Full Text of SB1227 98th General Assembly
SB1227ham002 98TH GENERAL ASSEMBLY | Rep. Michael J. Zalewski Filed: 12/2/2013
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| 1 | | AMENDMENT TO SENATE BILL 1227
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1227, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 1. Short title. This Act may be cited as the | 6 | | Direct Broadcast Satellite Service Providers Fee Act. | 7 | | Section 5. Definitions. | 8 | | "Department" means the Department of Revenue of the State | 9 | | of Illinois. | 10 | | "Direct broadcast satellite service" means the | 11 | | distribution or broadcasting of video programming or services | 12 | | by satellite to receiving equipment located at a subscriber's | 13 | | or customer's premises, including, but not limited to, the | 14 | | provision of premium channels, the provision of music or other | 15 | | audio services or channels, and any other service received in | 16 | | connection with the provision of that video programming or |
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| 1 | | those services. However, "direct broadcast satellite service" | 2 | | does not include satellite radio service or subscription radio | 3 | | service whereby a digital radio signal is broadcast without any | 4 | | corresponding or related video programming or services. | 5 | | "Gross revenue" means all consideration of any kind or | 6 | | nature received by a provider, or an affiliate of the provider, | 7 | | in connection with the provision of direct broadcast satellite | 8 | | service to subscribers or customers, including recurring | 9 | | monthly charges for direct broadcast satellite service and | 10 | | pay-per-view, video-on-demand, and other event-based charges | 11 | | for direct broadcast satellite service; provided, however, | 12 | | that 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, | 13 | | estate, partnership, association, joint stock company, joint | 14 | | venture, corporation, limited liability company, or a | 15 | | receiver, trustee, guardian, or other representative appointed | 16 | | by order of any court, the federal government and State | 17 | | governments, including State universities created by statute | 18 | | or any city, town, county, or other political subdivision of | 19 | | this State. | 20 | | "Provider" means a person who transmits, broadcasts, | 21 | | sells, or distributes direct broadcast satellite service to | 22 | | subscribers or customers in the State. | 23 | | "Subscriber" or "customer" means a member of the general | 24 | | public who receives direct broadcast satellite service from a | 25 | | provider and does not further distribute such service in the | 26 | | ordinary course of business. |
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| 1 | | "Video programming" means programming provided by, or | 2 | | programming comparable to programming provided by, a | 3 | | television broadcast station or multichannel video service | 4 | | provider, including, but not limited to, video programming | 5 | | provided by local networks, national broadcast networks, and | 6 | | all 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 | 9 | | direct broadcast satellite service to a subscriber or customer | 10 | | in this State by any provider at the rate of 5% of the | 11 | | provider's gross revenues derived from or attributable to that | 12 | | customer or subscriber. | 13 | | (b) The fee imposed by subsection (a) may be passed through | 14 | | to, and collected from, the provider's customers in Illinois. | 15 | | To the extent allowed under federal or State law, a provider | 16 | | may identify as a separate line item on each regular bill | 17 | | issued to a subscriber or customer the amount of the total bill | 18 | | assessed as a fee under this Act. | 19 | | Section 15. Remittances. | 20 | | (a) On or before the twentieth day of each calendar month, | 21 | | every provider of direct broadcast satellite service to a | 22 | | subscriber or customer in this State during the preceding | 23 | | calendar month shall file a return with the Department, in a | 24 | | form 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 | 15 | | after the proper notice and demand for signature by the | 16 | | Department is received by the provider, the return shall be | 17 | | considered valid and any amount shown to be due on the return | 18 | | shall be deemed assessed. | 19 | | (c) If the provider is otherwise required to file a monthly | 20 | | return, and if the provider's average monthly fee liability to | 21 | | the Department under this Act does not exceed $200, the | 22 | | Department may authorize the provider's returns to be filed on | 23 | | a quarter annual basis, with the return for January, February, | 24 | | and March of a given year being due by April 20 of that year; | 25 | | with the return for April, May, and June of a given year being | 26 | | due by July 20 of that year; with the return for July, August, |
