Sen. Pamela J. Althoff
Filed: 3/23/2009
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 82




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    AMENDMENT NO. ______. Amend Senate Bill 82 on page 10, by 
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replacing line 20 with the following: "the extent otherwise 
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provided in Section  5-1095.1 of the Counties Code and Sections 
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8-11-2.5 and 11-42-11.05 of the"; and

 
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on page 11, immediately below line 23, by inserting the 
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following:
 
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    "Section 15. The Counties Code is amended by adding Section 
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5-1095.1 as follows:
 
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    (55 ILCS 5/5-1095.1 new)

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    Sec. 5-1095.1. County tax review; requests for 
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information.
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    (a) If a county has imposed a tax under Section 5-1095, 
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then the county may conduct an audit of tax receipts collected 
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from the incumbent cable operator that is subject to the tax or 
 


 






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that collects the tax from purchasers on behalf of the county 
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to determine whether the amount of tax that was paid by the 
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incumbent cable operator was accurate.
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    (b) Not more than once every 2 years, a county that has 
5
imposed a tax under this Act may, subject to the limitations 
6
and protections stated in Section 22-501 of the Cable and Video 
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Customer Protection Law and in the Local Government Taxpayers' 
8
Bill of Rights Act,  request any information from the incumbent 
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cable operator in the format maintained by the incumbent cable 
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operator in the ordinary course of its business that the county 
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reasonably requires in order to perform an audit under 
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subsection (a). The information that may be requested by the 
13
county includes, without limitation: 
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        (1) in an electronic format used  by the incumbent cable 
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    operator in the ordinary course of its business, the 
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    database used by the incumbent cable operator to determine 
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    the amount of tax due to the county; and
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        (2) in a format used by the incumbent cable operator in 
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    the ordinary course of its business, summary data, as 
20
    needed by the county, to determine the gross revenues 
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    collected and the associated taxes assessed.
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    (c) Each incumbent cable operator must provide the 
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information requested under subsection (b) within:
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        (1) 60 days after the date of the request if the 
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    population of the requesting county is 500,000 or less; or
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        (2) 90 days after the date of the request if the 
 


 






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    population of the requesting county exceeds  500,000. 
2
    The time in which an incumbent cable operator must provide 
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the information requested under subsection (b) may be extended 
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by an agreement between the county and the incumbent cable 
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operator.  If an incumbent cable operator receives, during a 
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single month, information requests from more than 2 counties, 
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or the aggregate population of the requesting counties is 
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100,000 customers or more, the incumbent cable operator is 
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entitled to an additional 30 days to respond to those requests.  
10
The Illinois Department of Revenue may grant the incumbent 
11
cable operator additional extensions to respond.
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    (d) If an audit by the county or its agents finds an error 
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by the incumbent cable operator in the amount of taxes paid by 
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the incumbent cable operator, then the county may notify the 
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incumbent cable operator of the error. Any such notice must be 
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made by the county no later than 4 years after the date the tax 
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required to be paid under this Law was due or any lesser period 
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of time that may be specified in the county ordinance imposing 
19
the tax. Upon such a notice, the incumbent cable operator must 
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submit a written response within 60 days after the date the 
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notice was postmarked stating that it has corrected the error 
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on a prospective basis or stating the reason that the error is 
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inapplicable or inaccurate. The county then has 60 days after 
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the receipt of the incumbent cable operator's response to 
25
review and contest the conclusion of the incumbent cable 
26
operator.  If the parties are unable to agree on the disposition 
 


 






