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| [ Senate Amendment 002 ] |
92_HB1273sam001
LRB9203256REpkam
1 AMENDMENT TO HOUSE BILL 1273
2 AMENDMENT NO. . Amend House Bill 1273 by replacing
3 everything after the enacting clause with the following:
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
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1 of the interstate inter-office channel provided within
2 Illinois. Charges for that portion of the interstate
3 inter-office channel provided in Illinois shall be determined
4 as follows: (i) for interstate inter-office channels having
5 2 channel termination points, only one of which is in
6 Illinois, 50% of the total charge imposed; (ii) for
7 interstate inter-office channels having more than 2 channel
8 termination points, one or more of which are in Illinois, an
9 amount equal to the total charge multiplied by a fraction,
10 the numerator of which is the number of channel termination
11 points within Illinois and the denominator of which is the
12 total number of channel termination points; (iii) any other
13 method that reasonably apportions the total charges for
14 interstate inter-office channels among the states in which
15 channel termination points are located; and (iv) prior to
16 June 1, 2003, any apportionment method consistent with this
17 paragraph shall be accepted as a reasonable method to
18 determine the charges for that portion of the interstate
19 inter-office channel provided within Illinois for that
20 period. However, "gross charges" shall not include any of
21 the following:
22 (1) Any amounts added to a purchaser's bill because
23 of a charge made pursuant to (i) the tax imposed by this
24 Article; (ii) charges added to customers' bills pursuant
25 to the provisions of Sections 9-221 or 9-222 of the
26 Public Utilities Act, as amended, or any similar charges
27 added to customers' bills by retailers who are not
28 subject to rate regulation by the Illinois Commerce
29 Commission for the purpose of recovering any of the tax
30 liabilities or other amounts specified in such provisions
31 of such Act; (iii) the tax imposed by Section 4251 of the
32 Internal Revenue Code; (iv) 911 surcharges; or (v) the
33 tax imposed by the Simplified Municipal
34 Telecommunications Tax Act.;
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1 (2) Charges for a sent collect telecommunication
2 received outside of the State.;
3 (3) Charges for leased time on equipment or charges
4 for the storage of data or information for subsequent
5 retrieval or the processing of data or information
6 intended to change its form or content. Such equipment
7 includes, but is not limited to, the use of calculators,
8 computers, data processing equipment, tabulating
9 equipment or accounting equipment and also includes the
10 usage of computers under a time-sharing agreement.;
11 (4) Charges for customer equipment, including such
12 equipment that is leased or rented by the customer from
13 any source, wherein such charges are disaggregated and
14 separately identified from other charges.;
15 (5) Charges to business enterprises certified under
16 Section 9-222.1 of the Public Utilities Act, as amended,
17 to the extent of such exemption and during the period of
18 time specified by the Department of Commerce and
19 Community Affairs.;
20 (6) Charges for telecommunications and all services
21 and equipment provided in connection therewith between a
22 parent corporation and its wholly owned subsidiaries or
23 between wholly owned subsidiaries when the tax imposed
24 under this Article has already been paid to a retailer
25 and only to the extent that the charges between the
26 parent corporation and wholly owned subsidiaries or
27 between wholly owned subsidiaries represent expense
28 allocation between the corporations and not the
29 generation of profit for the corporation rendering such
30 service.;
31 (7) Bad debts. Bad debt means any portion of a debt
32 that is related to a sale at retail for which gross
33 charges are not otherwise deductible or excludable that
34 has become worthless or uncollectable, as determined
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1 under applicable federal income tax standards. If the
2 portion of the debt deemed to be bad is subsequently
3 paid, the retailer shall report and pay the tax on that
4 portion during the reporting period in which the payment
5 is made.;
6 (8) Charges paid by inserting coins in
7 coin-operated telecommunication devices.;
8 (9) Amounts paid by telecommunications retailers
9 under the Telecommunications Municipal Infrastructure
10 Maintenance Fee Act.
11 (10) Charges for nontaxable services or
12 telecommunications if (i) those charges are aggregated
13 with other charges for telecommunications that are
14 taxable, (ii) those charges are not separately stated on
15 the customer bill or invoice, and (iii) the retailer can
16 reasonably identify the nontaxable charges on the
17 retailer's books and records kept in the regular course
18 of business. If the nontaxable charges cannot reasonably
19 be identified, the gross charge from the sale of both
20 taxable and nontaxable services or telecommunications
21 billed on a combined basis shall be attributed to the
22 taxable telecommunications. The burden of proving
23 nontaxable charges shall be on the retailer of the
24 telecommunications.
