Senate Sponsors: PETERSON. House Sponsors: MAUTINO Short description: TELECOMMUNICATIONS TAXES Synopsis of Bill as introduced: Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act to impose a tax upon prepaid calling card arrangements beginning January 1, 2000. Amends the Telecommunications Excise Tax Act and the Illinois Municipal Code to exclude prepaid calling card arrangements from the telecommunications taxes beginning January 1, 2000. Effective immediately. HOUSE AMENDMENT NO. 1. Adds reference to: 35 ILCS 635/20 Amends the Telecommunications Municipal Infrastructure Maintenance Fee Act and further amends the Illinois Municipal Code concerning the municipal telecommunications tax. Provides that a municipality with a population of more than 500,000 may exempt from the fee and tax all charges for inbound toll-free telecommunications service. Provides that a "prepaid telephone calling card arrangement" does not include an arrangement in which a customer purchases a payment card and pursuant to which the service provider reflects the amount of the purchase as a credit on an invoice issued to that customer under an existing subscription plan. HOUSE AMENDMENT NO. 2. Adds reference to: 35 ILCS 630/6 from Ch. 120, par. 2006 Further amends the Telecommunications Excise Tax Act. Provides that if in any fiscal year the total revenue deposited into the School Infrastructure Fund under the Act is less than the amount deposited in fiscal year 1999, then the shortfall shall be covered with a transfer from the General Revenue Fund. In the Telecommunications Excise Tax Act and the Illinois Municipal Code, provides that "prepaid telephone calling card arrangement" does not include an arrangement whereby a customer purchases a payment card and pursuant to which the service provider reflects the amount of the purchase as a credit on an account for that customer under an existing subscription plan (now, the amount is reflected as a credit on an invoice issued to the customer under an existing subscription plan). BALANCED BUDGET NOTE, H-AM 2 (Bureau of Budget) This is not a supplemental appropriation bill, the Balanced Budget Note Act is inapplicable. FISCAL NOTE, AS AMENDED (Dept. of Revenue) The Dept. of Revenue does not have the specific data necessary to determine the resulting fiscal impact to the State. STATE DEBT NOTE, H-AM 2 (Economic and Fiscal Commission) SB 659 would not affect the bonding authorization of the State, and, therefore, has no direct impact on the level of State indebtedness. JUDICIAL NOTE, H-AM 2 (Office of Ill. Courts) This legislation would neither decrease nor increase the need for the number of judges in the State. STATE MANDATES NOTE, H-AM 1, 2 (Dept. of Commerce and Community Affairs) SB 659 creates a Tax Exemption Mandate upon local government. HOME RULE NOTE, H-AM 1, 2 (Dept. of Commerce and Community Affairs) SB 659 contains language which limits home rule powers and functions. Last action on Bill: SESSION SINE DIE Last action date: 01-01-09 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 0 END OF INQUIRY Full Text Bill Status