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| 1 | | and September of a given year being due by October 20 of that | 2 | | year; and with the return for October, November, and December | 3 | | of a given year being due by January 20 of the following year. | 4 | | (d) If the provider is otherwise required to file a monthly | 5 | | or quarterly return, and if the provider's average monthly fee | 6 | | liability with the Department under this Act does not exceed | 7 | | $50, the Department may authorize the provider's returns to be | 8 | | filed on an annual basis, with the return for a given year | 9 | | being due by January 20 of the following year. | 10 | | (e) Those quarterly and annual returns shall be subject to | 11 | | the same requirements as to form and substance as monthly | 12 | | returns. | 13 | | (f) A provider who has a fee liability that exceeds the | 14 | | amount set forth in subsection (b) of Section 2505-210 of the | 15 | | Department of Revenue Law for tax liabilities shall make all | 16 | | payments required by rules of the Department by electronic | 17 | | funds transfer. | 18 | | (g) Any provider not required to make payments by | 19 | | electronic funds transfer may make payments by electronic funds | 20 | | transfer with the permission of the Department. | 21 | | (h) All providers required to make payment by electronic | 22 | | funds transfer and any providers authorized to voluntarily make | 23 | | payments by electronic funds transfer shall make those payments | 24 | | in 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 | 2 | | maintain the necessary records, and any other information | 3 | | required by the Department, to determine the amount of the fee | 4 | | that the provider is required to remit and any credit that the | 5 | | provider is entitled to claim under this Act. | 6 | | (b) The records shall be open at all times to inspection by | 7 | | the Department. | 8 | | Section 25. Distribution of proceeds. The proceeds of the | 9 | | fee collected shall be deposited into the Education Assistance | 10 | | Fund. | 11 | | Section 30. Department's authority to adopt rules. The | 12 | | Department is authorized to make, promulgate, and enforce such | 13 | | reasonable rules, and to prescribe such forms relating to the | 14 | | administration and enforcement of this Act, as it may deem | 15 | | appropriate. | 16 | | Section 35. Applicability. This Act becomes operative on | 17 | | July 1, 2014, and applies to the provision of direct broadcast | 18 | | satellite service on or after that date.
| 19 | | Section 50. The Economic Development for a Growing Economy | 20 | | Tax Credit Act is amended by changing Section 5-15 as follows: | 21 | | (35 ILCS 10/5-15) |
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| 1 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | 2 | | forth in this
Act, a Taxpayer is
entitled to a Credit against | 3 | | or, as described in subsection (g) of this Section, a payment | 4 | | towards taxes imposed pursuant to subsections (a) and (b)
of | 5 | | Section 201 of the Illinois
Income Tax Act that may be imposed | 6 | | on the Taxpayer for a taxable year beginning
on or
after | 7 | | January 1, 1999,
if the Taxpayer is awarded a Credit by the | 8 | | Department under this Act for that
taxable year. | 9 | | (a) The Department shall make Credit awards under this Act | 10 | | to foster job
creation and retention in Illinois. | 11 | | (b) A person that proposes a project to create new jobs in | 12 | | Illinois must
enter into an Agreement with the
Department for | 13 | | the Credit under this Act. | 14 | | (c) The Credit shall be claimed for the taxable years | 15 | | specified in the
Agreement. | 16 | | (d) The Credit shall not exceed the Incremental Income Tax | 17 | | attributable to
the project that is the subject of the | 18 | | Agreement. | 19 | | (e) Nothing herein shall prohibit a Tax Credit Award to an | 20 | | Applicant that uses a PEO if all other award criteria are | 21 | | satisfied.
| 22 | | (f) In lieu of the Credit allowed under this Act against | 23 | | the taxes imposed pursuant to subsections (a) and (b) of | 24 | | Section 201 of the Illinois Income Tax Act for any taxable year | 25 | | ending on or after December 31, 2009, the Taxpayer may elect to | 26 | | claim the Credit against its obligation to pay over withholding |
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| 1 | | under Section 704A of the Illinois Income Tax Act. | 2 | | (1) The election under this subsection (f) may be made | 3 | | only by a Taxpayer that (i) is primarily engaged in one of | 4 | | the following business activities: water purification and | 5 | | treatment, motor vehicle metal stamping, automobile | 6 | | manufacturing, automobile and light duty motor vehicle | 7 | | manufacturing, motor vehicle manufacturing, light truck | 8 | | and utility vehicle manufacturing, heavy duty truck | 9 | | manufacturing, motor vehicle body manufacturing, cable | 10 | | television infrastructure design or manufacturing, or | 11 | | wireless telecommunication or computing terminal device | 12 | | design or manufacturing for use on public networks and (ii) | 13 | | meets the following criteria: | 14 | | (A) the Taxpayer (i) had an Illinois net loss or an | 15 | | Illinois net loss deduction under Section 207 of the | 16 | | Illinois Income Tax Act for the taxable year in which | 17 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 18 | | full-time employees in this State during the taxable | 19 | | year in which the Credit is awarded, (iii) has an | 20 | | Agreement under this Act on December 14, 2009 (the | 21 | | effective date of Public Act 96-834), and (iv) is in | 22 | | compliance with all provisions of that Agreement; | 23 | | (B) the Taxpayer (i) had an Illinois net loss or an | 24 | | Illinois net loss deduction under Section 207 of the | 25 | | Illinois Income Tax Act for the taxable year in which | 26 | | the Credit is awarded, (ii) employed a minimum of 1,000 |
