Full Text of HB5440 97th General Assembly
HB5440sam002 97TH GENERAL ASSEMBLY | Sen. John J. Cullerton Filed: 5/30/2012
| | 09700HB5440sam002 | | LRB097 17684 HLH 70315 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 5440
| 2 | | AMENDMENT NO. ______. Amend House Bill 5440 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Direct Broadcast Satellite Service Providers Fee Act. | 6 | | Section 5. Definitions. | 7 | | "Department" means the Department of Revenue of the State | 8 | | of Illinois. | 9 | | "Direct broadcast satellite service" means the | 10 | | distribution or broadcasting of video programming or services | 11 | | by satellite to receiving equipment located at a subscriber's | 12 | | or customer's premises, including, but not limited to, the | 13 | | provision of premium channels, the provision of music or other | 14 | | audio services or channels, and any other service received in | 15 | | connection with the provision of that video programming or | 16 | | those services. However, "direct broadcast satellite service" |
| | | 09700HB5440sam002 | - 2 - | LRB097 17684 HLH 70315 a |
|
| 1 | | does not include satellite radio service or subscription radio | 2 | | service whereby a digital radio signal is broadcast without any | 3 | | corresponding or related video programming or services. | 4 | | "Gross revenue" means all consideration of any kind or | 5 | | nature received by a provider, or an affiliate of the provider, | 6 | | in connection with the provision of direct broadcast satellite | 7 | | service to subscribers or customers, including recurring | 8 | | monthly charges for direct broadcast satellite service and | 9 | | pay-per-view, video-on-demand, and other event-based charges | 10 | | for direct broadcast satellite service; provided, however, | 11 | | that 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 |
| | | 09700HB5440sam002 | - 3 - | LRB097 17684 HLH 70315 a |
|
| 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, | 12 | | estate, partnership, association, joint stock company, joint | 13 | | venture, corporation, limited liability company, or a | 14 | | receiver, trustee, guardian, or other representative appointed | 15 | | by order of any court, the federal government and State | 16 | | governments, including State universities created by statute | 17 | | or any city, town, county, or other political subdivision of | 18 | | this State. | 19 | | "Provider" means a person who transmits, broadcasts, | 20 | | sells, or distributes direct broadcast satellite service to | 21 | | subscribers or customers in the State. | 22 | | "Subscriber" or "customer" means a member of the general | 23 | | public who receives direct broadcast satellite service from a | 24 | | provider and does not further distribute such service in the | 25 | | ordinary course of business. | 26 | | "Video programming" means programming provided by, or |
| | | 09700HB5440sam002 | - 4 - | LRB097 17684 HLH 70315 a |
|
| 1 | | programming comparable to programming provided by, a | 2 | | television broadcast station or multichannel video service | 3 | | provider, including, but not limited to, video programming | 4 | | provided by local networks, national broadcast networks, and | 5 | | all 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 | 8 | | direct broadcast satellite service to a subscriber or customer | 9 | | in this State by any provider at the rate of 5% of the | 10 | | provider's gross revenues derived from or attributable to that | 11 | | customer or subscriber. | 12 | | (b) The fee imposed by subsection (a) may be passed through | 13 | | to, and collected from, the provider's customers in Illinois. | 14 | | To the extent allowed under federal or State law, a provider | 15 | | may identify as a separate line item on each regular bill | 16 | | issued to a subscriber or customer the amount of the total bill | 17 | | assessed as a fee under this Act. | 18 | | Section 15. Remittances. | 19 | | (a) On or before the twentieth day of each calendar month, | 20 | | every provider of direct broadcast satellite service to a | 21 | | subscriber or customer in this State during the preceding | 22 | | calendar month shall file a return with the Department, in a | 23 | | form prescribed by the Department, stating: | 24 | | (1) the name of the provider; |
| | | 09700HB5440sam002 | - 5 - | LRB097 17684 HLH 70315 a |
|
| 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 | 14 | | after the proper notice and demand for signature by the | 15 | | Department is received by the provider, the return shall be | 16 | | considered valid and any amount shown to be due on the return | 17 | | shall be deemed assessed. | 18 | | (c) If the provider is otherwise required to file a monthly | 19 | | return, and if the provider's average monthly fee liability to | 20 | | the Department under this Act does not exceed $200, the | 21 | | Department may authorize the provider's returns to be filed on | 22 | | a quarter annual basis, with the return for January, February, | 23 | | and March of a given year being due by April 20 of that year; | 24 | | with the return for April, May, and June of a given year being | 25 | | due by July 20 of that year; with the return for July, August, | 26 | | and September of a given year being due by October 20 of that |
| | | 09700HB5440sam002 | - 6 - | LRB097 17684 HLH 70315 a |
|
| 1 | | year; and with the return for October, November, and December | 2 | | of a given year being due by January 20 of the following year. | 3 | | (d) If the provider is otherwise required to file a monthly | 4 | | or quarterly return, and if the provider's average monthly fee | 5 | | liability with the Department under this Act does not exceed | 6 | | $50, the Department may authorize the provider's returns to be | 7 | | filed on an annual basis, with the return for a given year | 8 | | being due by January 20 of the following year. | 9 | | (e) Those quarterly and annual returns shall be subject to | 10 | | the same requirements as to form and substance as monthly | 11 | | returns. | 12 | | (f) A provider who has a fee liability that exceeds the | 13 | | amount set forth in subsection (b) of Section 2505-210 of the | 14 | | Department of Revenue Law for tax liabilities shall make all | 15 | | payments required by rules of the Department by electronic | 16 | | funds transfer. | 17 | | (g) Any provider not required to make payments by | 18 | | electronic funds transfer may make payments by electronic funds | 19 | | transfer with the permission of the Department. | 20 | | (h) All providers required to make payment by electronic | 21 | | funds transfer and any providers authorized to voluntarily make | 22 | | payments by electronic funds transfer shall make those payments | 23 | | in the manner authorized by the Department. | 24 | | Section 20. Records. | 25 | | (a) A provider on whom a fee is imposed by this Act shall |
| | | 09700HB5440sam002 | - 7 - | LRB097 17684 HLH 70315 a |
|
| 1 | | maintain the necessary records, and any other information | 2 | | required by the Department, to determine the amount of the fee | 3 | | that the provider is required to remit and any credit that the | 4 | | provider is entitled to claim under this Act. | 5 | | (b) The records shall be open at all times to inspection by | 6 | | the Department. | 7 | | Section 25. Distribution of proceeds. The proceeds of the | 8 | | fee collected shall be deposited into the Education Assistance | 9 | | Fund in the State treasury. | 10 | | Section 30. Department's authority to adopt rules. The | 11 | | Department is authorized to make, promulgate, and enforce such | 12 | | reasonable rules, and to prescribe such forms relating to the | 13 | | administration and enforcement of this Act, as it may deem | 14 | | appropriate. | 15 | | Section 35. Applicability. This Act becomes operative on | 16 | | July 1, 2012, and applies to the provision of direct broadcast | 17 | | satellite service on or after that date.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.".
|
|