Illinois General Assembly - Full Text of HB5440
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Full Text of HB5440  97th General Assembly


Sen. John J. Cullerton

Filed: 5/30/2012





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2    AMENDMENT NO. ______. Amend House Bill 5440 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Direct Broadcast Satellite Service Providers Fee Act.
6    Section 5. Definitions.
7    "Department" means the Department of Revenue of the State
8of Illinois.
9    "Direct broadcast satellite service" means the
10distribution or broadcasting of video programming or services
11by satellite to receiving equipment located at a subscriber's
12or customer's premises, including, but not limited to, the
13provision of premium channels, the provision of music or other
14audio services or channels, and any other service received in
15connection with the provision of that video programming or
16those services. However, "direct broadcast satellite service"



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



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



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



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



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



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1maintain the necessary records, and any other information
2required by the Department, to determine the amount of the fee
3that the provider is required to remit and any credit that the
4provider is entitled to claim under this Act.
5    (b) The records shall be open at all times to inspection by
6the Department.
7    Section 25. Distribution of proceeds. The proceeds of the
8fee collected shall be deposited into the Education Assistance
9Fund in the State treasury.
10    Section 30. Department's authority to adopt rules. The
11Department is authorized to make, promulgate, and enforce such
12reasonable rules, and to prescribe such forms relating to the
13administration and enforcement of this Act, as it may deem
15    Section 35. Applicability. This Act becomes operative on
16July 1, 2012, and applies to the provision of direct broadcast
17satellite service on or after that date.
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".