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| 1 | | full-time employees in this State during the taxable | 2 | | year in which the Credit is awarded, and (iii) has | 3 | | applied for an Agreement within 365 days after December | 4 | | 14, 2009 (the effective date of Public Act 96-834); | 5 | | (C) the Taxpayer (i) had an Illinois net operating | 6 | | loss carryforward under Section 207 of the Illinois | 7 | | Income Tax Act in a taxable year ending during calendar | 8 | | year 2008, (ii) has applied for an Agreement within 150 | 9 | | days after the effective date of this amendatory Act of | 10 | | the 96th General Assembly, (iii) creates at least 400 | 11 | | new jobs in Illinois, (iv) retains at least 2,000 jobs | 12 | | in Illinois that would have been at risk of relocation | 13 | | out of Illinois over a 10-year period, and (v) makes a | 14 | | capital investment of at least $75,000,000; | 15 | | (D) the Taxpayer (i) had an Illinois net operating | 16 | | loss carryforward under Section 207 of the Illinois | 17 | | Income Tax Act in a taxable year ending during calendar | 18 | | year 2009, (ii) has applied for an Agreement within 150 | 19 | | days after the effective date of this amendatory Act of | 20 | | the 96th General Assembly, (iii) creates at least 150 | 21 | | new jobs, (iv) retains at least 1,000 jobs in Illinois | 22 | | that would have been at risk of relocation out of | 23 | | Illinois over a 10-year period, and (v) makes a capital | 24 | | investment of at least $57,000,000; or | 25 | | (E) the Taxpayer (i) employed at least 2,500 | 26 | | full-time employees in the State during the year in |
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| 1 | | which the Credit is awarded, (ii) commits to make at | 2 | | least $500,000,000 in combined capital improvements | 3 | | and project costs under the Agreement, (iii) applies | 4 | | for an Agreement between January 1, 2011 and June 30, | 5 | | 2011, (iv) executes an Agreement for the Credit during | 6 | | calendar year 2011, and (v) was incorporated no more | 7 | | than 5 years before the filing of an application for an | 8 | | Agreement. | 9 | | (1.5) The election under this subsection (f) may also | 10 | | be made by a Taxpayer for any Credit awarded pursuant to an | 11 | | agreement that was executed between January 1, 2011 and | 12 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in | 13 | | the manufacture of inner tubes or tires, or both, from | 14 | | natural and synthetic rubber, (ii) employs a minimum of | 15 | | 2,400 full-time employees in Illinois at the time of | 16 | | application, (iii) creates at least 350 full-time jobs and | 17 | | retains at least 250 full-time jobs in Illinois that would | 18 | | have been at risk of being created or retained outside of | 19 | | Illinois, and (iv) makes a capital investment of at least | 20 | | $200,000,000 at the project location. | 21 | | (1.6) The election under this subsection (f) may also | 22 | | be made by a Taxpayer for any Credit awarded pursuant to an | 23 | | agreement that was executed within 150 days after the | 24 | | effective date of this amendatory Act of the 97th General | 25 | | Assembly, if the Taxpayer (i) is primarily engaged in the | 26 | | operation of a discount department store, (ii) maintains |
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| 1 | | its corporate headquarters in Illinois, (iii) employs a | 2 | | minimum of 4,250 full-time employees at its corporate | 3 | | headquarters in Illinois at the time of application, (iv) | 4 | | retains at least 4,250 full-time jobs in Illinois that | 5 | | would have been at risk of being relocated outside of | 6 | | Illinois, (v) had a minimum of $40,000,000,000 in total | 7 | | revenue in 2010, and (vi) makes a capital investment of at | 8 | | least $300,000,000 at the project location. | 9 | | (1.7) Notwithstanding any other provision of law, the | 10 | | election under this subsection (f) may also be made by a | 11 | | Taxpayer for any Credit awarded pursuant to an agreement | 12 | | that was executed or applied for on or after July 1, 2011 | 13 | | and on or before March 31, 2012, if the Taxpayer is | 14 | | primarily engaged in the manufacture of original and | 15 | | aftermarket filtration parts and products for automobiles, | 16 | | motor vehicles, light duty motor vehicles, light trucks and | 17 | | utility vehicles, and heavy duty trucks, (ii) employs a | 18 | | minimum of 1,000 full-time employees in Illinois at the | 19 | | time of application, (iii) creates at least 250 full-time | 20 | | jobs in Illinois, (iv) relocates its corporate | 21 | | headquarters to Illinois from another state, and (v) makes | 22 | | a capital investment of at least $4,000,000 at the project | 23 | | location. | 24 | | (1.8) The election under this subsection (f) may also | 25 | | be made if: | 26 | | (i) the agreement awarding the Credit was executed |
