Sen. Don Harmon
Filed: 2/17/2012
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1 | AMENDMENT TO HOUSE BILL 3129
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2 | AMENDMENT NO. ______. Amend House Bill 3129 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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 |
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1 | retail transaction sourced to that jurisdiction and collected | ||||||
2 | and remitted in accordance with the provisions of subsection | ||||||
3 | (b-5). | ||||||
4 | (b) The prepaid wireless 9-1-1 surcharge shall be collected | ||||||
5 | by the seller from the consumer with respect to each retail | ||||||
6 | transaction occurring in this State and shall be remitted to | ||||||
7 | the Department by the seller as provided in this Act. The | ||||||
8 | amount of the prepaid wireless 9-1-1 surcharge shall be | ||||||
9 | separately stated as a distinct item apart from the charge for | ||||||
10 | the prepaid wireless telecommunications service on an invoice, | ||||||
11 | receipt, or other similar document that is provided to the | ||||||
12 | consumer by the seller or shall be otherwise disclosed to the | ||||||
13 | consumer.
If the seller does not separately state the surcharge | ||||||
14 | as a distinct item to the consumer as provided in this Section, | ||||||
15 | then the seller shall maintain books and records as required by | ||||||
16 | this Act which clearly identify the amount of the 9-1-1 | ||||||
17 | surcharge for retail transactions. | ||||||
18 | For purposes of this subsection (b), a retail transaction | ||||||
19 | occurs in this State if (i) the retail transaction is made in | ||||||
20 | person by a consumer at the seller's business location and the | ||||||
21 | business is located within the State; (ii) the seller is a | ||||||
22 | provider and sells prepaid wireless telecommunications service | ||||||
23 | to a consumer located in Illinois; (iii) the retail transaction | ||||||
24 | is treated as occurring in this State for purposes of the | ||||||
25 | Retailers' Occupation Tax Act; or (iv) a seller that is | ||||||
26 | included within the definition of a "retailer maintaining a |
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1 | place of business in this State" under Section 2 of the Use Tax | ||||||
2 | Act makes a sale of prepaid wireless telecommunications service | ||||||
3 | to a consumer located in Illinois. In the case of a retail | ||||||
4 | transaction which does not occur in person at a seller's | ||||||
5 | business location, if a consumer uses a credit card to purchase | ||||||
6 | prepaid wireless telecommunications service on-line or over | ||||||
7 | the telephone, and no product is shipped to the consumer, the | ||||||
8 | transaction occurs in this State if the billing address for the | ||||||
9 | consumer's credit card is in this State. | ||||||
10 | (b-5) The prepaid wireless 9-1-1 surcharge imposed under | ||||||
11 | subsection (a-5) of this Section shall be collected by the | ||||||
12 | seller from the consumer with respect to each retail | ||||||
13 | transaction occurring in the municipality imposing the | ||||||
14 | surcharge. The amount of the prepaid wireless 9-1-1 surcharge | ||||||
15 | shall be separately stated on an invoice, receipt, or other | ||||||
16 | similar document that is provided to the consumer by the seller | ||||||
17 | or shall be otherwise disclosed to the consumer. If the seller | ||||||
18 | does not separately state the surcharge as a distinct item to | ||||||
19 | the consumer as provided in this Section, then the seller shall | ||||||
20 | maintain books and records as required by this Act which | ||||||
21 | clearly identify the amount of the 9-1-1 surcharge for retail | ||||||
22 | transactions. | ||||||
23 | For purposes of this subsection (b-5), a retail transaction | ||||||
24 | occurs in the municipality if (i) the retail transaction is | ||||||
25 | made in person by a consumer at the seller's business location | ||||||
26 | and the business is located within the municipality; (ii) the |
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1 | seller is a provider and sells prepaid wireless | ||||||
2 | telecommunications service to a consumer located in the | ||||||
3 | municipality; (iii) the retail transaction is treated as | ||||||
4 | occurring in the municipality for purposes of the Retailers' | ||||||
5 | Occupation Tax Act; or (iv) a seller that is included within | ||||||
6 | the definition of a "retailer maintaining a place of business | ||||||
7 | in this State" under Section 2 of the Use Tax Act makes a sale | ||||||
8 | of prepaid wireless telecommunications service to a consumer | ||||||
9 | located in the municipality. In the case of a retail | ||||||
10 | transaction which does not occur in person at a seller's | ||||||
11 | business location, if a consumer uses a credit card to purchase | ||||||
12 | prepaid wireless telecommunications service on-line or over | ||||||
13 | the telephone, and no product is shipped to the consumer, the | ||||||
14 | transaction occurs in the municipality if the billing address | ||||||
15 | for the consumer's credit card is in the municipality. | ||||||
16 | (c) The prepaid wireless 9-1-1 surcharge is imposed on the | ||||||
17 | consumer and not on any provider. The seller shall be liable to | ||||||
18 | remit all prepaid wireless 9-1-1 surcharges that the seller | ||||||
19 | collects from consumers as provided in Section 20, including | ||||||
20 | all such surcharges that the seller is deemed to collect where | ||||||
21 | the amount of the surcharge has not been separately stated on | ||||||
22 | an invoice, receipt, or other similar document provided to the | ||||||
23 | consumer by the seller.
