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92_HB1273enr HB1273 Enrolled LRB9203256SMdv 1 AN ACT in relation to taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Telecommunications Excise Tax Act is 5 amended by changing Section 2 as follows: 6 (35 ILCS 630/2) (from Ch. 120, par. 2002) 7 Sec. 2. As used in this Article, unless the context 8 clearly requires otherwise: 9 (a) "Gross charge" means the amount paid for the act or 10 privilege of originating or receiving telecommunications in 11 this State and for all services and equipment provided in 12 connection therewith by a retailer, valued in money whether 13 paid in money or otherwise, including cash, credits, services 14 and property of every kind or nature, and shall be determined 15 without any deduction on account of the cost of such 16 telecommunications, the cost of materials used, labor or 17 service costs or any other expense whatsoever. In case 18 credit is extended, the amount thereof shall be included only 19 as and when paid. "Gross charges" for private line service 20 shall include charges imposed at each channel point within 21 this State, charges for the channel mileage between each 22 channel point within this State, and charges for that portion 23 of the interstate inter-office channel provided within 24 Illinois. Charges for that portion of the interstate 25 inter-office channel provided in Illinois shall be determined 26 by the retailer as follows: (i) for interstate inter-office 27 channels having 2 channel termination points, only one of 28 which is in Illinois, 50% of the total charge imposed; (ii) 29 for interstate inter-office channels having more than 2 30 channel termination points, one or more of which are in 31 Illinois, an amount equal to the total charge multiplied by a HB1273 Enrolled -2- LRB9203256SMdv 1 fraction, the numerator of which is the number of channel 2 termination points within Illinois and the denominator of 3 which is the total number of channel termination points; or 4 (iii) any other method that reasonably apportions the total 5 charges for interstate inter-office channels among the states 6 in which channel termination points are located. Prior to 7 June 1, 2003, any apportionment method consistent with this 8 paragraph shall be accepted as a reasonable method to 9 determine the charges for that portion of the interstate 10 inter-office channel provided within Illinois for that 11 period. However, "gross charges" shall not include any of 12 the following: 13 (1) Any amounts added to a purchaser's bill because 14 of a charge made pursuant to (i) the tax imposed by this 15 Article; (ii) charges added to customers' bills pursuant 16 to the provisions of Sections 9-221 or 9-222 of the 17 Public Utilities Act, as amended, or any similar charges 18 added to customers' bills by retailers who are not 19 subject to rate regulation by the Illinois Commerce 20 Commission for the purpose of recovering any of the tax 21 liabilities or other amounts specified in such provisions 22 of such Act; (iii) the tax imposed by Section 4251 of the 23 Internal Revenue Code; (iv) 911 surcharges; or (v) the 24 tax imposed by the Simplified Municipal 25 Telecommunications Tax Act.;26 (2) Charges for a sent collect telecommunication 27 received outside of the State.;28 (3) Charges for leased time on equipment or charges 29 for the storage of data or information for subsequent 30 retrieval or the processing of data or information 31 intended to change its form or content. Such equipment 32 includes, but is not limited to, the use of calculators, 33 computers, data processing equipment, tabulating 34 equipment or accounting equipment and also includes the HB1273 Enrolled -3- LRB9203256SMdv 1 usage of computers under a time-sharing agreement.;2 (4) Charges for customer equipment, including such 3 equipment that is leased or rented by the customer from 4 any source, wherein such charges are disaggregated and 5 separately identified from other charges.;6 (5) Charges to business enterprises certified under 7 Section 9-222.1 of the Public Utilities Act, as amended, 8 to the extent of such exemption and during the period of 9 time specified by the Department of Commerce and 10 Community Affairs.;11 (6) Charges for telecommunications and all services 12 and equipment provided in connection therewith between a 13 parent corporation and its wholly owned subsidiaries or 14 between wholly owned subsidiaries when the tax imposed 15 under this Article has already been paid to a retailer 16 and only to the extent that the charges between the 17 parent corporation and wholly owned subsidiaries