SB1227ham002 98TH GENERAL ASSEMBLY

Rep. Michael J. Zalewski

Filed: 12/2/2013

09800SB1227ham002 LRB098 07937 JWD 50212 a

AMENDMENT TO SENATE BILL 1227

AMENDMENT NO. ______. Amend Senate Bill 1227, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Direct Broadcast Satellite Service Providers Fee Act.

Section 5. Definitions.

"Department" means the Department of Revenue of the State of Illinois.

"Direct broadcast satellite service" means the distribution or broadcasting of video programming or services by satellite to receiving equipment located at a subscriber's or customer's premises, including, but not limited to, the provision of premium channels, the provision of music or other audio services or channels, and any other service received in connection with the provision of that video programming or those services. However, "direct broadcast satellite service" does not include satellite radio service or subscription radio service whereby a digital radio signal is broadcast without any corresponding or related video programming or services.

"Gross revenue" means all consideration of any kind or nature received by a provider, or an affiliate of the provider, in connection with the provision of direct broadcast satellite service to subscribers or customers, including recurring monthly charges for direct broadcast satellite service and pay-per-view, video-on-demand, and other event-based charges for direct broadcast satellite service; provided, however, that gross revenues shall not include:

(1) revenue not actually received, regardless of whether it is billed, including, but not limited to, bad debts;

(2) revenue received by an affiliate or other person in exchange for supplying goods and services used by a provider;

(3) refunds, rebates, or discounts made to subscribers or customers, to advertisers, or to other persons;

(4) revenue from any service that is subject to tax under the Service Occupation Tax Act, Retailers' Occupation Tax Act, Service Use Tax Act, or Use Tax Act;

(5) the fee imposed by this Act or any tax of general applicability imposed on a provider or a purchaser of direct broadcast satellite service, by a federal, State, or local governmental entity and required to be collected by a person and remitted to the taxing entity;

(6) charges, other than those charges specifically described in this Act, that are aggregated or bundled with such specifically-described charges on a subscriber or customer's bill, if the provider can reasonably identify the charges in its books and records kept in the regular course of business;

(7) revenue from advertising services; or

(8) charges that may not be taxed pursuant to the Internet Tax Freedom Act.

"Person" means any natural individual, firm, trust, estate, partnership, association, joint stock company, joint venture, corporation, limited liability company, or a receiver, trustee, guardian, or other representative appointed by order of any court, the federal government and State governments, including State universities created by statute or any city, town, county, or other political subdivision of this State.

"Provider" means a person who transmits, broadcasts, sells, or distributes direct broadcast satellite service to subscribers or customers in the State.

"Subscriber" or "customer" means a member of the general public who receives direct broadcast satellite service from a provider and does not further distribute such service in the ordinary course of business.

"Video programming" means programming provided by, or programming comparable to programming provided by, a television broadcast station or multichannel video service provider, including, but not limited to, video programming provided by local networks, national broadcast networks, and all forms of pay-per-view video entertainment.

Section 10. Imposition of a service provider fee.

(a) A fee is imposed upon the act or privilege of providing direct broadcast satellite service to a subscriber or customer in this State by any provider at the rate of 5% of the provider's gross revenues derived from or attributable to that customer or subscriber.

(b) The fee imposed by subsection (a) may be passed through to, and collected from, the provider's customers in Illinois. To the extent allowed under federal or State law, a provider may identify as a separate line item on each regular bill issued to a subscriber or customer the amount of the total bill assessed as a fee under this Act.

Section 15. Remittances.

(a) On or before the twentieth day of each calendar month, every provider of direct broadcast satellite service to a subscriber or customer in this State during the preceding calendar month shall file a return with the Department, in a form prescribed by the Department, stating:

(1) the name of the provider;

(2) the address of the provider's principal place of business;

(3) total amount of gross revenues received by the provider during the preceding calendar month, quarter, or year, as the case may be, from the provision of direct broadcast satellite service during that preceding calendar month, quarter, or year and upon the basis of which the fee is imposed;

(4) the amount of fee due;

(5) the signature of the provider; and

(6) such other reasonable information as the Department may require.

(b) If a provider fails to sign a return within 30 days after the proper notice and demand for signature by the Department is received by the provider, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

(c) If the provider is otherwise required to file a monthly return, and if the provider's average monthly fee liability to the Department under this Act does not exceed $200, the Department may authorize the provider's returns to be filed on a quarter annual basis, with the return for January, February, and March of a given year being due by April 20 of that year; with the return for April, May, and June of a given year being due by July 20 of that year; with the return for July, August, and September of a given year being due by October 20 of that year; and with the return for October, November, and December of a given year being due by January 20 of the following year.

(d) If the provider is otherwise required to file a monthly or quarterly return, and if the provider's average monthly fee liability with the Department under this Act does not exceed $50, the Department may authorize the provider's returns to be filed on an annual basis, with the return for a given year being due by January 20 of the following year.

(e) Those quarterly and annual returns shall be subject to the same requirements as to form and substance as monthly returns.

