shall
for each calendar quarter, on or before the last day of the
first month following the close of such quarter, and for the
calendar year, on or before January 31 of the succeeding
calendar year, make a return with respect to such taxes in
such form and manner as the Department may by regulations
prescribe, and pay to the Department or to a depositary
designated by the Department all withheld taxes not
previously paid to the Department.
(c) Monthly Payments: Returns. Every employer required
to deduct and withhold tax under this Act shall, on or before
the 15th day of the second and third months of each calendar
quarter, and on or before the last day of the month following
the last month of each such quarter, pay to the Department or
to a depositary designated by the Department, pursuant to
regulations prescribed by the Department, the taxes so
required to be deducted and withheld, whenever the aggregate
amount withheld by such employer (together with amounts
previously withheld and not paid to the Department) exceeds
$500 but does not exceed $1,000. Every such employer shall
for each calendar quarter, on or before the last day of the
first month following the close of such quarter, and for the
calendar year, on or before January 31 of the succeeding
calendar year, make a return with respect to such taxes in
such form and manner as the Department may by regulations
prescribe, and pay to the Department or to a depositary
designated by the Department all withheld taxes not
previously paid to the Department.
(d) Annual Payments: Returns. Where the amount of
compensation paid by an employer is not sufficient to require
the withholding of tax from the compensation of any of its
employees (or where the aggregate amount withheld is less
than $500), the Department may by regulation permit such
employer to file only an annual return and to pay the taxes
required to be deducted and withheld at the time of filing
such annual return.
(e) Annual Return. The Department may, as it deems
appropriate, prescribe by regulation for the filing of annual
returns in lieu of quarterly returns described in subsections
(b) and (c).
(e-5) Annual Return and Payment. On and after January
1, 1998, notwithstanding subsections (b) through (d) of this
Section, every employer who deducts and withholds or is
required to deduct and withhold tax from a person engaged in
domestic service employment, as that term is defined in
Section 3510 of the Internal Revenue Code, may comply with
the requirements of this Section by filing an annual return
and paying the taxes required to be deducted and withheld on
or before the 15th day of the fourth month following the
close of the employer's taxable year. The annual return may
be submitted with the employer's individual income tax
return. Annual Return. Where the tax is withheld from a
person engaged in domestic service employment, as that term
is defined in Section 3510 of the Internal Revenue Code,
returns shall be filed on or before the 15th day of the
fourth month following the close of the employer's taxable
year.
(f) Magnetic Media Filing. Forms W-2 that, pursuant to
the Internal Revenue Code and regulations promulgated
thereunder, are required to be submitted to the Internal
Revenue Service on magnetic media, must also be submitted to
the Department on magnetic media for Illinois purposes, if
required by the Department.
(Source: P.A. 90-374, eff. 8-14-97.)
Section 10. The Use Tax Act is amended by changing
Section 19 as follows:
(35 ILCS 105/19) (from Ch. 120, par. 439.19)
Sec. 19. If it shall appear that an amount of tax or
penalty or interest has been paid in error hereunder to the
Department by a purchaser, as distinguished from the
retailer, whether such amount be paid through a mistake of
fact or an error of law, such purchaser may file a claim for
credit or refund with the Department in accordance with
Sections 6, 6a, 6b, and 6c of the Retailers' Occupation Tax
Act. If it shall appear that an amount of tax or penalty or
interest has been paid in error to the Department hereunder
by a retailer who is required or authorized to collect and
remit the use tax, whether such amount be paid through a
mistake of fact or an error of law, such retailer may file a
claim for credit or refund with the Department in accordance
with Sections 6, 6a, 6b, and 6c of the Retailers' Occupation
Tax Act, provided that no credit or refund shall be allowed
for any amount paid by any such retailer unless it shall
appear that he bore the burden of such amount and did not
shift the burden thereof to anyone else (as in the case of a
duplicated tax payment which the retailer made to the
Department and did not collect from anyone else), or unless
it shall appear that he or she or his or her legal
representative has unconditionally repaid such amount to his
vendee (1) who bore the burden thereof and has not shifted
such burden directly or indirectly in any manner whatsoever;
(2) who, if he has shifted such burden, has repaid
unconditionally such amount to his or her own vendee, and (3)
who is not entitled to receive any reimbursement therefor
from any other source than from his vendor, nor to be
relieved of such burden in any other manner whatsoever. If it
shall appear that an amount of tax has been paid in error
hereunder by the purchaser to a retailer, who retained such
tax as reimbursement for his or her tax liability on the same
sale under the Retailers' Occupation Tax Act, and who
remitted the amount involved to the Department under the
Retailers' Occupation Tax Act, whether such amount be paid
through a mistake of fact or an error of law, the procedure
for recovering such tax shall be that prescribed in Sections
6, 6a, 6b and 6c of the Retailers' Occupation Tax Act.
Any credit or refund that is allowed under this Section
shall bear interest at the rate and in the manner specified
in the Uniform Penalty and Interest Act.
Any claim filed hereunder shall be filed upon a form
prescribed and furnished by the Department. The claim shall
be signed by the claimant (or by the claimant's legal
representative if the claimant shall have died or become a
person under legal disability), or by a duly authorized agent
of the claimant or his or her legal representative.
A claim for credit or refund shall be considered to have
been filed with the Department on the date upon which it is
received by the Department. Upon receipt of any claim for
credit or refund filed under this Act, any officer or
employee of the Department, authorized in writing by the
Director of Revenue to acknowledge receipt of such claims on
behalf of the Department, shall execute on behalf of the
Department, and shall deliver or mail to the claimant or his
duly authorized agent, a written receipt, acknowledging that
the claim has been filed with the Department, describing the
claim in sufficient detail to identify it and stating the
date upon which the claim was received by the Department.
Such written receipt shall be prima facie evidence that the
Department received the claim described in such receipt and
shall be prima facie evidence of the date when such claim was
received by the Department. In the absence of such a written
receipt, the records of the Department as to when the claim
was received by the Department, or as to whether or not the
claim was received at all by the Department, shall be deemed
to be prima facie correct upon these questions in the event
of any dispute between the claimant (or his or her legal
representative) and the Department concerning these
questions.
In case the Department determines that the claimant is
entitled to a refund, such refund shall be made only from
such appropriation as may be available for that purpose. If
it appears unlikely that the amount appropriated would permit
everyone having a claim allowed during the period covered by
such appropriation to elect to receive a cash refund, the
Department, by rule or regulation, shall provide for the
payment of refunds in hardship cases and shall define what
types of cases qualify as hardship cases.
If a retailer who has failed to pay use tax on gross
receipts from retail sales is required by the Department to
pay such tax, such retailer, without filing any formal claim
with the Department, shall be allowed to take credit against
such use tax liability to the extent, if any, to which such
retailer has paid an amount equivalent to retailers'
occupation tax or has paid use tax in error to his or her
vendor or vendors of the same tangible personal property
which such retailer bought for resale and did not first use
before selling it, and no penalty or interest shall be
charged to such retailer on the amount of such credit.
However, when such credit is allowed to the retailer by the
Department, the vendor is precluded from refunding any of
that tax to the retailer and filing a claim for credit or
refund with respect thereto with the Department. The
provisions of this amendatory Act shall be applied
retroactively, regardless of the date of the transaction.
(Source: P.A. 87-205.)
Section 15. The Service Occupation Tax Act is amended by
changing Section 19 as follows:
(35 ILCS 115/19) (from Ch. 120, par. 439.119)
Sec. 19. As to any claim for credit or refund filed with
the Department on or and after each January 1 and July 1 but
on or before June 30 of any given year, no amount of tax or
penalty or interest erroneously paid (either in total or
partial liquidation of a tax or penalty or interest under
this Act) more than 3 years prior to such January 1 and July
1, respectively, shall be credited or refunded, except that
if both the Department and taxpayer have agreed to an
extension of time to issue a notice of tax liability as
provided in Section 4 of the Retailers' Occupation Tax Act,
such claim may be filed at any time prior to the expiration
of the period agreed upon and as to any such claim filed on
and after July 1 but on or before December 31 of any given
year, no amount of tax or penalty or interest erroneously
paid (either in total or partial liquidation of a tax or
penalty under this Act) more than 3 years prior to such July
1 shall be credited or refunded. No claim shall be allowed
for any amount paid to the Department, whether paid
voluntarily or involuntarily, if paid in total or partial
liquidation of an assessment which had become final before
the claim for credit or refund to recover the amount so paid
is filed with the Department, or if paid in total or partial
liquidation of a judgment or order of court.
(Source: P.A. 79-1365; 79-1366.)
Section 18. The Property Tax Code is amended, if and
only if the provisions of Senate Bill 51 of the 90th General
Assembly that are changed by this amendatory Act of 1997
become law, by changing Section 14-15 as follows:
(35 ILCS 200/14-15)
Sec. 14-15. Certificate of error; counties of 3,000,000
or more.
(a) In counties with 3,000,000 or more inhabitants, if,
at any time before judgment is rendered in any proceeding to
collect or to enjoin the collection of taxes based upon any
assessment of any property belonging to any taxpayer, the
county assessor discovers an error or mistake in the
assessment, the assessor shall execute a certificate setting
forth the nature and cause of the error. The certificate when
endorsed by the county assessor, or when endorsed by the
county assessor and board of appeals (until the first Monday
in December 1998 and the board of review beginning the first
Monday in December 1998 and thereafter) where the certificate
is executed for any assessment which was the subject of a
complaint filed in the board of appeals (until the first
Monday in December 1998 and the board of review beginning the
first Monday in December 1998 and thereafter) for the tax
year for which the certificate is issued, may be received in
evidence in any court of competent jurisdiction. When so
introduced in evidence such certificate shall become a part
of the court records, and shall not be removed from the files
except upon the order of the court.
A certificate executed under this Section may be issued
to the person erroneously assessed. A certificate executed
under this Section or a list of the parcels for which
certificates have been issued may be presented by the
assessor to the court as an objection in the application for
judgment and order of sale for the year in relation to which
the certificate is made. The State's Attorney of the county
in which the property is situated shall mail a copy of any
final judgment entered by the court regarding the certificate
to the taxpayer of record for the year in question.
Any unpaid taxes after the entry of the final judgment by
the court on certificates issued under this Section may be
included in a special tax sale, provided that an
advertisement is published and a notice is mailed to the
person in whose name the taxes were last assessed, in a form
and manner substantially similar to the advertisement and
notice required under Sections 21-110 and 21-135. The
advertisement and sale shall be subject to all provisions of
law regulating the annual advertisement and sale of
delinquent property, to the extent that those provisions may
be made applicable.
A certificate of error executed under this Section
allowing homestead exemptions under Sections 15-170, 15-172,
and 15-175 of this Act (formerly Sections 19.23-1 and
19.23-1a of the Revenue Act of 1939) not previously allowed
shall be given effect by the county treasurer, who shall mark
the tax books and, upon receipt of the following certificate
from the county assessor, shall issue refunds to the taxpayer
accordingly:
"CERTIFICATION
I, .................., county assessor, hereby certify
that the Certificates of Error set out on the attached
list have been duly issued to allow homestead exemptions
pursuant to Sections 15-170, 15-172, and 15-175 of the
Property Tax Code (formerly Sections 19.23-1 and 19.23-1a
of the Revenue Act of 1939) which should have been
previously allowed; and that a certified copy of the
attached list and this certification have been served
upon the county State's Attorney."
The county treasurer has the power to mark the tax books
to reflect the issuance of homestead certificates of error
issued up to and including 3 years after the date on which
the annual judgment and order of sale for that tax year was
first entered first day of January of the second year after
the year for which the homestead exemption should have been
allowed. The county treasurer has the power to issue refunds
to the taxpayer as set forth above from and including the
first day of January of the second year after the year for
which the homestead exemption should have been allowed until
all refunds authorized by this Section have been completed.
The county treasurer has no power to issue refunds to the
taxpayer as set forth above unless the Certification set out
in this Section has been served upon the county State's
Attorney.
(b) Nothing in subsection (a) of this Section shall be
construed to prohibit the execution, endorsement, issuance,
and adjudication of a certificate of error if (i) the annual
judgment and order of sale for the tax year in question is
reopened for further proceedings upon consent of the county
collector and county assessor, represented by the State's
Attorney, and (ii) a new final judgment is subsequently
entered pursuant to the certificate. This subsection (b)
shall be construed as declarative of existing law and not as
a new enactment.
(c) No certificate of error, other than a certificate to
establish an exemption under Section 14-25, shall be executed
for any tax year more than 3 years after the date on which
the annual judgment and order of sale for that tax year was
first entered.
(d) The time limitation of subsection (c) shall not
apply to a certificate of error correcting an assessment to
$1, under Section 10-35, on a parcel that a subdivision or
planned development has acquired by adverse possession, if
during the tax year for which the certificate is executed the
subdivision or planned development used the parcel as common
area, as defined in Section 10-35, and if application for the
certificate of error is made prior to December 31, 1997.
(Source: P.A. 88-225; 88-455; 88-660, eff. 9-16-94; 88-670,
eff. 12-2-94; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96;
90SB0051 enrolled.)