25 (b) "Amount paid" means the amount charged to the
26 taxpayer's service address in this State regardless of where
27 such amount is billed or paid.
28 (c) "Telecommunications", in addition to the meaning
29 ordinarily and popularly ascribed to it, includes, without
30 limitation, messages or information transmitted through use
31 of local, toll and wide area telephone service; private line
32 services; channel services; telegraph services;
33 teletypewriter; computer exchange services; cellular mobile
34 telecommunications service; specialized mobile radio;
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1 stationary two way radio; paging service; or any other form
2 of mobile and portable one-way or two-way communications; or
3 any other transmission of messages or information by
4 electronic or similar means, between or among points by wire,
5 cable, fiber-optics, laser, microwave, radio, satellite or
6 similar facilities. As used in this Act, "private line"
7 means a dedicated non-traffic sensitive service for a single
8 customer, that entitles the customer to exclusive or priority
9 use of a communications channel or group of channels, from
10 one or more specified locations to one or more other
11 specified locations. The definition of "telecommunications"
12 shall not include value added services in which computer
13 processing applications are used to act on the form, content,
14 code and protocol of the information for purposes other than
15 transmission. "Telecommunications" shall not include
16 purchases of telecommunications by a telecommunications
17 service provider for use as a component part of the service
18 provided by him to the ultimate retail consumer who
19 originates or terminates the taxable end-to-end
20 communications. Carrier access charges, right of access
21 charges, charges for use of inter-company facilities, and all
22 telecommunications resold in the subsequent provision of,
23 used as a component of, or integrated into end-to-end
24 telecommunications service shall be non-taxable as sales for
25 resale.
26 (d) "Interstate telecommunications" means all
27 telecommunications that either originate or terminate outside
28 this State.
29 (e) "Intrastate telecommunications" means all
30 telecommunications that originate and terminate within this
31 State.
32 (f) "Department" means the Department of Revenue of the
33 State of Illinois.
34 (g) "Director" means the Director of Revenue for the
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1 Department of Revenue of the State of Illinois.
2 (h) "Taxpayer" means a person who individually or
3 through his agents, employees or permittees engages in the
4 act or privilege of originating or receiving
5 telecommunications in this State and who incurs a tax
6 liability under this Article.
7 (i) "Person" means any natural individual, firm, trust,
8 estate, partnership, association, joint stock company, joint
9 venture, corporation, limited liability company, or a
10 receiver, trustee, guardian or other representative appointed
11 by order of any court, the Federal and State governments,
12 including State universities created by statute or any city,
13 town, county or other political subdivision of this State.
14 (j) "Purchase at retail" means the acquisition,
15 consumption or use of telecommunication through a sale at
16 retail.
17 (k) "Sale at retail" means the transmitting, supplying
18 or furnishing of telecommunications and all services and
19 equipment provided in connection therewith for a
20 consideration to persons other than the Federal and State
21 governments, and State universities created by statute and
22 other than between a parent corporation and its wholly owned
23 subsidiaries or between wholly owned subsidiaries for their
24 use or consumption and not for resale.
25 (l) "Retailer" means and includes every person engaged
26 in the business of making sales at retail as defined in this
27 Article. The Department may, in its discretion, upon
28 application, authorize the collection of the tax hereby
29 imposed by any retailer not maintaining a place of business
30 within this State, who, to the satisfaction of the
31 Department, furnishes adequate security to insure collection
32 and payment of the tax. Such retailer shall be issued,
33 without charge, a permit to collect such tax. When so
34 authorized, it shall be the duty of such retailer to collect
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1 the tax upon all of the gross charges for telecommunications
2 in this State in the same manner and subject to the same
3 requirements as a retailer maintaining a place of business
4 within this State. The permit may be revoked by the
5 Department at its discretion.
6 (m) "Retailer maintaining a place of business in this
7 State", or any like term, means and includes any retailer
8 having or maintaining within this State, directly or by a
9 subsidiary, an office, distribution facilities, transmission
10 facilities, sales office, warehouse or other place of
11 business, or any agent or other representative operating
12 within this State under the authority of the retailer or its
13 subsidiary, irrespective of whether such place of business or
14 agent or other representative is located here permanently or
15 temporarily, or whether such retailer or subsidiary is
16 licensed to do business in this State.