The surcharge collected or deemed | ||||||
24 | collected by a seller shall constitute a debt owed by the | ||||||
25 | seller to this State, and any such surcharge actually collected | ||||||
26 | shall be held in trust for the benefit of the Department. |
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1 | For purposes of this subsection (c), the surcharge shall | ||||||
2 | not be imposed or collected from entities that have an active | ||||||
3 | tax exemption identification number issued by the Department | ||||||
4 | are tax exempt under Section 1g of the Retailers' Occupation | ||||||
5 | Tax Act. | ||||||
6 | (d) The amount of the prepaid wireless 9-1-1 surcharge that | ||||||
7 | is collected by a seller from a consumer, if such amount is | ||||||
8 | separately stated on an invoice, receipt, or other similar | ||||||
9 | document provided to the consumer by the seller, shall not be | ||||||
10 | included in the base for measuring any tax, fee, surcharge, or | ||||||
11 | other charge that is imposed by this State, any political | ||||||
12 | subdivision of this State, or any intergovernmental agency.
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13 | (e) The prepaid wireless 9-1-1 charge imposed under | ||||||
14 | subsection (a) of this Section shall be proportionately | ||||||
15 | increased or reduced, as applicable, upon any change to the | ||||||
16 | surcharge imposed under Section 17 of the Wireless Emergency | ||||||
17 | Telephone Safety Act. The adjusted rate shall be determined by | ||||||
18 | dividing the amount of the surcharge imposed under Section 17 | ||||||
19 | of the Wireless Emergency Telephone Safety Act by $50. Such | ||||||
20 | increase or reduction shall be effective on the first day of | ||||||
21 | the first calendar month to occur at least 60 days after the | ||||||
22 | enactment of the change to the surcharge imposed under Section | ||||||
23 | 17 of the Wireless Emergency Telephone Safety Act. The | ||||||
24 | Department shall provide not less than 30 days' notice of an | ||||||
25 | increase or reduction in the amount of the surcharge on the | ||||||
26 | Department's website.
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1 | (e-5) Any changes in the rate of the surcharge imposed by a | ||||||
2 | municipality under the authority granted in subsection (a-5) of | ||||||
3 | this Section shall be effective on the first day of the first | ||||||
4 | calendar month to occur at least 60 days after the enactment of | ||||||
5 | the change. The Department shall provide not less than 30 days' | ||||||
6 | notice of the increase or reduction in the rate of such | ||||||
7 | surcharge on the Department's website. | ||||||
8 | (f) When prepaid wireless telecommunications service is | ||||||
9 | sold with one or more other products or services for a single, | ||||||
10 | non-itemized price, then the percentage specified in | ||||||
11 | subsection (a) or (a-5) of this Section 15 shall be applied to | ||||||
12 | the entire non-itemized price unless the seller elects to apply | ||||||
13 | the percentage to (i) the dollar amount of the prepaid wireless | ||||||
14 | telecommunications service if that dollar amount is disclosed | ||||||
15 | to the consumer or (ii) the portion of the price that is | ||||||
16 | attributable to the prepaid wireless telecommunications | ||||||
17 | service if the retailer can identify that portion by reasonable | ||||||
18 | and verifiable standards from its books and records that are | ||||||
19 | kept in the regular course of business for other purposes, | ||||||
20 | including, but not limited to, books and records that are kept | ||||||
21 | for non-tax purposes. However, if a minimal amount of prepaid | ||||||
22 | wireless telecommunications service is sold with a prepaid | ||||||
23 | wireless device for a single, non-itemized price, then the | ||||||
24 | seller may elect not to apply the percentage specified in | ||||||
25 | subsection (a) or (a-5) of this Section 15 to such transaction. | ||||||
26 | For purposes of this subsection, an amount of service |
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1 | denominated as 10 minutes or less or $5 or less is considered | ||||||
2 | minimal.