Section 19. The Property Tax Code is amended by changing
Sections 9-195 and 15-100 and adding Section 10-230 and a
heading to Division 10 as follows:
(35 ILCS 200/9-195)
Sec. 9-195. Leasing of exempt property.
(a) Except as provided in Section 15-55 and 15-100, when
property which is exempt from taxation is leased to another
whose property is not exempt, and the leasing of which does
not make the property taxable, the leasehold estate and the
appurtenances shall be listed as the property of the lessee
thereof, or his or her assignee. Taxes on that property shall
be collected in the same manner as on property that is not
exempt, and the lessee shall be liable for those taxes.
However, no tax lien shall attach to the exempt real estate.
The changes made by this amendatory Act of 1997 are
declaratory of existing law and shall not be construed as a
new enactment. The changes made by Public Acts 88-221 and
88-420 that are incorporated into this Section by this
amendatory Act of 1993 are declarative of existing law and
are not a new enactment.
(b) The provisions of this Section regarding taxation of
leasehold interests in exempt property do not apply to any
leasehold interest created pursuant to any transaction
described in subsection (b) of Section 15-100.
(Source: P.A. 88-455; incorporates 88-221 and 88-420; 88-670,
eff. 12-2-94.)
(35 ILCS 200/Art. 10, Div. 10, heading new)
DIVISION 10. ELECTRIC POWER GENERATING STATIONS
(35 ILCS 200/10-230 new)
Sec. 10-230. Creation of task force; 1997 through 1999
property assessments of certain utility property.
(a) This Section establishes an Electric Utility
Property Assessment Task Force to advise the General Assembly
with respect to the possible impact of the Electric Service
Customer Choice and Rate Relief Law of 1997 on the valuation
of the real property component of electric generating
stations owned by electric utilities and, therefore, on the
taxing districts in this State in which electric generating
stations are located.
(b) There shall be established and appointed in
accordance with this Section an Electric Utility Property
Assessment Task Force. Such Task Force shall be chaired by
the President of the Taxpayers' Federation of Illinois, who
shall be a non-voting member of the Task Force. The Task
Force shall be composed of 10 voting members, 6 of whom shall
be representatives of taxing districts in which electric
generating stations are located and 4 of whom shall be
representatives of electric utilities in this State, at least
one of whom shall be from an electric utility serving over
1,000,000 retail customers in this State and at least one of
whom shall be from an electric utility serving over 500,000
but less than 1,000,000 retail customers in this State.
(c) The voting members of this Task Force shall be
appointed as follows: (i) 3 of the voting members, one of
whom shall be from an electric utility, shall be appointed by
the President of the Senate; (ii) 3 of the voting members,
one of whom shall be from an electric utility, shall be
appointed by the Speaker of the House of Representatives;
(iii) 2 of the voting members, one of whom shall be from an
electric utility, shall be appointed by the Minority Leader
of the Senate; and (iv) 2 of the voting members, one of whom
shall be from an electric utility, shall be appointed by the
Minority Leader of the House of Representatives. Such
appointments shall be made within 30 days after the effective
date of this amendatory Act of 1997. Members of the Task
Force shall receive no compensation for their services but
shall be entitled to reimbursement of reasonable expenses
incurred while performing their duties.
(d) The Task Force shall submit a report to the General
Assembly by January 1, 1999 which shall: (i) analyze whether,
and to what extent, taxing districts throughout this State
will experience significant sustained erosions of their
property tax bases and property tax revenues as a result of
the restructuring of the electric industry in this State; and
(ii) make recommendations for legislative changes to address
any such impacts.
(e) Beginning with the 1997 assessment year through the
assessment year of 1999, the fair cash value of any electric
power generating plant owned as of November 1, 1997, by an
electric utility, as that term is defined in Section 16-102
of the Public Utilities Act, shall be determined using
original cost less depreciation of the electric power
generating plant. When determining original cost less
depreciation, including the original cost less depreciation
of all new construction, the rate or rates of depreciation
applied shall be the same as the rate or rates in effect
November 1, 1997, under the Public Utilities Act and the
rules and orders of the Illinois Commerce Commission,
irrespective of any change in ownership of the property
occurring after the effective date of the provisions of the
Electric Service Customer Choice and Rate Relief Law of 1997.
Nothing in this subsection shall be construed to affect the
classification of property as real or personal.
Determinations of original cost less depreciation for
purposes of this subsection shall be made without regard for
the use of any accelerated cost recovery method including
accelerated depreciation, accelerated amortization or other
capital recovery methods, or reductions to original cost of
an electric power generating plant made as a result of the
provisions of Senate Amendment No. 2 to House Bill 362,
enacted by the 90th General Assembly.
(35 ILCS 200/15-100)
Sec. 15-100. Public transportation systems.
(a) All property belonging to any municipal corporation
created for the sole purpose of owning and operating a
transportation system for public service is exempt.
(b) Property owned by (i) a municipal corporation of
500,000 or more inhabitants, used for public transportation
purposes, and operated by the Chicago Transit Authority; (ii)
the Regional Transportation Authority; (iii) any service
board or division of the Regional Transportation Authority;
(iv) the Northeast Illinois Regional Commuter Railroad
Corporation; or (v) the Chicago Transit Authority shall be
exempt. For purposes of this Section alone, the Regional
Transportation Authority, any service board or division of
the Regional Transportation Authority, the Northeast Illinois
Regional Commuter Railroad Corporation, the Chicago Transit
Authority, or a municipal corporation, as defined in item
(i), shall be deemed an "eligible transportation authority".
The exemption provided in this subsection shall not be
affected by any transaction in which, for the purpose of
obtaining financing, the eligible transportation authority,
directly or indirectly, leases or otherwise transfers such
property to another whose property is not exempt and
immediately thereafter enters into a leaseback or other
agreement that directly or indirectly gives the eligible
transportation authority a right to use, control, and possess
the property. In the case of a conveyance of such property,
the eligible transportation authority must retain an option
to purchase the property at a future date or, within the
limitations period for reverters, the property must revert
back to the eligible transportation authority.
(c) If such property has been conveyed as described in
subsection (b), the property will no longer be exempt
pursuant to this Section as of the date when:
(1) the right of the eligible transportation
authority to use, control, and possess the property has
been terminated;
(2) the eligible transportation authority no longer
has an option to purchase or otherwise acquire the
property; and
(3) there is no provision for a reverter of the
property to the eligible transportation authority within
the limitations period for reverters.
(d) Pursuant to Sections 15-15 and 15-20 of this Code,
the eligible transportation authority shall notify the chief
county assessment officer of any transaction under subsection
(b) of this Section. The chief county assessment officer
shall determine initial and continuing compliance with the
requirements of this Section for tax exemption. Failure to
notify the chief county assessment officer of a transaction
under this Section or to otherwise comply with the
requirements of Sections 15-15 and 15-20 of this Code shall,
in the discretion of the chief county assessment officer,
constitute cause to terminate the exemption, notwithstanding
any other provision of this Code.
(e) No provision of this Section shall be construed to
affect the obligation of the eligible transportation
authority to which an exemption certificate has been issued
under this Section from its obligation under Section 15-10 of
this Code to file an annual certificate of status or to
notify the chief county assessment officer of transfers of
interest or other changes in the status of the property as
required by this Code.
(f) The changes made by this amendatory Act of 1997 are
declarative of existing law and shall not be construed as a
new enactment.
(Source: Laws 1959, p. 1549, 1554, 2219, and 2224; P.A.
88-455.)
Section 20. The Telecommunications Excise Tax Act is
amended by changing Section 2 as follows:
(35 ILCS 630/2) (from Ch. 120, par. 2002)
Sec. 2. As used in this Article, unless the context
clearly requires otherwise:
(a) "Gross charge" means the amount paid for the act or
privilege of originating or receiving telecommunications in
this State and for all services and equipment provided in
connection therewith by a retailer, valued in money whether
paid in money or otherwise, including cash, credits, services
and property of every kind or nature, and shall be determined
without any deduction on account of the cost of such
telecommunications, the cost of materials used, labor or
service costs or any other expense whatsoever. In case
credit is extended, the amount thereof shall be included only
as and when paid. "Gross charges" for private line service
shall include charges imposed at each channel point within
this State, charges for the channel mileage between each
channel point within this State, and charges for that portion
of the interstate inter-office channel provided within
Illinois. However, "gross charges" shall not include:
(1) any amounts added to a purchaser's bill because
of a charge made pursuant to (i) the tax imposed by this
Article; (ii) charges added to customers' bills pursuant
to the provisions of Sections 9-221 or 9-222 of the
Public Utilities Act, as amended, or any similar charges
added to customers' bills by retailers who are not
subject to rate regulation by the Illinois Commerce
Commission for the purpose of recovering any of the tax
liabilities or other amounts specified in such provisions
of such Act; or (iii) the tax imposed by Section 4251 of
the Internal Revenue Code;
(2) charges for a sent collect telecommunication
received outside of the State;
(3) charges for leased time on equipment or charges
for the storage of data or information for subsequent
retrieval or the processing of data or information
intended to change its form or content. Such equipment
includes, but is not limited to, the use of calculators,
computers, data processing equipment, tabulating
equipment or accounting equipment and also includes the
usage of computers under a time-sharing agreement;
(4) charges for customer equipment, including such
equipment that is leased or rented by the customer from
any source, wherein such charges are disaggregated and
separately identified from other charges;
(5) charges to business enterprises certified under
Section 9-222.1 of the Public Utilities Act, as amended,
to the extent of such exemption and during the period of
time specified by the Department of Commerce and
Community Affairs;
(6) charges for telecommunications and all services
and equipment provided in connection therewith between a
parent corporation and its wholly owned subsidiaries or
between wholly owned subsidiaries when the tax imposed
under this Article has already been paid to a retailer
and only to the extent that the charges between the
parent corporation and wholly owned subsidiaries or
between wholly owned subsidiaries represent expense
allocation between the corporations and not the
generation of profit for the corporation rendering such
service;
(7) bad debts. Bad debt means any portion of a debt
that is related to a sale at retail for which gross
charges are not otherwise deductible or excludable that
has become worthless or uncollectable, as determined
under applicable federal income tax standards. If the
portion of the debt deemed to be bad is subsequently
paid, the retailer shall report and pay the tax on that
portion during the reporting period in which the payment
is made;
(8) charges paid by inserting coins in
coin-operated telecommunication devices; .
(9) amounts paid by telecommunications retailers
under the Telecommunications Municipal Infrastructure
Maintenance Fee Act.
(b) "Amount paid" means the amount charged to the
taxpayer's service address in this State regardless of where
such amount is billed or paid.
(c) "Telecommunications", in addition to the meaning
ordinarily and popularly ascribed to it, includes, without
limitation, messages or information transmitted through use
of local, toll and wide area telephone service; private line
services; channel services; telegraph services;
teletypewriter; computer exchange services; cellular mobile
telecommunications service; specialized mobile radio;
stationary two way radio; paging service; or any other form
of mobile and portable one-way or two-way communications; or
any other transmission of messages or information by
electronic or similar means, between or among points by wire,
cable, fiber-optics, laser, microwave, radio, satellite or
similar facilities. As used in this Act, "private line" means
a dedicated non-traffic sensitive service for a single
customer, that entitles the customer to exclusive or priority
use of a communications channel or group of channels, from
one or more specified locations to one or more other
specified locations. The definition of "telecommunications"
shall not include value added services in which computer
processing applications are used to act on the form, content,
code and protocol of the information for purposes other than
transmission. "Telecommunications" shall not include
purchases of telecommunications by a telecommunications
service provider for use as a component part of the service
provided by him to the ultimate retail consumer who
originates or terminates the taxable end-to-end
communications. Carrier access charges, right of access
charges, charges for use of inter-company facilities, and all
telecommunications resold in the subsequent provision of,
used as a component of, or integrated into end-to-end
telecommunications service shall be non-taxable as sales for
resale.
(d) "Interstate telecommunications" means all
telecommunications that either originate or terminate outside
this State.
(e) "Intrastate telecommunications" means all
telecommunications that originate and terminate within this
State.
(f) "Department" means the Department of Revenue of the
State of Illinois.
(g) "Director" means the Director of Revenue for the
Department of Revenue of the State of Illinois.
(h) "Taxpayer" means a person who individually or
through his agents, employees or permittees engages in the
act or privilege of originating or receiving
telecommunications in this State and who incurs a tax
liability under this Article.
(i) "Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian or other representative appointed
by order of any court, the Federal and State governments,
including State universities created by statute or any city,
town, county or other political subdivision of this State.
(j) "Purchase at retail" means the acquisition,
consumption or use of telecommunication through a sale at
retail.
(k) "Sale at retail" means the transmitting, supplying
or furnishing of telecommunications and all services and
equipment provided in connection therewith for a
consideration to persons other than the Federal and State
governments, and State universities created by statute and
other than between a parent corporation and its wholly owned
subsidiaries or between wholly owned subsidiaries for their
use or consumption and not for resale.
