Full Text of HB3129 97th General Assembly
HB3129enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Prepaid Wireless 9-1-1 Surcharge Act is | 5 | | amended by changing Sections 15 and 20 as follows: | 6 | | (50 ILCS 753/15)
| 7 | | Sec. 15. Prepaid wireless 9-1-1 surcharge. | 8 | | (a) There is hereby imposed on consumers a prepaid wireless | 9 | | 9-1-1 surcharge of 1.5% per retail transaction.
The surcharge | 10 | | authorized by this subsection (a) does not apply in a home rule | 11 | | municipality having a population in excess of 500,000. The | 12 | | amount of the surcharge may be reduced or increased pursuant to | 13 | | subsection (e). | 14 | | (a-5) A home rule municipality having a population in | 15 | | excess of 500,000 on the effective date of this Act may only | 16 | | impose a prepaid wireless 9-1-1 surcharge not to exceed 7% per | 17 | | retail transaction sourced to that jurisdiction and collected | 18 | | and remitted in accordance with the provisions of subsection | 19 | | (b-5). | 20 | | (b) The prepaid wireless 9-1-1 surcharge shall be collected | 21 | | by the seller from the consumer with respect to each retail | 22 | | transaction occurring in this State and shall be remitted to | 23 | | the Department by the seller as provided in this Act. The |
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| 1 | | amount of the prepaid wireless 9-1-1 surcharge shall be | 2 | | separately stated as a distinct item apart from the charge for | 3 | | the prepaid wireless telecommunications service on an invoice, | 4 | | receipt, or other similar document that is provided to the | 5 | | consumer by the seller or shall be otherwise disclosed to the | 6 | | consumer.
If the seller does not separately state the surcharge | 7 | | as a distinct item to the consumer as provided in this Section, | 8 | | then the seller shall maintain books and records as required by | 9 | | this Act which clearly identify the amount of the 9-1-1 | 10 | | surcharge for retail transactions. | 11 | | For purposes of this subsection (b), a retail transaction | 12 | | occurs in this State if (i) the retail transaction is made in | 13 | | person by a consumer at the seller's business location and the | 14 | | business is located within the State; (ii) the seller is a | 15 | | provider and sells prepaid wireless telecommunications service | 16 | | to a consumer located in Illinois; (iii) the retail transaction | 17 | | is treated as occurring in this State for purposes of the | 18 | | Retailers' Occupation Tax Act; or (iv) a seller that is | 19 | | included within the definition of a "retailer maintaining a | 20 | | place of business in this State" under Section 2 of the Use Tax | 21 | | Act makes a sale of prepaid wireless telecommunications service | 22 | | to a consumer located in Illinois. In the case of a retail | 23 | | transaction which does not occur in person at a seller's | 24 | | business location, if a consumer uses a credit card to purchase | 25 | | prepaid wireless telecommunications service on-line or over | 26 | | the telephone, and no product is shipped to the consumer, the |
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| 1 | | transaction occurs in this State if the billing address for the | 2 | | consumer's credit card is in this State. | 3 | | (b-5) The prepaid wireless 9-1-1 surcharge imposed under | 4 | | subsection (a-5) of this Section shall be collected by the | 5 | | seller from the consumer with respect to each retail | 6 | | transaction occurring in the municipality imposing the | 7 | | surcharge. The amount of the prepaid wireless 9-1-1 surcharge | 8 | | shall be separately stated on an invoice, receipt, or other | 9 | | similar document that is provided to the consumer by the seller | 10 | | or shall be otherwise disclosed to the consumer. If the seller | 11 | | does not separately state the surcharge as a distinct item to | 12 | | the consumer as provided in this Section, then the seller shall | 13 | | maintain books and records as required by this Act which | 14 | | clearly identify the amount of the 9-1-1 surcharge for retail | 15 | | transactions. | 16 | | For purposes of this subsection (b-5), a retail transaction | 17 | | occurs in the municipality if (i) the retail transaction is | 18 | | made in person by a consumer at the seller's business location | 19 | | and the business is located within the municipality; (ii) the | 20 | | seller is a provider and sells prepaid wireless | 21 | | telecommunications service to a consumer located in the | 22 | | municipality; (iii) the retail transaction is treated as | 23 | | occurring in the municipality for purposes of the Retailers' | 24 | | Occupation Tax Act; or (iv) a seller that is included within | 25 | | the definition of a "retailer maintaining a place of business | 26 | | in this State" under Section 2 of the Use Tax Act makes a sale |