(f) A provider who has a fee liability that exceeds the amount set forth in subsection (b) of Section 2505-210 of the Department of Revenue Law for tax liabilities shall make all payments required by rules of the Department by electronic funds transfer.

(g) Any provider not required to make payments by electronic funds transfer may make payments by electronic funds transfer with the permission of the Department.

(h) All providers required to make payment by electronic funds transfer and any providers authorized to voluntarily make payments by electronic funds transfer shall make those payments in the manner authorized by the Department.

Section 20. Records.

(a) A provider on whom a fee is imposed by this Act shall maintain the necessary records, and any other information required by the Department, to determine the amount of the fee that the provider is required to remit and any credit that the provider is entitled to claim under this Act.

(b) The records shall be open at all times to inspection by the Department.

Section 25. Distribution of proceeds. The proceeds of the fee collected shall be deposited into the Education Assistance Fund.

Section 30. Department's authority to adopt rules. The Department is authorized to make, promulgate, and enforce such reasonable rules, and to prescribe such forms relating to the administration and enforcement of this Act, as it may deem appropriate.

Section 35. Applicability. This Act becomes operative on July 1, 2014, and applies to the provision of direct broadcast satellite service on or after that date.

Section 50. The Economic Development for a Growing Economy Tax Credit Act is amended by changing Section 5-15 as follows:

(35 ILCS 10/5-15)

Sec. 5-15. Tax Credit Awards. Subject to the conditions set forth in this Act, a Taxpayer is entitled to a Credit against or, as described in subsection (g) of this Section, a payment towards taxes imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act that may be imposed on the Taxpayer for a taxable year beginning on or after January 1, 1999, if the Taxpayer is awarded a Credit by the Department under this Act for that taxable year.

(a) The Department shall make Credit awards under this Act to foster job creation and retention in Illinois.

(b) A person that proposes a project to create new jobs in Illinois must enter into an Agreement with the Department for the Credit under this Act.

(c) The Credit shall be claimed for the taxable years specified in the Agreement.

(d) The Credit shall not exceed the Incremental Income Tax attributable to the project that is the subject of the Agreement.

(e) Nothing herein shall prohibit a Tax Credit Award to an Applicant that uses a PEO if all other award criteria are satisfied.

(f) In lieu of the Credit allowed under this Act against the taxes imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act for any taxable year ending on or after December 31, 2009, the Taxpayer may elect to claim the Credit against its obligation to pay over withholding under Section 704A of the Illinois Income Tax Act.

(1) The election under this subsection (f) may be made only by a Taxpayer that (i) is primarily engaged in one of the following business activities: water purification and treatment, motor vehicle metal stamping, automobile manufacturing, automobile and light duty motor vehicle manufacturing, motor vehicle manufacturing, light truck and utility vehicle manufacturing, heavy duty truck manufacturing, motor vehicle body manufacturing, cable television infrastructure design or manufacturing, or wireless telecommunication or computing terminal device design or manufacturing for use on public networks and (ii) meets the following criteria:

(A) the Taxpayer (i) had an Illinois net loss or an Illinois net loss deduction under Section 207 of the Illinois Income Tax Act for the taxable year in which the Credit is awarded, (ii) employed a minimum of 1,000 full-time employees in this State during the taxable year in which the Credit is awarded, (iii) has an Agreement under this Act on December 14, 2009 (the effective date of Public Act 96-834), and (iv) is in compliance with all provisions of that Agreement;

(B) the Taxpayer (i) had an Illinois net loss or an Illinois net loss deduction under Section 207 of the Illinois Income Tax Act for the taxable year in which the Credit is awarded, (ii) employed a minimum of 1,000 full-time employees in this State during the taxable year in which the Credit is awarded, and (iii) has applied for an Agreement within 365 days after December 14, 2009 (the effective date of Public Act 96-834);

(C) the Taxpayer (i) had an Illinois net operating loss carryforward under Section 207 of the Illinois Income Tax Act in a taxable year ending during calendar year 2008, (ii) has applied for an Agreement within 150 days after the effective date of this amendatory Act of the 96th General Assembly, (iii) creates at least 400 new jobs in Illinois, (iv) retains at least 2,000 jobs in Illinois that would have been at risk of relocation out of Illinois over a 10-year period, and (v) makes a capital investment of at least $75,000,000;

(D) the Taxpayer (i) had an Illinois net operating loss carryforward under Section 207 of the Illinois Income Tax Act in a taxable year ending during calendar year 2009, (ii) has applied for an Agreement within 150 days after the effective date of this amendatory Act of the 96th General Assembly, (iii) creates at least 150 new jobs, (iv) retains at least 1,000 jobs in Illinois that would have been at risk of relocation out of Illinois over a 10-year period, and (v) makes a capital investment of at least $57,000,000; or

(E) the Taxpayer (i) employed at least 2,500 full-time employees in the State during the year in which the Credit is awarded, (ii) commits to make at least $500,000,000 in combined capital improvements and project costs under the Agreement, (iii) applies for an Agreement between January 1, 2011 and June 30, 2011, (iv) executes an Agreement for the Credit during calendar year 2011, and (v) was incorporated no more than 5 years before the filing of an application for an Agreement.

