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Public Act 92-0602
HB6012 Enrolled LRB9214226SMdvA
AN ACT concerning taxation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Simplified Municipal Telecommunications
Tax Act is amended by adding Section 5-42 as follows:
(35 ILCS 636/5-42 new)
Sec. 5-42. Procedure for determining proper tax
jurisdiction.
(a) Tax jurisdiction information provided by a
municipality upon written request from a telecommunications
retailer. For purposes of this subsection (a),
"telecommunications retailer" does not include retailers
providing Commercial Mobile Radio Service as the term is used
in the Mobile Telecommunications Sourcing Act.
(1) A municipality may provide, within 30 days
following receipt of a written request from a
telecommunications retailer, the following:
(A) A list containing each street name, known
street name aliases, street address number ranges,
applicable directionals, and zip codes associated
with each street name, for all street addresses
located within the municipality. For a range of
street address numbers located within a municipality
that consists only of odd or even street numbers,
the list must specify whether the street numbers in
the range are odd or even. The list shall be
alphabetical, except that numbered streets shall be
in numerical sequence.
(B) A list containing each postal zip code and
all the city names associated therewith for all zip
codes assigned to geographic areas located entirely
within the municipality, including zip codes
assigned to rural route boxes.
(C) A sequential list containing all rural
route box number ranges and the city names and zip
codes associated therewith, for all rural route
boxes located within the municipality, except that
rural route boxes with postal zip codes entirely
within the municipality that are included on the
list furnished under paragraph (B) need not be
duplicated.
(D) The lists shall be printed. If a list is
available through another medium, however, the
municipality shall, upon request, furnish the list
through such medium in addition to or in lieu of the
printed lists. The municipality shall be responsible
for updating the lists as changes occur and for
furnishing this information to all
telecommunications retailers affected by the
changes. Each update shall specify an effective
date, which shall be the next ensuing January 1,
April 1, July 1, or October 1; shall be furnished to
the telecommunications retailer not less than 60
days prior to the effective date; and shall identify
the additions, deletions, and other changes to the
preceding version of the list. If the information is
received less than 60 days prior to the effective
date of the change, the telecommunications retailer
has until the next ensuing January 1, April 1, July
1, or October 1 to make the appropriate changes.
Nothing in this subsection (a) shall prevent a
municipality from providing a telecommunications retailer
with the information set forth in this subdivision (a)(1)
in the absence of a written request from the
telecommunications retailer.
(2) The telecommunications retailer shall be
responsible for charging the tax to the service addresses
contained in the lists requested under subdivision (a)(1)
that include all of the elements required by this
Section. If a service address is not included in the list
or if no list is provided, the telecommunications
retailer shall be held harmless from situsing errors
provided it uses a reasonable methodology to assign the
service address or addresses to a local tax jurisdiction.
The telecommunications retailer shall be held harmless
for any tax overpayments or underpayments (including
penalty or interest) resulting from written information
provided by the municipality or, in the case of disputes,
the Department. If a municipality is aware of a situsing
error in a telecommunications retailer's records, the
municipality may file a written notification to the
telecommunications retailer at an address specified by
the telecommunications retailer describing the street
address or addresses that are incorrect and, if known,
the affected customer name or names and account number or
numbers. If another jurisdiction is claiming the same
street address or addresses that are the subject of the
notification, the telecommunications retailer must notify
the Department as specified in subdivision (a)(3) of this
Section, otherwise, the telecommunications retailer shall
make such correction to its records within 90 days.
(3) If it is determined from the lists or updates
furnished under subdivision (a)(1) that more than one
municipality claims the same address or group of
addresses, the telecommunications retailer shall notify
the Department within 60 days of discovering the
discrepancy. After notification and until resolution, the
telecommunications retailer will continue its prior tax
treatment and will be held harmless for any tax, penalty,
and interest in the event the prior tax treatment is
wrong. Upon resolution, the Department will notify the
telecommunications retailer in a written form describing
the resolution. Upon receipt of the resolution, the
telecommunications retailer has until the next ensuing
January 1, April 1, July 1, or October 1 to make the
change.