17 (n) "Service address" means the location of
18 telecommunications equipment from which the
19 telecommunications services are originated or at which
20 telecommunications services are received by a taxpayer. In
21 the event this may not be a defined location, as in the case
22 of mobile phones, paging systems, maritime systems, service
23 address means the customer's place of primary use as defined
24 in the Mobile Telecommunications Sourcing Conformity Act.
25 For air-to-ground systems and the like, service address shall
26 mean the location of a taxpayer's primary use of the
27 telecommunications equipment as defined by telephone number,
28 authorization code, or location in Illinois where bills are
29 sent.
30 (o) "Prepaid telephone calling arrangements" mean the
31 right to exclusively purchase telephone or telecommunications
32 services that must be paid for in advance and enable the
33 origination of one or more intrastate, interstate, or
34 international telephone calls or other telecommunications
-8- LRB9203256REpkam
1 using an access number, an authorization code, or both,
2 whether manually or electronically dialed, for which payment
3 to a retailer must be made in advance, provided that, unless
4 recharged, no further service is provided once that prepaid
5 amount of service has been consumed. Prepaid telephone
6 calling arrangements include the recharge of a prepaid
7 calling arrangement. For purposes of this subsection,
8 "recharge" means the purchase of additional prepaid telephone
9 or telecommunications services whether or not the purchaser
10 acquires a different access number or authorization code.
11 "Prepaid telephone calling arrangement" does not include an
12 arrangement whereby a customer purchases a payment card and
13 pursuant to which the service provider reflects the amount of
14 such purchase as a credit on an invoice issued to that
15 customer under an existing subscription plan.
16 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02;
17 92-526, eff. 1-1-03.)
18 Section 10. The Telecommunications Infrastructure
19 Maintenance Fee Act is amended by changing Section 10 as
20 follows:
21 (35 ILCS 635/10)
22 Sec. 10. Definitions.
23 (a) "Gross charges" means the amount paid to a
24 telecommunications retailer for the act or privilege of
25 originating or receiving telecommunications in this State and
26 for all services rendered in connection therewith, valued in
27 money whether paid in money or otherwise, including cash,
28 credits, services, and property of every kind or nature, and
29 shall be determined without any deduction on account of the
30 cost of such telecommunications, the cost of the materials
31 used, labor or service costs, or any other expense
32 whatsoever. In case credit is extended, the amount thereof
-9- LRB9203256REpkam
1 shall be included only as and when paid. "Gross charges" for
2 private line service shall include charges imposed at each
3 channel point within this State, charges for the channel
4 mileage between each channel point within this State, and
5 charges for that portion of the interstate inter-office
6 channel provided within Illinois. Charges for that portion of
7 the interstate inter-office channel provided in Illinois
8 shall be determined as follows: (i) for interstate
9 inter-office channels having 2 channel termination points,
10 only one of which is in Illinois, 50% of the total charge
11 imposed; (ii) for interstate inter-office channels having
12 more than 2 channel termination points, one or more of which
13 are in Illinois, an amount equal to the total charge
14 multiplied by a fraction, the numerator of which is the
15 number of channel termination points within Illinois and the
16 denominator of which is the total number of channel
17 termination points; (iii) any other method that reasonably
18 apportions the total charges for interstate inter-office
19 channels among the states in which channel termination points
20 are located; and (iv) prior to June 1, 2003, any
21 apportionment method consistent with this paragraph shall be
22 accepted as a reasonable method to determine the charges for
23 that portion of the interstate inter-office channel provided
24 within Illinois for that period. However, "gross charges"
25 shall not include any of the following:
26 (1) Any amounts added to a purchaser's bill because
27 of a charge made under: (i) the fee imposed by this
28 Section, (ii) additional charges added to a purchaser's
29 bill under Section 9-221 or 9-222 of the Public Utilities
30 Act, (iii) the tax imposed by the Telecommunications
31 Excise Tax Act, (iv) 911 surcharges, (v) the tax imposed
32 by Section 4251 of the Internal Revenue Code, or (vi) the
33 tax imposed by the Simplified Municipal
34 Telecommunications Tax Act.;
