94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0111


 
Introduced 2/1/2005, by Sen. William E. Peterson
 
SYNOPSIS AS INTRODUCED:
 		
















35 ILCS 630/3
  from Ch. 120, par. 2003


35 ILCS 630/4
  from Ch. 120, par. 2004







    Amends the Telecommunications Excise Tax Act.  Provides that the  tax exemptions for  prepaid telephone calling arrangements are exempt from the sunset provisions of the Act. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB0111

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1
    AN ACT concerning revenue.

 
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 amended  
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by changing Sections 3 and 4 as follows:
 



6
    (35 ILCS 630/3)  (from Ch. 120, par. 2003)



7
    Sec. 3. Tax imposed on intrastate telecommunications; 
8
exemptions.

9
    (a) Until December 31, 1997, a tax is imposed upon the act 
10
or
privilege of originating or
receiving intrastate 
11
telecommunications by a person in this State at the
rate of 5% 
12
of the gross charge for such telecommunications purchased at

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retail from a retailer by such person.  Beginning January 1, 
14
1998, a tax is
imposed upon the act or privilege of originating 
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in this State or receiving in
this State intrastate 
16
telecommunications by a person in this State at the rate
of
7% 
17
of the gross charge for such telecommunications purchased at 
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retail from a
retailer by such person.  However, such tax is not 
19
imposed on
the act or privilege to the extent such act or 
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privilege may not, under the
Constitution and statutes of the 
21
United States, be made the subject of
taxation by the State.

22
    (b) Beginning January 1, 2001, prepaid telephone calling 
23
arrangements shall not
be considered telecommunications 
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subject to the tax imposed under this Act. This subsection is 
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exempt from the provisions of Section 4.5.


26
(Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)

 



27
    (35 ILCS 630/4)  (from Ch. 120, par. 2004)



28
    Sec. 4. Tax imposed on interstate telecommunications; 
29
exemptions.
30
    (a) Until December 31, 1997, a tax is imposed upon the act 
31
or
privilege of originating in this State or receiving in this 
 


 






SB0111
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1
State interstate
telecommunications by a person in this State 
2
at the rate of 5% of the gross
charge for such 
3
telecommunications purchased at retail from a retailer by such

4
person.  Beginning January 1, 1998, a tax is imposed upon the 
5
act or
privilege
of originating in this State or receiving in 
6
this State interstate
telecommunications by a person in this 
7
State at the rate of 7% of the gross
charge for such 
8
telecommunications purchased at retail from a
retailer by such 
9
person.  To prevent actual multi-state
taxation of the act or 
10
privilege that is subject to taxation under this
paragraph, any 
11
taxpayer, upon proof that that taxpayer has paid a tax in

12
another state on such event, shall be allowed a credit against 
13
the tax
imposed in this Section 4 to the extent of the amount 
14
of such tax
properly due and paid in such other state.  However, 
15
such tax is not
imposed on the act or privilege to the extent 
16
such act or privilege
may not, under the Constitution and 
17
statutes of the United States, be made
the subject of taxation 
18
by the State.

19
    (b) Beginning on January 1, 2001, prepaid telephone calling 
20
arrangements shall
not be
considered telecommunications 
21
subject to the tax imposed under this Act. This subsection is 
22
exempt from the provisions of Section 4.5.

23
(Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)

 

24
    Section 99. Effective date. This Act takes effect upon 
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becoming law.