HB4669 101ST GENERAL ASSEMBLY

LRB101 16497 HLH 65878 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4669

Introduced 2/18/2020, by Rep. Kelly M. Burke

SYNOPSIS AS INTRODUCED:

35 ILCS 120/2-27

Amends the Retailers' Occupation Tax Act. Provides that the term "prepaid telephone calling arrangements" includes only telephone or telecommunications services obtained through the purchase of a prepaid phone, calling card, or other item of tangible personal property. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Retailers' Occupation Tax Act is amended by changing Section 2-27 as follows:

(35 ILCS 120/2-27)

Sec. 2-27. Prepaid telephone calling arrangements. "Prepaid telephone calling arrangements" mean the right to exclusively purchase telephone or telecommunications services that must be paid for in advance and enable the origination of one or more intrastate, interstate, or international telephone calls or other telecommunications using an access number, an authorization code, or both, whether manually or electronically dialed, for which payment to a retailer must be made in advance, provided that (i) , unless recharged, no further service is provided once that prepaid amount of service has been consumed and (ii) the telephone or telecommunications services included in such arrangement are obtained through the purchase of a prepaid phone, calling card, or other item of tangible personal property. Prepaid telephone calling arrangements include the recharge of a prepaid calling arrangement. For purposes of this Section, "recharge" means the purchase of additional prepaid telephone or telecommunications services whether or not the purchaser acquires a different access number or authorization code. For purposes of this Section, "telecommunications" means that term as defined in Section 2 of the Telecommunications Excise Tax Act. "Prepaid telephone calling arrangement" does not include an arrangement whereby the service provider reflects the amount of the purchase as a credit on an account for a customer under an existing subscription plan, nor does it include recharging that is not obtained through the purchase of a prepaid phone, calling card, or other item of tangible personal property.

(Source: P.A. 91-870, eff. 6-22-00.)

Section 99. Effective date. This Act takes effect upon becoming law.