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1 (2) Charges for a sent collect telecommunication
2 received outside of this State.;
3 (3) Charges for leased time on equipment or charges
4 for the storage of data or information or subsequent
5 retrieval or the processing of data or information
6 intended to change its form or content. Such equipment
7 includes, but is not limited to, the use of calculators,
8 computers, data processing equipment, tabulating
9 equipment, or accounting equipment and also includes the
10 usage of computers under a time-sharing agreement.;
11 (4) Charges for customer equipment, including such
12 equipment that is leased or rented by the customer from
13 any source, wherein such charges are disaggregated and
14 separately identified from other charges.;
15 (5) Charges to business enterprises certified under
16 Section 9-222.1 of the Public Utilities Act to the extent
17 of such exemption and during the period of time specified
18 by the Department of Commerce and Community Affairs.;
19 (6) Charges for telecommunications and all services
20 and equipment provided in connection therewith between a
21 parent corporation and its wholly owned subsidiaries or
22 between wholly owned subsidiaries, and only to the extent
23 that the charges between the parent corporation and
24 wholly owned subsidiaries or between wholly owned
25 subsidiaries represent expense allocation between the
26 corporations and not the generation of profit other than
27 a regulatory required profit for the corporation
28 rendering such services.;
29 (7) Bad debts ("bad debt" means any portion of a
30 debt that is related to a sale at retail for which gross
31 charges are not otherwise deductible or excludable that
32 has become worthless or uncollectible, as determined
33 under applicable federal income tax standards; if the
34 portion of the debt deemed to be bad is subsequently
-11- LRB9203256REpkam
1 paid, the retailer shall report and pay the tax on that
2 portion during the reporting period in which the payment
3 is made).; or
4 (8) Charges paid by inserting coins in
5 coin-operated telecommunication devices.
6 (9) Charges for nontaxable services or
7 telecommunications if (i) those charges are aggregated
8 with other charges for telecommunications that are
9 taxable, (ii) those charges are not separately stated on
10 the customer bill or invoice, and (iii) the retailer can
11 reasonably identify the nontaxable charges on the
12 retailer's books and records kept in the regular course
13 of business. If the nontaxable charges cannot reasonably
14 be identified, the gross charge from the sale of both
15 taxable and nontaxable services or telecommunications
16 billed on a combined basis shall be attributed to the
17 taxable telecommunications. The burden of proving
18 nontaxable charges shall be on the retailer of the
19 telecommunications.
20 (a-5) "Department" means the Illinois Department of
21 Revenue.
22 (b) "Telecommunications" includes, but is not limited
23 to, messages or information transmitted through use of local,
24 toll, and wide area telephone service, channel services,
25 telegraph services, teletypewriter service, computer exchange
26 services, private line services, specialized mobile radio
27 services, or any other transmission of messages or
28 information by electronic or similar means, between or among
29 points by wire, cable, fiber optics, laser, microwave, radio,
30 satellite, or similar facilities. Unless the context clearly
31 requires otherwise, "telecommunications" shall also include
32 wireless telecommunications as hereinafter defined.
33 "Telecommunications" shall not include value added services
34 in which computer processing applications are used to act on
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1 the form, content, code, and protocol of the information for
2 purposes other than transmission. "Telecommunications" shall
3 not include purchase of telecommunications by a
4 telecommunications service provider for use as a component
5 part of the service provided by him or her to the ultimate
6 retail consumer who originates or terminates the end-to-end
7 communications. Retailer access charges, right of access
8 charges, charges for use of intercompany facilities, and all
9 telecommunications resold in the subsequent provision and
10 used as a component of, or integrated into, end-to-end
11 telecommunications service shall not be included in gross
12 charges as sales for resale. "Telecommunications" shall not
13 include the provision of cable services through a cable
14 system as defined in the Cable Communications Act of 1984 (47
15 U.S.C. Sections 521 and following) as now or hereafter
16 amended or through an open video system as defined in the
17 Rules of the Federal Communications Commission (47 C.D.F.
18 76.1550 and following) as now or hereafter amended.
