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90_HB0709sam001
LRB9002645KDksam
1 AMENDMENT TO HOUSE BILL 709
2 AMENDMENT NO. . Amend House Bill 709 on page 12,
3 immediately below line 24 by inserting the following:
4 "Section 25. The Illinois Municipal Code is amended by
5 changing Section 8-11-2 as follows:
6 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
7 Sec. 8-11-2. The corporate authorities of any
8 municipality may tax any or all of the following occupations
9 or privileges:
10 1. Persons engaged in the business of transmitting
11 messages by means of electricity or radio magnetic waves,
12 or fiber optics, at a rate not to exceed 5% of the gross
13 receipts from that business originating within the
14 corporate limits of the municipality.
15 2. Persons engaged in the business of distributing,
16 supplying, furnishing, or selling gas for use or
17 consumption within the corporate limits of a municipality
18 of 500,000 or fewer population, and not for resale, at a
19 rate not to exceed 5% of the gross receipts therefrom.
20 2a. Persons engaged in the business of
21 distributing, supplying, furnishing, or selling gas for
22 use or consumption within the corporate limits of a
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1 municipality of over 500,000 population, and not for
2 resale, at a rate not to exceed 8% of the gross receipts
3 therefrom. If imposed, this tax shall be paid in monthly
4 payments.
5 3. Persons engaged in the business of distributing,
6 supplying, furnishing, or selling electricity for use or
7 consumption within the corporate limits of the
8 municipality, and not for resale, at a rate not to exceed
9 5% of the gross receipts therefrom.
10 4. Persons engaged in the business of distributing,
11 supplying, furnishing, or selling water for use or
12 consumption within the corporate limits of the
13 municipality, and not for resale, at a rate not to exceed
14 5% of the gross receipts therefrom.
15 None of the taxes authorized by this Section may be
16 imposed with respect to any transaction in interstate
17 commerce or otherwise to the extent to which the business may
18 not, under the constitution and statutes of the United
19 States, be made the subject of taxation by this State or any
20 political sub-division thereof; nor shall any persons engaged
21 in the business of distributing, supplying, furnishing, or
22 selling gas, water, or electricity, or engaged in the
23 business of transmitting messages be subject to taxation
24 under the provisions of this Section for those transactions
25 that are or may become subject to taxation under the
26 provisions of the "Municipal Retailers' Occupation Tax Act"
27 authorized by Section 8-11-1; nor shall any tax authorized by
28 this Section be imposed upon any person engaged in a business
29 unless the tax is imposed in like manner and at the same rate
30 upon all persons engaged in businesses of the same class in
31 the municipality, whether privately or municipally owned or
32 operated.
33 Any of the taxes enumerated in this Section may be in
34 addition to the payment of money, or value of products or
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1 services furnished to the municipality by the taxpayer as
2 compensation for the use of its streets, alleys, or other
3 public places, or installation and maintenance therein,
4 thereon or thereunder of poles, wires, pipes or other
5 equipment used in the operation of the taxpayer's business.
6 (a) If the corporate authorities of any home rule
7 municipality have adopted an ordinance that imposed a tax on
8 public utility customers, between July 1, 1971, and October
9 1, 1981, on the good faith belief that they were exercising
10 authority pursuant to Section 6 of Article VII of the 1970
11 Illinois Constitution, that action of the corporate
12 authorities shall be declared legal and valid,
13 notwithstanding a later decision of a judicial tribunal
14 declaring the ordinance invalid. No municipality shall be
15 required to rebate, refund, or issue credits for any taxes
16 described in this paragraph, and those taxes shall be deemed
17 to have been levied and collected in accordance with the
18 Constitution and laws of this State.
19 (b) In any case in which (i) prior to October 19, 1979,
20 the corporate authorities of any municipality have adopted an
21 ordinance imposing a tax authorized by this Section (or by
22 the predecessor provision of the "Revised Cities and Villages
23 Act") and have explicitly or in practice interpreted gross
24 receipts to include either charges added to customers' bills
25 pursuant to the provision of paragraph (a) of Section 36 of
26 the Public Utilities Act or charges added to customers' bills
27 by taxpayers who are not subject to rate regulation by the
28 Illinois Commerce Commission for the purpose of recovering
29 any of the tax liabilities or other amounts specified in such
30 paragraph (a) of Section 36 of that Act, and (ii) on or after
31 October 19, 1979, a judicial tribunal has construed gross
32 receipts to exclude all or part of those charges, then
33 neither those municipality nor any taxpayer who paid the tax
34 shall be required to rebate, refund, or issue credits for any
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1 tax imposed or charge collected from customers pursuant to
2 the municipality's interpretation prior to October 19, 1979.