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of the audit findings within 120 days after the notification of 
2
the error to the incumbent cable operator, then either party 
3
may submit the matter to the Illinois Department of Revenue for 
4
resolution.
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    (e) No incumbent cable operator is liable for any error in 
6
past collections and payments that was unknown by it prior to 
7
the audit process unless (i) the error was due to gross 
8
negligence by the incumbent cable operator in the collection or 
9
processing of required data and (ii) the county had not failed 
10
to respond in writing on an accurate and timely basis to any 
11
written request of the incumbent cable operator to review and 
12
correct information used by the incumbent cable operator to 
13
collect  the county's tax if a diligent review of such 
14
information by the county reasonably could have been expected 
15
to discover such error. If, however, an error in past 
16
collections or payments resulted in a customer who should not 
17
have owed a tax to any county, having paid a tax to a county, 
18
then the customer may recover the tax from the incumbent cable 
19
operator, and any amount so paid by the incumbent cable 
20
operator may be deducted by that  incumbent cable operator from 
21
any taxes then or thereafter owed by the incumbent cable 
22
operator to that county.
23
    (f) All account specific information provided by an 
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incumbent cable operator under this Section may be used only 
25
for the purpose of an audit of taxes conducted under this 
26
Section and the enforcement of any related tax claim.  All such 
 


 






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information must be held in strict confidence by the county and 
2
its agents and may not be disclosed to the public under the 
3
Freedom of Information Act or under any other similar statutes 
4
allowing for or requiring public disclosure.
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    (g) An incumbent cable operator that collects less than 
6
$1,000 annually in taxes under this Act is exempt from the 
7
provisions of subsections (a) through (e) of this Section.
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    (h) The Department of Revenue shall adopt any rules that 
9
are required to effectively enforce this Section. The 
10
Department of Revenue has the exclusive jurisdiction to resolve 
11
any disputes arising under this Section, subject to review by 
12
the courts under the Administrative Review Law.
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    (i) Any incumbent cable operator that fails to comply with 
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the provisions of subsection (c) or (d) of this Section shall 
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pay for all costs of enforcement by the Illinois Department of 
16
Revenue, including reasonable legal fees. 
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    (j) For the purposes of this Section, "incumbent cable 
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operator" means a person or entity that provided cable services 
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or video services in a particular area under a franchise 
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agreement with a unit of local government pursuant to Section 
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11-42-11 of the Illinois Municipal Code or Section 5-1095 of 
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the Counties Code on January 1, 2007."; and 
 
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on page 11, by replacing lines 24 and 25 with the following: 
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    "Section 20. The Illinois Municipal Code is amended by 
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adding Sections 8-11-2.5 and 11-42-11.05 as follows:"; and
 
 


 






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on page 16, immediately above line 10, by inserting the 
2
following:
 
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    "(65 ILCS 5/11-42-11.05  new)
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    Sec. 11-42-11.05. Municipal tax review; requests for 
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information.
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    (a) If a municipality has imposed a tax under Section 
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11-42-11, then the municipality may conduct an audit of tax 
8
receipts collected from the incumbent cable operator that is 
9
subject to the tax or that collects the tax from purchasers on 
10
behalf of the municipality to determine whether the amount of 
11
tax that was paid by the incumbent cable operator was accurate.
12
    (b) Not more than once every 2 years, a municipality that 
13
has imposed a tax under this Act may, subject to the 
14
limitations and protections stated in Section 22-501 of the 
15
Cable and Video Customer Protection Law and in the Local 
16
Government Taxpayers' Bill of Rights Act,  request any 
17
information from the incumbent cable operator in the format 
18
maintained by the incumbent cable operator in the ordinary 
19
course of its business that the municipality reasonably 
20
requires in order to perform an audit under subsection (a). The 
21
information that may be requested by the municipality includes, 
22
without limitation:
23
        (1) in an electronic format used  by the incumbent cable 
24
    operator in the ordinary course of its business, the 
 


 