(l) "Retailer" means and includes every person engaged
in the business of making sales at retail as defined in this
Article. The Department may, in its discretion, upon
application, authorize the collection of the tax hereby
imposed by any retailer not maintaining a place of business
within this State, who, to the satisfaction of the
Department, furnishes adequate security to insure collection
and payment of the tax. Such retailer shall be issued,
without charge, a permit to collect such tax. When so
authorized, it shall be the duty of such retailer to collect
the tax upon all of the gross charges for telecommunications
in this State in the same manner and subject to the same
requirements as a retailer maintaining a place of business
within this State. The permit may be revoked by the
Department at its discretion.
(m) "Retailer maintaining a place of business in this
State", or any like term, means and includes any retailer
having or maintaining within this State, directly or by a
subsidiary, an office, distribution facilities, transmission
facilities, sales office, warehouse or other place of
business, or any agent or other representative operating
within this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or
agent or other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State.
(n) "Service address" means the location of
telecommunications equipment from which the
telecommunications services are originated or at which
telecommunications services are received by a taxpayer. In
the event this may not be a defined location, as in the case
of mobile phones, paging systems, maritime systems,
air-to-ground systems and the like, service address shall
mean the location of a taxpayer's primary use of the
telecommunications equipment as defined by telephone number,
authorization code, or location in Illinois where bills are
sent.
(Source: P.A. 88-480.)
Section 25. The Telecommunications Municipal
Infrastructure Maintenance Fee Act is amended by changing
Sections 10, 15, 20, and 25 and adding Sections 22, 24, 27,
27.5, 27.10, 27.15, 27.20, 27.25, 27.30, 27.35, 27.40, 27.45,
27.50, and 27.55 as follows:
(35 ILCS 635/10)
Sec. 10. Definitions.
(a) "Gross charges" means the amount paid to a
telecommunications retailer for the act or privilege of
originating or receiving telecommunications in this State or
the municipality imposing the fee under this Act, as the
context requires, and for all services rendered in connection
therewith, valued in money whether paid in money or
otherwise, including cash, credits, services, and property of
every kind or nature, and shall be determined without any
deduction on account of the cost of such telecommunications,
the cost of the materials used, labor or service costs, or
any other expense whatsoever. In case credit is extended,
the amount thereof shall be included only as and when paid.
"Gross charges" for private line service shall include
charges imposed at each channel point within this State or
the municipality imposing the fee under this Act, charges for
the channel mileage between each channel point within this
State or the municipality imposing the fee under this Act,
and charges for that portion of the interstate inter-office
channel provided within Illinois or the municipality imposing
the fee under this Act. However, "gross charges" shall not
include:
(1) any amounts added to a purchaser's bill because
of a charge made under: (i) the fee imposed by this
Section, (ii) additional charges added to a purchaser's
bill under Section 9-221 or 9-222 of the Public Utilities
Act, (iii) amounts collected under Section 8-11-17 of the
Illinois Municipal Code, (iv) the tax imposed by the
Telecommunications Excise Tax Act, (v) 911 surcharges, or
(vi) the tax imposed by Section 4251 of the Internal
Revenue Code;
(2) charges for a sent collect telecommunication
received outside of this State or the municipality
imposing the fee, as the context requires;
(3) charges for leased time on equipment or charges
for the storage of data or information or subsequent
retrieval or the processing of data or information
intended to change its form or content. Such equipment
includes, but is not limited to, the use of calculators,
computers, data processing equipment, tabulating
equipment, or accounting equipment and also includes the
usage of computers under a time-sharing agreement.
(4) charges for customer equipment, including such
equipment that is leased or rented by the customer from
any source, wherein such charges are disaggregated and
separately identified from other charges;
(5) charges to business enterprises certified under
Section 9-222.1 of the Public Utilities Act to the extent
of such exemption and during the period of time specified
by the Department of Commerce and Community Affairs or by
the municipality imposing the fee under the Act, as the
context requires;
(6) charges for telecommunications and all services
and equipment provided in connection therewith between a
parent corporation and its wholly owned subsidiaries or
between wholly owned subsidiaries, and only to the extent
that the charges between the parent corporation and
wholly owned subsidiaries or between wholly owned
subsidiaries represent expense allocation between the
corporations and not the generation of profit other than
a regulatory required profit for the corporation
rendering such services;
(7) bad debts ("bad debt" means any portion of a
debt that is related to a sale at retail for which gross
charges are not otherwise deductible or excludable that
has become worthless or uncollectible, as determined
under applicable federal income tax standards; if the
portion of the debt deemed to be bad is subsequently
paid, the retailer shall report and pay the tax on that
portion during the reporting period in which the payment
is made);
(8) charges paid by inserting coins in
coin-operated telecommunication devices; or
(9) charges for telecommunications and all services
and equipment provided to a municipality imposing the
infrastructure maintenance fee.
(a-5) "Department" means the Illinois Department of
Revenue.
(b) "Telecommunications" includes, but is not limited
to, messages or information transmitted through use of local,
toll, and wide area telephone service, channel services,
telegraph services, teletypewriter service, computer exchange
services, private line services, specialized mobile radio
services, or any other transmission of messages or
information by electronic or similar means, between or among
points by wire, cable, fiber optics, laser, microwave, radio,
satellite, or similar facilities. Unless the context clearly
requires otherwise, "telecommunications" shall also include
wireless telecommunications as hereinafter defined.
"Telecommunications" shall not include value added services
in which computer processing applications are used to act on
the form, content, code, and protocol of the information for
purposes other than transmission. "Telecommunications" shall
not include purchase of telecommunications by a
telecommunications service provider for use as a component
part of the service provided by him or her to the ultimate
retail consumer who originates or terminates the end-to-end
communications. Retailer access charges, right of access
charges, charges for use of intercompany facilities, and all
telecommunications resold in the subsequent provision and
used as a component of, or integrated into, end-to-end
telecommunications service shall not be included in gross
charges as sales for resale. "Telecommunications" shall not
include the provision of cable services through a cable
system as defined in the Cable Communications Act of 1984 (47
U.S.C. Sections 521 and following) as now or hereafter
amended or through an open video system as defined in the
Rules of the Federal Communications Commission (47 C.D.F.
76.1550 and following) as now or hereafter amended.
(c) "Wireless telecommunications" includes cellular
mobile telephone services, personal wireless services as
defined in Section 704(C) of the Telecommunications Act of
1996 (Public Law No. 104-104) as now or hereafter amended,
including all commercial mobile radio services, and paging
services.
(d) "Telecommunications retailer" or "retailer" or
"carrier" means and includes every person engaged in the
business of making sales of telecommunications at retail as
defined in this Section. The Illinois Department of Revenue
or the municipality imposing the fee, as the case may be,
may, in its discretion, upon applications, authorize the
collection of the fee hereby imposed by any retailer not
maintaining a place of business within this State, who, to
the satisfaction of the Department or municipality, furnishes
adequate security to insure collection and payment of the
fee. When so authorized, it shall be the duty of such
retailer to pay the fee upon all of the gross charges for
telecommunications in the same manner and subject to the same
requirements as a retailer maintaining a place of business
within the State or municipality imposing the fee.
(e) "Retailer maintaining a place of business in this
State", or any like term, means and includes any retailer
having or maintaining within this State, directly or by a
subsidiary, an office, distribution facilities, transmission
facilities, sales office, warehouse, or other place of
business, or any agent or other representative operating
within this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or
agent or other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State.
(f) "Sale of telecommunications at retail" means the
transmitting, supplying, or furnishing of telecommunications
and all services rendered in connection therewith for a
consideration, other than between a parent corporation and
its wholly owned subsidiaries or between wholly owned
subsidiaries, when the gross charge made by one such
corporation to another such corporation is not greater than
the gross charge paid to the retailer for their use or
consumption and not for sale.
(g) "Service address" means the location of
telecommunications equipment from which telecommunications
services are originated or at which telecommunications
services are received. If this is not a defined location, as
in the case of wireless telecommunications, paging systems,
maritime systems, air-to-ground systems, and the like,
"service address" shall mean the location of the customer's
primary use of the telecommunications equipment as defined by
the location in Illinois where bills are sent.
(Source: P.A. 90-154, eff. 1-1-98.)
(35 ILCS 635/15)
Sec. 15. State telecommunications infrastructure
maintenance fees.
(a) A State infrastructure maintenance fee is hereby
imposed upon telecommunications retailers as a replacement
for the personal property tax in an amount specified in
subsection (b).
(b) The amount of the State infrastructure maintenance
fee imposed upon a telecommunications retailer under this
Section shall be equal to 0.5% of all gross charges charged
by the telecommunications retailer to service addresses in
this State for telecommunications, other than wireless
telecommunications, originating or received in this State.
However, the State infrastructure maintenance fee is not
imposed in any case in which the imposition of the fee would
violate the Constitution or statutes of the United States.
(c) An optional infrastructure maintenance fee is hereby
created. A telecommunications retailer may elect to pay the
optional infrastructure maintenance fee with respect to the
gross charges charged by the telecommunications retailer to
service addresses in a particular municipality for
telecommunications, other than wireless telecommunications,
originating or received in the municipality if (1) the
telecommunications retailer is not required to pay any
compensation to the municipality under an existing franchise
agreement and (2) the municipality has not imposed a
municipal infrastructure maintenance fee as authorized in
Section 20 of this Act. A telecommunications retailer
electing to pay the optional infrastructure maintenance fee
shall notify the Department of such election on the
application for certificate of registration. If a
telecommunications retailer elects to pay this fee with
respect to the gross charges charged by the
telecommunications retailer to service addresses in a
particular municipality, such election shall remain in full
force and effect until such time as the municipality imposes
a municipal infrastructure maintenance fee.
(d) The amount of the optional infrastructure
maintenance fee which a telecommunications retailer may elect
to pay with respect to a particular municipality shall be
equal to 25% of the maximum amount of the municipal
infrastructure maintenance fee which the municipality could
impose under Section 20 of this Act.
(e) The State infrastructure maintenance fee and the
optional infrastructure maintenance fee authorized by this
Section shall be collected, enforced, and administered as set
forth in subsection (b) of Section 25 of this Act.
(Source: P.A. 90-154, eff. 1-1-98.)
(35 ILCS 635/20)
Sec. 20. Municipal telecommunications infrastructure
maintenance fee.
(a) A municipality may impose a municipal infrastructure
maintenance fee upon telecommunications retailers in an
amount specified in subsection (b). On and after the
effective date of this amendatory Act of 1997, a certified
copy of an ordinance or resolution imposing a fee under this
Section shall be filed with the Department within 30 days
after the effective date of this amendatory Act or the
effective date of the ordinance or resolution imposing such
fee, whichever is later. Failure to file a certified copy of
the ordinance or resolution imposing a fee under this Section
shall have no effect on the validity of the ordinance or
resolution. The Department shall create and maintain a list
of all ordinances and resolutions filed pursuant to this
Section and make that list, as well as copies of the
ordinances and resolutions, available to the public for a
reasonable fee.
(b) The amount of the municipal infrastructure
maintenance fee imposed upon a telecommunications retailer
under this Section shall not exceed: (i) in a municipality
with a population of more than 500,000, 2.0% of all gross
charges charged by the telecommunications retailer to service
addresses in the municipality for telecommunications
originating or received in the municipality; and (ii) in a
municipality with a population of 500,000 or less, 1.0% of
all gross charges charged by the telecommunications retailer
to service addresses in the municipality for
telecommunications originating or received in the
municipality. If imposed, the municipal telecommunications
infrastructure fee must be in 1/4% increments. However, the
fee shall not be imposed in any case in which the imposition
of the fee would violate the Constitution or statutes of the
United States.
(c) The municipal telecommunications infrastructure fee
authorized by this Section shall be collected, enforced, and
administered as set forth in subsection (c) of Section 25 of
this Act.
(Source: P.A. 90-154, eff. 1-1-98.)
(35 ILCS 635/22 new)
Sec. 22. Certificates. It shall be unlawful for any
person to engage in business as a telecomunications retailer
in this State within the meaning of this Act without first
having obtained a certificate of registration to do so from
the Department. Application for the certificate shall be made
to the Department in a form prescribed and furnished by the
Department. Each applicant for a certificate shall furnish to
the Department on a form prescribed by the Department and
signed by the applicant under penalties of perjury, the
following information:
(1) The name of the applicant.
(2) The address of the location at which the applicant
proposes to engage in business as a telecommunications
retailer in this State.
(3) Other information the Department may reasonably
require.
The Department, upon receipt of an application in proper
form, shall issue to the applicant a certificate, in a form
prescribed by the Department, which shall permit the
applicant to whom it is issued to engage in business as a
telecommunications retailer at the place shown on his or her
application. No certificate issued under this Act is
transferable or assignable. No certificate shall be issued to
any person who is in default to the State of Illinois for
moneys due under this Act or any other tax Act administered
by the Department. Any person aggrieved by any decision of
the Department under this Section may, within 20 days after
notice of such decision, protest and request a hearing,
whereupon the Department shall give notice to such person of
the time and place fixed for such hearing and shall hold a
hearing in conformity with the provisions of this Act and
then issue its final administrative decision in the matter to
such person. In the absence of such a protest within 20 days,
the Department's decision shall become final without any
further determination being made or notice given.