(1.5) The election under this subsection (f) may also be made by a Taxpayer for any Credit awarded pursuant to an agreement that was executed between January 1, 2011 and June 30, 2011, if the Taxpayer (i) is primarily engaged in the manufacture of inner tubes or tires, or both, from natural and synthetic rubber, (ii) employs a minimum of 2,400 full-time employees in Illinois at the time of application, (iii) creates at least 350 full-time jobs and retains at least 250 full-time jobs in Illinois that would have been at risk of being created or retained outside of Illinois, and (iv) makes a capital investment of at least $200,000,000 at the project location.

(1.6) The election under this subsection (f) may also be made by a Taxpayer for any Credit awarded pursuant to an agreement that was executed within 150 days after the effective date of this amendatory Act of the 97th General Assembly, if the Taxpayer (i) is primarily engaged in the operation of a discount department store, (ii) maintains its corporate headquarters in Illinois, (iii) employs a minimum of 4,250 full-time employees at its corporate headquarters in Illinois at the time of application, (iv) retains at least 4,250 full-time jobs in Illinois that would have been at risk of being relocated outside of Illinois, (v) had a minimum of $40,000,000,000 in total revenue in 2010, and (vi) makes a capital investment of at least $300,000,000 at the project location.

(1.7) Notwithstanding any other provision of law, the election under this subsection (f) may also be made by a Taxpayer for any Credit awarded pursuant to an agreement that was executed or applied for on or after July 1, 2011 and on or before March 31, 2012, if the Taxpayer is primarily engaged in the manufacture of original and aftermarket filtration parts and products for automobiles, motor vehicles, light duty motor vehicles, light trucks and utility vehicles, and heavy duty trucks, (ii) employs a minimum of 1,000 full-time employees in Illinois at the time of application, (iii) creates at least 250 full-time jobs in Illinois, (iv) relocates its corporate headquarters to Illinois from another state, and (v) makes a capital investment of at least $4,000,000 at the project location.

(1.8) The election under this subsection (f) may also be made if:

(i) the agreement awarding the Credit was executed on or after the effective date of this amendatory Act of the 98th General Assembly but not later than 150 days after the effective date of this amendatory Act of the 98th General Assembly;

(ii) the taxpayer is primarily engaged in retail and business-to-business office products distribution, sales, and service;

(iii) the taxpayer maintains its corporate headquarters in Illinois;

(iv) the taxpayer employs a minimum of 2,050 full-time employees at its corporate headquarters and non-retail corporate locations in Illinois at the time of application;

(v) the taxpayer retains at least 2,050 full-time jobs in Illinois that would have been at risk of being relocated outside of Illinois as a result of a business combination with a third party;

(vi) the taxpayer creates at least 200 full-time jobs in Illinois as a result of a business combination with a third party;

(vii) the taxpayer's total aggregate revenue, when combined with that third party, was at least $17,500,000,000 in 2012; and

(viii) the taxpayer makes a capital investment of at least $150,000,000 at the project location.

(1.9) Notwithstanding any other provision of law, an election under this subsection (f) may also be made by a Taxpayer that:

(A) is primarily engaged in business as a distributor of industrial and specialty chemicals;

(B) relocates its corporate headquarters to Illinois from another State; and

(C) entered into an Agreement for a Credit prior to the effective date of this amendatory Act of the 98th General Assembly, which required the Taxpayer to (i) make a capital investment of at least $9,300,000, (ii) retain at least 100 full-time jobs at project locations in Illinois, and (iii) create at least 69 full-time jobs at project locations in Illinois.

(2) An election under this subsection shall allow the credit to be taken against payments otherwise due under Section 704A of the Illinois Income Tax Act during the first calendar year beginning after the end of the taxable year in which the credit is awarded under this Act, except that an election under paragraph (1.9) shall allow the credit to be taken against payments otherwise due under Section 704A of the Illinois Income Tax Act during the 12-month period beginning with the first month after the Taxpayer relocates its corporate headquarters to Illinois.

(3) The election shall be made in the form and manner required by the Illinois Department of Revenue and, once made, shall be irrevocable.

(4) If a Taxpayer who meets the requirements of subparagraph (A) of paragraph (1) of this subsection (f) elects to claim the Credit against its withholdings as provided in this subsection (f), then, on and after the date of the election, the terms of the Agreement between the Taxpayer and the Department may not be further amended during the term of the Agreement.

(g) A pass-through entity that has been awarded a credit under this Act, its shareholders, or its partners may treat some or all of the credit awarded pursuant to this Act as a tax payment for purposes of the Illinois Income Tax Act. The term "tax payment" means a payment as described in Article 6 or Article 8 of the Illinois Income Tax Act or a composite payment made by a pass-through entity on behalf of any of its shareholders or partners to satisfy such shareholders' or partners' taxes imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act. In no event shall the amount of the award credited pursuant to this Act exceed the Illinois income tax liability of the pass-through entity or its shareholders or partners for the taxable year.

(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)

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