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    database used by the incumbent cable operator to determine 
2
    the amount of tax due to the municipality; and
3
        (2) in a format used by the incumbent cable operator in 
4
    the ordinary course of its business, summary data, as 
5
    needed by the municipality, to determine the gross revenues 
6
    collected and the associated taxes assessed.
7
    (c) Each incumbent cable operator must provide the 
8
information requested under subsection (b) within:
9
        (1) 60 days after the date of the request if the 
10
    population of the requesting municipality is 500,000 or 
11
    less; or
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        (2) 90 days after the date of the request if the 
13
    population of the requesting municipality exceeds  500,000.
14
    The time in which an incumbent cable operator must provide 
15
the information requested under subsection (b) may be extended 
16
by an agreement between the municipality and the incumbent 
17
cable operator.  If an incumbent cable operator receives, during 
18
a single month, information requests from more than 2 
19
municipalities, or the aggregate population of the requesting 
20
municipalities is 100,000 customers or more, the incumbent 
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cable operator is entitled to an additional 30 days to respond 
22
to those requests.  The Illinois Department of Revenue may grant 
23
the incumbent cable operator additional extensions to respond.
24
    (d) If an audit by the municipality or its agents finds an 
25
error by the incumbent cable operator in the amount of taxes 
26
paid by the incumbent cable operator, then the municipality may 
 


 






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notify the incumbent cable operator of the error. Any such 
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notice must be made by the municipality no later than 4 years 
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after the date the tax required to be paid under this Law was 
4
due or any lesser period of time that may be specified in the 
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municipal ordinance imposing the tax. Upon such a notice, the 
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incumbent cable operator must submit a written response within 
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60 days after the date the notice was postmarked stating that 
8
it has corrected the error on a prospective basis or stating 
9
the reason that the error is inapplicable or inaccurate. The 
10
municipality then has 60 days after the receipt of the 
11
incumbent cable operator's response to review and contest the 
12
conclusion of the incumbent cable operator.  If the parties are 
13
unable to agree on the disposition of the audit findings within 
14
120 days after the notification of the error to the incumbent 
15
cable operator, then either party may submit the matter to the 
16
Illinois Department of Revenue for resolution.
17
    (e) No incumbent cable operator is liable for any error in 
18
past collections and payments that was unknown by it prior to 
19
the audit process unless (i) the error was due to gross 
20
negligence by the incumbent cable operator in the collection or 
21
processing of required data and (ii) the municipality had not 
22
failed to respond in writing on an accurate and timely basis to 
23
any written request of the incumbent cable operator to review 
24
and correct information used by the incumbent cable operator to 
25
collect  the municipality's tax if a diligent review of such 
26
information by the municipality reasonably could have been 
 


 






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expected to discover such error. If, however, an error in past 
2
collections or payments resulted in a customer who should not 
3
have owed a tax to any municipality, having paid a tax to a 
4
municipality, then the customer may recover the tax from the 
5
incumbent cable operator, and any amount so paid by the 
6
incumbent cable operator may be deducted by that  incumbent 
7
cable operator from any taxes then or thereafter owed by the 
8
incumbent cable operator to that municipality.
9
    (f) All account specific information provided by an 
10
incumbent cable operator under this Section may be used only 
11
for the purpose of an audit of taxes conducted under this 
12
Section and the enforcement of any related tax claim.  All such 
13
information must be held in strict confidence by the 
14
municipality and its agents and may not be disclosed to the 
15
public under the Freedom of Information Act or under any other 
16
similar statutes allowing for or requiring public disclosure.
17
    (g) An incumbent cable operator that collects less than 
18
$1,000 annually in taxes under this Act is exempt from the 
19
provisions of subsections (a) through (e) of this Section.
20
    (h) The Department of Revenue shall adopt any rules that 
21
are required to effectively enforce this Section.  The 
22
Department of Revenue has the exclusive jurisdiction to resolve 
23
any disputes arising under this Section, subject to review by 
24
the courts under the Administrative Review Law.
25
    (i) Any incumbent cable operator that fails to comply with 
26
the provisions of subsection (c) or (d) of this Section shall 
 


 






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1
pay for all costs of enforcement by the Illinois Department of 
2
Revenue, including reasonable legal fees.
3
    (j) For the purposes of this Section, "incumbent cable 
4
operator" means a person or entity that provided cable services 
5
or video services in a particular area under a franchise 
6
agreement with a unit of local government pursuant to Section 
7
11-42-11 of the Illinois Municipal Code or Section 5-1095 of 
8
the Counties Code on January 1, 2007.".