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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Prepaid Wireless 9-1-1 Surcharge Act is | ||||||
5 | amended by changing Sections 15 and 20 as follows: | ||||||
6 | (50 ILCS 753/15)
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7 | Sec. 15. Prepaid wireless 9-1-1 surcharge. | ||||||
8 | (a) There is hereby imposed on consumers a prepaid wireless | ||||||
9 | 9-1-1 surcharge of 1.5% per retail transaction.
The surcharge | ||||||
10 | authorized by this subsection (a) does not apply in a home rule | ||||||
11 | municipality having a population in excess of 500,000. The | ||||||
12 | amount of the surcharge may be reduced or increased pursuant to | ||||||
13 | subsection (e). | ||||||
14 | (a-5) A home rule municipality having a population in | ||||||
15 | excess of 500,000 on the effective date of this Act may only | ||||||
16 | impose a prepaid wireless 9-1-1 surcharge not to exceed 7% per | ||||||
17 | retail transaction sourced to that jurisdiction and collected | ||||||
18 | and remitted in accordance with the provisions of subsection | ||||||
19 | (b-5). | ||||||
20 | (b) The prepaid wireless 9-1-1 surcharge shall be collected | ||||||
21 | by the seller from the consumer with respect to each retail | ||||||
22 | transaction occurring in this State and shall be remitted to | ||||||
23 | the Department by the seller as provided in this Act. The |
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1 | amount of the prepaid wireless 9-1-1 surcharge shall be | ||||||
2 | separately stated as a distinct item apart from the charge for | ||||||
3 | the prepaid wireless telecommunications service on an invoice, | ||||||
4 | receipt, or other similar document that is provided to the | ||||||
5 | consumer by the seller or shall be otherwise disclosed to the | ||||||
6 | consumer.
If the seller does not separately state the surcharge | ||||||
7 | as a distinct item to the consumer as provided in this Section, | ||||||
8 | then the seller shall maintain books and records as required by | ||||||
9 | this Act which clearly identify the amount of the 9-1-1 | ||||||
10 | surcharge for retail transactions. | ||||||
11 | For purposes of this subsection (b), a retail transaction | ||||||
12 | occurs in this State if (i) the retail transaction is made in | ||||||
13 | person by a consumer at the seller's business location and the | ||||||
14 | business is located within the State; (ii) the seller is a | ||||||
15 | provider and sells prepaid wireless telecommunications service | ||||||
16 | to a consumer located in Illinois; (iii) the retail transaction | ||||||
17 | is treated as occurring in this State for purposes of the | ||||||
18 | Retailers' Occupation Tax Act; or (iv) a seller that is | ||||||
19 | included within the definition of a "retailer maintaining a | ||||||
20 | place of business in this State" under Section 2 of the Use Tax | ||||||
21 | Act makes a sale of prepaid wireless telecommunications service | ||||||
22 | to a consumer located in Illinois. In the case of a retail | ||||||
23 | transaction which does not occur in person at a seller's | ||||||
24 | business location, if a consumer uses a credit card to purchase | ||||||
25 | prepaid wireless telecommunications service on-line or over | ||||||
26 | the telephone, and no product is shipped to the consumer, the |
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1 | transaction occurs in this State if the billing address for the | ||||||
2 | consumer's credit card is in this State. | ||||||
3 | (b-5) The prepaid wireless 9-1-1 surcharge imposed under | ||||||
4 | subsection (a-5) of this Section shall be collected by the | ||||||
5 | seller from the consumer with respect to each retail | ||||||
6 | transaction occurring in the municipality imposing the | ||||||
7 | surcharge. The amount of the prepaid wireless 9-1-1 surcharge | ||||||
8 | shall be separately stated on an invoice, receipt, or other | ||||||
9 | similar document that is provided to the consumer by the seller | ||||||
10 | or shall be otherwise disclosed to the consumer. If the seller | ||||||
11 | does not separately state the surcharge as a distinct item to | ||||||
12 | the consumer as provided in this Section, then the seller shall | ||||||
13 | maintain books and records as required by this Act which | ||||||
14 | clearly identify the amount of the 9-1-1 surcharge for retail | ||||||
15 | transactions. | ||||||
16 | For purposes of this subsection (b-5), a retail transaction | ||||||
17 | occurs in the municipality if (i) the retail transaction is | ||||||
18 | made in person by a consumer at the seller's business location | ||||||
19 | and the business is located within the municipality; (ii) the | ||||||
20 | seller is a provider and sells prepaid wireless | ||||||
21 | telecommunications service to a consumer located in the | ||||||
22 | municipality; (iii) the retail transaction is treated as | ||||||
23 | occurring in the municipality for purposes of the Retailers' | ||||||
24 | Occupation Tax Act; or (iv) a seller that is included within | ||||||
25 | the definition of a "retailer maintaining a place of business | ||||||
26 | in this State" under Section 2 of the Use Tax Act makes a sale |
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1 | of prepaid wireless telecommunications service to a consumer | ||||||
