093_SB1101

                                     LRB093 07190 SJM 07345 b

 1        AN ACT in relation to taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Simplified  Municipal  Telecommunications
 5    Tax Act is amended by changing Section 5-50 as follows:

 6        (35 ILCS 636/5-50)
 7        Sec. 5-50.  Returns to the Department.
 8        (a)  Commencing  on February 1, 2003, for the tax imposed
 9    under subsection (a) of  Section  5-20  of  this  Act,  every
10    retailer maintaining a place of business in this State shall,
11    on  or before the last day of each month make a return to the
12    Department for the preceding calendar month, stating:
13             (1)  Its name;
14             (2)  The address of its principal place of  business
15        or  the  address  of  the principal place of business (if
16        that is a different address) from which it engages in the
17        business of transmitting telecommunications;
18             (3)  Total amount of  gross  charges  billed  by  it
19        during   the   preceding  calendar  month  for  providing
20        telecommunications during the calendar month;
21             (4)  Total  amount  received  by   it   during   the
22        preceding calendar month on credit extended;
23             (5)  Deductions allowed by law;
24             (6)  Gross charges that were billed by it during the
25        preceding  calendar month and upon the basis of which the
26        tax is imposed;
27             (7)  Amount of tax (computed upon Item 6);
28             (8)  The  municipalities  to  which  the  Department
29        shall remit the taxes and the amount of such remittances;
30             (9)  Such  other  reasonable  information   as   the
31        Department  may require. The Department may not, however,
 
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 1        require a retailer to furnish  information  that  is  not
 2        specifically  required  by this Act to be reported and is
 3        not required in order to ascertain the  amount  of  taxes
 4        that are due and payable on the return.
 5        (b)  Any  retailer  required  to make payments under this
 6    Section may make the payments by electronic  funds  transfer.
 7    The  Department  shall  adopt rules necessary to effectuate a
 8    program of electronic funds transfer. Any  retailer  who  has
 9    average monthly tax billings due to the Department under this
10    Act  and  the  Telecommunications  Excise Tax Act that exceed
11    $1,000 shall make all payments by electronic  funds  transfer
12    as required by rules of the Department.
13        (c)  If  the  retailer's average monthly tax billings due
14    to the Department under this Act and  the  Telecommunications
15    Excise  Tax  Act  do  not  exceed  $1,000, the Department may
16    authorize  such  retailer's  returns  to  be   filed   on   a
17    quarter-annual  basis, with the return for January, February,
18    and March of a given year being due by  April  30th  of  that
19    year;  with  the  return  for April, May, and June of a given
20    year being due by July 31st of that year; with the return for
21    July, August, and September of a  given  year  being  due  by
22    October  31st  of that year; and with the return for October,
23    November, and December of a given year being due  by  January
24    31st of the following year.
25        (d)  If  the  retailer  is  otherwise  required to file a
26    monthly or quarterly return and  if  the  retailer's  average
27    monthly tax billings due to the Department under this Act and
28    the Telecommunications Excise Tax Act do not exceed $400, the
29    Department  may  authorize such retailer's return to be filed
30    on an annual basis, with the return for a  given  year  being
31    due by January 31st of the following year.
32        (e)  Each  retailer  whose  average monthly remittance to
33    the Department  under this  Act  and  the  Telecommunications
34    Excise  Tax  Act  was  $25,000  or  more during the preceding
 
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 1    calendar year, excluding the month of highest remittance  and
 2    the month of lowest remittance in such calendar year, and who
 3    is  not  operated  by  a unit of local government, shall make
 4    estimated payments to the Department on or  before  the  7th,
 5    15th,  22nd,  and  last day of the month during which the tax
 6    remittance is owed to the Department in an  amount  not  less
 7    than  the  lower of either 22.5% of the retailer's actual tax
 8    collections for the month or 25% of the retailer's actual tax
 9    collections for the same  calendar  month  of  the  preceding
10    year.   The  amount of such quarter-monthly payments shall be
11    credited against  the  final  remittance  of  the  retailer's
12    return  for  that month.  Any outstanding credit, approved by
13    the Department, arising from the  retailer's  overpayment  of
14    its  final  remittance for any month may be applied to reduce
15    the amount  of  any  subsequent  quarter-monthly  payment  or
16    credited  against  the  final  remittance  of  the retailer's
17    return for any  subsequent  month.   If  any  quarter-monthly
18    payment  is not paid at the time or in the amount required by
19    this Section, the retailer shall be liable  for  penalty  and
20    interest  on the difference between the minimum amount due as
21    a payment and the amount of such payment actually and  timely
22    paid,  except  insofar  as  the  retailer has previously made
23    payments for that month to the Department or received credits
24    in excess of the minimum payments previously due.
25        (f)  Notwithstanding any other provision of this  Section
26    containing  the  time within which a retailer may file his or
27    her return, in the case of any retailer who ceases to  engage
28    in  a  kind of business that makes him or her responsible for
29    filing returns under this Section, the retailer shall file  a
30    final  return under this Section with the Department not more
31    than one month after discontinuing such business.
32        (g)  In making such return, the retailer shall  determine
33    the  value  of any consideration other than money received by
34    it and such retailer shall include the value in  its  return.
 