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| 1 | | on or after the effective date of this amendatory Act | 2 | | of the 98th General Assembly but not later than 150 | 3 | | days after the effective date of this amendatory Act of | 4 | | the 98th General Assembly; | 5 | | (ii) the taxpayer is primarily engaged in retail | 6 | | and business-to-business office products distribution, | 7 | | sales, and service; | 8 | | (iii) the taxpayer maintains its corporate | 9 | | headquarters in Illinois; | 10 | | (iv) the taxpayer employs a minimum of 2,050 | 11 | | full-time employees at its corporate headquarters and | 12 | | non-retail corporate locations in Illinois at the time | 13 | | of application; | 14 | | (v) the taxpayer retains at least 2,050 full-time | 15 | | jobs in Illinois that would have been at risk of being | 16 | | relocated outside of Illinois as a result of a business | 17 | | combination with a third party; | 18 | | (vi) the taxpayer creates at least 200 full-time | 19 | | jobs in Illinois as a result of a business combination | 20 | | with a third party; | 21 | | (vii) the taxpayer's total aggregate revenue, when | 22 | | combined with that third party, was at least | 23 | | $17,500,000,000 in 2012; and | 24 | | (viii) the taxpayer makes a capital investment of | 25 | | at least $150,000,000 at the project location. | 26 | | (1.9) Notwithstanding any other provision of law, an |
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| 1 | | election under this subsection (f) may also be made by a | 2 | | Taxpayer that: | 3 | | (A) is primarily engaged in business as a | 4 | | distributor of industrial and specialty chemicals; | 5 | | (B) relocates its corporate headquarters to | 6 | | Illinois from another State; and | 7 | | (C) entered into an Agreement for a Credit prior to | 8 | | the effective date of this amendatory Act of the 98th | 9 | | General Assembly, which required the Taxpayer to (i) | 10 | | make a capital investment of at least $9,300,000, (ii) | 11 | | retain at least 100 full-time jobs at project locations | 12 | | in Illinois, and (iii) create at least 69 full-time | 13 | | jobs at project locations in Illinois. | 14 | | (2) An election under this subsection shall allow the | 15 | | credit to be taken against payments otherwise due under | 16 | | Section 704A of the Illinois Income Tax Act during the | 17 | | first calendar year beginning after the end of the taxable | 18 | | year in which the credit is awarded under this Act , except | 19 | | that an election under paragraph (1.9) shall allow the | 20 | | credit to be taken against payments otherwise due under | 21 | | Section 704A of the Illinois Income Tax Act during the | 22 | | 12-month period beginning with the first month after the | 23 | | Taxpayer relocates its corporate headquarters to Illinois . | 24 | | (3) The election shall be made in the form and manner | 25 | | required by the Illinois Department of Revenue and, once | 26 | | made, shall be irrevocable. |
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| 1 | | (4) If a Taxpayer who meets the requirements of | 2 | | subparagraph (A) of paragraph (1) of this subsection (f) | 3 | | elects to claim the Credit against its withholdings as | 4 | | provided in this subsection (f), then, on and after the | 5 | | date of the election, the terms of the Agreement between | 6 | | the Taxpayer and the Department may not be further amended | 7 | | during the term of the Agreement. | 8 | | (g) A pass-through entity that has been awarded a credit | 9 | | under this Act, its shareholders, or its partners may treat | 10 | | some or all of the credit awarded pursuant to this Act as a tax | 11 | | payment for purposes of the Illinois Income Tax Act. The term | 12 | | "tax payment" means a payment as described in Article 6 or | 13 | | Article 8 of the Illinois Income Tax Act or a composite payment | 14 | | made by a pass-through entity on behalf of any of its | 15 | | shareholders or partners to satisfy such shareholders' or | 16 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 17 | | Section 201 of the Illinois Income Tax Act. In no event shall | 18 | | the amount of the award credited pursuant to this Act exceed | 19 | | the Illinois income tax liability of the pass-through entity or | 20 | | its shareholders or partners for the taxable year. | 21 | | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | 22 | | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | 23 | | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.".
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