19 Beginning January 1, 2001, prepaid telephone calling
20 arrangements shall not be considered "telecommunications"
21 subject to the tax imposed under this Act. For purposes of
22 this Section, "prepaid telephone calling arrangements" means
23 that term as defined in Section 2-27 of the Retailers'
24 Occupation Tax Act.
25 (c) "Wireless telecommunications" includes cellular
26 mobile telephone services, personal wireless services as
27 defined in Section 704(C) of the Telecommunications Act of
28 1996 (Public Law No. 104-104) as now or hereafter amended,
29 including all commercial mobile radio services, and paging
30 services.
31 (d) "Telecommunications retailer" or "retailer" or
32 "carrier" means and includes every person engaged in the
33 business of making sales of telecommunications at retail as
34 defined in this Section. The Department may, in its
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1 discretion, upon applications, authorize the collection of
2 the fee hereby imposed by any retailer not maintaining a
3 place of business within this State, who, to the satisfaction
4 of the Department, furnishes adequate security to insure
5 collection and payment of the fee. When so authorized, it
6 shall be the duty of such retailer to pay the fee upon all of
7 the gross charges for telecommunications in the same manner
8 and subject to the same requirements as a retailer
9 maintaining a place of business within this State.
10 (e) "Retailer maintaining a place of business in this
11 State", or any like term, means and includes any retailer
12 having or maintaining within this State, directly or by a
13 subsidiary, an office, distribution facilities, transmission
14 facilities, sales office, warehouse, or other place of
15 business, or any agent or other representative operating
16 within this State under the authority of the retailer or its
17 subsidiary, irrespective of whether such place of business or
18 agent or other representative is located here permanently or
19 temporarily, or whether such retailer or subsidiary is
20 licensed to do business in this State.
21 (f) "Sale of telecommunications at retail" means the
22 transmitting, supplying, or furnishing of telecommunications
23 and all services rendered in connection therewith for a
24 consideration, other than between a parent corporation and
25 its wholly owned subsidiaries or between wholly owned
26 subsidiaries, when the gross charge made by one such
27 corporation to another such corporation is not greater than
28 the gross charge paid to the retailer for their use or
29 consumption and not for sale.
30 (g) "Service address" means the location of
31 telecommunications equipment from which telecommunications
32 services are originated or at which telecommunications
33 services are received. If this is not a defined location, as
34 in the case of wireless telecommunications, paging systems,
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1 maritime systems, service address means the customer's place
2 of primary use as defined in the Mobile Telecommunications
3 Sourcing Conformity Act. For air-to-ground systems, and the
4 like, "service address" shall mean the location of the
5 customer's primary use of the telecommunications equipment as
6 defined by the location in Illinois where bills are sent.
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 15. The Simplified Municipal Telecommunications
10 Tax Act is amended by changing Section 5-7 as follows:
11 (35 ILCS 636/5-7)
12 Sec. 5-7. Definitions. For purposes of the taxes
13 authorized by this Act:
14 "Amount paid" means the amount charged to the taxpayer's
15 service address in such municipality regardless of where such
16 amount is billed or paid.
17 "Department" means the Illinois Department of Revenue.
18 "Gross charge" means the amount paid for the act or
19 privilege of originating or receiving telecommunications in
20 such municipality and for all services and equipment provided
21 in connection therewith by a retailer, valued in money
22 whether paid in money or otherwise, including cash, credits,
23 services and property of every kind or nature, and shall be
24 determined without any deduction on account of the cost of
25 such telecommunications, the cost of the materials used,
26 labor or service costs or any other expense whatsoever. In
27 case credit is extended, the amount thereof shall be included
28 only as and when paid. "Gross charges" for private line
29 service shall include charges imposed at each channel point
30 within this State, charges for the channel mileage between
31 each channel point within this State, and charges for that
32 portion of the interstate inter-office channel provided
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1 within Illinois. Charges for that portion of the interstate
2 inter-office channel provided in Illinois shall be determined
3 as follows: (i) for interstate inter-office channels having
4 2 channel termination points, only one of which is in
5 Illinois, 50% of the total charge imposed; (ii) for
6 interstate inter-office channels having more than 2 channel
7 termination points, one or more of which are in Illinois, an
8 amount equal to the total charge multiplied by a fraction,