(4) Municipalities shall notify any
telecommunications retailer that has previously requested
a list under subdivision (a)(1) of this Section of any
annexations, de-annexations, or other boundary changes at
least 60 days after the effective date of such changes.
The notification shall contain each street name, known
street name aliases, street address number ranges,
applicable directionals, and zip codes associated with
each street name, for all street addresses for which a
change has occurred. The notice shall be mailed to an
address designated by the telecommunications retailer.
The telecommunications retailer has until the next
ensuing January 1, April 1, July 1, or October 1 to make
the changes described in such notification.
(b) The safe harbor provisions, Sections 40 and 45 of
the Mobile Telecommunications Sourcing Conformity Act, shall
apply to any telecommunications retailer electing to employ
enhanced zip codes (zip+4) to assign each street address,
address range, rural route box, or rural route box range in
their service area to a specific municipal tax jurisdiction,
except as provided under subdivision (c)(5). A
telecommunications retailer shall make its election as
prescribed by rules adopted by the Department.
(c) Persons who believe that they are improperly being
charged a tax imposed under this Act because their service
address is assigned to the wrong taxing jurisdiction shall
file a written complaint with their telecommunications
(mobile or non-mobile) retailer. The written complaint shall
include the street address for her or his place of primary
use for mobile telecommunications service or the service
address for non-mobile telecommunications, the name and
address of the telecommunications retailer who is collecting
the tax imposed by this Act, the account name and number for
which the person seeks a correction of the tax assignment, a
description of the error asserted by that person, an
estimated amount of tax claimed to have been incorrectly
paid, the time period for which that amount of tax applies,
and any other information that the telecommunications
retailer may reasonably require to process the request. For
purposes of this Section, the terms "place of primary use"
and "mobile telecommunications service" shall have the same
meanings as those terms are defined in the Mobile
Telecommunications Sourcing Conformity Act.
Within 60 days after receiving the complaint under this
subsection (c), the telecommunications retailer shall review
its records, the written complaint, any information submitted
by the affected municipality or municipalities, and the
electronic database, if existing, or enhanced zip code used
pursuant to Section 25 or 40 of the Mobile Telecommunications
Sourcing Conformity Act to determine the customer's taxing
jurisdiction. If this review shows that the amount of tax,
assignment of place of primary use or service address, or
taxing jurisdiction is in error, the telecommunications
retailer shall correct the error and refund or credit the
amount of tax erroneously collected from the customer for the
period still available for the filing of a claim for credit
or refund by the telecommunications retailer under this Act.
If this review shows that the amount of tax, assignment of
place of primary use or service address, or taxing
jurisdiction is correct, the telecommunications retailer
shall provide a written explanation to the person from whom
the notice was received.
(1) If the person is dissatisfied with the response
from the telecommunications retailer, the customer may
request a written determination from the Department on a
form prescribed by the Department. The request shall
contain the same information as was provided to the
telecommunications retailer. The Department shall review
the request for determination and make all reasonable
efforts to determine if such person's place of primary
use for mobile telecommunications service or the service
address for non-mobile telecommunications is located
within the jurisdictional boundaries of the municipality
for which the person is being charged tax under this Act.
Upon request by the Department, municipalities that have
imposed a tax under this Act shall have 30 days to
provide information to the Department regarding such
requests for determination via certified mail.
(2) Within 90 days after receipt of a request for
determination under subdivision (c)(1) of this Section,
the Department shall issue a letter of determination to
the person stating whether that person's place of primary
use for mobile telecommunications service or the service
address for non-mobile telecommunications is located
within the jurisdictional boundaries of the municipality
for which the person is being charged tax under this Act
or naming the proper municipality, if different. The
Department shall also list in the letter of
determination, if the municipality has provided that
information to the Department, the Department's findings
as to the limit of the jurisdictional boundary (street
address range) for the municipality in relation to the
street address listed in the request for a letter of
determination. A copy of such letter of determination
shall be provided by the Department to the
telecommunications retailer listed on the request for
determination. The copy shall be sent via mail to an
address designated by the telecommunications retailer.