3 This paragraph reflects a legislative finding that it would
4 be contrary to the public interest to require a municipality
5 or its taxpayers to refund taxes or charges attributable to
6 the municipality's more inclusive interpretation of gross
7 receipts prior to October 19, 1979, and is not intended to
8 prescribe or limit judicial construction of this Section. The
9 legislative finding set forth in this subsection does not
10 apply to taxes imposed after the effective date of this
11 amendatory Act of 1995.
12 (c) (Blank).
13 (d) For the purpose of the taxes enumerated in this
14 Section:
15 "Gross receipts" means the consideration received for the
16 transmission of messages, the consideration received for
17 distributing, supplying, furnishing or selling gas for use or
18 consumption and not for resale, and the consideration
19 received for distributing, supplying, furnishing or selling
20 electricity for use or consumption and not for resale, and
21 the consideration received for distributing, supplying,
22 furnishing or selling water for use or consumption and not
23 for resale, and for all services rendered in connection
24 therewith valued in money, whether received in money or
25 otherwise, including cash, credit, services and property of
26 every kind and material and for all services rendered
27 therewith, and shall be determined without any deduction on
28 account of the cost of transmitting such messages, without
29 any deduction on account of the cost of the service, product
30 or commodity supplied, the cost of materials used, labor or
31 service cost, or any other expenses whatsoever. "Gross
32 receipts" shall not include that portion of the consideration
33 received for distributing, supplying, furnishing, or selling
34 gas, electricity, or water to, or for the transmission of
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1 messages for, business enterprises described in paragraph (e)
2 of this Section to the extent and during the period in which
3 the exemption authorized by paragraph (e) is in effect or for
4 school districts or units of local government described in
5 paragraph (f) during the period in which the exemption
6 authorized in paragraph (f) is in effect.
7 For utility bills issued on or after May 1, 1996, but
8 before May 1, 1997, and for receipts from those utility
9 bills, "gross receipts" does not include one-third of (i)
10 amounts added to customers' bills under Section 9-222 of the
11 Public Utilities Act, or (ii) amounts added to customers'
12 bills by taxpayers who are not subject to rate regulation by
13 the Illinois Commerce Commission for the purpose of
14 recovering any of the tax liabilities described in Section
15 9-222 of the Public Utilities Act. For utility bills issued
16 on or after May 1, 1997, but before May 1, 1998, and for
17 receipts from those utility bills, "gross receipts" does not
18 include two-thirds of (i) amounts added to customers' bills
19 under Section 9-222 of the Public Utilities Act, or (ii)
20 amount added to customers' bills by taxpayers who are not
21 subject to rate regulation by the Illinois Commerce
22 Commission for the purpose of recovering any of the tax
23 liabilities described in Section 9-222 of the Public
24 Utilities Act. For utility bills issued on or after May 1,
25 1998, and for receipts from those utility bills, "gross
26 receipts" does not include (i) amounts added to customers'
27 bills under Section 9-222 of the Public Utilities Act, or
28 (ii) amounts added to customers' bills by taxpayers who are
29 not subject to rate regulation by the Illinois Commerce
30 Commission for the purpose of recovering any of the tax
31 liabilities described in Section 9-222 of the Public
32 Utilities Act.
33 For purposes of this Section "gross receipts" shall not
34 include (i) amounts added to customers' bills under Section
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1 9-221 of the Public Utilities Act, or (ii) charges added to
2 customers' bills to recover the surcharge imposed under the
3 Emergency Telephone System Act. This paragraph is not
4 intended to nor does it make any change in the meaning of
5 "gross receipts" for the purposes of this Section, but is
6 intended to remove possible ambiguities, thereby confirming
7 the existing meaning of "gross receipts" prior to the
8 effective date of this amendatory Act of 1995.