or 18 between wholly owned subsidiaries represent expense 19 allocation between the corporations and not the 20 generation of profit for the corporation rendering such 21 service.;22 (7) Bad debts. Bad debt means any portion of a debt 23 that is related to a sale at retail for which gross 24 charges are not otherwise deductible or excludable that 25 has become worthless or uncollectable, as determined 26 under applicable federal income tax standards. If the 27 portion of the debt deemed to be bad is subsequently 28 paid, the retailer shall report and pay the tax on that 29 portion during the reporting period in which the payment 30 is made.;31 (8) Charges paid by inserting coins in 32 coin-operated telecommunication devices.;33 (9) Amounts paid by telecommunications retailers 34 under the Telecommunications Municipal Infrastructure HB1273 Enrolled -4- LRB9203256SMdv 1 Maintenance Fee Act. 2 (10) Charges for nontaxable services or 3 telecommunications if (i) those charges are aggregated 4 with other charges for telecommunications that are 5 taxable, (ii) those charges are not separately stated on 6 the customer bill or invoice, and (iii) the retailer can 7 reasonably identify the nontaxable charges on the 8 retailer's books and records kept in the regular course 9 of business. If the nontaxable charges cannot reasonably 10 be identified, the gross charge from the sale of both 11 taxable and nontaxable services or telecommunications 12 billed on a combined basis shall be attributed to the 13 taxable services or telecommunications. The burden of 14 proving nontaxable charges shall be on the retailer of 15 the telecommunications. 16 (b) "Amount paid" means the amount charged to the 17 taxpayer's service address in this State regardless of where 18 such amount is billed or paid. 19 (c) "Telecommunications", in addition to the meaning 20 ordinarily and popularly ascribed to it, includes, without 21 limitation, messages or information transmitted through use 22 of local, toll and wide area telephone service; private line 23 services; channel services; telegraph services; 24 teletypewriter; computer exchange services; cellular mobile 25 telecommunications service; specialized mobile radio; 26 stationary two way radio; paging service; or any other form 27 of mobile and portable one-way or two-way communications; or 28 any other transmission of messages or information by 29 electronic or similar means, between or among points by wire, 30 cable, fiber-optics, laser, microwave, radio, satellite or 31 similar facilities. As used in this Act, "private line" 32 means a dedicated non-traffic sensitive service for a single 33 customer, that entitles the customer to exclusive or priority 34 use of a communications channel or group of channels, from HB1273 Enrolled -5- LRB9203256SMdv 1 one or more specified locations to one or more other 2 specified locations. The definition of "telecommunications" 3 shall not include value added services in which computer 4 processing applications are used to act on the form, content, 5 code and protocol of the information for purposes other than 6 transmission. "Telecommunications" shall not include 7 purchases of telecommunications by a telecommunications 8 service provider for use as a component part of the service 9 provided by him to the ultimate retail consumer who 10 originates or terminates the taxable end-to-end 11 communications. Carrier access charges, right of access 12 charges, charges for use of inter-company facilities, and all 13 telecommunications resold in the subsequent provision of, 14 used as a component of, or integrated into end-to-end 15 telecommunications service shall be non-taxable as sales for 16 resale. 17 (d) "Interstate telecommunications" means all 18 telecommunications that either originate or terminate outside 19 this State. 20 (e) "Intrastate telecommunications" means all 21 telecommunications that originate and terminate within this 22 State. 23 (f) "Department" means the Department of Revenue of the 24 State of Illinois. 25 (g) "Director" means the Director of Revenue for the 26 Department of Revenue of the State of Illinois. 27 (h) "Taxpayer" means a person who individually or 28 through his agents, employees or permittees engages in the 29 act or privilege of originating or receiving 30 telecommunications in this State and who incurs a tax 31 liability under this Article. 32 (i) "Person" means any natural individual, firm, trust, 33 estate, partnership, association, joint stock company, joint 34 venture, corporation, limited liability company, or a HB1273 Enrolled -6- LRB9203256SMdv 1 receiver, trustee, guardian or other representative appointed 2 by order of any court, the Federal and State governments, 3 including State universities created by statute or any city, 4 town, county or other political subdivision of this State. 