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3 | (Source: P.A. 97-463, eff. 1-1-12.) | ||||||
4 | (50 ILCS 753/20)
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5 | Sec. 20. Administration of prepaid wireless 9-1-1 | ||||||
6 | surcharge. | ||||||
7 | (a) In the administration and enforcement of this Act, the | ||||||
8 | provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, | ||||||
9 | 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the | ||||||
10 | Retailers' Occupation Tax Act that are not inconsistent with | ||||||
11 | this Act, and Section 3-7 of the Uniform Penalty and Interest | ||||||
12 | Act shall apply, as far as practicable, to the subject matter | ||||||
13 | of this Act to the same extent as if those provisions were | ||||||
14 | included in this Act. References to "taxes" in these | ||||||
15 | incorporated Sections shall be construed to apply to the | ||||||
16 | administration, payment, and remittance of all surcharges | ||||||
17 | under this Act. The Department shall establish registration and | ||||||
18 | payment procedures that substantially coincide with the | ||||||
19 | registration and payment procedures that apply to the | ||||||
20 | Retailers' Occupation Tax Act.
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21 | (b) For the first 12 months after the effective date of | ||||||
22 | this Act, a seller shall be permitted to deduct and retain 5% | ||||||
23 | of prepaid wireless 9-1-1 surcharges that are collected by the | ||||||
24 | seller from consumers and that are remitted and timely filed | ||||||
25 | with the Department.
After the first 12 months, a seller shall |
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1 | be permitted to deduct and retain 3% of prepaid wireless 9-1-1 | ||||||
2 | surcharges that are collected by the seller from consumers and | ||||||
3 | that are remitted and timely filed with the Department. | ||||||
4 | (c) Other than the amounts for deposit into the Municipal | ||||||
5 | Wireless Service Emergency Fund, the Department shall pay to | ||||||
6 | the State Treasurer all prepaid wireless E911 charges and | ||||||
7 | penalties collected under this Act for deposit into the | ||||||
8 | Wireless Service Emergency Fund. On or before the 25th day of | ||||||
9 | each calendar month, the Department shall prepare and certify | ||||||
10 | to the Comptroller the amount available to the Illinois | ||||||
11 | Commerce Commission for distribution out of the Wireless | ||||||
12 | Service Emergency Fund. The amount certified shall be the | ||||||
13 | amount (not including credit memoranda) collected during the | ||||||
14 | second preceding calendar month by the Department plus an | ||||||
15 | amount the Department determines is necessary to offset any | ||||||
16 | amounts which were erroneously paid to a different taxing body. | ||||||
17 | The amount paid to the Wireless Service Emergency Fund shall | ||||||
18 | not include any amount equal to the amount of refunds made | ||||||
19 | during the second preceding calendar month by the Department to | ||||||
20 | retailers under this Act or any amount that the Department | ||||||
21 | determines is necessary to offset any amounts which were | ||||||
22 | payable to a different taxing body but were erroneously paid to | ||||||
23 | the Wireless Service Emergency Fund. The Illinois Commerce | ||||||
24 | Commission shall distribute the funds in the same proportion as | ||||||
25 | they are distributed under the Wireless Emergency Telephone | ||||||
26 | Safety Act and the funds may only be used in accordance with |
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1 | the provisions of the Wireless Emergency Telephone Safety Act. | ||||||
2 | The Department shall pay all remitted prepaid wireless E911 | ||||||
3 | charges over to the State Treasurer for deposit into the | ||||||
4 | Wireless Service Emergency Fund within 30 days after receipt. | ||||||
5 | The Illinois Commerce Commission shall distribute such funds in | ||||||
6 | the same proportion as they are distributed under the Wireless | ||||||
7 | Emergency Telephone Safety Act and such funds may only be used | ||||||
8 | in accordance with the provisions of the Wireless Emergency | ||||||
9 | Telephone Safety Act. The Department may deduct an amount, not | ||||||
10 | to exceed 3% during the first year following the effective date | ||||||
11 | of this Act and not to exceed 2% during every year thereafter | ||||||
12 | of remitted charges, to be transferred into retained by the Tax | ||||||
13 | Compliance and Administration Fund Department to reimburse the | ||||||
14 | Department for its direct costs of administering the collection | ||||||
15 | and remittance of prepaid wireless 9-1-1 surcharges.