The Department may, in its discretion, upon application,
authorize the payment of the fees imposed under this Act by
any telecommunications retailer not otherwise subject to the
fees imposed under this Act who, to the satisfaction of the
Department, furnishes adequate security to ensure payment of
the fees. The telecommunications retailer shall be issued,
without charge, a certificate to remit the fees. When so
authorized, it shall be the duty of the telecommunications
retailer to remit the fees imposed upon the gross charges
charged by the telecommunications retailer to service
addresses in this State for telecommunications in the same
manner and subject to the same requirements as a
telecommunications retailer operating within this State.
(35 ILCS 635/24 new)
Sec. 24. Certificate actions. The Department may, after
notice and a hearing, revoke, cancel, or suspend the
certificate of registration of any telecommunications
retailer who violates any of the provisions of this Act or
regulations promulgated thereunder. The notice shall specify
the alleged violation or violations upon which the
revocation, cancellation, or suspension proceeding is based.
The Department may, after notice and a hearing as
provided herein, revoke the certificate of registration of
any person who violates any of the provisions of this Act.
Before revocation of a certificate of registration the
Department shall, within 90 days after non-compliance and at
least 7 days prior to the date of the hearing, give the
person so accused notice in writing of the charge against him
or her, and on the date designated shall conduct a hearing
upon this matter. The lapse of such 90 day period shall not
preclude the Department from conducting revocation
proceedings at a later date if necessary. Any hearing held
under this Section shall be conducted by the Director of
Revenue or by any officer or employee of the Department
designated, in writing, by the Director of Revenue. Upon the
hearing of any such proceeding, the Director of Revenue, or
any officer or employee of the Department designated, in
writing, by the Director of Revenue, may administer oaths and
the Department may procure by its subpoena the attendance of
witnesses and, by its subpoena duces tecum, the production of
relevant books and papers. Any circuit court, upon
application either of the accused or of the Department, may,
by order duly entered, require the attendance of witnesses
and the production of relevant books and papers, before the
Department in any hearing relating to the revocation of
certificates of registration. Upon refusal or neglect to obey
the order of the court, the court may compel obedience
thereof by proceedings for contempt. The Department may, by
application to any circuit court, obtain an injunction
restraining any person who engages in business as a
telecommunications retailer without a certificate (either
because his or her certificate has been revoked, canceled, or
suspended or because of a failure to obtain a certificate in
the first instance) from engaging in that business until that
person, as if that person were a new applicant for a
certificate, complies with all of the conditions,
restrictions, and requirements of Section 22 of this Act and
qualifies for and obtains a certificate. Refusal or neglect
to obey the order of the court may result in punishment for
contempt.
(35 ILCS 635/25)
Sec. 25. Collection, Enforcement, and administration of
telecommunications infrastructure maintenance fees.
(a) A telecommunications retailer shall charge each
customer an additional charge equal to the sum of (1) an
amount equal to the State infrastructure maintenance fee
attributable to that customer's service address and (2) an
amount equal to the optional infrastructure maintenance fee,
if any, attributable to that customer's service address and
(3) an amount equal to the municipal infrastructure
maintenance fee, if any, attributable to that customer's
service address. Such additional charge shall be shown
separately on the bill to each customer.
(b) The State infrastructure maintenance fee and the
optional infrastructure maintenance fee shall be designated
as a replacement for the personal property tax and shall be
remitted by the telecommunications retailer to the Illinois
Department of Revenue; provided, however, that the
telecommunications retailer may retain an amount not to
exceed 2% of the State infrastructure maintenance fee and the
optional infrastructure maintenance fee, if any, paid to the
Department, with a timely paid and timely filed return
collected by it to reimburse itself for expenses incurred in
collecting, accounting for, and remitting the fee. All
amounts herein remitted to the Department shall be
transferred to the Personal Property Tax Replacement Fund in
the State Treasury.
(c) The municipal infrastructure maintenance fee shall
be remitted by the telecommunications retailer to the
municipality imposing the municipal infrastructure
maintenance fee; provided, however, that the
telecommunications retailer may retain an amount not to
exceed 2% of the municipal infrastructure maintenance fee
collected by it to reimburse itself for expenses incurred in
accounting for and remitting the fee. The municipality
imposing the municipal infrastructure maintenance fee shall
-collect, enforce, and administer the fee.
(d) Amounts paid under this Act by telecommunications
retailers shall not be included in the tax base under any of
the following Acts as described immediately below:
(1) "gross charges" for purposes of the
Telecommunications Excise Tax Act;
(2) "gross receipts" for purposes of the municipal
utility tax as prescribed in Section 8-11-2 of the
Illinois Municipal Code;
(3) "gross charge" for purposes of the municipal
telecommunications tax as prescribed in Section 8-11-17
of the Illinois Municipal Code;
(4) "gross revenue" for purposes of the tax on
annual gross revenue of public utilities as prescribed in
Section 2-202 of the Public Utilities Act.
(d) (e) Except as provided in subsection (f), during any
period of time when a municipality receives any compensation
other than the municipal infrastructure maintenance fee set
forth in Section 20, for a telecommunications retailer's use
of the public right-of-way, no municipal infrastructure
maintenance fee may be imposed by such municipality pursuant
to this Act.
(e) (f) A municipality that, pursuant to a franchise
agreement in existence on the effective date of this Act,
receives compensation from a telecommunications retailer for
the use of the public right of way, may impose a municipal
infrastructure maintenance fee pursuant to this Act only on
the condition that such municipality (1) waives its right to
receive all fees, charges and other compensation under all
existing franchise agreements or the like with
telecommunications retailers during the time that the
municipality imposes a municipal infrastructure maintenance
fee and (2) imposes by ordinance (or other proper means) a
municipal infrastructure maintenance fee which becomes
effective no sooner than 90 days after such municipality has
provided written notice by certified mail to each
telecommunications retailer with whom the municipality has an
existing franchise agreement, that the municipality waives
all compensation under such existing franchise agreement.
(Source: P.A. 90-154, eff. 1-1-98.)
(35 ILCS 635/27 new)
Sec. 27. Returns by telecommunications retailer;
extensions. Except as provided hereinafter in this Section,
on or before the 30th day of each month each
telecommunications retailer maintaining a place of business
in this State shall make a return and payment of fees to the
Department for the preceding calendar month on a form
prescribed and furnished by the Department. The return shall
be signed by the telecommunications retailer under penalties
of perjury and shall contain the following information:
1. His or her name;
2. The address of his or her principal place of
business, and the address of the principal place of
business (if that is a different address) from which he
or she engages in the business of transmitting
telecommunications;
3. The total amount of gross charges charged by him
or her during the preceding calendar month for providing
telecommunications during such calendar month;
4. The total amount received by him or her during
the preceding calendar month on credit extended;
5. Deductions allowed by law;
6. Gross charges that were charged by him or her
during the preceding calendar month and upon the basis of
which the State infrastructure maintenance fee is
imposed;
7. Gross charges that were charged by him or her
during the preceding calendar month and upon the basis of
which the optional infrastructure maintenance fee, if
any, is imposed for each particular municipality;
8. Amounts of fees due;
9. Such other reasonable information as the
Department may require.
If the telecommunications retailer's average monthly
liability to the Department does not exceed $100, the
Department may authorize his or her returns to be filed on a
quarter annual basis, with the return for January, February,
and March of a given year being due by April 15 of such year;
with the return for April, May, and June of a given year
being due by July 15 of such year; with the return for July,
August, and September of a given year being due by October 15
of such year; and with the return of October, November, and
December of a given year being due by January 15 of the
following year.
Notwithstanding any other provision of this Act
concerning the time within which a telecommunications
retailer may file his or her return, in the case of any
telecommunications retailer who ceases to engage in a kind of
business which makes him or her responsible for filing
returns under this Act, such telecommunications retailer
shall file a final return under this Act with the Department
not more than one month after discontinuing such business.
In making such return, the telecommunications retailer
shall determine the value of any consideration other than
money received by him or her and he or she shall include such
value in his or her return. Such determination shall be
subject to review and revision by the Department in the
manner hereinafter provided for the correction of returns.
If any payment provided for in this Section exceeds the
telecommunications retailer's liabilities under this Act, as
shown on an original monthly return, the Department may
authorize the telecommunications retailer to credit such
excess payment against liability subsequently to be remitted
to the Department under this Act, in accordance with
reasonable rules and regulations prescribed by the
Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to
the telecommunications retailer, the telecommunications
retailer's 2% discount shall be reduced by 2% of the
difference between the credit taken and that actually due,
and that telecommunications retailer shall be liable for
penalties and interest on such difference.
If the Director finds that the information required for
the making of an accurate return cannot reasonably be
compiled by a telecommunications retailer within 15 days
after the close of the calendar month for which a return is
to be made, he or she may grant an extension of time for the
filing of such return for a period of not to exceed 31
calendar days. The granting of such an extension may be
conditioned upon the deposit by the telecommunications
retailer with the Department of an amount of money not
exceeding the amount estimated by the Director to be due with
the return so extended. All such deposits, including any
heretofore made with the Department, shall be credited
against the telecommunications retailer's liabilities under
this Act. If any such deposit exceeds the telecommunications
retailer's present and probable future liabilities under this
Act, the Department shall issue to the telecommunications
retailer a credit memorandum, which may be assigned by the
telecommunications retailer to a similar telecommunications
retailer under this Act, in accordance with reasonable rules
and regulations to be prescribed by the Department.
Any telecommunications retailer required to make payments
under this Section may make the payments by electronic funds
transfer. The Department shall adopt rules necessary to
effectuate a program of electronic funds transfer.
(35 ILCS 635/27.5 new)
Sec. 27.5. Books and Records. Every telecommunications
retailer under this Act shall keep books, records, papers,
and other documents that are adequate to reflect the
information which such telecommunications retailers are
required by this Act to report to the Department by filing
monthly returns with the Department. All books and records
and other papers and documents required by this Act to be
kept shall be kept in the English language and shall, at all
times during business hours of the day, be subject to
inspection by the Department or its duly authorized agents
and employees. Books and records reflecting gross charges
received during any period with respect to which the
Department is authorized to establish liability as provided
by this Act shall be preserved until the expiration of such
period unless the Department, in writing, authorizes their
destruction or disposal at an earlier date.
The Department may, upon written authorization of the
Director, destroy any returns or any records, papers, or
memoranda pertaining to such returns upon the expiration of
any period covered by such returns with respect to which the
Department is authorized to establish liability.
(35 ILCS 635/27.10 new)
Sec. 27.10. Investigations and hearings. For the purpose
of administering and enforcing the provisions of this Act,
the Department or any officer or employee of the Department
designated, in writing, by the Director thereof, may hold
investigations and hearings concerning any matters covered by
this Act and may examine any books, papers, records, or
memoranda bearing upon the business transacted by any such
telecommunications retailer and may require the attendance of
such telecommunications retailer or any officer or employee
of such telecommunications retailer, or of any person having
knowledge of such business, and may take testimony and
require proof for its information. In the conduct of any
investigation or hearing, neither the Department nor any
officer or employee thereof shall be bound by the technical
rules of evidence, and no informality in any proceeding, or
in the manner of taking testimony, shall invalidate any
order, decision, rule, or regulation made, approved, or
confirmed by the Department. The Director or any officer or
employee thereof shall have power to administer oaths to any
such persons. The books, papers, records, and memoranda of
the Department, or parts thereof, may be proved in any
hearing, investigation, or legal proceeding by a reproduced
copy thereof under the certificate of the Director. Such
reproduced copy shall without further proof, be admitted into
evidence before the Department or in any legal proceeding.
(35 ILCS 635/27.15 new)
Sec. 27.15. Incriminating evidence; immunity; perjury. No
person shall be excused from testifying or from producing any
books, papers, records, or memoranda in any investigation or
upon any hearing, when ordered to do so by the Department or
any officer or employee thereof, upon the ground that the
testimony or evidence, documentary or otherwise, may tend to
incriminate him or her or subject him or her to a criminal
penalty, but no person shall be prosecuted or subjected to
any criminal penalty for, or on account of, any transaction
made or thing concerning which he or she may testify or
produce evidence, documentary or otherwise, before the
Department or any officer or employee thereof; provided, that
such immunity shall extend only to a natural person who, in
obedience to a subpoena, gives testimony under oath or
produces evidence, documentary or otherwise, under oath. No
person so testifying shall be exempt from prosecution and
punishment for perjury committed in so testifying.
(35 ILCS 635/27.20 new)
Sec. 27.20. Subpoenas; witness fees; depositions. The
Department or any officer or employee of the Department
designated, in writing, by the Director thereof, shall at its
or his or her own instance, or on the written request of any
party to the proceeding, issue subpoenas requiring the
attendance of and the giving of testimony by witnesses, and
subpoenas duces tecum requiring the production of books,
papers, records, or memoranda. All subpoenas issued under
this Act may be served by any person of full age. The fees of
witnesses for attendance and travel shall be the same as the
fees of witnesses before the circuit court of this State;
such fees to be paid when the witness is excused from further
attendance. When the witness is subpoenaed at the instance of
the Department or any officer or employee thereof, such fees
shall be paid in the same manner as other expenses of the
Department, and when the witness is subpoenaed at the
instance of any telecommunications retailer to any such
proceeding the Department may require that the cost of
service of the subpoena and the fee of the witness be borne
by the telecommunications retailer at whose instance the
witness is summoned. In such case, the Department, in its
discretion, may require a deposit to cover the cost of such
service and witness fees. A subpoena issued as aforesaid
shall be served in the same manner as a subpoena issued out
of a court.