5 (j) "Purchase at retail" means the acquisition, 6 consumption or use of telecommunication through a sale at 7 retail. 8 (k) "Sale at retail" means the transmitting, supplying 9 or furnishing of telecommunications and all services and 10 equipment provided in connection therewith for a 11 consideration to persons other than the Federal and State 12 governments, and State universities created by statute and 13 other than between a parent corporation and its wholly owned 14 subsidiaries or between wholly owned subsidiaries for their 15 use or consumption and not for resale. 16 (l) "Retailer" means and includes every person engaged 17 in the business of making sales at retail as defined in this 18 Article. The Department may, in its discretion, upon 19 application, authorize the collection of the tax hereby 20 imposed by any retailer not maintaining a place of business 21 within this State, who, to the satisfaction of the 22 Department, furnishes adequate security to insure collection 23 and payment of the tax. Such retailer shall be issued, 24 without charge, a permit to collect such tax. When so 25 authorized, it shall be the duty of such retailer to collect 26 the tax upon all of the gross charges for telecommunications 27 in this State in the same manner and subject to the same 28 requirements as a retailer maintaining a place of business 29 within this State. The permit may be revoked by the 30 Department at its discretion. 31 (m) "Retailer maintaining a place of business in this 32 State", or any like term, means and includes any retailer 33 having or maintaining within this State, directly or by a 34 subsidiary, an office, distribution facilities, transmission HB1273 Enrolled -7- LRB9203256SMdv 1 facilities, sales office, warehouse or other place of 2 business, or any agent or other representative operating 3 within this State under the authority of the retailer or its 4 subsidiary, irrespective of whether such place of business or 5 agent or other representative is located here permanently or 6 temporarily, or whether such retailer or subsidiary is 7 licensed to do business in this State. 8 (n) "Service address" means the location of 9 telecommunications equipment from which the 10 telecommunications services are originated or at which 11 telecommunications services are received by a taxpayer. In 12 the event this may not be a defined location, as in the case 13 of mobile phones, paging systems, maritime systems, service 14 address means the customer's place of primary use as defined 15 in the Mobile Telecommunications Sourcing Conformity Act. 16 For air-to-ground systems and the like, service address shall 17 mean the location of a taxpayer's primary use of the 18 telecommunications equipment as defined by telephone number, 19 authorization code, or location in Illinois where bills are 20 sent. 21 (o) "Prepaid telephone calling arrangements" mean the 22 right to exclusively purchase telephone or telecommunications 23 services that must be paid for in advance and enable the 24 origination of one or more intrastate, interstate, or 25 international telephone calls or other telecommunications 26 using an access number, an authorization code, or both, 27 whether manually or electronically dialed, for which payment 28 to a retailer must be made in advance, provided that, unless 29 recharged, no further service is provided once that prepaid 30 amount of service has been consumed. Prepaid telephone 31 calling arrangements include the recharge of a prepaid 32 calling arrangement. For purposes of this subsection, 33 "recharge" means the purchase of additional prepaid telephone 34 or telecommunications services whether or not the purchaser HB1273 Enrolled -8- LRB9203256SMdv 1 acquires a different access number or authorization code. 2 "Prepaid telephone calling arrangement" does not include an 3 arrangement whereby a customer purchases a payment card and 4 pursuant to which the service provider reflects the amount of 5 such purchase as a credit on an invoice issued to that 6 customer under an existing subscription plan. 7 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02; 8 92-526, eff. 1-1-03.) 9 Section 10. The Telecommunications Infrastructure 10 Maintenance Fee Act is amended by changing Section 10 as 11 follows: 12 (35 ILCS 635/10) 13 Sec. 10. Definitions. 