9 The words "transmitting messages", in addition to the
10 usual and popular meaning of person to person communication,
11 shall include the furnishing, for a consideration, of
12 services or facilities (whether owned or leased), or both, to
13 persons in connection with the transmission of messages where
14 those persons do not, in turn, receive any consideration in
15 connection therewith, but shall not include such furnishing
16 of services or facilities to persons for the transmission of
17 messages to the extent that any such services or facilities
18 for the transmission of messages are furnished for a
19 consideration, by those persons to other persons, for the
20 transmission of messages.
21 "Person" as used in this Section means any natural
22 individual, firm, trust, estate, partnership, association,
23 joint stock company, joint adventure, corporation, municipal
24 corporation or political subdivision of this State, or a
25 receiver, trustee, guardian or other representative appointed
26 by order of any court.
27 "Public utility" shall have the meaning ascribed to it in
28 Section 3-105 of the Public Utilities Act and shall include
29 telecommunications carriers as defined in Section 13-202 of
30 that Act.
31 In the case of persons engaged in the business of
32 transmitting messages through the use of mobile equipment,
33 such as cellular phones and paging systems, the gross
34 receipts from the business shall be deemed to originate
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1 within the corporate limits of a municipality only if the
2 address to which the bills for the service are sent is within
3 those corporate limits. If, however, that address is not
4 located within a municipality that imposes a tax under this
5 Section, then (i) if the party responsible for the bill is
6 not an individual, the gross receipts from the business shall
7 be deemed to originate within the corporate limits of the
8 municipality where that party's principal place of business
9 in Illinois is located, and (ii) if the party responsible for
10 the bill is an individual, the gross receipts from the
11 business shall be deemed to originate within the corporate
12 limits of the municipality where that party's principal
13 residence in Illinois is located.
14 (e) Any municipality that imposes taxes upon public
15 utilities pursuant to this Section whose territory includes
16 any part of an enterprise zone or federally designated
17 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
18 corporate authorities, exempt from those taxes for a period
19 not exceeding 20 years any specified percentage of gross
20 receipts of public utilities received from business
21 enterprises that:
22 (1) either (i) make investments that cause the
23 creation of a minimum of 200 full-time equivalent jobs in
24 Illinois, (ii) make investments of at least $200,000,000
25 that cause the creation of a minimum of 150 full-time
26 equivalent jobs in Illinois, or (iii) or (ii) make
27 investments that cause the retention of a minimum of
28 1,000 full-time jobs in Illinois; and
29 (2) are either (i) located in an Enterprise Zone
30 established pursuant to the Illinois Enterprise Zone Act
31 or (ii) Department of Commerce and Community Affairs
32 designated High Impact Businesses located in a federally
33 designated Foreign Trade Zone or Sub-Zone; and
34 (3) are certified by the Department of Commerce and
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1 Community Affairs as complying with the requirements
2 specified in clauses (1) and (2) of this paragraph (e).
3 Upon adoption of the ordinance authorizing the exemption,
4 the municipal clerk shall transmit a copy of that ordinance
5 to the Department of Commerce and Community Affairs. The
6 Department of Commerce and Community Affairs shall determine
7 whether the business enterprises located in the municipality
8 meet the criteria prescribed in this paragraph. If the
9 Department of Commerce and Community Affairs determines that
10 the business enterprises meet the criteria, it shall grant
11 certification. The Department of Commerce and Community
12 Affairs shall act upon certification requests within 30 days
13 after receipt of the ordinance.
14 Upon certification of the business enterprise by the
15 Department of Commerce and Community Affairs, the Department
16 of Commerce and Community Affairs shall notify the Department
17 of Revenue of the certification. The Department of Revenue
18 shall notify the public utilities of the exemption status of
19 the gross receipts received from the certified business
20 enterprises. Such exemption status shall be effective within
21 3 months after certification.
22 (f) A municipality that imposes taxes upon public
23 utilities under this Section and whose territory includes
24 part of another unit of local government or a school district
25 may by ordinance exempt the other unit of local government or
26 school district from those taxes.
27 (g) The amendment of this Section by Public Act 84-127
28 shall take precedence over any other amendment of this
29 Section by any other amendatory Act passed by the 84th
30 General Assembly before the effective date of Public Act
31 84-127.