Any circuit court of this State, upon the application of
the Department or any officer or employee thereof may, in its
discretion, compel the attendance of witnesses, the
production of books, papers, records, or memoranda and the
giving of testimony before the Department or any officer or
employee thereof conducting an investigation or holding a
hearing authorized by this Act, by an attachment for
contempt, or otherwise, in the same manner as production of
evidence may be compelled before the court.
The Department or any officer or employee thereof, or any
party in an investigation or hearing before the Department,
may cause the depositions of witnesses residing within or
without the State to be taken in the manner prescribed by law
for like depositions in civil actions in courts of this
State, and, to that end, compel the attendance of witnesses
and the production of books, papers, records, or memoranda.
(35 ILCS 635/27.25 new)
Sec. 27.25. Confidential information; exceptions. All
information received by the Department from returns filed
under this Act, or from any investigations conducted under
this Act, shall be confidential, except for official
purposes, and any person who divulges any such information in
any manner, except in accordance with a proper judicial order
or as otherwise provided by law, shall be guilty of a Class B
misdemeanor.
Provided, that nothing contained in this Act shall
prevent the Director from publishing or making available to
the public the names and addresses of telecommunications
retailers filing returns under this Act, or from publishing
or making available reasonable statistics concerning the
operation of the fees wherein the contents of returns are
grouped into aggregates in such a way that the information
contained in any individual return shall not be disclosed.
And provided, that nothing contained in this Act shall
prevent the Director from making available to the United
States Government or any officer or agency thereof, for
exclusively official purposes, information received by the
Department in the administration of this Act.
The furnishing upon request of the Auditor General, or
his or her authorized agents, for official use, of returns
filed and information related thereto under this Act is
deemed to be an official purpose within the meaning of this
Section.
The Director may make available to any State agency,
including the Illinois Supreme Court, which licenses persons
to engage in any occupation, information that a person
licensed by such agency has failed to file returns under this
Act or pay the fees, penalty, and interest shown therein, or
has failed to pay any final assessment of fees, penalty, or
interest due under this Act. An assessment is final when all
proceedings in court for review of such assessment have
terminated or the time for the taking thereof has expired
without such proceedings being instituted.
The Director shall make available for public inspection
in the Department's principal office and for publication, at
cost, administrative decisions issued on or after January 1,
1998. These decisions are to be made available in a manner
so that the following taxpayer information is not disclosed:
(1) The names, addresses, and identification numbers of
the taxpayer, related entities, and employees.
(2) At the sole discretion of the Director, trade
secrets or other confidential information identified as such
by the taxpayer, no later than 30 days after receipt of an
administrative decision, by such means as the Department
shall provide by rule.
The Director shall determine the appropriate extent of
the deletions allowed in paragraph (2). In the event the
taxpayer does not submit deletions, the Director shall make
only the deletions specified in paragraph (1).
The Director shall make available for public inspection
and publication an administrative decision within 180 days
after the issuance of the administrative decision. The term
"administrative decision" has the same meaning as defined in
Section 3-101 of Article III of the Code of Civil Procedure.
Costs collected under this Section shall be paid into the Tax
Compliance and Administration Fund.
(35 ILCS 635/27.30 new)
Sec. 27.30. Review under Administrative Review Law. The
Circuit Court of the county wherein a hearing is held shall
have power to review all final administrative decisions of
the Department in administering the provisions of this Act:
Provided that if the administrative proceeding that is to be
reviewed judicially is a claim for refund proceeding
commenced in accordance with this Act and Section 2a of the
State Officers and Employees Money Disposition Act, the
Circuit Court having jurisdiction of the action for judicial
review under this Section and under the Administrative Review
Law shall be the same court that entered the temporary
restraining order or preliminary injunction that is provided
for in Section 2a of the State Officers and Employees Money
Disposition Act and that enables such claim proceeding to be
processed and disposed of as a claim for refund proceeding
rather than as a claim for credit proceeding.
The provisions of the Administrative Review Law, and the
rules adopted pursuant thereto, shall apply to and govern all
proceedings for the judicial review of final administrative
decisions of the Department hereunder. The term
"administrative decision" is defined as in Section 3-101 of
the Code of Civil Procedure.
Service upon the Director or Assistant Director of the
Department of Revenue of summons issued in any action to
review a final administrative decision shall be service upon
the Department. The Department shall certify the record of
its proceedings if the telecommunications retailer shall pay
to it the sum of 75¢ per page of testimony taken before the
Department and 25¢ per page of all other matters contained in
such record, except that these charges may be waived where
the Department is satisfied that the aggrieved party is a
poor person who cannot afford to pay such charges.
(35 ILCS 635/27.35 new)
Sec. 27.35. Rules and regulations; notice to
telecommunications retailer; hearings. The Department may
make, promulgate, and enforce such reasonable rules and
regulations relating to the administration and enforcement of
only the State infrastructure maintenance fee and the
optional infrastructure maintenance fee authorized by this
Act. Such rules and regulations shall not apply to the
administration and enforcement of the municipal
infrastructure maintenance fee authorized by this Act.
Whenever notice to a telecommunications retailer is
required by this Act, such notice may be given by United
States certified or registered mail, addressed to the
telecommunications retailer concerned at his or her last
known address, and proof of such mailing shall be sufficient
for the purposes of this Act. In the case of a notice of
hearing, such notice shall be mailed not less than 7 days
prior to the day fixed for the hearing.
All hearings provided for in this Act with respect to a
telecommunications retailer having his or her principal place
of business other than in Cook County shall be held at the
Department's office nearest to the location of the
telecommunications retailer's principal place of business:
Provided that if the telecommunications retailer has his or
her principal place of business in Cook County, such hearing
shall be held in Cook County; and provided further that if
the telecommunications retailer does not have his principal
place of business in this State, such hearings shall be held
in Sangamon County.
Whenever any proceeding provided by this Act has been
begun by the Department or by a person subject thereto and
such person thereafter dies or becomes a person under legal
disability before the proceeding has been concluded, the
legal representative of the deceased person or a person under
legal disability shall notify the Department of such death or
legal disability. The legal representative, as such, shall
then be substituted by the Department in place of and for the
person. Within 20 days after notice to the legal
representative of the time fixed for that purpose, the
proceeding may proceed in all respects and with like effect
as though the person had not died or become a person under
legal disability.
(35 ILCS 635/27.40 new)
Sec. 27.40. Application of Illinois Administrative
Procedure Act. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all
administrative rules and procedures of the Department of
Revenue under this Act, except that (i) paragraph (b) of
Section 5-10 of the Administrative Procedure Act does not
apply to final orders, decisions, and opinions of the
Department, (ii) subparagraph (a)(ii) of Section 5-10 of the
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and
(iii) the provisions of Section 10-45 of the Administrative
Procedure Act regarding proposals for decision are excluded
and not applicable to the Department under this Act.
(35 ILCS 635/27.45 new)
Sec. 27.45. Failure to make a return. Any
telecommunications retailer who fails to make a return, or
who makes a fraudulent return, or who willfully violates any
other provision of this Act or any rule or regulation of the
Department for the administration and enforcement of this
Act, is guilty of a business offense and, upon conviction
thereof, shall be fined not less than $1,000 nor more than
$7,500.
(35 ILCS 635/27.50 new)
Sec. 27.50. Additional fees. The fees herein imposed
shall be in addition to all other occupation or privilege
taxes or fees imposed by the State of Illinois or by any
municipal corporation or political subdivision thereof.
(35 ILCS 635/27.55 new)
Sec. 27.55. Applicability of Retailers' Occupation Tax
Act and Uniform Penalty and Interest Act. All of the
provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
5j, 6, 6a, 6b, and 6c of the Retailers' Occupation Tax Act
that are not inconsistent with this Act, and all provisions
of the Uniform Penalty and Interest Act shall apply, as far
as practicable, to the subject matter of this Act to the same
extent as if such provisions were included herein. References
in the incorporated Sections of the Retailers' Occupation Tax
Act to retailers, to sellers, or to persons engaged in the
business of selling tangible personal property mean persons
engaged in the business of transmitting messages when used in
this Act. References in the incorporated Sections of the
Retailers' Occupation Tax Act to purchasers of tangible
personal property mean purchasers of the service of
transmitting messages when used in this Act. References in
the incorporated Sections of the Retailers' Occupation Tax
Act to sales of tangible personal property mean the
transmitting of messages when used in this Act. References to
"taxes" in these incorporated Sections shall be construed to
apply to the administration, payment, and remittance of all
fees under this Act.
Section 30. The Counties Code is amended by changing
Section 5-1006.5 as follows:
(55 ILCS 5/5-1006.5)
Sec. 5-1006.5. Special County Retailers' Occupation Tax
For Public Safety.
(a) The county board of any county may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than personal property titled or
registered with an agency of this State's government, at
retail in the county on the gross receipts from the sales
made in the course of business to provide revenue to be used
exclusively for public safety purposes in that county, if a
proposition for the tax has been submitted to the electors of
that county and approved by a majority of those voting on the
question. If imposed, this tax shall be imposed only in
one-quarter percent increments. By resolution, the county
board may order the proposition to be submitted at any
election. The county clerk shall certify the question to the
proper election authority, who shall submit the proposition
at an election in accordance with the general election law.
The proposition shall be in substantially the following
form:
"Shall (name of county) be authorized to impose a
public safety tax at the rate of .... upon all persons
engaged in the business of selling tangible personal
property at retail in the county on gross receipts from
the sales made in the course of their business to be used
for crime prevention, detention, and other public safety
purposes?"
Votes shall be recorded as Yes or No. If a majority of the
electors voting on the proposition vote in favor of it, the
county may impose the tax.
This additional tax may not be imposed on the sales of
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food which has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes, and needles used by diabetics. The tax
imposed by a county under this Section and all civil
penalties that may be assessed as an incident of the tax
shall be collected and enforced by the Illinois Department of
Revenue. The certificate of registration that is issued by
the Department to a retailer under the Retailers' Occupation
Tax Act shall permit the retailer to engage in a business
that is taxable without registering separately with the
Department under an ordinance or resolution under this
Section. The Department has full power to administer and
enforce this Section, to collect all taxes and penalties due
under this Section, to dispose of taxes and penalties so
collected in the manner provided in this Section, and to
determine all rights to credit memoranda arising on account
of the erroneous payment of a tax or penalty under this
Section. In the administration of and compliance with this
Section, the Department and persons who are subject to this
Section shall (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) be subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
contained in those Sections other than the State rate of
tax), 2-15 through 2-70 2-40, 2a, 2b, 2c, 3 (except
provisions relating to transaction returns and quarter
monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act as if those provisions were
set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should
be made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety Retailers'
Occupation Tax Fund.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This tax may
not be imposed on sales of food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food prepared for
immediate consumption) and prescription and non-prescription
medicines, drugs, medical appliances and insulin, urine
testing materials, syringes, and needles used by diabetics.
The tax imposed under this subsection and all civil penalties
that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
Department has full power to administer and enforce this
subsection; to collect all taxes and penalties due hereunder;
to dispose of taxes and penalties so collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax
or penalty hereunder. In the administration of, and
compliance with this subsection, the Department and persons
who are subject to this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 1a-1, 2 (except that
the reference to State in the definition of supplier
maintaining a place of business in this State shall mean the
county), 2a, 3 through 3-50 (in respect to all provisions
therein other than the State rate of tax), 4 (except that the
reference to the State shall be to the county), 5, 7, 8
(except that the jurisdiction to which the tax shall be a
debt to the extent indicated in that Section 8 shall be the
county), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this tax may not be taken against any State tax),
10, 11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the county), the first paragraph of
Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as
an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use
Tax Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should
be made under this subsection to a claimant instead of
issuing a credit memorandum, the Department shall notify the
State Comptroller, who shall cause the warrant to be drawn
for the amount specified, and to the person named, in the
notification from the Department. The refund shall be paid
by the State Treasurer out of the County Public Safety
Retailers' Occupation Fund.
Nothing in this subsection shall be construed to
authorize the county to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
(c) The Department shall immediately pay over to the
State Treasurer, Ex Officio, as trustee, all taxes and
penalties collected under this Section to be deposited into
the County Public Safety Retailers' Occupation Tax Fund,
which is created in the State treasury. On or before the
25th day of each calendar month, the Department shall prepare
and certify to the Comptroller the disbursement of stated
sums of money to the counties from which retailers have paid
taxes or penalties to the Department during the second
preceding calendar month. The amount to be paid to each
county shall be the amount (not including credit memoranda)
collected under this Section during the second preceding
calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including (i) an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of the county and (ii) any amount that the
Department determines is necessary to offset any amounts that
were payable to a different taxing body but were erroneously
paid to the county. Within 10 days after receipt by the
Comptroller of the disbursement certification to the counties
provided for in this Section to be given to the Comptroller
by the Department, the Comptroller shall cause the orders to
be drawn for the respective amounts in accordance with
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year
to each county that received more than $500,000 in
disbursements under the preceding paragraph in the preceding
calendar year. The allocation shall be in an amount equal to
the average monthly distribution made to each such county
under the preceding paragraph during the preceding calendar
year (excluding the 2 months of highest receipts). The
distribution made in March of each year subsequent to the
year in which an allocation was made pursuant to this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding calendar year. The Department shall prepare and
certify to the Comptroller for disbursement the allocations
made in accordance with this paragraph.