14 (a) "Gross charges" means the amount paid to a 15 telecommunications retailer for the act or privilege of 16 originating or receiving telecommunications in this State and 17 for all services rendered in connection therewith, valued in 18 money whether paid in money or otherwise, including cash, 19 credits, services, and property of every kind or nature, and 20 shall be determined without any deduction on account of the 21 cost of such telecommunications, the cost of the materials 22 used, labor or service costs, or any other expense 23 whatsoever. In case credit is extended, the amount thereof 24 shall be included only as and when paid. "Gross charges" for 25 private line service shall include charges imposed at each 26 channel point within this State, charges for the channel 27 mileage between each channel point within this State, and 28 charges for that portion of the interstate inter-office 29 channel provided within Illinois. Charges for that portion of 30 the interstate inter-office channel provided in Illinois 31 shall be determined by the retailer as follows: (i) for 32 interstate inter-office channels having 2 channel termination HB1273 Enrolled -9- LRB9203256SMdv 1 points, only one of which is in Illinois, 50% of the total 2 charge imposed; (ii) for interstate inter-office channels 3 having more than 2 channel termination points, one or more of 4 which are in Illinois, an amount equal to the total charge 5 multiplied by a fraction, the numerator of which is the 6 number of channel termination points within Illinois and the 7 denominator of which is the total number of channel 8 termination points; or (iii) any other method that reasonably 9 apportions the total charges for interstate inter-office 10 channels among the states in which channel termination points 11 are located. Prior to June 1, 2003, any apportionment method 12 consistent with this paragraph shall be accepted as a 13 reasonable method to determine the charges for that portion 14 of the interstate inter-office channel provided within 15 Illinois for that period. However, "gross charges" shall not 16 include any of the following: 17 (1) Any amounts added to a purchaser's bill because 18 of a charge made under: (i) the fee imposed by this 19 Section, (ii) additional charges added to a purchaser's 20 bill under Section 9-221 or 9-222 of the Public Utilities 21 Act, (iii) the tax imposed by the Telecommunications 22 Excise Tax Act, (iv) 911 surcharges, (v) the tax imposed 23 by Section 4251 of the Internal Revenue Code, or (vi) the 24 tax imposed by the Simplified Municipal 25 Telecommunications Tax Act.;26 (2) Charges for a sent collect telecommunication 27 received outside of this State.;28 (3) Charges for leased time on equipment or charges 29 for the storage of data or information or subsequent 30 retrieval or the processing of data or information 31 intended to change its form or content. Such equipment 32 includes, but is not limited to, the use of calculators, 33 computers, data processing equipment, tabulating 34 equipment, or accounting equipment and also includes the HB1273 Enrolled -10- LRB9203256SMdv 1 usage of computers under a time-sharing agreement.;2 (4) Charges for customer equipment, including such 3 equipment that is leased or rented by the customer from 4 any source, wherein such charges are disaggregated and 5 separately identified from other charges.;6 (5) Charges to business enterprises certified under 7 Section 9-222.1 of the Public Utilities Act to the extent 8 of such exemption and during the period of time specified 9 by the Department of Commerce and Community Affairs.;10 (6) Charges for telecommunications and all services 11 and equipment provided in connection therewith between a 12 parent corporation and its wholly owned subsidiaries or 13 between wholly owned subsidiaries, and only to the extent 14 that the charges between the parent corporation and 15 wholly owned subsidiaries or between wholly owned 16 subsidiaries represent expense allocation between the 17 corporations and not the generation of profit other than 18 a regulatory required profit for the corporation 19 rendering such services.;20 (7) Bad debts ("bad debt" means any portion of a 21 debt that is related to a sale at retail for which gross 22 charges are not otherwise deductible or excludable that 23 has become worthless or uncollectible, as determined 24 under applicable federal income tax standards; if the 25 portion of the debt deemed to be bad is subsequently 26 paid, the retailer shall report and pay the tax on that 27 portion during the reporting period in which the payment 28 is made).; or29 (8) Charges paid by inserting coins in 30 coin-operated telecommunication devices. 