(3) If the municipality or municipalities fail to
respond as set forth in subdivision (c)(1), then the
complaining person will no longer be subject to the tax
imposed under this Act. The Department shall notify the
relevant telecommunications retailer in writing of the
automatic determination and also list its findings as to
the street address listed in the request for a letter of
determination. Upon receipt of the notice of automatic
determination, the telecommunications retailer shall
correct its records and refund or credit the amount of
tax determined to have been paid by such person for the
period still available for the filing of a claim for
credit or refund by the telecommunications retailer under
this Act. A copy of the letter of determination shall be
provided by the Department to the telecommunications
retailer listed on the request for determination at an
address designated by the telecommunications retailer.
(4) If the telecommunications retailer receives a
copy of the letter of determination from the Department
described in subdivision (c)(2) of this Section that
states that such person's place of primary use for mobile
telecommunications service or the service address for
non-mobile telecommunications is not located within the
jurisdictional boundaries of the municipality for which
that person is being charged tax under this Act and that
provides the correct tax jurisdiction for the particular
street address, the telecommunications retailer shall
correct the error and refund or credit the amount of tax
determined to have been paid in error by such person up
to the period still available for the filing of a claim
for credit or refund by the telecommunications retailer
under this Act. The telecommunications retailer shall
retain such copy of the letter of determination in its
books and records and shall be held harmless for any tax,
penalty, or interest due as a result of its reliance on
such determination. If the Department subsequently
receives information that discloses that such service
addresses or places of primary use on that street are
within the jurisdictional boundaries of a municipality
other than the one specified in the previous letter, the
Department shall notify the telecommunications retailer
and the telecommunications customer in writing that the
telecommunications retailer is to begin collecting tax
for a specified municipality on the accounts associated
with those service addresses or places of primary use.
Notification to begin collecting tax on such accounts
sent by the Department to the telecommunications
retailers on or after October 1 and prior to January 1
shall be effective the following April 1. Notification to
begin collecting tax on such accounts sent by the
Department to the telecommunications retailers on or
after January 1 and prior to April 1 shall be effective
the following July 1. Notification to begin collecting
tax on such accounts sent by the Department to the
telecommunications retailers on or after April 1 and
prior to July 1 shall be effective the following October
1. Notification to begin collecting tax on such accounts
sent by the Department to the telecommunications
retailers on or after July 1 and prior to October 1 shall
be effective the following January 1.
(5) If the telecommunications retailer receives a
copy of the letter of determination from the Department
described in subdivisions (c)(2), (c)(3), or (c)(4) of
this Section that states that such person's place of
primary use for mobile telecommunications service or the
service address for non-mobile telecommunications is not
located within the jurisdictional boundaries of the
municipality for which that person is being charged tax
under this Act and the telecommunications retailer fails
to correct the error and refund or credit the appropriate
amount of tax paid in error within the time period
prescribed in subdivisions (c)(3) and (c)(4), the
telecommunications retailer shall not be held harmless
for any tax, penalty, or interest due the Department as a
result of the error.
(6) The procedures in this subsection (c) shall be
the first course of remedy available to customers seeking
correction of assignment of service address, place of
primary use, taxing jurisdiction, an amount of tax paid
erroneously, or other compensation for taxes, charges, or
fees erroneously collected by a telecommunications
retailer. No cause of action based upon a dispute arising
from these taxes, charges, or fees shall accrue until a
customer has reasonably exercised the rights and
procedures set forth in this subsection (c). If a
customer is not satisfied after exercising the rights and
following the procedures set forth in this subsection
(c), the customer shall have the normal cause of action
available under the law to recover any tax, penalty, or
interest from the telecommunications retailer.
(d) The provisions of this Section shall not apply to a
municipality that directly receives collected tax revenue
from a retailer pursuant to subsection (b) of Section 5-40. A
municipality that receives tax revenue pursuant to subsection
(b) of Section 5-40 for telecommunications other than mobile
telecommunications service, as that term is defined in the
Mobile Telecommunications Sourcing Conformity Act, shall
establish a procedure to remedy the complaints of persons who
believe they are being improperly taxed, which should
consider the requirements set forth in subsection (c) of this
Section.