(d) For the purpose of determining the local
governmental unit whose tax is applicable, a retail sale by a
producer of coal or another mineral mined in Illinois is a
sale at retail at the place where the coal or other mineral
mined in Illinois is extracted from the earth. This
paragraph does not apply to coal or another mineral when it
is delivered or shipped by the seller to the purchaser at a
point outside Illinois so that the sale is exempt under the
United States Constitution as a sale in interstate or foreign
commerce.
(e) Nothing in this Section shall be construed to
authorize a county to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(e-5) If a county imposes a tax under this Section, the
county board may, by ordinance, discontinue or lower the rate
of the tax. If the county board lowers the tax rate or
discontinues the tax, a referendum must be held in accordance
with subsection (a) of this Section in order to increase the
rate of the tax or to reimpose the discontinued tax.
(f) The results of any election authorizing a
proposition to impose a tax under this Section or effecting a
change in the rate of tax, or any ordinance lowering the rate
or discontinuing the tax, shall be certified by the county
clerk and filed with the Illinois Department of Revenue on or
before the first day of June. The Illinois Department of
Revenue shall then proceed to administer and enforce this
Section or to lower the rate or discontinue the tax, as the
case may be, as of the first day of January next following
the filing.
(g) When certifying the amount of a monthly disbursement
to a county under this Section, the Department shall increase
or decrease the amounts by an amount necessary to offset any
miscalculation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a miscalculation is discovered.
(h) This Section may be cited as the "Special County
Occupation Tax For Public Safety Law".
(i) For purposes of this Section, "public safety"
includes but is not limited to fire fighting, police,
medical, ambulance, or other emergency services.
(Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
90-190, eff. 7-24-97; 90-267, eff. 7-30-97; revised 10-8-97.)
Section 35. The Illinois Municipal Code is amended by
changing Sections 8-11-2, 8-11-6, and 8-11-17 as follows:
(65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
Sec. 8-11-2. The corporate authorities of any
municipality may tax any or all of the following occupations
or privileges:
1. Persons engaged in the business of transmitting
messages by means of electricity or radio magnetic waves,
or fiber optics, at a rate not to exceed 5% of the gross
receipts from that business originating within the
corporate limits of the municipality.
2. Persons engaged in the business of distributing,
supplying, furnishing, or selling gas for use or
consumption within the corporate limits of a municipality
of 500,000 or fewer population, and not for resale, at a
rate not to exceed 5% of the gross receipts therefrom.
2a. Persons engaged in the business of
distributing, supplying, furnishing, or selling gas for
use or consumption within the corporate limits of a
municipality of over 500,000 population, and not for
resale, at a rate not to exceed 8% of the gross receipts
therefrom. If imposed, this tax shall be paid in monthly
payments.
3. Persons engaged in the business of distributing,
supplying, furnishing, or selling electricity for use or
consumption within the corporate limits of the
municipality, and not for resale, at a rate not to exceed
5% of the gross receipts therefrom.
4. Persons engaged in the business of distributing,
supplying, furnishing, or selling water for use or
consumption within the corporate limits of the
municipality, and not for resale, at a rate not to exceed
5% of the gross receipts therefrom.
None of the taxes authorized by this Section may be
imposed with respect to any transaction in interstate
commerce or otherwise to the extent to which the business may
not, under the constitution and statutes of the United
States, be made the subject of taxation by this State or any
political sub-division thereof; nor shall any persons engaged
in the business of distributing, supplying, furnishing, or
selling gas, water, or electricity, or engaged in the
business of transmitting messages be subject to taxation
under the provisions of this Section for those transactions
that are or may become subject to taxation under the
provisions of the "Municipal Retailers' Occupation Tax Act"
authorized by Section 8-11-1; nor shall any tax authorized by
this Section be imposed upon any person engaged in a business
unless the tax is imposed in like manner and at the same rate
upon all persons engaged in businesses of the same class in
the municipality, whether privately or municipally owned or
operated.
Any of the taxes enumerated in this Section may be in
addition to the payment of money, or value of products or
services furnished to the municipality by the taxpayer as
compensation for the use of its streets, alleys, or other
public places, or installation and maintenance therein,
thereon or thereunder of poles, wires, pipes or other
equipment used in the operation of the taxpayer's business.
(a) If the corporate authorities of any home rule
municipality have adopted an ordinance that imposed a tax on
public utility customers, between July 1, 1971, and October
1, 1981, on the good faith belief that they were exercising
authority pursuant to Section 6 of Article VII of the 1970
Illinois Constitution, that action of the corporate
authorities shall be declared legal and valid,
notwithstanding a later decision of a judicial tribunal
declaring the ordinance invalid. No municipality shall be
required to rebate, refund, or issue credits for any taxes
described in this paragraph, and those taxes shall be deemed
to have been levied and collected in accordance with the
Constitution and laws of this State.
(b) In any case in which (i) prior to October 19, 1979,
the corporate authorities of any municipality have adopted an
ordinance imposing a tax authorized by this Section (or by
the predecessor provision of the "Revised Cities and Villages
Act") and have explicitly or in practice interpreted gross
receipts to include either charges added to customers' bills
pursuant to the provision of paragraph (a) of Section 36 of
the Public Utilities Act or charges added to customers' bills
by taxpayers who are not subject to rate regulation by the
Illinois Commerce Commission for the purpose of recovering
any of the tax liabilities or other amounts specified in such
paragraph (a) of Section 36 of that Act, and (ii) on or after
October 19, 1979, a judicial tribunal has construed gross
receipts to exclude all or part of those charges, then
neither those municipality nor any taxpayer who paid the tax
shall be required to rebate, refund, or issue credits for any
tax imposed or charge collected from customers pursuant to
the municipality's interpretation prior to October 19, 1979.
This paragraph reflects a legislative finding that it would
be contrary to the public interest to require a municipality
or its taxpayers to refund taxes or charges attributable to
the municipality's more inclusive interpretation of gross
receipts prior to October 19, 1979, and is not intended to
prescribe or limit judicial construction of this Section. The
legislative finding set forth in this subsection does not
apply to taxes imposed after the effective date of this
amendatory Act of 1995.
(c) (Blank).
(d) For the purpose of the taxes enumerated in this
Section:
"Gross receipts" means the consideration received for the
transmission of messages, the consideration received for
distributing, supplying, furnishing or selling gas for use or
consumption and not for resale, and the consideration
received for distributing, supplying, furnishing or selling
electricity for use or consumption and not for resale, and
the consideration received for distributing, supplying,
furnishing or selling water for use or consumption and not
for resale, and for all services rendered in connection
therewith valued in money, whether received in money or
otherwise, including cash, credit, services and property of
every kind and material and for all services rendered
therewith, and shall be determined without any deduction on
account of the cost of transmitting such messages, without
any deduction on account of the cost of the service, product
or commodity supplied, the cost of materials used, labor or
service cost, or any other expenses whatsoever. "Gross
receipts" shall not include that portion of the consideration
received for distributing, supplying, furnishing, or selling
gas, electricity, or water to, or for the transmission of
messages for, business enterprises described in paragraph (e)
of this Section to the extent and during the period in which
the exemption authorized by paragraph (e) is in effect or for
school districts or units of local government described in
paragraph (f) during the period in which the exemption
authorized in paragraph (f) is in effect. "Gross receipts"
shall not include amounts paid by telecommunications
retailers under the Telecommunications Municipal
Infrastructure Maintenance Fee Act.
For utility bills issued on or after May 1, 1996, but
before May 1, 1997, and for receipts from those utility
bills, "gross receipts" does not include one-third of (i)
amounts added to customers' bills under Section 9-222 of the
Public Utilities Act, or (ii) amounts added to customers'
bills by taxpayers who are not subject to rate regulation by
the Illinois Commerce Commission for the purpose of
recovering any of the tax liabilities described in Section
9-222 of the Public Utilities Act. For utility bills issued
on or after May 1, 1997, but before May 1, 1998, and for
receipts from those utility bills, "gross receipts" does not
include two-thirds of (i) amounts added to customers' bills
under Section 9-222 of the Public Utilities Act, or (ii)
amount added to customers' bills by taxpayers who are not
subject to rate regulation by the Illinois Commerce
Commission for the purpose of recovering any of the tax
liabilities described in Section 9-222 of the Public
Utilities Act. For utility bills issued on or after May 1,
1998, and for receipts from those utility bills, "gross
receipts" does not include (i) amounts added to customers'
bills under Section 9-222 of the Public Utilities Act, or
(ii) amounts added to customers' bills by taxpayers who are
not subject to rate regulation by the Illinois Commerce
Commission for the purpose of recovering any of the tax
liabilities described in Section 9-222 of the Public
Utilities Act.
For purposes of this Section "gross receipts" shall not
include (i) amounts added to customers' bills under Section
9-221 of the Public Utilities Act, or (ii) charges added to
customers' bills to recover the surcharge imposed under the
Emergency Telephone System Act. This paragraph is not
intended to nor does it make any change in the meaning of
"gross receipts" for the purposes of this Section, but is
intended to remove possible ambiguities, thereby confirming
the existing meaning of "gross receipts" prior to the
effective date of this amendatory Act of 1995.
The words "transmitting messages", in addition to the
usual and popular meaning of person to person communication,
shall include the furnishing, for a consideration, of
services or facilities (whether owned or leased), or both, to
persons in connection with the transmission of messages where
those persons do not, in turn, receive any consideration in
connection therewith, but shall not include such furnishing
of services or facilities to persons for the transmission of
messages to the extent that any such services or facilities
for the transmission of messages are furnished for a
consideration, by those persons to other persons, for the
transmission of messages.
"Person" as used in this Section means any natural
individual, firm, trust, estate, partnership, association,
joint stock company, joint adventure, corporation, municipal
corporation or political subdivision of this State, or a
receiver, trustee, guardian or other representative appointed
by order of any court.
"Public utility" shall have the meaning ascribed to it in
Section 3-105 of the Public Utilities Act and shall include
telecommunications carriers as defined in Section 13-202 of
that Act.
In the case of persons engaged in the business of
transmitting messages through the use of mobile equipment,
such as cellular phones and paging systems, the gross
receipts from the business shall be deemed to originate
within the corporate limits of a municipality only if the
address to which the bills for the service are sent is within
those corporate limits. If, however, that address is not
located within a municipality that imposes a tax under this
Section, then (i) if the party responsible for the bill is
not an individual, the gross receipts from the business shall
be deemed to originate within the corporate limits of the
municipality where that party's principal place of business
in Illinois is located, and (ii) if the party responsible for
the bill is an individual, the gross receipts from the
business shall be deemed to originate within the corporate
limits of the municipality where that party's principal
residence in Illinois is located.
(e) Any municipality that imposes taxes upon public
utilities pursuant to this Section whose territory includes
any part of an enterprise zone or federally designated
Foreign Trade Zone or Sub-Zone may, by a majority vote of its
corporate authorities, exempt from those taxes for a period
not exceeding 20 years any specified percentage of gross
receipts of public utilities received from business
enterprises that:
(1) either (i) make investments that cause the
creation of a minimum of 200 full-time equivalent jobs in
Illinois, (ii) make investments of at least $175,000,000
that cause the creation of a minimum of 150 full-time
equivalent jobs in Illinois, or (iii) make investments
that cause the retention of a minimum of 1,000 full-time
jobs in Illinois; and
(2) are either (i) located in an Enterprise Zone
established pursuant to the Illinois Enterprise Zone Act
or (ii) Department of Commerce and Community Affairs
designated High Impact Businesses located in a federally
designated Foreign Trade Zone or Sub-Zone; and
(3) are certified by the Department of Commerce and
Community Affairs as complying with the requirements
specified in clauses (1) and (2) of this paragraph (e).
Upon adoption of the ordinance authorizing the exemption,
the municipal clerk shall transmit a copy of that ordinance
to the Department of Commerce and Community Affairs. The
Department of Commerce and Community Affairs shall determine
whether the business enterprises located in the municipality
meet the criteria prescribed in this paragraph. If the
Department of Commerce and Community Affairs determines that
the business enterprises meet the criteria, it shall grant
certification. The Department of Commerce and Community
Affairs shall act upon certification requests within 30 days
after receipt of the ordinance.
Upon certification of the business enterprise by the
Department of Commerce and Community Affairs, the Department
of Commerce and Community Affairs shall notify the Department
of Revenue of the certification. The Department of Revenue
shall notify the public utilities of the exemption status of
the gross receipts received from the certified business
enterprises. Such exemption status shall be effective within
3 months after certification.
(f) A municipality that imposes taxes upon public
utilities under this Section and whose territory includes
part of another unit of local government or a school district
may by ordinance exempt the other unit of local government or
school district from those taxes.