31 (9) Charges for nontaxable services or 32 telecommunications if (i) those charges are aggregated 33 with other charges for telecommunications that are 34 taxable, (ii) those charges are not separately stated on HB1273 Enrolled -11- LRB9203256SMdv 1 the customer bill or invoice, and (iii) the retailer can 2 reasonably identify the nontaxable charges on the 3 retailer's books and records kept in the regular course 4 of business. If the nontaxable charges cannot reasonably 5 be identified, the gross charge from the sale of both 6 taxable and nontaxable services or telecommunications 7 billed on a combined basis shall be attributed to the 8 taxable services or telecommunications. The burden of 9 proving nontaxable charges shall be on the retailer of 10 the telecommunications. 11 (a-5) "Department" means the Illinois Department of 12 Revenue. 13 (b) "Telecommunications" includes, but is not limited 14 to, messages or information transmitted through use of local, 15 toll, and wide area telephone service, channel services, 16 telegraph services, teletypewriter service, computer exchange 17 services, private line services, specialized mobile radio 18 services, or any other transmission of messages or 19 information by electronic or similar means, between or among 20 points by wire, cable, fiber optics, laser, microwave, radio, 21 satellite, or similar facilities. Unless the context clearly 22 requires otherwise, "telecommunications" shall also include 23 wireless telecommunications as hereinafter defined. 24 "Telecommunications" shall not include value added services 25 in which computer processing applications are used to act on 26 the form, content, code, and protocol of the information for 27 purposes other than transmission. "Telecommunications" shall 28 not include purchase of telecommunications by a 29 telecommunications service provider for use as a component 30 part of the service provided by him or her to the ultimate 31 retail consumer who originates or terminates the end-to-end 32 communications. Retailer access charges, right of access 33 charges, charges for use of intercompany facilities, and all 34 telecommunications resold in the subsequent provision and HB1273 Enrolled -12- LRB9203256SMdv 1 used as a component of, or integrated into, end-to-end 2 telecommunications service shall not be included in gross 3 charges as sales for resale. "Telecommunications" shall not 4 include the provision of cable services through a cable 5 system as defined in the Cable Communications Act of 1984 (47 6 U.S.C. Sections 521 and following) as now or hereafter 7 amended or through an open video system as defined in the 8 Rules of the Federal Communications Commission (47 C.D.F. 9 76.1550 and following) as now or hereafter amended. 10 Beginning January 1, 2001, prepaid telephone calling 11 arrangements shall not be considered "telecommunications" 12 subject to the tax imposed under this Act. For purposes of 13 this Section, "prepaid telephone calling arrangements" means 14 that term as defined in Section 2-27 of the Retailers' 15 Occupation Tax Act. 16 (c) "Wireless telecommunications" includes cellular 17 mobile telephone services, personal wireless services as 18 defined in Section 704(C) of the Telecommunications Act of 19 1996 (Public Law No. 104-104) as now or hereafter amended, 20 including all commercial mobile radio services, and paging 21 services. 22 (d) "Telecommunications retailer" or "retailer" or 23 "carrier" means and includes every person engaged in the 24 business of making sales of telecommunications at retail as 25 defined in this Section. The Department may, in its 26 discretion, upon applications, authorize the collection of 27 the fee hereby imposed by any retailer not maintaining a 28 place of business within this State, who, to the satisfaction 29 of the Department, furnishes adequate security to insure 30 collection and payment of the fee. When so authorized, it 31 shall be the duty of such retailer to pay the fee upon all of 32 the gross charges for telecommunications in the same manner 33 and subject to the same requirements as a retailer 34 maintaining a place of business within this State. HB1273 Enrolled -13- LRB9203256SMdv 1 (e) "Retailer maintaining a place of business in this 2 State", or any like term, means and includes any retailer 3 having or maintaining within this State, directly or by a 4 subsidiary, an office, distribution facilities, transmission 5 facilities, sales office, warehouse, or other place of 6 business, or any agent or other representative operating 7 within this State under the authority of the retailer or its 8 subsidiary, irrespective of whether such place of business or 9 agent or other representative is located here permanently or 10 temporarily, or whether such retailer or subsidiary is 11 licensed to do business in this State. 