32 (h) In any case in which, before July 1, 1992, a person
33 engaged in the business of transmitting messages through the
34 use of mobile equipment, such as cellular phones and paging
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1 systems, has determined the municipality within which the
2 gross receipts from the business originated by reference to
3 the location of its transmitting or switching equipment, then
4 (i) neither the municipality to which tax was paid on that
5 basis nor the taxpayer that paid tax on that basis shall be
6 required to rebate, refund, or issue credits for any such tax
7 or charge collected from customers to reimburse the taxpayer
8 for the tax and (ii) no municipality to which tax would have
9 been paid with respect to those gross receipts if the
10 provisions of this amendatory Act of 1991 had been in effect
11 before July 1, 1992, shall have any claim against the
12 taxpayer for any amount of the tax.
13 (Source: P.A. 88-132; 89-325, eff. 1-1-96.)
14 Section 30. The Public Utilities Act is amended by
15 changing Section 9-222.1 as follows:
16 (220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1)
17 Sec. 9-222.1. A business enterprise which is located
18 within an area designated by a county or municipality as an
19 enterprise zone pursuant to the Illinois Enterprise Zone Act
20 or located in a federally designated Foreign Trade Zone or
21 Sub-Zone shall be exempt from the additional charges added to
22 the business enterprise's utility bills as a pass-on of
23 municipal and State utility taxes under Sections 9-221 and
24 9-222 of this Act, to the extent such charges are exempted by
25 ordinance adopted in accordance with paragraph (e) of Section
26 8-11-2 of the Illinois Municipal Code in the case of
27 municipal utility taxes, and to the extent such charges are
28 exempted by the percentage specified by the Department of
29 Commerce and Community Affairs in the case of State utility
30 taxes, provided such business enterprise meets the following
31 criteria:
32 (1) it either (i) makes investments which cause the
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1 creation of a minimum of 200 full-time equivalent jobs in
2 Illinois; (ii) makes investments of at least $200,000,000
3 which cause the creation of a minimum of 150 full-time
4 equivalent jobs in Illinois; or (iii) or (ii) makes
5 investments which cause the retention of a minimum of
6 1,000 full-time jobs in Illinois; and
7 (2) it is either (i) located in an Enterprise Zone
8 established pursuant to the Illinois Enterprise Zone Act
9 or (ii) it is located in a federally designated Foreign
10 Trade Zone or Sub-Zone and is designated a High Impact
11 Business by the Department of Commerce and Community
12 Affairs; and
13 (3) it is certified by the Department of Commerce
14 and Community Affairs as complying with the requirements
15 specified in clauses (1) and (2) of this Section.
16 The Department of Commerce and Community Affairs shall
17 determine the period during which such exemption from the
18 charges imposed under Section 9-222 is in effect which shall
19 not exceed 20 years and shall specify the percentage of the
20 exemption from State utility taxes.
21 The Department of Commerce and Community Affairs shall
22 have the power to promulgate rules and regulations to carry
23 out the provisions of this Section including procedures for
24 complying with the requirements specified in clauses (1) and
25 (2) of this Section and procedures for applying for the
26 exemptions authorized under this Section; to define the
27 amounts and types of eligible investments which business
28 enterprises must make in order to receive State utility tax
29 exemptions pursuant to Sections 9-222 and 9-222.1 of this
30 Act; to approve such utility tax exemptions for business
31 enterprises whose investments are not yet placed in service;
32 and to require that business enterprises granted tax
33 exemptions repay the exempted tax should the business
34 enterprise fail to comply with the terms and conditions of
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1 the certification. However, no business enterprise shall be
2 required, as a condition for certification under clause (3)
3 of this Section, to attest that its decision to invest under
4 clause (1) of this Section and to locate under clause (2) of
5 this Section is predicated upon the availability of the
6 exemptions authorized by this Section.
7 A business enterprise shall be exempt, in whole or in
8 part, from the pass-on charges of municipal utility taxes
9 imposed under Section 9-221, only if it meets the criteria
10 specified in clauses (1) through (3) of this Section and the
11 municipality has adopted an ordinance authorizing the
12 exemption under paragraph (e) of Section 8-11-2 of the
13 Illinois Municipal Code. Upon certification of the business
14 enterprises by the Department of Commerce and Community
15 Affairs, the Department of Commerce and Community Affairs
16 shall notify the Department of Revenue of such certification.
17 The Department of Revenue shall notify the public utilities
18 of the exemption status of business enterprises from the
19 pass-on charges of State and municipal utility taxes. Such
20 exemption status shall be effective within 3 months after
21 certification of the business enterprise.
22 (Source: P.A. 87-535; 87-848; 87-895; 87-1219.)".