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| 1 | | of prepaid wireless telecommunications service to a consumer | 2 | | located in the municipality. In the case of a retail | 3 | | transaction which does not occur in person at a seller's | 4 | | business location, if a consumer uses a credit card to purchase | 5 | | prepaid wireless telecommunications service on-line or over | 6 | | the telephone, and no product is shipped to the consumer, the | 7 | | transaction occurs in the municipality if the billing address | 8 | | for the consumer's credit card is in the municipality. | 9 | | (c) The prepaid wireless 9-1-1 surcharge is imposed on the | 10 | | consumer and not on any provider. The seller shall be liable to | 11 | | remit all prepaid wireless 9-1-1 surcharges that the seller | 12 | | collects from consumers as provided in Section 20, including | 13 | | all such surcharges that the seller is deemed to collect where | 14 | | the amount of the surcharge has not been separately stated on | 15 | | an invoice, receipt, or other similar document provided to the | 16 | | consumer by the seller.
The surcharge collected or deemed | 17 | | collected by a seller shall constitute a debt owed by the | 18 | | seller to this State, and any such surcharge actually collected | 19 | | shall be held in trust for the benefit of the Department. | 20 | | For purposes of this subsection (c), the surcharge shall | 21 | | not be imposed or collected from entities that have an active | 22 | | tax exemption identification number issued by the Department | 23 | | are tax exempt under Section 1g of the Retailers' Occupation | 24 | | Tax Act. | 25 | | (d) The amount of the prepaid wireless 9-1-1 surcharge that | 26 | | is collected by a seller from a consumer, if such amount is |
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| 1 | | separately stated on an invoice, receipt, or other similar | 2 | | document provided to the consumer by the seller, shall not be | 3 | | included in the base for measuring any tax, fee, surcharge, or | 4 | | other charge that is imposed by this State, any political | 5 | | subdivision of this State, or any intergovernmental agency.
| 6 | | (e) The prepaid wireless 9-1-1 charge imposed under | 7 | | subsection (a) of this Section shall be proportionately | 8 | | increased or reduced, as applicable, upon any change to the | 9 | | surcharge imposed under Section 17 of the Wireless Emergency | 10 | | Telephone Safety Act. The adjusted rate shall be determined by | 11 | | dividing the amount of the surcharge imposed under Section 17 | 12 | | of the Wireless Emergency Telephone Safety Act by $50. Such | 13 | | increase or reduction shall be effective on the first day of | 14 | | the first calendar month to occur at least 60 days after the | 15 | | enactment of the change to the surcharge imposed under Section | 16 | | 17 of the Wireless Emergency Telephone Safety Act. The | 17 | | Department shall provide not less than 30 days' notice of an | 18 | | increase or reduction in the amount of the surcharge on the | 19 | | Department's website.
| 20 | | (e-5) Any changes in the rate of the surcharge imposed by a | 21 | | municipality under the authority granted in subsection (a-5) of | 22 | | this Section shall be effective on the first day of the first | 23 | | calendar month to occur at least 60 days after the enactment of | 24 | | the change. The Department shall provide not less than 30 days' | 25 | | notice of the increase or reduction in the rate of such | 26 | | surcharge on the Department's website. |
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| 1 | | (f) When prepaid wireless telecommunications service is | 2 | | sold with one or more other products or services for a single, | 3 | | non-itemized price, then the percentage specified in | 4 | | subsection (a) or (a-5) of this Section 15 shall be applied to | 5 | | the entire non-itemized price unless the seller elects to apply | 6 | | the percentage to (i) the dollar amount of the prepaid wireless | 7 | | telecommunications service if that dollar amount is disclosed | 8 | | to the consumer or (ii) the portion of the price that is | 9 | | attributable to the prepaid wireless telecommunications | 10 | | service if the retailer can identify that portion by reasonable | 11 | | and verifiable standards from its books and records that are | 12 | | kept in the regular course of business for other purposes, | 13 | | including, but not limited to, books and records that are kept | 14 | | for non-tax purposes. However, if a minimal amount of prepaid | 15 | | wireless telecommunications service is sold with a prepaid | 16 | | wireless device for a single, non-itemized price, then the | 17 | | seller may elect not to apply the percentage specified in | 18 | | subsection (a) or (a-5) of this Section 15 to such transaction. | 19 | | For purposes of this subsection, an amount of service | 20 | | denominated as 10 minutes or less or $5 or less is considered | 21 | | minimal.