12 (f) "Sale of telecommunications at retail" means the 13 transmitting, supplying, or furnishing of telecommunications 14 and all services rendered in connection therewith for a 15 consideration, other than between a parent corporation and 16 its wholly owned subsidiaries or between wholly owned 17 subsidiaries, when the gross charge made by one such 18 corporation to another such corporation is not greater than 19 the gross charge paid to the retailer for their use or 20 consumption and not for sale. 21 (g) "Service address" means the location of 22 telecommunications equipment from which telecommunications 23 services are originated or at which telecommunications 24 services are received. If this is not a defined location, as 25 in the case of wireless telecommunications, paging systems, 26 maritime systems, service address means the customer's place 27 of primary use as defined in the Mobile Telecommunications 28 Sourcing Conformity Act. For air-to-ground systems, and the 29 like, "service address" shall mean the location of the 30 customer's primary use of the telecommunications equipment as 31 defined by the location in Illinois where bills are sent. 32 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02; 33 92-526, eff. 1-1-03.) HB1273 Enrolled -14- LRB9203256SMdv 1 Section 15. The Simplified Municipal Telecommunications 2 Tax Act is amended by changing Section 5-7 as follows: 3 (35 ILCS 636/5-7) 4 Sec. 5-7. Definitions. For purposes of the taxes 5 authorized by this Act: 6 "Amount paid" means the amount charged to the taxpayer's 7 service address in such municipality regardless of where such 8 amount is billed or paid. 9 "Department" means the Illinois Department of Revenue. 10 "Gross charge" means the amount paid for the act or 11 privilege of originating or receiving telecommunications in 12 such municipality and for all services and equipment provided 13 in connection therewith by a retailer, valued in money 14 whether paid in money or otherwise, including cash, credits, 15 services and property of every kind or nature, and shall be 16 determined without any deduction on account of the cost of 17 such telecommunications, the cost of the materials used, 18 labor or service costs or any other expense whatsoever. In 19 case credit is extended, the amount thereof shall be included 20 only as and when paid. "Gross charges" for private line 21 service shall include charges imposed at each channel point 22 within this State, charges for the channel mileage between 23 each channel point within this State, and charges for that 24 portion of the interstate inter-office channel provided 25 within Illinois. Charges for that portion of the interstate 26 inter-office channel provided in Illinois shall be determined 27 by the retailer as follows: (i) for interstate inter-office 28 channels having 2 channel termination points, only one of 29 which is in Illinois, 50% of the total charge imposed; (ii) 30 for interstate inter-office channels having more than 2 31 channel termination points, one or more of which are in 32 Illinois, an amount equal to the total charge multiplied by a 33 fraction, the numerator of which is the number of channel HB1273 Enrolled -15- LRB9203256SMdv 1 termination points within Illinois and the denominator of 2 which is the total number of channel termination points; or 3 (iii) any other method that reasonably apportions the total 4 charges for interstate inter-office channels among the states 5 in which channel termination points are located. Prior to 6 June 1, 2003, any apportionment method consistent with this 7 paragraph shall be accepted as a reasonable method to 8 determine the charges for that portion of the interstate 9 inter-office channel provided within Illinois for that 10 period. However, "gross charge" shall not include any of the 11 following: 12 (1) Any amounts added to a purchaser's bill because 13 of a charge made pursuant to: (i) the tax imposed by this 14 Act, (ii) the tax imposed by the Telecommunications 15 Excise Tax Act, (iii) the tax imposed by Section 4251 of 16 the Internal Revenue Code, (iv) 911 surcharges, or (v) 17 charges added to customers' bills pursuant to the 18 provisions of Section 9-221 or 9-222 of the Public 19 Utilities Act, as amended, or any similar charges added 20 to customers' bills by retailers who are not subject to 21 rate regulation by the Illinois Commerce Commission for 22 