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90_SB1261
35 ILCS 630/3 from Ch. 120, par. 2003
35 ILCS 630/4 from Ch. 120, par. 2004
35 ILCS 630/5 from Ch. 120, par. 2005
35 ILCS 630/6 from Ch. 120, par. 2006
Amends the Telecommunications Excise Tax Act. Provides
that for bills issued after January 30, 1998, the tax is
imposed at a rate of 7% (now beginning January 1, 1998 the
tax is imposed at a rate of 7%). Provides that beginning
January 1, 1999, retailers collecting the tax imposed under
the Act shall remit the amount of the tax due less a .5%
discount, which is allowed to reimburse the retailer for
expenses incurred in keeping records, preparing and filing
returns, remitting the tax, and supplying data to the
Department on request. Provides that the moneys retained by
the retailers as a discount shall be deducted exclusively
from the General Revenue Fund and shall not diminish revenues
to the Common School Fund or the School Infrastructure Fund.
Effective immediately.
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1 AN ACT to amend the Telecommunications Excise Tax Act by
2 changing Sections 3, 4, 5 and 6.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Telecommunications Excise Tax Act is
6 amended by changing Sections 3, 4, 5, and 6 as follows:
7 (35 ILCS 630/3) (from Ch. 120, par. 2003)
8 Sec. 3. For bills issued on or before January 30, 1998
9 Until December 31, 1997, a tax is imposed upon the act or
10 privilege of originating or receiving intrastate
11 telecommunications by a person in this State at the rate of
12 5% of the gross charge for such telecommunications purchased
13 at retail from a retailer by such person. For bills issued
14 after Beginning January 30 1, 1998, a tax is imposed upon the
15 act or privilege of originating in this State or receiving in
16 this State intrastate telecommunications by a person in this
17 State at the rate of 7% of the gross charge for such
18 telecommunications purchased at retail from a retailer by
19 such person. However, such tax is not imposed on the act or
20 privilege to the extent such act or privilege may not, under
21 the Constitution and statutes of the United States, be made
22 the subject of taxation by the State.
23 (Source: P.A. 90-548, eff. 12-4-97.)
24 (35 ILCS 630/4) (from Ch. 120, par. 2004)
25 Sec. 4. For bills issued on or before January 30, 1998
26 Until December 31, 1997, a tax is imposed upon the act or
27 privilege of originating in this State or receiving in this
28 State interstate telecommunications by a person in this State
29 at the rate of 5% of the gross charge for such
30 telecommunications purchased at retail from a retailer by
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1 such person. For bills issued after Beginning January 30 1,
2 1998, a tax is imposed upon the act or privilege of
3 originating in this State or receiving in this State
4 interstate telecommunications by a person in this State at
5 the rate of 7% of the gross charge for such
6 telecommunications purchased at retail from a retailer by
7 such person. To prevent actual multi-state taxation of the
8 act or privilege that is subject to taxation under this
9 paragraph, any taxpayer, upon proof that that taxpayer has
10 paid a tax in another state on such event, shall be allowed a
11 credit against the tax imposed in this Section 4 to the
12 extent of the amount of such tax properly due and paid in
13 such other state. However, such tax is not imposed on the
14 act or privilege to the extent such act or privilege may not,
15 under the Constitution and statutes of the United States, be
16 made the subject of taxation by the State.
17 (Source: P.A. 90-548, eff. 12-4-97.)
18 (35 ILCS 630/5) (from Ch. 120, par. 2005)
19 Sec. 5. The tax imposed hereunder shall be collected
20 from the taxpayer by a retailer maintaining a place of
21 business in this State and remitted to the Department
22 pursuant to Section 5 hereof. Beginning January 1, 1999, the
23 tax imposed hereunder shall be collected from the taxpayer by
24 a retailer maintaining a place of business in this State and
25 remitted to the Department pursuant to Section 5 hereof, less
26 a discount of .5% which is allowed to reimburse the retailer
27 for expenses incurred in keeping records, preparing and
28 filing returns, remitting the tax, and supplying data to the
29 Department on request without diminishing revenues to the
30 Common School Fund or the School Infrastructure Fund. The
31 tax required to be collected by this Article and any such tax
32 collected by such retailer shall constitute a debt owed by
33 the retailer to this State. Retailers shall collect the tax
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1 from the taxpayer by adding the tax to the gross charge for
2 the act or privilege of originating or receiving
3 telecommunications in this State, when sold for use, in the
4 manner prescribed by the Department. Whenever possible, the
5 tax imposed by this Article shall, when collected, be stated
6 as a distinct item separate and apart from the gross charge
7 for telecommunications. The tax imposed by this Article
8 shall constitute a debt of the purchaser to the retailer who
9 provides such taxable services until paid, and, if unpaid, is
10 recoverable at law in the same manner as the original charge
11 for such taxable services.
12 (Source: P.A. 86-905.)