(g) The amendment of this Section by Public Act 84-127
shall take precedence over any other amendment of this
Section by any other amendatory Act passed by the 84th
General Assembly before the effective date of Public Act
84-127.
(h) In any case in which, before July 1, 1992, a person
engaged in the business of transmitting messages through the
use of mobile equipment, such as cellular phones and paging
systems, has determined the municipality within which the
gross receipts from the business originated by reference to
the location of its transmitting or switching equipment, then
(i) neither the municipality to which tax was paid on that
basis nor the taxpayer that paid tax on that basis shall be
required to rebate, refund, or issue credits for any such tax
or charge collected from customers to reimburse the taxpayer
for the tax and (ii) no municipality to which tax would have
been paid with respect to those gross receipts if the
provisions of this amendatory Act of 1991 had been in effect
before July 1, 1992, shall have any claim against the
taxpayer for any amount of the tax.
(Source: P.A. 89-325, eff. 1-1-96; 90-16, eff. 6-16-97.)
(65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
Sec. 8-11-6. (a) The corporate authorities of a home rule
municipality may impose a tax upon the privilege of using, in
such municipality, any item of tangible personal property
which is purchased at retail from a retailer, and which is
titled or registered at a location within the corporate
limits of such home rule municipality with an agency of this
State's government, at a rate which is an increment of 1/4%
and based on the selling price of such tangible personal
property, as "selling price" is defined in the Use Tax Act.
In home rule municipalities with less than 2,000,000
inhabitants, the tax shall be collected by the municipality
imposing the tax from persons whose Illinois address for
titling or registration purposes is given as being in such
municipality.
(b) In home rule municipalities with 2,000,000 or more
inhabitants, the corporate authorities of the municipality
may additionally impose a tax beginning July 1, 1991 upon the
privilege of using in the municipality, any item of tangible
personal property, other than tangible personal property
titled or registered with an agency of the State's
government, that is purchased at retail from a retailer
located outside the corporate limits of the municipality, at
a rate that is an increment of 1/4% not to exceed 1% and
based on the selling price of the tangible personal property,
as "selling price" is defined in the Use Tax Act. Such tax
shall be collected from the purchaser by the municipality
imposing such tax.
To prevent multiple home rule taxation, the use in a home
rule municipality of tangible personal property that is
acquired outside the municipality and caused to be brought
into the municipality by a person who has already paid a home
rule municipal tax in another municipality in respect to the
sale, purchase, or use of that property, shall be exempt to
the extent of the amount of the tax properly due and paid in
the other home rule municipality.
(c) If a municipality having 2,000,000 or more
inhabitants imposes the tax authorized by subsection (a),
then the tax shall be collected by the Illinois Department of
Revenue when the property is purchased at retail from a
retailer in the county in which the home rule municipality
imposing the tax is located, and in all contiguous counties.
The tax shall be remitted to the State, or an exemption
determination must be obtained from the Department before the
title or certificate of registration for the property may be
issued. The tax or proof of exemption may be transmitted to
the Department by way of the State agency with which, or
State officer with whom, the tangible personal property must
be titled or registered if the Department and that agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this Section to collect all taxes, penalties and
interest due hereunder, to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided, and
determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of and compliance
with this Section the Department and persons who are subject
to this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure
as are prescribed in Sections 2 (except the definition of
"retailer maintaining a place of business in this State"), 3
(except provisions pertaining to the State rate of tax, and
except provisions concerning collection or refunding of the
tax by retailers), 4, 11, 12, 12a, 14, 15, 19 (except the
portions pertaining to claims by retailers and except the
last paragraph concerning refunds), 20, 21 and 22 of the Use
Tax Act, which are not inconsistent with this Section, as
fully as if provisions contained in those Sections of the Use
Tax Act were set forth herein.
Whenever the Department determines that a refund shall be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the home rule municipal
retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties and
interest collected hereunder. On or before the 25th day of
each calendar month, the Department shall prepare and certify
to the State Comptroller the disbursement of stated sums of
money to named municipalities, the municipality in each
instance to be that municipality from which the Department
during the second preceding calendar month, collected
municipal use tax from any person whose Illinois address for
titling or registration purposes is given as being in such
municipality. The amount to be paid to each municipality
shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar
month by the Department, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, less the amount expended during the second
preceding month by the Department to be paid from the
appropriation to the Department from the Home Rule Municipal
Retailers' Occupation Tax Trust Fund. The appropriation to
cover the costs incurred by the Department in administering
and enforcing this Section shall not exceed 2% of the amount
estimated to be deposited into the Home Rule Municipal
Retailers' Occupation Tax Trust Fund during the fiscal year
for which the appropriation is made. Within 10 days after
receipt by the State Comptroller of the disbursement
certification to the municipalities provided for in this
Section to be given to the State Comptroller by the
Department, the State Comptroller shall cause the orders to
be drawn for the respective amounts in accordance with the
directions contained in that certification.
Any ordinance imposing or discontinuing any tax to be
collected and enforced by the Department under this Section
shall be adopted and a certified copy thereof filed with the
Department on or before October 1, whereupon the Department
of Revenue shall proceed to administer and enforce this
Section on behalf of the municipalities as of January 1 next
following such adoption and filing.
Nothing in this subsection (c) shall prevent a home rule
municipality from collecting the tax pursuant to subsection
(a) in any situation where such tax is not collected by the
Department of Revenue under this subsection (c).
(d) Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods
prior to January 1, 1990, shall be paid into the Local
Government Tax Fund, for distribution as provided by this
Section prior to the enactment of Public Act 85-1135. All
receipts of municipal tax as a result of an assessment not
arising from an audit, for liability periods prior to January
1, 1990, shall be paid into the Local Government Tax Fund for
distribution before July 1, 1990, as provided by this Section
prior to the enactment of Public Act 85-1135, and on and
after July 1, 1990, all such receipts shall be distributed as
provided in Section 6z-18 of the State Finance Act.
(e) As used in this Section, "Municipal" and
"Municipality" means a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
(f) This Section shall be known and may be cited as the
"Home Rule Municipal Use Tax Act".
(Source: P.A. 87-14; 87-876; 88-116.)
(65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17)
Sec. 8-11-17. Municipal telecommunications tax.
(a) Beginning on the effective date of this amendatory
Act of 1991, the corporate authorities of any municipality in
this State may tax any or all of the following acts or
privileges:
(1) The act or privilege of originating in such
municipality or receiving in such municipality intrastate
telecommunications by a person at a rate not to exceed 5%
of the gross charge for such telecommunications purchased
at retail from a retailer by such person. However, such
tax is not imposed on such act or privilege to the extent
such act or privilege may not, under the Constitution and
statutes of the United States, be made the subject of
taxation by municipalities in this State.
(2) The act or privilege of originating in such
municipality or receiving in such municipality interstate
telecommunications by a person at a rate not to exceed 5%
of the gross charge for such telecommunications purchased
at retail from a retailer by such person. To prevent
actual multi-state taxation of the act or privilege that
is subject to taxation under this paragraph, any
taxpayer, upon proof that the taxpayer has paid a tax in
another state on such event, shall be allowed a credit
against any tax enacted pursuant to an ordinance
authorized by this paragraph to the extent of the amount
of such tax properly due and paid in such other state
which was not previously allowed as a credit against any
other state or local tax in this State. However, such
tax is not imposed on the act or privilege to the extent
such act or privilege may not, under the Constitution and
statutes of the United States, be made the subject of
taxation by municipalities in this State.
(3) The taxes authorized by paragraphs (1) and (2)
of subsection (a) of this Section may only be levied if
such municipality does not then have in effect an
occupation tax imposed on persons engaged in the business
of transmitting messages by means of electricity as
authorized by Section 8-11-2 of the Illinois Municipal
Code.
(b) The tax authorized by this Section shall be
collected from the taxpayer by a retailer maintaining a place
of business in this State and making or effectuating the sale
at retail and shall be remitted by such retailer to the
municipality. Any tax required to be collected pursuant to
an ordinance authorized by this Section and any such tax
collected by such retailer shall constitute a debt owed by
the retailer to such municipality. Retailers shall collect
the tax from the taxpayer by adding the tax to the gross
charge for the act or privilege of originating or receiving
telecommunications when sold for use, in the manner
prescribed by the municipality. The tax authorized by this
Section shall constitute a debt of the purchaser to the
retailer who provides such taxable services until paid and,
if unpaid, is recoverable at law in the same manner as the
original charge for such taxable services. If the retailer
fails to collect the tax from the taxpayer, then the taxpayer
shall be required to pay the tax directly to the municipality
in the manner provided by the municipality. The municipality
imposing the tax shall provide for its administration and
enforcement.
Beginning January 1, 1994, retailers filing tax returns
pursuant to this Section shall, at the time of filing such
return, pay to the municipality the amount of the tax imposed
by this Section, less a commission of 1.75% which is allowed
to reimburse the retailer for the expenses incurred in
keeping records, billing the customer, preparing and filing
returns, remitting the tax and supplying data to the
municipality upon request. No commission may be claimed by a
retailer for tax not timely remitted to the municipality.
Whenever possible, the tax authorized by this Section
shall, when collected, be stated as a distinct item separate
and apart from the gross charge for telecommunications.
(c) For the purpose of the taxes authorized by this
Section:
(1) "Amount paid" means the amount charged to the
taxpayer's service address in such municipality
regardless of where such amount is billed or paid.
(2) "Gross charge" means the amount paid for the
act or privilege of originating or receiving
telecommunications in such municipality and for all
services rendered in connection therewith, valued in
money whether paid in money or otherwise, including cash,
credits, services and property of every kind or nature,
and shall be determined without any deduction on account
of the cost of such telecommunications, the cost of the
materials used, labor or service costs or any other
expense whatsoever. In case credit is extended, the
amount thereof shall be included only as and when paid.
However, "gross charge" shall not include:
(A) any amounts added to a purchaser's bill
because of a charge made pursuant to: (i) the tax
imposed by this Section, (ii) additional charges
added to a purchaser's bill pursuant to Section
9-222 of the Public Utilities Act, (iii) the tax
imposed by the Telecommunications Excise Tax Act, or
(iv) the tax imposed by Section 4251 of the Internal
Revenue Code;
(B) charges for a sent collect
telecommunication received outside of such
municipality;
(C) charges for leased time on equipment or
charges for the storage of data or information or
subsequent retrieval or the processing of data or
information intended to change its form or content.
Such equipment includes, but is not limited to, the
use of calculators, computers, data processing
equipment, tabulating equipment or accounting
equipment and also includes the usage of computers
under a time-sharing agreement;
(D) charges for customer equipment, including
such equipment that is leased or rented by the
customer from any source, wherein such charges are
disaggregated and separately identified from other
charges;
(E) charges to business enterprises certified
under Section 9-222.1 of the Public Utilities Act to
the extent of such exemption and during the period
of time specified by the Department of Commerce and
Community Affairs;
(F) charges for telecommunications and all
services and equipment provided in connection
therewith between a parent corporation and its
wholly owned subsidiaries or between wholly owned
subsidiaries when the tax imposed under this Section
has already been paid to a retailer and only to the
extent that the charges between the parent
corporation and wholly owned subsidiaries or between
wholly owned subsidiaries represent expense
allocation between the corporations and not the
generation of profit for the corporation rendering
such service;
(G) bad debts ("bad debt" means any portion of
a debt that is related to a sale at retail for which
gross charges are not otherwise deductible or
excludable that has become worthless or
uncollectable, as determined under applicable
federal income tax standards; if the portion of the
debt deemed to be bad is subsequently paid, the
retailer shall report and pay the tax on that
portion during the reporting period in which the
payment is made); or
(H) charges paid by inserting coins in
coin-operated telecommunication devices; or .
(I) amounts paid by telecommunications
retailers under the Telecommunications Municipal
Infrastructure Maintenance Fee Act.
(3) "Interstate telecommunications" means all
telecommunications that either originate or terminate
outside this State.
(4) "Intrastate telecommunications" means all
telecommunications that originate and terminate within
this State.
(5) "Person" means any natural individual, firm,
trust, estate, partnership, association, joint stock
company, joint venture, corporation, limited liability
company, or a receiver, trustee, guardian or other
representative appointed by order of any court, the
Federal and State governments, including State
universities created by statute, or any city, town,
county, or other political subdivision of this State.
(6) "Purchase at retail" means the acquisition,
consumption or use of telecommunications through a sale
at retail.
(7) "Retailer" means and includes every person
engaged in the business of making sales at retail as
defined in this Section. A municipality may, in its
discretion, upon application, authorize the collection of
the tax hereby imposed by any retailer not maintaining a
place of business within this State, who to the
satisfaction of the municipality, furnishes adequate
security to insure collection and payment of the tax.
Such retailer shall be issued, without charge, a permit
to collect such tax. When so authorized, it shall be the
duty of such retailer to collect the tax upon all of the
gross charges for telecommunications in such municipality
in the same manner and subject to the same requirements
as a retailer maintaining a place of business within such
municipality.