9 the numerator of which is the number of channel termination
10 points within Illinois and the denominator of which is the
11 total number of channel termination points; (iii) any other
12 method that reasonably apportions the total charges for
13 interstate inter-office channels among the states in which
14 channel termination points are located; and (iv) prior to
15 June 1, 2003, any apportionment method consistent with this
16 paragraph shall be accepted as a reasonable method to
17 determine the charges for that portion of the interstate
18 inter-office channel provided within Illinois for that
19 period. However, "gross charge" shall not include any of the
20 following:
21 (1) Any amounts added to a purchaser's bill because
22 of a charge made pursuant to: (i) the tax imposed by this
23 Act, (ii) the tax imposed by the Telecommunications
24 Excise Tax Act, (iii) the tax imposed by Section 4251 of
25 the Internal Revenue Code, (iv) 911 surcharges, or (v)
26 charges added to customers' bills pursuant to the
27 provisions of Section 9-221 or 9-222 of the Public
28 Utilities Act, as amended, or any similar charges added
29 to customers' bills by retailers who are not subject to
30 rate regulation by the Illinois Commerce Commission for
31 the purpose of recovering any of the tax liabilities or
32 other amounts specified in those provisions of the Public
33 Utilities Act.;
34 (2) Charges for a sent collect telecommunication
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1 received outside of such municipality.;
2 (3) Charges for leased time on equipment or charges
3 for the storage of data or information for subsequent
4 retrieval or the processing of data or information
5 intended to change its form or content. Such equipment
6 includes, but is not limited to, the use of calculators,
7 computers, data processing equipment, tabulating
8 equipment or accounting equipment and also includes the
9 usage of computers under a time-sharing agreement.;
10 (4) Charges for customer equipment, including such
11 equipment that is leased or rented by the customer from
12 any source, wherein such charges are disaggregated and
13 separately identified from other charges.;
14 (5) Charges to business enterprises certified as
15 exempt under Section 9-222.1 of the Public Utilities Act
16 to the extent of such exemption and during the period of
17 time specified by the Department of Commerce and
18 Community Affairs.;
19 (6) Charges for telecommunications and all services
20 and equipment provided in connection therewith between a
21 parent corporation and its wholly owned subsidiaries or
22 between wholly owned subsidiaries when the tax imposed
23 under this Act has already been paid to a retailer and
24 only to the extent that the charges between the parent
25 corporation and wholly owned subsidiaries or between
26 wholly owned subsidiaries represent expense allocation
27 between the corporations and not the generation of profit
28 for the corporation rendering such service.;
29 (7) Bad debts ("bad debt" means any portion of a
30 debt that is related to a sale at retail for which gross
31 charges are not otherwise deductible or excludable that
32 has become worthless or uncollectible, as determined
33 under applicable federal income tax standards; if the
34 portion of the debt deemed to be bad is subsequently
-17- LRB9203256REpkam
1 paid, the retailer shall report and pay the tax on that
2 portion during the reporting period in which the payment
3 is made).;
4 (8) Charges paid by inserting coins in
5 coin-operated telecommunication devices.; or
6 (9) Amounts paid by telecommunications retailers
7 under the Telecommunications Infrastructure Maintenance
8 Fee Act.
9 (10) Charges for nontaxable services or
10 telecommunications if (i) those charges are aggregated
11 with other charges for telecommunications that are
12 taxable, (ii) those charges are not separately stated on
13 the customer bill or invoice, and (iii) the retailer can
14 reasonably identify the nontaxable charges on the
15 retailer's books and records kept in the regular course
16 of business. If the nontaxable charges cannot reasonably
17 be identified, the gross charge from the sale of both
18 taxable and nontaxable services or telecommunications
19 billed on a combined basis shall be attributed to the
20 taxable telecommunications. The burden of proving
21 nontaxable charges shall be on the retailer of the
22 telecommunications.
23 "Interstate telecommunications" means all
24 telecommunications that either originate or terminate outside
25 this State.
26 "Intrastate telecommunications" means all
27 telecommunications that originate and terminate within this
28 State.
29 "Person" means any natural individual, firm, trust,
30 estate, partnership, association, joint stock company, joint
31 venture, corporation, limited liability company, or a
32 receiver, trustee, guardian, or other representative
33 appointed by order of any court, the Federal and State
34 governments, including State universities created by statute,
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1 or any city, town, county, or other political subdivision of
2 this State.
3 "Purchase at retail" means the acquisition, consumption
4 or use of telecommunications through a sale at retail.