2 | located in the municipality. In the case of a retail | ||||||
3 | transaction which does not occur in person at a seller's | ||||||
4 | business location, if a consumer uses a credit card to purchase | ||||||
5 | prepaid wireless telecommunications service on-line or over | ||||||
6 | the telephone, and no product is shipped to the consumer, the | ||||||
7 | transaction occurs in the municipality if the billing address | ||||||
8 | for the consumer's credit card is in the municipality. | ||||||
9 | (c) The prepaid wireless 9-1-1 surcharge is imposed on the | ||||||
10 | consumer and not on any provider. The seller shall be liable to | ||||||
11 | remit all prepaid wireless 9-1-1 surcharges that the seller | ||||||
12 | collects from consumers as provided in Section 20, including | ||||||
13 | all such surcharges that the seller is deemed to collect where | ||||||
14 | the amount of the surcharge has not been separately stated on | ||||||
15 | an invoice, receipt, or other similar document provided to the | ||||||
16 | consumer by the seller.
The surcharge collected or deemed | ||||||
17 | collected by a seller shall constitute a debt owed by the | ||||||
18 | seller to this State, and any such surcharge actually collected | ||||||
19 | shall be held in trust for the benefit of the Department. | ||||||
20 | For purposes of this subsection (c), the surcharge shall | ||||||
21 | not be imposed or collected from entities that have an active | ||||||
22 | tax exemption identification number issued by the Department | ||||||
23 | are tax exempt under Section 1g of the Retailers' Occupation | ||||||
24 | Tax Act. | ||||||
25 | (d) The amount of the prepaid wireless 9-1-1 surcharge that | ||||||
26 | is collected by a seller from a consumer, if such amount is |
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1 | separately stated on an invoice, receipt, or other similar | ||||||
2 | document provided to the consumer by the seller, shall not be | ||||||
3 | included in the base for measuring any tax, fee, surcharge, or | ||||||
4 | other charge that is imposed by this State, any political | ||||||
5 | subdivision of this State, or any intergovernmental agency.
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6 | (e) The prepaid wireless 9-1-1 charge imposed under | ||||||
7 | subsection (a) of this Section shall be proportionately | ||||||
8 | increased or reduced, as applicable, upon any change to the | ||||||
9 | surcharge imposed under Section 17 of the Wireless Emergency | ||||||
10 | Telephone Safety Act. The adjusted rate shall be determined by | ||||||
11 | dividing the amount of the surcharge imposed under Section 17 | ||||||
12 | of the Wireless Emergency Telephone Safety Act by $50. Such | ||||||
13 | increase or reduction shall be effective on the first day of | ||||||
14 | the first calendar month to occur at least 60 days after the | ||||||
15 | enactment of the change to the surcharge imposed under Section | ||||||
16 | 17 of the Wireless Emergency Telephone Safety Act. The | ||||||
17 | Department shall provide not less than 30 days' notice of an | ||||||
18 | increase or reduction in the amount of the surcharge on the | ||||||
19 | Department's website.
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20 | (e-5) Any changes in the rate of the surcharge imposed by a | ||||||
21 | municipality under the authority granted in subsection (a-5) of | ||||||
22 | this Section shall be effective on the first day of the first | ||||||
23 | calendar month to occur at least 60 days after the enactment of | ||||||
24 | the change. The Department shall provide not less than 30 days' | ||||||
25 | notice of the increase or reduction in the rate of such | ||||||
26 | surcharge on the Department's website. |
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1 | (f) When prepaid wireless telecommunications service is | ||||||
2 | sold with one or more other products or services for a single, | ||||||
3 | non-itemized price, then the percentage specified in | ||||||
4 | subsection (a) or (a-5) of this Section 15 shall be applied to | ||||||
5 | the entire non-itemized price unless the seller elects to apply | ||||||
6 | the percentage to (i) the dollar amount of the prepaid wireless | ||||||
7 | telecommunications service if that dollar amount is disclosed | ||||||
8 | to the consumer or (ii) the portion of the price that is | ||||||
9 | attributable to the prepaid wireless telecommunications | ||||||
10 | service if the retailer can identify that portion by reasonable | ||||||
11 | and verifiable standards from its books and records that are | ||||||
12 | kept in the regular course of business for other purposes, | ||||||
13 | including, but not limited to, books and records that are kept | ||||||
14 | for non-tax purposes. However, if a minimal amount of prepaid | ||||||
15 | wireless telecommunications service is sold with a prepaid | ||||||
16 | wireless device for a single, non-itemized price, then the | ||||||
17 | seller may elect not to apply the percentage specified in | ||||||
18 | subsection (a) or (a-5) of this Section 15 to such transaction. | ||||||
19 | For purposes of this subsection, an amount of service | ||||||
20 | denominated as 10 minutes or less or $5 or less is considered | ||||||
21 | minimal.