| 22 | | (Source: P.A. 97-463, eff. 1-1-12.) | 23 | | (50 ILCS 753/20)
| 24 | | Sec. 20. Administration of prepaid wireless 9-1-1 | 25 | | surcharge. |
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| 1 | | (a) In the administration and enforcement of this Act, the | 2 | | provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, | 3 | | 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the | 4 | | Retailers' Occupation Tax Act that are not inconsistent with | 5 | | this Act, and Section 3-7 of the Uniform Penalty and Interest | 6 | | Act shall apply, as far as practicable, to the subject matter | 7 | | of this Act to the same extent as if those provisions were | 8 | | included in this Act. References to "taxes" in these | 9 | | incorporated Sections shall be construed to apply to the | 10 | | administration, payment, and remittance of all surcharges | 11 | | under this Act. The Department shall establish registration and | 12 | | payment procedures that substantially coincide with the | 13 | | registration and payment procedures that apply to the | 14 | | Retailers' Occupation Tax Act.
| 15 | | (b) For the first 12 months after the effective date of | 16 | | this Act, a seller shall be permitted to deduct and retain 5% | 17 | | of prepaid wireless 9-1-1 surcharges that are collected by the | 18 | | seller from consumers and that are remitted and timely filed | 19 | | with the Department.
After the first 12 months, a seller shall | 20 | | be permitted to deduct and retain 3% of prepaid wireless 9-1-1 | 21 | | surcharges that are collected by the seller from consumers and | 22 | | that are remitted and timely filed with the Department. | 23 | | (c) Other than the amounts for deposit into the Municipal | 24 | | Wireless Service Emergency Fund, the Department shall pay to | 25 | | the State Treasurer all prepaid wireless E911 charges and | 26 | | penalties collected under this Act for deposit into the |
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| 1 | | Wireless Service Emergency Fund. On or before the 25th day of | 2 | | each calendar month, the Department shall prepare and certify | 3 | | to the Comptroller the amount available to the Illinois | 4 | | Commerce Commission for distribution out of the Wireless | 5 | | Service Emergency Fund. The amount certified shall be the | 6 | | amount (not including credit memoranda) collected during the | 7 | | second preceding calendar month by the Department plus an | 8 | | amount the Department determines is necessary to offset any | 9 | | amounts which were erroneously paid to a different taxing body. | 10 | | The amount paid to the Wireless Service Emergency Fund shall | 11 | | not include any amount equal to the amount of refunds made | 12 | | during the second preceding calendar month by the Department to | 13 | | retailers under this Act or any amount that the Department | 14 | | determines is necessary to offset any amounts which were | 15 | | payable to a different taxing body but were erroneously paid to | 16 | | the Wireless Service Emergency Fund. The Illinois Commerce | 17 | | Commission shall distribute the funds in the same proportion as | 18 | | they are distributed under the Wireless Emergency Telephone | 19 | | Safety Act and the funds may only be used in accordance with | 20 | | the provisions of the Wireless Emergency Telephone Safety Act. | 21 | | The Department shall pay all remitted prepaid wireless E911 | 22 | | charges over to the State Treasurer for deposit into the | 23 | | Wireless Service Emergency Fund within 30 days after receipt. | 24 | | The Illinois Commerce Commission shall distribute such funds in | 25 | | the same proportion as they are distributed under the Wireless | 26 | | Emergency Telephone Safety Act and such funds may only be used |
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| 1 | | in accordance with the provisions of the Wireless Emergency | 2 | | Telephone Safety Act. The Department may deduct an amount, not | 3 | | to exceed 3% during the first year following the effective date | 4 | | of this Act and not to exceed 2% during every year thereafter | 5 | | of remitted charges, to be transferred into retained by the Tax | 6 | | Compliance and Administration Fund Department to reimburse the | 7 | | Department for its direct costs of administering the collection | 8 | | and remittance of prepaid wireless 9-1-1 surcharges.