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16 | (d) The Department shall administer the collection of all | ||||||
17 | 9-1-1 surcharges and may adopt and enforce reasonable rules | ||||||
18 | relating to the administration and enforcement of the | ||||||
19 | provisions of this Act as may be deemed expedient. The | ||||||
20 | Department shall require all surcharges collected under this | ||||||
21 | Act to be reported on existing forms or combined forms, | ||||||
22 | including, but not limited to, Form ST-1. Any overpayments | ||||||
23 | received by the Department for liabilities reported on existing | ||||||
24 | or combined returns shall be applied as an overpayment of | ||||||
25 | retailers' occupation tax, use tax, service occupation tax, or | ||||||
26 | service use tax liability.
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1 | (e) If a home rule municipality having a population in | ||||||
2 | excess of 500,000 as of the effective date of this amendatory | ||||||
3 | Act of the 97th General Assembly imposes an E911 surcharge | ||||||
4 | under subsection (a-5) of Section 15 of this Act, then the | ||||||
5 | Department shall pay to the State Treasurer all prepaid | ||||||
6 | wireless E911 charges, penalties, and interest collected for | ||||||
7 | deposit into the Municipal Wireless Service Emergency Fund. All | ||||||
8 | deposits into the Municipal Wireless Service Emergency Fund | ||||||
9 | shall be held by the State Treasurer as ex officio custodian | ||||||
10 | separate and apart from all public moneys or funds of this | ||||||
11 | State. Moneys in the Municipal Wireless Service Emergency Fund | ||||||
12 | are not subject to appropriation. On or before the 25th day of | ||||||
13 | each calendar month, the Department shall prepare and certify | ||||||
14 | to the Comptroller the amount available for disbursement to the | ||||||
15 | home rule municipality out of the Municipal Wireless Service | ||||||
16 | Emergency Fund. The amount to be paid to the Municipal Wireless | ||||||
17 | Service Emergency Fund shall be the amount (not including | ||||||
18 | credit memoranda) collected during the second preceding | ||||||
19 | calendar month by the Department plus an amount the Department | ||||||
20 | determines is necessary to offset any amounts which were | ||||||
21 | erroneously paid to a different taxing body. The amount paid to | ||||||
22 | the Municipal Wireless Service Emergency Fund shall not include | ||||||
23 | any amount equal to the amount of refunds made during the | ||||||
24 | second preceding calendar month by the Department to retailers | ||||||
25 | under this Act or any amount that the Department determines is | ||||||
26 | necessary to offset any amounts which were payable to a |
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1 | different taxing body but were erroneously paid to the | ||||||
2 | Municipal Wireless Service Emergency Fund. Within 10 days after | ||||||
3 | receipt by the Comptroller of the certification provided for in | ||||||
4 | this subsection, the Comptroller shall cause the orders to be | ||||||
5 | drawn for the respective amounts in accordance with the | ||||||
6 | directions in the certification. The Department may deduct an | ||||||
7 | amount, not to exceed 3% during the first year following the | ||||||
8 | effective date of this amendatory Act of the 97th General | ||||||
9 | Assembly and not to exceed 2% during every year thereafter of | ||||||
10 | remitted charges, to be transferred into the Tax Compliance and | ||||||
11 | Administration Fund to reimburse the Department for its direct | ||||||
12 | costs of administering the collection and remittance of prepaid | ||||||
13 | wireless 9-1-1 surcharges. | ||||||
14 | (Source: P.A. 97-463, eff. 1-1-12.) | ||||||
15 | Section 10. The State Finance Act is amended by adding | ||||||
16 | Section 5.811 as follows: | ||||||
17 | (30 ILCS 105/5.811 new) | ||||||
18 | Sec. 5.811. The Municipal Wireless Service Emergency | ||||||
19 | Fund. ".
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