the purpose of recovering any of the tax liabilities or 23 other amounts specified in those provisions of the Public 24 Utilities Act.;25 (2) Charges for a sent collect telecommunication 26 received outside of such municipality.;27 (3) Charges for leased time on equipment or charges 28 for the storage of data or information for subsequent 29 retrieval or the processing of data or information 30 intended to change its form or content. Such equipment 31 includes, but is not limited to, the use of calculators, 32 computers, data processing equipment, tabulating 33 equipment or accounting equipment and also includes the 34 usage of computers under a time-sharing agreement.;HB1273 Enrolled -16- LRB9203256SMdv 1 (4) Charges for customer equipment, including such 2 equipment that is leased or rented by the customer from 3 any source, wherein such charges are disaggregated and 4 separately identified from other charges.;5 (5) Charges to business enterprises certified as 6 exempt under Section 9-222.1 of the Public Utilities Act 7 to the extent of such exemption and during the period of 8 time specified by the Department of Commerce and 9 Community Affairs.;10 (6) Charges for telecommunications and all services 11 and equipment provided in connection therewith between a 12 parent corporation and its wholly owned subsidiaries or 13 between wholly owned subsidiaries when the tax imposed 14 under this Act has already been paid to a retailer and 15 only to the extent that the charges between the parent 16 corporation and wholly owned subsidiaries or between 17 wholly owned subsidiaries represent expense allocation 18 between the corporations and not the generation of profit 19 for the corporation rendering such service.;20 (7) Bad debts ("bad debt" means any portion of a 21 debt that is related to a sale at retail for which gross 22 charges are not otherwise deductible or excludable that 23 has become worthless or uncollectible, as determined 24 under applicable federal income tax standards; if the 25 portion of the debt deemed to be bad is subsequently 26 paid, the retailer shall report and pay the tax on that 27 portion during the reporting period in which the payment 28 is made).;29 (8) Charges paid by inserting coins in 30 coin-operated telecommunication devices.; or31 (9) Amounts paid by telecommunications retailers 32 under the Telecommunications Infrastructure Maintenance 33 Fee Act. 34 (10) Charges for nontaxable services or HB1273 Enrolled -17- LRB9203256SMdv 1 telecommunications if (i) those charges are aggregated 2 with other charges for telecommunications that are 3 taxable, (ii) those charges are not separately stated on 4 the customer bill or invoice, and (iii) the retailer can 5 reasonably identify the nontaxable charges on the 6 retailer's books and records kept in the regular course 7 of business. If the nontaxable charges cannot reasonably 8 be identified, the gross charge from the sale of both 9 taxable and nontaxable services or telecommunications 10 billed on a combined basis shall be attributed to the 11 taxable services or telecommunications. The burden of 12 proving nontaxable charges shall be on the retailer of 13 the telecommunications. 14 "Interstate telecommunications" means all 15 telecommunications that either originate or terminate outside 16 this State. 17 "Intrastate telecommunications" means all 18 telecommunications that originate and terminate within this 19 State. 20 "Person" means any natural individual, firm, trust, 21 estate, partnership, association, joint stock company, joint 22 venture, corporation, limited liability company, or a 23 receiver, trustee, guardian, or other representative 24 appointed by order of any court, the Federal and State 25 governments, including State universities created by statute, 26 or any city, town, county, or other political subdivision of 27 this State. 28 "Purchase at retail" means the acquisition, consumption 29 or use of telecommunications through a sale at retail. 30 "Retailer" means and includes every person engaged in the 31 business of making sales at retail as defined in this 32 Section. The Department may, in its discretion, upon 33 application, authorize the collection of the tax hereby 34 imposed by any retailer not maintaining a place of business HB1273 Enrolled -18- LRB9203256SMdv 1 within this State, who, to the satisfaction of the 2 Department, furnishes adequate security to insure collection 3 and payment of the tax. Such retailer shall be issued, 4 without charge, a permit to collect such tax. When so 5 authorized, it shall be the duty of such retailer to collect 6 the tax upon all of the gross charges for telecommunications 7 in this State in the same manner and subject to the same 8 requirements as a retailer maintaining a place of business 9 within this State. The permit may be revoked by the 10 Department at its discretion. 