| 9 | | (d) The Department shall administer the collection of all | 10 | | 9-1-1 surcharges and may adopt and enforce reasonable rules | 11 | | relating to the administration and enforcement of the | 12 | | provisions of this Act as may be deemed expedient. The | 13 | | Department shall require all surcharges collected under this | 14 | | Act to be reported on existing forms or combined forms, | 15 | | including, but not limited to, Form ST-1. Any overpayments | 16 | | received by the Department for liabilities reported on existing | 17 | | or combined returns shall be applied as an overpayment of | 18 | | retailers' occupation tax, use tax, service occupation tax, or | 19 | | service use tax liability.
| 20 | | (e) If a home rule municipality having a population in | 21 | | excess of 500,000 as of the effective date of this amendatory | 22 | | Act of the 97th General Assembly imposes an E911 surcharge | 23 | | under subsection (a-5) of Section 15 of this Act, then the | 24 | | Department shall pay to the State Treasurer all prepaid | 25 | | wireless E911 charges, penalties, and interest collected for | 26 | | deposit into the Municipal Wireless Service Emergency Fund. All |
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| 1 | | deposits into the Municipal Wireless Service Emergency Fund | 2 | | shall be held by the State Treasurer as ex officio custodian | 3 | | apart from all public moneys or funds of this State. Any | 4 | | interest attributable to moneys in the Fund must be deposited | 5 | | into the Fund. Moneys in the Municipal Wireless Service | 6 | | Emergency Fund are not subject to appropriation. On or before | 7 | | the 25th day of each calendar month, the Department shall | 8 | | prepare and certify to the Comptroller the amount available for | 9 | | disbursement to the home rule municipality out of the Municipal | 10 | | Wireless Service Emergency Fund. The amount to be paid to the | 11 | | Municipal Wireless Service Emergency Fund shall be the amount | 12 | | (not including credit memoranda) collected during the second | 13 | | preceding calendar month by the Department plus an amount the | 14 | | Department determines is necessary to offset any amounts which | 15 | | were erroneously paid to a different taxing body. The amount | 16 | | paid to the Municipal Wireless Service Emergency Fund shall not | 17 | | include any amount equal to the amount of refunds made during | 18 | | the second preceding calendar month by the Department to | 19 | | retailers under this Act or any amount that the Department | 20 | | determines is necessary to offset any amounts which were | 21 | | payable to a different taxing body but were erroneously paid to | 22 | | the Municipal Wireless Service Emergency Fund. Within 10 days | 23 | | after receipt by the Comptroller of the certification provided | 24 | | for in this subsection, the Comptroller shall cause the orders | 25 | | to be drawn for the respective amounts in accordance with the | 26 | | directions in the certification. The Department may deduct an |
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| 1 | | amount, not to exceed 3% during the first year following the | 2 | | effective date of this amendatory Act of the 97th General | 3 | | Assembly and not to exceed 2% during every year thereafter of | 4 | | remitted charges, to be transferred into the Tax Compliance and | 5 | | Administration Fund to reimburse the Department for its direct | 6 | | costs of administering the collection and remittance of prepaid | 7 | | wireless 9-1-1 surcharges. | 8 | | (Source: P.A. 97-463, eff. 1-1-12.) | 9 | | Section 10. The State Finance Act is amended by adding | 10 | | Section 5.811 as follows: | 11 | | (30 ILCS 105/5.811 new) | 12 | | Sec. 5.811. The Municipal Wireless Service Emergency Fund.
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law. |
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