13 (35 ILCS 630/6) (from Ch. 120, par. 2006)
14 Sec. 6. Except as provided hereinafter in this Section,
15 on or before the 15th day of each month each retailer
16 maintaining a place of business in this State shall make a
17 return to the Department for the preceding calendar month,
18 stating:
19 1. His name;
20 2. The address of his principal place of business,
21 and the address of the principal place of business (if
22 that is a different address) from which he engages in the
23 business of transmitting telecommunications;
24 3. Total amount of gross charges billed by him
25 during the preceding calendar month for providing
26 telecommunications during such calendar month;
27 4. Total amount received by him during the
28 preceding calendar month on credit extended;
29 5. Deductions allowed by law;
30 6. Gross charges which were billed by him during
31 the preceding calendar month and upon the basis of which
32 the tax is imposed;
33 7. Amount of tax (computed upon Item 6);
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1 8. Such other reasonable information as the
2 Department may require.
3 Any taxpayer required to make payments under this Section
4 may make the payments by electronic funds transfer. The
5 Department shall adopt rules necessary to effectuate a
6 program of electronic funds transfer.
7 If the retailer's average monthly tax billings due to the
8 Department do not exceed $100, the Department may authorize
9 his returns to be filed on a quarter annual basis, with the
10 return for January, February and March of a given year being
11 due by April 15 of such year; with the return for April, May
12 and June of a given year being due by July 15 of such year;
13 with the return for July, August and September of a given
14 year being due by October 15 of such year; and with the
15 return of October, November and December of a given year
16 being due by January 15 of the following year.
17 Notwithstanding any other provision of this Article
18 containing the time within which a retailer may file his
19 return, in the case of any retailer who ceases to engage in a
20 kind of business which makes him responsible for filing
21 returns under this Article, such retailer shall file a final
22 return under this Article with the Department not more than
23 one month after discontinuing such business.
24 In making such return, the retailer shall determine the
25 value of any consideration other than money received by him
26 and he shall include such value in his return. Such
27 determination shall be subject to review and revision by the
28 Department in the manner hereinafter provided for the
29 correction of returns.
30 Each retailer whose average monthly liability to the
31 Department under this Article was $10,000 or more during the
32 preceding calendar year, excluding the month of highest
33 liability and the month of lowest liability in such calendar
34 year, and who is not operated by a unit of local government,
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1 shall make estimated payments to the Department on or before
2 the 7th, 15th, 22nd and last day of the month during which
3 tax collection liability to the Department is incurred in an
4 amount not less than the lower of either 22.5% of the
5 retailer's actual tax collections for the month or 25% of the
6 retailer's actual tax collections for the same calendar month
7 of the preceding year. The amount of such quarter monthly
8 payments shall be credited against the final liability of the
9 retailer's return for that month. Any outstanding credit,
10 approved by the Department, arising from the retailer's
11 overpayment of its final liability for any month may be
12 applied to reduce the amount of any subsequent quarter
13 monthly payment or credited against the final liability of
14 the retailer's return for any subsequent month. If any
15 quarter monthly payment is not paid at the time or in the
16 amount required by this Section, the retailer shall be liable
17 for penalty and interest on the difference between the
18 minimum amount due as a payment and the amount of such
19 payment actually and timely paid, except insofar as the
20 retailer has previously made payments for that month to the
21 Department in excess of the minimum payments previously due.
22 If the Director finds that the information required for
23 the making of an accurate return cannot reasonably be
24 compiled by a retailer within 15 days after the close of the
25 calendar month for which a return is to be made, he may grant
26 an extension of time for the filing of such return for a
27 period of not to exceed 31 calendar days. The granting of
28 such an extension may be conditioned upon the deposit by the
29 retailer with the Department of an amount of money not
30 exceeding the amount estimated by the Director to be due with
31 the return so extended. All such deposits, including any
32 heretofore made with the Department, shall be credited
33 against the retailer's liabilities under this Article. If
34 any such deposit exceeds the retailer's present and probable
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1 future liabilities under this Article, the Department shall
2 issue to the retailer a credit memorandum, which may be
3 assigned by the retailer to a similar retailer under this
4 Article, in accordance with reasonable rules and regulations
5 to be prescribed by the Department.
6 The retailer making the return herein provided for shall,
7 at the time of making such return, pay to the Department the
8 amount of tax herein imposed less a discount of .5% beginning
9 January 1, 1999 as prescribed in Section 5. On and after the
10 effective date of this Article of 1985, $1,000,000 of the
11 moneys received by the Department of Revenue pursuant to this
12 Article shall be paid each month into the Common School Fund
13 and the remainder into the General Revenue Fund. On and after
14 February 1, 1998, however, of the moneys received by the
15 Department of Revenue pursuant to the additional taxes
16 imposed by this amendatory Act of 1997 one-half shall be
17 deposited into the School Infrastructure Fund and one-half
18 shall be deposited into the Common School Fund. The moneys
19 retained by retailers from the .5% discount shall be deducted
20 exclusively from the payments to the General Revenue Fund and
21 shall not diminish revenues to the Common School Fund or the
22 School Infrastructure Fund.
23 (Source: P.A. 90-16, eff. 6-16-97; 90-548, eff. 12-4-97.)
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.