11 "Retailer maintaining a place of business in this State", 12 or any like term, means and includes any retailer having or 13 maintaining within this State, directly or by a subsidiary, 14 an office, distribution facilities, transmission facilities, 15 sales office, warehouse or other place of business, or any 16 agent or other representative operating within this State 17 under the authority of the retailer or its subsidiary, 18 irrespective of whether such place of business or agent or 19 other representative is located here permanently or 20 temporarily, or whether such retailer or subsidiary is 21 licensed to do business in this State. 22 "Sale at retail" means the transmitting, supplying or 23 furnishing of telecommunications and all services and 24 equipment provided in connection therewith for a 25 consideration, to persons other than the Federal and State 26 governments, and State universities created by statute and 27 other than between a parent corporation and its wholly owned 28 subsidiaries or between wholly owned subsidiaries for their 29 use or consumption and not for resale. 30 "Service address" means the location of 31 telecommunications equipment from which telecommunications 32 services are originated or at which telecommunications 33 services are received by a taxpayer. In the event this may 34 not be a defined location, as in the case of mobile phones, HB1273 Enrolled -19- LRB9203256SMdv 1 paging systems, and maritime systems, service address means 2 the customer's place of primary use as defined in the Mobile 3 Telecommunications Sourcing Conformity Act. For 4 air-to-ground systems and the like, "service address" shall 5 mean the location of a taxpayer's primary use of the 6 telecommunications equipment as defined by telephone number, 7 authorization code, or location in Illinois where bills are 8 sent. 9 "Taxpayer" means a person who individually or through his 10 or her agents, employees, or permittees engages in the act or 11 privilege of originating or receiving telecommunications in a 12 municipality and who incurs a tax liability as authorized by 13 this Act. 14 "Telecommunications", in addition to the meaning 15 ordinarily and popularly ascribed to it, includes, without 16 limitation, messages or information transmitted through use 17 of local, toll, and wide area telephone service, private line 18 services, channel services, telegraph services, 19 teletypewriter, computer exchange services, cellular mobile 20 telecommunications service, specialized mobile radio, 21 stationary two-way radio, paging service, or any other form 22 of mobile and portable one-way or two-way communications, or 23 any other transmission of messages or information by 24 electronic or similar means, between or among points by wire, 25 cable, fiber optics, laser, microwave, radio, satellite, or 26 similar facilities. As used in this Act, "private line" 27 means a dedicated non-traffic sensitive service for a single 28 customer, that entitles the customer to exclusive or priority 29 use of a communications channel or group of channels, from 30 one or more specified locations to one or more other 31 specified locations. The definition of "telecommunications" 32 shall not include value added services in which computer 33 processing applications are used to act on the form, content, 34 code, and protocol of the information for purposes other than HB1273 Enrolled -20- LRB9203256SMdv 1 transmission. "Telecommunications" shall not include 2 purchases of telecommunications by a telecommunications 3 service provider for use as a component part of the service 4 provided by such provider to the ultimate retail consumer who 5 originates or terminates the taxable end-to-end 6 communications. Carrier access charges, right of access 7 charges, charges for use of inter-company facilities, and all 8 telecommunications resold in the subsequent provision of, 9 used as a component of, or integrated into, end-to-end 10 telecommunications service shall be non-taxable as sales for 11 resale. Prepaid telephone calling arrangements shall not be 12 considered "telecommunications" subject to the tax imposed 13 under this Act. For purposes of this Section, "prepaid 14 telephone calling arrangements" means that term as defined in 15 Section 2-27 of the Retailers' OccupationOccupationsTax 16 Act. 17 (Source: P.A. 92-526, eff. 7-1-02; revised 2-25-02.)