SB2307 103RD GENERAL ASSEMBLY

LRB103 30716 RJT 57191 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2307

Introduced 2/10/2023, by Sen. Celina Villanueva

SYNOPSIS AS INTRODUCED:

New Act

Creates the Commercial Data Collector Tax Act. Provides that there shall be a monthly excise tax on the collection of the consumer data of individual State consumers by commercial data collectors, which shall be paid to the Department of Revenue and deposited into the General Revenue Fund. Sets forth details regarding the tax to be paid, who qualifies as a consumer for purposes of the tax and alternative methods for collecting the tax. Contains provisions concerning required disclosures and rulemaking by the Department. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

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

Section 1. Short title. This Act may be cited as the Commercial Data Collector Tax Act.

Section 5. Definitions.

As used in this Act:

"Commercial data collector" means a for-profit entity that:

(1) collects, maintains, uses, processes, sells, or shares consumer data in support of its business activities; and

(2) collects consumer data, other than consumer contact information, on more than one million individual State consumers in a month within the calendar year.

"Consumer" means an individual who purchases goods or services from a commercial data collector or uses the services of a commercial data collector, whether charged for those services or not.

"Consumer contact information" means a consumer's email address, telephone number, telefax number, home address, mailing address, and credit card information necessary to engage in a sales transaction.

"Consumer data" mean any information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked with a consumer, whether directly submitted to the commercial data collector by the consumer or derived from other sources.

"Department" means the Department of Revenue.

Section 10. Excise tax on the collection of consumer data by commercial data collectors.

(a) A monthly excise tax on the collection of the consumer data of individual State consumers by commercial data collectors shall be paid by the commercial data collectors to the Department and shall be deposited by the Department into the General Revenue Fund. The tax shall apply regardless of the format, electronic or otherwise, in which the consumer data is collected by the commercial data collector.

(b) Except as described in subsection (e), the tax shall be imposed on commercial data collectors at the following rates based on the number of consumers located in the State that a commercial data collector collects data on within the month:

(c) There shall be a rebuttable presumption that a consumer whose information on record with or available to a commercial data collector indicates a home address within the State, a mailing address within the State, or an internet protocol address connected with a location in the State is a consumer for purposes of this Section. The presumption may be rebutted by evidence that a consumer's primary residence is outside the State. A consumer within the State shall be counted only once in the calculation of the monthly excise tax imposed on a commercial data collector. Business entities having common ownership as defined in Section 1563(a) of the federal Internal Revenue Code shall be treated as a single taxpayer for purposes of meeting the definition of commercial data collector under this Section. The entities constituting the single taxpayer are jointly and severally liable for any tax due.

(d) The single member of a single member limited liability company shall be treated as a consumer under this Section.

(e) Alternative methods for calculating tax liability. A commercial data collector and the Department may agree on a methodology for determining the number of consumers in the State for the purpose of calculating the tax.

(f) A commercial data collector that has paid tax under this Section may claim a credit against the tax paid with respect to a consumer within the State when another State imposes an excise tax similar to the tax imposed under this Section with respect to the same consumer.

(g) A commercial data collector shall maintain records as required by the Department.

(h) A commercial data collector shall file a return reporting the number of consumers that the commercial data collector has in a format developed by the Department. If a commercial data collector meets the requirements to pay the tax imposed under this Section or a commercial data collector is currently paying the tax imposed under this Section, then that commercial data collector shall file a monthly return in subsequent months until it reports no tax liability for 12 consecutive months.

(i) The Department shall adopt rules necessary to implement and administer this Act.

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