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22 | (Source: P.A. 97-463, eff. 1-1-12.) | ||||||
23 | (50 ILCS 753/20)
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24 | Sec. 20. Administration of prepaid wireless 9-1-1 | ||||||
25 | surcharge. |
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1 | (a) In the administration and enforcement of this Act, the | ||||||
2 | provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, | ||||||
3 | 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the | ||||||
4 | Retailers' Occupation Tax Act that are not inconsistent with | ||||||
5 | this Act, and Section 3-7 of the Uniform Penalty and Interest | ||||||
6 | Act shall apply, as far as practicable, to the subject matter | ||||||
7 | of this Act to the same extent as if those provisions were | ||||||
8 | included in this Act. References to "taxes" in these | ||||||
9 | incorporated Sections shall be construed to apply to the | ||||||
10 | administration, payment, and remittance of all surcharges | ||||||
11 | under this Act. The Department shall establish registration and | ||||||
12 | payment procedures that substantially coincide with the | ||||||
13 | registration and payment procedures that apply to the | ||||||
14 | Retailers' Occupation Tax Act.
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15 | (b) For the first 12 months after the effective date of | ||||||
16 | this Act, a seller shall be permitted to deduct and retain 5% | ||||||
17 | of prepaid wireless 9-1-1 surcharges that are collected by the | ||||||
18 | seller from consumers and that are remitted and timely filed | ||||||
19 | with the Department.
After the first 12 months, a seller shall | ||||||
20 | be permitted to deduct and retain 3% of prepaid wireless 9-1-1 | ||||||
21 | surcharges that are collected by the seller from consumers and | ||||||
22 | that are remitted and timely filed with the Department. | ||||||
23 | (c) Other than the amounts for deposit into the Municipal | ||||||
24 | Wireless Service Emergency Fund, the Department shall pay to | ||||||
25 | the State Treasurer all prepaid wireless E911 charges and | ||||||
26 | penalties collected under this Act for deposit into the |
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1 | Wireless Service Emergency Fund. On or before the 25th day of | ||||||
2 | each calendar month, the Department shall prepare and certify | ||||||
3 | to the Comptroller the amount available to the Illinois | ||||||
4 | Commerce Commission for distribution out of the Wireless | ||||||
5 | Service Emergency Fund. The amount certified shall be the | ||||||
6 | amount (not including credit memoranda) collected during the | ||||||
7 | second preceding calendar month by the Department plus an | ||||||
8 | amount the Department determines is necessary to offset any | ||||||
9 | amounts which were erroneously paid to a different taxing body. | ||||||
10 | The amount paid to the Wireless Service Emergency Fund shall | ||||||
11 | not include any amount equal to the amount of refunds made | ||||||
12 | during the second preceding calendar month by the Department to | ||||||
13 | retailers under this Act or any amount that the Department | ||||||
14 | determines is necessary to offset any amounts which were | ||||||
15 | payable to a different taxing body but were erroneously paid to | ||||||
16 | the Wireless Service Emergency Fund. The Illinois Commerce | ||||||
17 | Commission shall distribute the funds in the same proportion as | ||||||
18 | they are distributed under the Wireless Emergency Telephone | ||||||
19 | Safety Act and the funds may only be used in accordance with | ||||||
20 | the provisions of the Wireless Emergency Telephone Safety Act. | ||||||
21 | The Department shall pay all remitted prepaid wireless E911 | ||||||
22 | charges over to the State Treasurer for deposit into the | ||||||
23 | Wireless Service Emergency Fund within 30 days after receipt. | ||||||
24 | The Illinois Commerce Commission shall distribute such funds in | ||||||
25 | the same proportion as they are distributed under the Wireless | ||||||
26 | Emergency Telephone Safety Act and such funds may only be used |
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1 | in accordance with the provisions of the Wireless Emergency | ||||||
2 | Telephone Safety Act. The Department may deduct an amount, not | ||||||
3 | to exceed 3% during the first year following the effective date | ||||||
4 | of this Act and not to exceed 2% during every year thereafter | ||||||
5 | of remitted charges, to be transferred into retained by the Tax | ||||||
6 | Compliance and Administration Fund Department to reimburse the | ||||||
7 | Department for its direct costs of administering the collection | ||||||
8 | and remittance of prepaid wireless 9-1-1 surcharges.
