Rep. Barbara Flynn Currie

Filed: 12/21/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 402

2    AMENDMENT NO. ______. Amend Senate Bill 402, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Short title. This Act may be cited as the
6Direct Broadcast Satellite Service Providers Fee Act.
 
7    Section 5. Definitions.
8    "Department" means the Department of Revenue of the State
9of Illinois.
10    "Direct broadcast satellite service" means the
11distribution or broadcasting of video programming or services
12by satellite to receiving equipment located at a subscriber's
13or customer's premises, including, but not limited to, the
14provision of premium channels, the provision of music or other
15audio services or channels, and any other service received in
16connection with the provision of that video programming or

 

 

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1those services. However, "direct broadcast satellite service"
2does not include satellite radio service or subscription radio
3service whereby a digital radio signal is broadcast without any
4corresponding or related video programming or services.
5    "Gross revenue" means all consideration of any kind or
6nature received by a provider, or an affiliate of the provider,
7in connection with the provision of direct broadcast satellite
8service to subscribers or customers, including recurring
9monthly charges for direct broadcast satellite service and
10pay-per-view, video-on-demand, and other event-based charges
11for direct broadcast satellite service; provided, however,
12that gross revenues shall not include:
13        (1) revenue not actually received, regardless of
14    whether it is billed, including, but not limited to, bad
15    debts;
16        (2) revenue received by an affiliate or other person in
17    exchange for supplying goods and services used by a
18    provider;
19        (3) refunds, rebates, or discounts made to subscribers
20    or customers, to advertisers, or to other persons;
21        (4) revenue from any service that is subject to tax
22    under the Service Occupation Tax Act, Retailers'
23    Occupation Tax Act, Service Use Tax Act, or Use Tax Act;
24        (5) the fee imposed by this Act or any tax of general
25    applicability imposed on a provider or a purchaser of
26    direct broadcast satellite service, by a federal, State, or

 

 

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1    local governmental entity and required to be collected by a
2    person and remitted to the taxing entity;
3        (6) charges, other than those charges specifically
4    described in this Act, that are aggregated or bundled with
5    such specifically-described charges on a subscriber or
6    customer's bill, if the provider can reasonably identify
7    the charges in its books and records kept in the regular
8    course of business;
9        (7) revenue from advertising services; or
10        (8) charges that may not be taxed pursuant to the
11    Internet Tax Freedom Act.
12    "Person" means any natural individual, firm, trust,
13estate, partnership, association, joint stock company, joint
14venture, corporation, limited liability company, or a
15receiver, trustee, guardian, or other representative appointed
16by order of any court, the federal government and State
17governments, including State universities created by statute
18or any city, town, county, or other political subdivision of
19this State.
20    "Provider" means a person who transmits, broadcasts,
21sells, or distributes direct broadcast satellite service to
22subscribers or customers in the State.
23    "Subscriber" or "customer" means a member of the general
24public who receives direct broadcast satellite service from a
25provider and does not further distribute such service in the
26ordinary course of business.

 

 

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1    "Video programming" means programming provided by, or
2programming comparable to programming provided by, a
3television broadcast station or multichannel video service
4provider, including, but not limited to, video programming
5provided by local networks, national broadcast networks, and
6all forms of pay-per-view video entertainment.
 
7    Section 10. Imposition of a service provider fee.
8    (a) A fee is imposed upon the act or privilege of providing
9direct broadcast satellite service to a subscriber or customer
10in this State by any provider at the rate of 5% of the
11provider's gross revenues derived from or attributable to that
12customer or subscriber.
13    (b) The fee imposed by subsection (a) may be passed through
14to, and collected from, the provider's customers in Illinois.
15To the extent allowed under federal or State law, a provider
16may identify as a separate line item on each regular bill
17issued to a subscriber or customer the amount of the total bill
18assessed as a fee under this Act.
 
19    Section 15. Remittances.
20    (a) On or before the twentieth day of each calendar month,
21every provider of direct broadcast satellite service to a
22subscriber or customer in this State during the preceding
23calendar month shall file a return with the Department, in a
24form prescribed by the Department, stating:

 

 

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1        (1) the name of the provider;
2        (2) the address of the provider's principal place of
3    business;
4        (3) total amount of gross revenues received by the
5    provider during the preceding calendar month, quarter, or
6    year, as the case may be, from the provision of direct
7    broadcast satellite service during that preceding calendar
8    month, quarter, or year and upon the basis of which the fee
9    is imposed;
10        (4) the amount of fee due;
11        (5) the signature of the provider; and
12        (6) such other reasonable information as the
13    Department may require.
14    (b) If a provider fails to sign a return within 30 days
15after the proper notice and demand for signature by the
16Department is received by the provider, the return shall be
17considered valid and any amount shown to be due on the return
18shall be deemed assessed.
19    (c) If the provider is otherwise required to file a monthly
20return, and if the provider's average monthly fee liability to
21the Department under this Act does not exceed $200, the
22Department may authorize the provider's returns to be filed on
23a quarter annual basis, with the return for January, February,
24and March of a given year being due by April 20 of that year;
25with the return for April, May, and June of a given year being
26due by July 20 of that year; with the return for July, August,

 

 

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1and September of a given year being due by October 20 of that
2year; and with the return for October, November, and December
3of a given year being due by January 20 of the following year.
4    (d) If the provider is otherwise required to file a monthly
5or quarterly return, and if the provider's average monthly fee
6liability with the Department under this Act does not exceed
7$50, the Department may authorize the provider's returns to be
8filed on an annual basis, with the return for a given year
9being due by January 20 of the following year.
10    (e) Those quarterly and annual returns shall be subject to
11the same requirements as to form and substance as monthly
12returns.
13    (f) A provider who has a fee liability that exceeds the
14amount set forth in subsection (b) of Section 2505-210 of the
15Department of Revenue Law for tax liabilities shall make all
16payments required by rules of the Department by electronic
17funds transfer.
18    (g) Any provider not required to make payments by
19electronic funds transfer may make payments by electronic funds
20transfer with the permission of the Department.
21    (h) All providers required to make payment by electronic
22funds transfer and any providers authorized to voluntarily make
23payments by electronic funds transfer shall make those payments
24in the manner authorized by the Department.
 
25    Section 20. Records.

 

 

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1    (a) A provider on whom a fee is imposed by this Act shall
2maintain the necessary records, and any other information
3required by the Department, to determine the amount of the fee
4that the provider is required to remit and any credit that the
5provider is entitled to claim under this Act.
6    (b) The records shall be open at all times to inspection by
7the Department.
 
8    Section 25. Distribution of proceeds. The proceeds of the
9fee collected shall be deposited in to the following funds as
10follows: 50% into the Education Assistance Fund and 50% into
11the Capital Projects Fund, both in the State treasury.
 
12    Section 30. Department's authority to adopt rules. The
13Department is authorized to make, promulgate, and enforce such
14reasonable rules, and to prescribe such forms relating to the
15administration and enforcement of this Act, as it may deem
16appropriate.
 
17    Section 35. Applicability. This Act becomes operative on
18July 1, 2013, and applies to the provision of direct broadcast
19satellite service on or after that date.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".