(8) "Retailer maintaining a place of business in
this State", or any like term, means and includes any
retailer having or maintaining within this State,
directly or by a subsidiary, an office, distribution
facilities, transmission facilities, sales office,
warehouse or other place of business, or any agent or
other representative operating within this State under
the authority of the retailer or its subsidiary,
irrespective of whether such place of business or agent
or other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State.
(9) "Sale at retail" means the transmitting,
supplying or furnishing of telecommunications and all
services rendered in connection therewith for a
consideration, to persons other than the Federal and
State governments, and State universities created by
statute and other than between a parent corporation and
its wholly owned subsidiaries or between wholly owned
subsidiaries, when the tax has already been paid to a
retailer and the gross charge made by one such
corporation to another such corporation is not greater
than the gross charge paid to the retailer for their use
or consumption and not for resale.
(10) "Service address" means the location of
telecommunications equipment from which
telecommunications services are originated or at which
telecommunications services are received by a taxpayer.
If this is not a defined location, as in the case of
mobile phones, paging systems, maritime systems,
air-to-ground systems and the like, "service address"
shall mean the location of a taxpayer's primary use of
the telecommunication equipment as defined by telephone
number, authorization code, or location in Illinois where
bills are sent.
(11) "Taxpayer" means a person who individually or
through his agents, employees, or permittees engages in
the act or privilege of originating in such municipality
or receiving in such municipality telecommunications and
who incurs a tax liability under any ordinance authorized
by this Section.
(12) "Telecommunications", in addition to the usual
and popular meaning, includes, but is not limited to,
messages or information transmitted through use of local,
toll and wide area telephone service, channel services,
telegraph services, teletypewriter service, computer
exchange services; cellular mobile telecommunications
service, specialized mobile radio services, paging
service, or any other form of mobile and portable one-way
or two-way communications, or any other transmission of
messages or information by electronic or similar means,
between or among points by wire, cable, fiber optics,
laser, microwave, radio, satellite or similar facilities.
The definition of "telecommunications" shall not include
value added services in which computer processing
applications are used to act on the form, content, code
and protocol of the information for purposes other than
transmission. "Telecommunications" shall not include
purchase of telecommunications by a telecommunications
service provider for use as a component part of the
service provided by him to the ultimate retail consumer
who originates or terminates the taxable end-to-end
communications. Carrier access charges, right of access
charges, charges for use of inter-company facilities, and
all telecommunications resold in the subsequent provision
used as a component of, or integrated into, end-to-end
telecommunications service shall be non-taxable as sales
for resale.
(d) If a person, who originates or receives
telecommunications in such municipality claims to be a
reseller of such telecommunications, such person shall apply
to the municipality for a resale number. Such applicant
shall state facts which will show the municipality why such
applicant is not liable for tax under any ordinance
authorized by this Section on any of such purchases and shall
furnish such additional information as the municipality may
reasonably require.
Upon approval of the application, the municipality shall
assign a resale number to the applicant and shall certify
such number to the applicant. The municipality may cancel
any number which is obtained through misrepresentation, or
which is used to send or receive such telecommunication
tax-free when such actions in fact are not for resale, or
which no longer applies because of the person's having
discontinued the making of resales.
Except as provided hereinabove in this Section, the act
or privilege of sending or receiving telecommunications in
this State shall not be made tax-free on the ground of being
a sale for resale unless the person has an active resale
number from the municipality and furnishes that number to the
retailer in connection with certifying to the retailer that
any sale to such person is non-taxable because of being a
sale for resale.
(e) A municipality that imposes taxes upon
telecommunications under this Section and whose territory
includes part of another unit of local government or a school
district may, by ordinance, exempt the other unit of local
government or school district from those taxes.
(f) A municipality that imposes taxes upon
telecommunications under this Section may, by ordinance, (i)
reduce the rate of the tax for persons 65 years of age or
older or (ii) exempt persons 65 years of age or older from
those taxes. Taxes related to such rate reductions or
exemptions shall be rebated from the municipality directly to
persons qualified for the rate reduction or exemption as
determined by the municipality's ordinance.
(Source: P.A. 90-357, eff. 1-1-98.)
Section 40. The Public Utilities Act is amended by
changing Section 2-202 as follows:
(220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
Sec. 2-202. (a) It is declared to be the public policy of
this State that in order to maintain and foster the effective
regulation of public utilities under this Act in the
interests of the People of the State of Illinois and the
public utilities as well, the public utilities subject to
regulation under this Act and which enjoy the privilege of
operating as public utilities in this State, shall bear the
expense of administering this Act by means of a tax on such
privilege measured by the annual gross revenue of such public
utilities in the manner provided in this Section. For
purposes of this Section, "expense of administering this Act"
includes any costs incident to studies, whether made by the
Commission or under contract entered into by the Commission,
concerning environmental pollution problems caused or
contributed to by public utilities and the means for
eliminating or abating those problems. Such proceeds shall be
deposited in the Public Utility Fund in the State treasury.
(b) All of the ordinary and contingent expenses of the
Commission incident to the administration of this Act shall
be paid out of the Public Utility Fund except the
compensation of the members of the Commission which shall be
paid from the General Revenue Fund. Notwithstanding other
provisions of this Act to the contrary, the ordinary and
contingent expenses of the Commission incident to the
administration of the Illinois Commercial Transportation Law
may be paid from appropriations from the Public Utility Fund
through the end of fiscal year 1986.
(c) A tax is imposed upon each public utility subject to
the provisions of this Act equal to .08% of its gross revenue
for each calendar year commencing with the calendar year
beginning January 1, 1982, except that the Commission may, by
rule, establish a different rate no greater than 0.1%.
"Gross revenue" shall not include amounts paid by
telecommunications retailers under the Telecommunications
Municipal Infrastructure Maintenance Fee Act.
(d) Annual gross revenue returns shall be filed in
accordance with paragraph (1) or (2) of this subsection (d).
(1) Except as provided in paragraph (2) of this
subsection (d), on or before January 10 of each year each
public utility subject to the provisions of this Act
shall file with the Commission an estimated annual gross
revenue return containing an estimate of the amount of
its gross revenue for the calendar year commencing
January 1 of said year and a statement of the amount of
tax due for said calendar year on the basis of that
estimate. Public utilities may also file revised returns
containing updated estimates and updated amounts of tax
due during the calendar year. These revised returns, if
filed, shall form the basis for quarterly payments due
during the remainder of the calendar year. In addition,
on or before February 15 of each year, each public
utility shall file an amended return showing the actual
amount of gross revenues shown by the company's books and
records as of December 31 of the previous year. Forms and
instructions for such estimated, revised, and amended
returns shall be devised and supplied by the Commission.
(2) Beginning January 1, 1993, the requirements of
paragraph (1) of this subsection (d) shall not apply to
any public utility in any calendar year for which the
total tax the public utility owes under this Section is
less than $1,000. For such public utilities with respect
to such years, the public utility shall file with the
Commission, on or before January 31 of the following
year, an annual gross revenue return for the year and a
statement of the amount of tax due for that year on the
basis of such a return. Forms and instructions for such
returns and corrected returns shall be devised and
supplied by the Commission.
(e) All returns submitted to the Commission by a public
utility as provided in this subsection (e) or subsection (d)
of this Section shall contain or be verified by a written
declaration by an appropriate officer of the public utility
that the return is made under the penalties of perjury. The
Commission may audit each such return submitted and may,
under the provisions of Section 5-101 of this Act, take such
measures as are necessary to ascertain the correctness of the
returns submitted. The Commission has the power to direct the
filing of a corrected return by any utility which has filed
an incorrect return and to direct the filing of a return by
any utility which has failed to submit a return. A
taxpayer's signing a fraudulent return under this Section is
perjury, as defined in Section 32-2 of the Criminal Code of
1961.
(f) (1) For all public utilities subject to paragraph
(1) of subsection (d), at least one quarter of the annual
amount of tax due under subsection (c) shall be paid to the
Commission on or before the tenth day of January, April,
July, and October of the calendar year subject to tax. In
the event that an adjustment in the amount of tax due should
be necessary as a result of the filing of an amended or
corrected return under subsection (d) or subsection (e) of
this Section, the amount of any deficiency shall be paid by
the public utility together with the amended or corrected
return and the amount of any excess shall, after the filing
of a claim for credit by the public utility, be returned to
the public utility in the form of a credit memorandum in the
amount of such excess or be refunded to the public utility in
accordance with the provisions of subsection (k) of this
Section. However, if such deficiency or excess is less than
$1, then the public utility need not pay the deficiency and
may not claim a credit.
(2) Any public utility subject to paragraph (2) of
subsection (d) shall pay the amount of tax due under
subsection (c) on or before January 31 next following the end
of the calendar year subject to tax. In the event that an
adjustment in the amount of tax due should be necessary as a
result of the filing of a corrected return under subsection
(e), the amount of any deficiency shall be paid by the public
utility at the time the corrected return is filed. Any excess
tax payment by the public utility shall be returned to it
after the filing of a claim for credit, in the form of a
credit memorandum in the amount of the excess. However, if
such deficiency or excess is less than $1, the public utility
need not pay the deficiency and may not claim a credit.
(g) Each installment or required payment of the tax
imposed by subsection (c) becomes delinquent at midnight of
the date that it is due. Failure to make a payment as
required by this Section shall result in the imposition of a
late payment penalty, an underestimation penalty, or both, as
provided by this subsection. The late payment penalty shall
be the greater of:
(1) $25 for each month or portion of a month that
the installment or required payment is unpaid or
(2) an amount equal to the difference between what
should have been paid on the due date, based upon the
most recently filed estimate, and what was actually paid,
times one percent, for each month or portion of a month
that the installment or required payment goes unpaid.
This penalty may be assessed as soon as the installment
or required payment becomes delinquent.
The underestimation penalty shall apply to those public
utilities subject to paragraph (1) of subsection (d) and
shall be calculated after the filing of the amended return.
It shall be imposed if the amount actually paid on any of the
dates specified in subsection (f) is not equal to at least
one-fourth of the amount actually due for the year, and shall
equal the greater of:
(1) $25 for each month or portion of a month that
the amount due is unpaid or
(2) an amount equal to the difference between what
should have been paid, based on the amended return, and
what was actually paid as of the date specified in
subsection (f), times a percentage equal to 1/12 of the
sum of 10% and the percentage most recently established
by the Commission for interest to be paid on customer
deposits under 83 Ill. Adm. Code 280.70(e)(1), for each
month or portion of a month that the amount due goes
unpaid, except that no underestimation penalty shall be
assessed if the amount actually paid on each of the dates
specified in subsection (f) was based on an estimate of
gross revenues at least equal to the actual gross
revenues for the previous year. The Commission may
enforce the collection of any delinquent installment or
payment, or portion thereof by legal action or in any
other manner by which the collection of debts due the
State of Illinois may be enforced under the laws of this
State. The executive director or his designee may excuse
the payment of an assessed penalty if he determines that
enforced collection of the penalty would be unjust.
(h) All sums collected by the Commission under the
provisions of this Section shall be paid promptly after the
receipt of the same, accompanied by a detailed statement
thereof, into the Public Utility Fund in the State treasury.
(i) During the month of October of each odd-numbered
year the Commission shall:
(1) determine the amount of all moneys deposited in
the Public Utility Fund during the preceding fiscal
biennium plus the balance, if any, in that fund at the
beginning of that biennium;
(2) determine the sum total of the following items:
(A) all moneys expended or obligated against
appropriations made from the Public Utility Fund during
the preceding fiscal biennium, plus (B) the sum of the
credit memoranda then outstanding against the Public
Utility Fund, if any; and
(3) determine the amount, if any, by which the sum
determined as provided in item (1) exceeds the amount
determined as provided in item (2).
If the amount determined as provided in item (3) of this
subsection exceeds $2,500,000, the Commission shall then
compute the proportionate amount, if any, which the tax paid
hereunder by each utility during the preceding biennium bears
to the difference between the amount determined as provided
in item (3) of this subsection (i) and $2,500,000, and notify
each public utility that it may file during the 3 month
period after the date of notification a claim for credit in
such proportionate amount. If the proportionate amount is
less than $10, no notification will be sent by the
Commission, and no right to a claim exists as to that amount.
Upon the filing of a claim for credit within the period
provided, the Commission shall issue a credit memorandum in
such amount to such public utility. Any claim for credit
filed after the period provided for in this Section is void.
(j) Credit memoranda issued pursuant to subsection (f)
and credit memoranda issued after notification and filing
pursuant to subsection (i) may be applied for the 2 year
period from the date of issuance, against the payment of any
amount due during that period under the tax imposed by
subsection (c), or, subject to reasonable rule of the
Commission including requirement of notification, may be
assigned to any other public utility subject to regulation
under this Act. Any application of credit memoranda after the
period provided for in this Section is void.
(k) The chairman or executive director may make refund
of fees, taxes or other charges whenever he shall determine
that the person or public utility will not be liable for
payment of such fees, taxes or charges during the next 24
months and he determines that the issuance of a credit
memorandum would be unjust.
(Source: P.A. 86-209; 87-971.)
(35 ILCS 110/19 rep.)
Section 45. The Service Use Tax Act is amended by
repealing Section 19.
Section 99. Effective date. This Act takes effect upon
becoming law.