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9 | (d) The Department shall administer the collection of all | ||||||
10 | 9-1-1 surcharges and may adopt and enforce reasonable rules | ||||||
11 | relating to the administration and enforcement of the | ||||||
12 | provisions of this Act as may be deemed expedient. The | ||||||
13 | Department shall require all surcharges collected under this | ||||||
14 | Act to be reported on existing forms or combined forms, | ||||||
15 | including, but not limited to, Form ST-1. Any overpayments | ||||||
16 | received by the Department for liabilities reported on existing | ||||||
17 | or combined returns shall be applied as an overpayment of | ||||||
18 | retailers' occupation tax, use tax, service occupation tax, or | ||||||
19 | service use tax liability.
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20 | (e) If a home rule municipality having a population in | ||||||
21 | excess of 500,000 as of the effective date of this amendatory | ||||||
22 | Act of the 97th General Assembly imposes an E911 surcharge | ||||||
23 | under subsection (a-5) of Section 15 of this Act, then the | ||||||
24 | Department shall pay to the State Treasurer all prepaid | ||||||
25 | wireless E911 charges, penalties, and interest collected for | ||||||
26 | deposit into the Municipal Wireless Service Emergency Fund. All |
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1 | deposits into the Municipal Wireless Service Emergency Fund | ||||||
2 | shall be held by the State Treasurer as ex officio custodian | ||||||
3 | apart from all public moneys or funds of this State. Any | ||||||
4 | interest attributable to moneys in the Fund must be deposited | ||||||
5 | into the Fund. Moneys in the Municipal Wireless Service | ||||||
6 | Emergency Fund are not subject to appropriation. On or before | ||||||
7 | the 25th day of each calendar month, the Department shall | ||||||
8 | prepare and certify to the Comptroller the amount available for | ||||||
9 | disbursement to the home rule municipality out of the Municipal | ||||||
10 | Wireless Service Emergency Fund. The amount to be paid to the | ||||||
11 | Municipal Wireless Service Emergency Fund shall be the amount | ||||||
12 | (not including credit memoranda) collected during the second | ||||||
13 | preceding calendar month by the Department plus an amount the | ||||||
14 | Department determines is necessary to offset any amounts which | ||||||
15 | were erroneously paid to a different taxing body. The amount | ||||||
16 | paid to the Municipal Wireless Service Emergency Fund shall not | ||||||
17 | include any amount equal to the amount of refunds made during | ||||||
18 | the second preceding calendar month by the Department to | ||||||
19 | retailers under this Act or any amount that the Department | ||||||
20 | determines is necessary to offset any amounts which were | ||||||
21 | payable to a different taxing body but were erroneously paid to | ||||||
22 | the Municipal Wireless Service Emergency Fund. Within 10 days | ||||||
23 | after receipt by the Comptroller of the certification provided | ||||||
24 | for in this subsection, the Comptroller shall cause the orders | ||||||
25 | to be drawn for the respective amounts in accordance with the | ||||||
26 | directions in the certification. The Department may deduct an |
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1 | amount, not to exceed 3% during the first year following the | ||||||
2 | effective date of this amendatory Act of the 97th General | ||||||
3 | Assembly and not to exceed 2% during every year thereafter of | ||||||
4 | remitted charges, to be transferred into the Tax Compliance and | ||||||
5 | Administration Fund to reimburse the Department for its direct | ||||||
6 | costs of administering the collection and remittance of prepaid | ||||||
7 | wireless 9-1-1 surcharges. | ||||||
8 | (Source: P.A. 97-463, eff. 1-1-12.) | ||||||
9 | Section 10. The State Finance Act is amended by adding | ||||||
10 | Section 5.811 as follows: | ||||||
11 | (30 ILCS 105/5.811 new) | ||||||
12 | Sec. 5.811. The Municipal Wireless Service Emergency Fund.
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13 | Section 99. Effective date. This Act takes effect upon | ||||||
14 | becoming law. |