Full Text of SB0111 94th General Assembly
SB0111 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB0111
Introduced 2/1/2005, by Sen. William E. Peterson SYNOPSIS AS INTRODUCED: |
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35 ILCS 630/3 |
from Ch. 120, par. 2003 |
35 ILCS 630/4 |
from Ch. 120, par. 2004 |
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Amends the Telecommunications Excise Tax Act. Provides that the tax exemptions for prepaid telephone calling arrangements are exempt from the sunset provisions of the Act. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB0111 |
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LRB094 07285 BDD 37443 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Telecommunications Excise Tax Act is amended | 5 |
| by changing Sections 3 and 4 as follows:
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| (35 ILCS 630/3) (from Ch. 120, par. 2003)
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| Sec. 3. Tax imposed on intrastate telecommunications; | 8 |
| exemptions.
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| (a) Until December 31, 1997, a tax is imposed upon the act | 10 |
| or
privilege of originating or
receiving intrastate | 11 |
| telecommunications by a person in this State at the
rate of 5% | 12 |
| of the gross charge for such telecommunications purchased at
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| retail from a retailer by such person. Beginning January 1, | 14 |
| 1998, a tax is
imposed upon the act or privilege of originating | 15 |
| in this State or receiving in
this State intrastate | 16 |
| telecommunications by a person in this State at the rate
of
7% | 17 |
| of the gross charge for such telecommunications purchased at | 18 |
| retail from a
retailer by such person. However, such tax is not | 19 |
| imposed on
the act or privilege to the extent such act or | 20 |
| privilege may not, under the
Constitution and statutes of the | 21 |
| United States, be made the subject of
taxation by the State.
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| (b) Beginning January 1, 2001, prepaid telephone calling | 23 |
| arrangements shall not
be considered telecommunications | 24 |
| subject to the tax imposed under this Act. This subsection is | 25 |
| exempt from the provisions of Section 4.5.
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| (Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)
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| (35 ILCS 630/4) (from Ch. 120, par. 2004)
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| Sec. 4. Tax imposed on interstate telecommunications; | 29 |
| exemptions. | 30 |
| (a) Until December 31, 1997, a tax is imposed upon the act | 31 |
| or
privilege of originating in this State or receiving in this |
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SB0111 |
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LRB094 07285 BDD 37443 b |
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| State interstate
telecommunications by a person in this State | 2 |
| at the rate of 5% of the gross
charge for such | 3 |
| telecommunications purchased at retail from a retailer by such
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| person. Beginning January 1, 1998, a tax is imposed upon the | 5 |
| act or
privilege
of originating in this State or receiving in | 6 |
| this State interstate
telecommunications by a person in this | 7 |
| State at the rate of 7% of the gross
charge for such | 8 |
| telecommunications purchased at retail from a
retailer by such | 9 |
| person. To prevent actual multi-state
taxation of the act or | 10 |
| privilege that is subject to taxation under this
paragraph, any | 11 |
| taxpayer, upon proof that that taxpayer has paid a tax in
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| another state on such event, shall be allowed a credit against | 13 |
| the tax
imposed in this Section 4 to the extent of the amount | 14 |
| of such tax
properly due and paid in such other state. However, | 15 |
| such tax is not
imposed on the act or privilege to the extent | 16 |
| such act or privilege
may not, under the Constitution and | 17 |
| statutes of the United States, be made
the subject of taxation | 18 |
| by the State.
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| (b) Beginning on January 1, 2001, prepaid telephone calling | 20 |
| arrangements shall
not be
considered telecommunications | 21 |
| subject to the tax imposed under this Act. This subsection is | 22 |
| exempt from the provisions of Section 4.5.
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| (Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)
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| Section 99. Effective date. This Act takes effect upon | 25 |
| becoming law.
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