Section 10. The Mobile Telecommunications Sourcing
Conformity Act is amended by changing Section 80 as follows:
(35 ILCS 638/80)
(This Section may contain text from a Public Act with a
delayed effective date)
Sec. 80. Customers' procedures and remedies for
correcting taxes and fees.
(a) If a customer believes that he or she is being
charged an improper amount of tax or is not subject to a tax
imposed under the Simplified Municipal Telecommunications Tax
Act for a telecommunications service covered by the term
"mobile telecommunications" under this Act, he or she shall
follow the procedures outlined in subsection (c) of Section
5-42 of the Simplified Municipal Telecommunications Tax Act.
The procedures outlined in subsection (c) of Section 5-42 of
the Simplified Municipal Telecommunications Tax Act shall
also apply to the home service provider, the Department, and
municipalities.
(b) Nothing in subsection (a) shall apply to a
municipality that directly receives collected tax revenue
from a retailer under subsection (b) of Section 5-40 of the
Simplified Municipal Telecommunications Tax Act for a
telecommunications service covered by the term "mobile
telecommunications service" under this Act. In lieu of
subsection (a), a customer may seek relief under subsection
(c) only if a municipality directly receives collected tax
revenue from a retailer under subsection (b) of Section 5-40
of the Simplified Municipal Telecommunications Tax Act for a
telecommunications service covered by the term "mobile
telecommunications service" under this Act.
(c) For municipalities covered under subsection (b) of
Section 5-40 of the Simplified Municipal Telecommunications
Tax Act, if a customer believes that an amount of tax or
assignment of place of primary use or taxing jurisdiction
included on a billing is erroneous, the customer shall notify
the home service provider in writing. The customer shall
include in this written notification the street address for
her or his place of primary use, the account name and number
for which the customer seeks a correction of the tax
assignment, a description of the error asserted by the
customer, and any other information that the home service
provider reasonably requires to process the request. Within
60 days after receiving a notice under this subsection (c)
(a), the home service provider shall review its records and
the electronic database or enhanced zip code used pursuant to
Section 25 or 40 to determine the customer's taxing
jurisdiction. If this review shows that the amount of tax,
assignment of place of primary use, or taxing jurisdiction is
in error, the home service provider shall correct the error
and refund or credit the amount of tax erroneously collected
from the customer for a period of up to 2 years. If this
review shows that the amount of tax, assignment of place of
primary use, or taxing jurisdiction is correct, the home
service provider shall provide a written explanation to the
customer. (b) If the customer is dissatisfied with the
response of the home service provider under this Section, the
customer may seek a correction or refund or both from the
municipality that directly receives collected tax revenue
from a retailer pursuant to subsection (b) of Section 5-40 of
the Simplified Municipal Telecommunications Tax Act for a
telecommunications service covered by the term "mobile
telecommunications service" under this Act taxing
jurisdiction affected.
(d) (c) The procedures set forth in subsections (b) and
(c) in this Section shall be the first course of remedy
available to customers seeking correction of assignment of
place of primary use or taxing jurisdiction or a refund of or
other compensation for taxes, charges, and fees erroneously
collected by the home service provider, and no cause of
action based upon a dispute arising from these taxes,
charges, or fees shall accrue until a customer has reasonably
exercised the rights and procedures set forth in this
Section.
(Source: P.A. 92-474, eff. 8-1-02.)
Section 90. The State Mandates Act is amended by adding
Section 8.26 as follows:
(30 ILCS 805/8.26 new)
Sec. 8.26. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 92nd General Assembly.
Section 95. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i)
the changes made by this Act or (ii) provisions derived from
any other Public Act.
Section 99. Effective date. This Act takes effect on
July 1, 2002.
Passed in the General Assembly June 01, 2002.
Approved June 28, 2002.
Effective July 01, 2002.
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