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 1    Such determination shall be subject to review and revision by
 2    the  Department  in  the  manner hereinafter provided for the
 3    correction of returns.
 4        (h)  Any retailer who has average  monthly  tax  billings
 5    due    to   the   Department   under   this   Act   and   the
 6    Telecommunications Excise Tax Act that  exceed  $1,000  shall
 7    file  the return required by this Section by electronic means
 8    as required by rules of the Department.
 9        (i)  The retailer filing the return herein  provided  for
10    shall,  at  the  time  of  filing  the  return,  pay  to  the
11    Department  the  amounts  due  pursuant  to  this  Act.   The
12    Department shall immediately pay over to the State Treasurer,
13    ex officio, as trustee, 99.5% of all  taxes,  penalties,  and
14    interest  collected  hereunder for deposit into the Municipal
15    Telecommunications  Fund,  which  is  hereby  created.    The
16    remaining  0.5%  received  by the Department pursuant to this
17    Act  shall  be  deposited  into  the   Tax   Compliance   and
18    Administration  Fund  and  shall  be  used by the Department,
19    subject  to  appropriation,  to  cover  the  costs   of   the
20    Department. On or before the 25th day of each calendar month,
21    the  Department  shall prepare and certify to the Comptroller
22    the disbursement of stated sums of money to be paid to  named
23    municipalities from the Municipal Telecommunications Fund for
24    amounts collected during the second preceding calendar month.
25    The   named  municipalities  shall  be  those  municipalities
26    identified by a retailer in such retailer's return as  having
27    imposed  the  tax authorized by the Act.  The amount of money
28    to be paid to each municipality  shall  be  the  amount  (not
29    including  credit  memoranda)  collected hereunder during the
30    second preceding calendar month by the  Department,  plus  an
31    amount  the  Department determines is necessary to offset any
32    amounts  that  were  erroneously  erronenously  paid   to   a
33    different  taxing  body, and not including an amount equal to
34    the amount  of  refunds  made  during  the  second  preceding
 
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 1    calendar   month   by   the  Department  on  behalf  of  such
 2    municipality,  and  not  including  any   amount   that   the
 3    Department  determines is necessary to offset any amount that
 4    were payable to a different taxing body but were  erroneously
 5    paid  to  the  municipality.  Within 10 days after receipt by
 6    the Comptroller of the disbursement  certification  from  the
 7    Department,  the  Comptroller  shall  cause  the orders to be
 8    drawn for the  respective  amounts  in  accordance  with  the
 9    directions  contained  in the certification.  When certifying
10    to the Comptroller the amount of a monthly disbursement to  a
11    municipality   under   this  Section,  the  Department  shall
12    increase or decrease the amount by  an  amount  necessary  to
13    offset  any  misallocation  of  previous  disbursements.  The
14    offset amount  shall  be  the  amount  erroneously  disbursed
15    within the previous 6 months from the time a misallocation is
16    discovered.
17        (j)  For  municipalities  with  populations  of less than
18    500,000, whenever the Department  determines  that  a  refund
19    shall  be  made  under  this Section to a claimant instead of
20    issuing a credit memorandum, the Department  shall notify the
21    State Comptroller, who shall cause the order to be drawn  for
22    the   amount  specified  and  to  the  person  named  in  the
23    notification from the Department.  The refund shall  be  paid
24    by    the    State    Treasurer    out   of   the   Municipal
25    Telecommunications Fund.
26    (Source: P.A. 92-526, eff. 7-1-02.)

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