5 "Retailer" means and includes every person engaged in the
6 business of making sales at retail as defined in this
7 Section. The Department may, in its discretion, upon
8 application, authorize the collection of the tax hereby
9 imposed by any retailer not maintaining a place of business
10 within this State, who, to the satisfaction of the
11 Department, furnishes adequate security to insure collection
12 and payment of the tax. Such retailer shall be issued,
13 without charge, a permit to collect such tax. When so
14 authorized, it shall be the duty of such retailer to collect
15 the tax upon all of the gross charges for telecommunications
16 in this State in the same manner and subject to the same
17 requirements as a retailer maintaining a place of business
18 within this State. The permit may be revoked by the
19 Department at its discretion.
20 "Retailer maintaining a place of business in this State",
21 or any like term, means and includes any retailer having or
22 maintaining within this State, directly or by a subsidiary,
23 an office, distribution facilities, transmission facilities,
24 sales office, warehouse or other place of business, or any
25 agent or other representative operating within this State
26 under the authority of the retailer or its subsidiary,
27 irrespective of whether such place of business or agent or
28 other representative is located here permanently or
29 temporarily, or whether such retailer or subsidiary is
30 licensed to do business in this State.
31 "Sale at retail" means the transmitting, supplying or
32 furnishing of telecommunications and all services and
33 equipment provided in connection therewith for a
34 consideration, to persons other than the Federal and State
-19- LRB9203256REpkam
1 governments, and State universities created by statute and
2 other than between a parent corporation and its wholly owned
3 subsidiaries or between wholly owned subsidiaries for their
4 use or consumption and not for resale.
5 "Service address" means the location of
6 telecommunications equipment from which telecommunications
7 services are originated or at which telecommunications
8 services are received by a taxpayer. In the event this may
9 not be a defined location, as in the case of mobile phones,
10 paging systems, and maritime systems, service address means
11 the customer's place of primary use as defined in the Mobile
12 Telecommunications Sourcing Conformity Act. For
13 air-to-ground systems and the like, "service address" shall
14 mean the location of a taxpayer's primary use of the
15 telecommunications equipment as defined by telephone number,
16 authorization code, or location in Illinois where bills are
17 sent.
18 "Taxpayer" means a person who individually or through his
19 or her agents, employees, or permittees engages in the act or
20 privilege of originating or receiving telecommunications in a
21 municipality and who incurs a tax liability as authorized by
22 this Act.
23 "Telecommunications", in addition to the meaning
24 ordinarily and popularly ascribed to it, includes, without
25 limitation, messages or information transmitted through use
26 of local, toll, and wide area telephone service, private line
27 services, channel services, telegraph services,
28 teletypewriter, computer exchange services, cellular mobile
29 telecommunications service, specialized mobile radio,
30 stationary two-way radio, paging service, or any other form
31 of mobile and portable one-way or two-way communications, or
32 any other transmission of messages or information by
33 electronic or similar means, between or among points by wire,
34 cable, fiber optics, laser, microwave, radio, satellite, or
-20- LRB9203256REpkam
1 similar facilities. As used in this Act, "private line"
2 means a dedicated non-traffic sensitive service for a single
3 customer, that entitles the customer to exclusive or priority
4 use of a communications channel or group of channels, from
5 one or more specified locations to one or more other
6 specified locations. The definition of "telecommunications"
7 shall not include value added services in which computer
8 processing applications are used to act on the form, content,
9 code, and protocol of the information for purposes other than
10 transmission. "Telecommunications" shall not include
11 purchases of telecommunications by a telecommunications
12 service provider for use as a component part of the service
13 provided by such provider to the ultimate retail consumer who
14 originates or terminates the taxable end-to-end
15 communications. Carrier access charges, right of access
16 charges, charges for use of inter-company facilities, and all
17 telecommunications resold in the subsequent provision of,
18 used as a component of, or integrated into, end-to-end
19 telecommunications service shall be non-taxable as sales for
20 resale. Prepaid telephone calling arrangements shall not be
21 considered "telecommunications" subject to the tax imposed
22 under this Act. For purposes of this Section, "prepaid
23 telephone calling arrangements" means that term as defined in
24 Section 2-27 of the Retailers' Occupation Occupations Tax
25 Act.
26 (Source: P.A. 92-526, eff. 7-1-02; revised 2-25-02.)".