Full Text of HB3359 101st General Assembly
HB3359 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3359 Introduced , by Rep. Arthur Turner SYNOPSIS AS INTRODUCED: |
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Creates the Video Service Tax Modernization Act. Imposes a tax upon the act or privilege of
providing direct-to-home satellite service, direct
broadcast satellite service, or digital audio-visual works
to a subscriber in the State. Provides that the tax is imposed at the rate of 5% of the provider's gross revenues derived
from or attributable to that subscriber. Creates the Entertainment Tax Fairness Act. Imposes a tax upon the subscribers of entertainment in the State at the rate of 1% of the charges paid for the privilege to witness, view, or otherwise enjoy the entertainment. Defines "entertainment" as any paid video programming, direct-to-home satellite service, direct broadcast satellite service, digital audio-visual works service, or video service to a subscriber in the State.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | ARTICLE 10. VIDEO SERVICE TAX MODERNIZATION | 5 | | Section 10-1. Short title. This Act may be cited as the | 6 | | Video Service Tax Modernization Act. | 7 | | Section 10-5. Application. This Act applies to the | 8 | | provision of direct-to-home
satellite service, direct | 9 | | broadcast satellite service, and digital
audio-visual works on | 10 | | or after the effective date of this Act. | 11 | | This Act does not apply to: (1) satellite radio service or
| 12 | | subscription radio service whereby a digital radio signal
is | 13 | | broadcast without any corresponding or related video
| 14 | | programming or services; or (2) a satellite television
| 15 | | transmission of simulcast horse races broadcast from or
| 16 | | received at locations operated by an organization licensee,
an | 17 | | inter-track wagering licensee, or an inter-track
wagering | 18 | | location licensee licensed under the Illinois
Horse Racing Act | 19 | | of 1975. | 20 | | Section 10-10. Definitions. As used in this Act: | 21 | | "Department" means the Department of Revenue. |
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| 1 | | "Digital audio-visual works" means a series of related
| 2 | | images that, when shown in succession, impart an
impression of | 3 | | motion, together with accompanying sounds, if
any, sold to an | 4 | | end user with rights of less than permanent
use. "Digital | 5 | | audio-visual works" does not include
cable service provided by | 6 | | a cable operator, as those
terms are defined in 47 U.S.C. 522, | 7 | | and does not include
video service provided by a holder, as | 8 | | those terms are
defined in Article 21 of the Public Utilities | 9 | | Act. | 10 | | "Direct broadcast satellite service" means video
services | 11 | | transmitted or broadcast by satellite directly to
the | 12 | | subscriber's premises with the use of or accompanied by
ground | 13 | | receiving or distribution equipment, including, but not
| 14 | | limited to, infrastructure to provide Internet access used
in | 15 | | the transmission or broadcast of such video services, at
the | 16 | | subscriber's premises, but not in the uplink process to
the | 17 | | satellite, and includes, but is not limited to, the
| 18 | | retransmission of local broadcast television, the provision
of | 19 | | premium channels, other recurring monthly services,
service | 20 | | and pay-per-view, video-on-demand, and other
event-based | 21 | | services. | 22 | | "Direct-to-home satellite service" has the meaning given | 23 | | to that term in Public Law No. 104-104,
Title VI, Section | 24 | | 602(a), February 8, 1996, 110 Stat. 144
(reprinted at 47 U.S.C. | 25 | | 152). | 26 | | "End user" means any person other than a
person who |
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| 1 | | receives by contract a product transferred
electronically for | 2 | | further commercial broadcast,
rebroadcast, transmission, | 3 | | retransmission, licensing,
relicensing, distribution, | 4 | | redistribution, or
exhibition of the product, in whole or in | 5 | | part, to
another person or persons. | 6 | | "Gross revenue" means all consideration of any kind
or | 7 | | nature received by a provider, or an affiliate of the
provider, | 8 | | in connection with the provision of direct-to-home
satellite | 9 | | service, direct broadcast satellite service,
or digital | 10 | | audio-visual works to subscribers. "Gross revenue" does not | 11 | | include: | 12 | | (1) charges for the rental of equipment related
to the | 13 | | provision of direct-to-home satellite service,
direct | 14 | | broadcast satellite service, or digital audiovisual
works; | 15 | | (2) activation, installation, repair, or
maintenance | 16 | | charges or similar service charges
related to the provision | 17 | | of direct-to-home satellite
service, direct broadcast | 18 | | satellite service, or digital
audio-visual works; | 19 | | (3) service order charges, service termination | 20 | | charges, or any other administrative charges related
to the | 21 | | provision of direct-to-home satellite service,
direct | 22 | | broadcast satellite service, or digital audiovisual
works; | 23 | | (4) revenue not actually received,
regardless of | 24 | | whether it is billed, including, but not
limited to, bad | 25 | | debts; | 26 | | (5) revenue received by an affiliate or other
person in |
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| 1 | | exchange for supplying goods and services
used by a | 2 | | provider; | 3 | | (6) the amount of any refunds, rebates, or
discounts | 4 | | made to subscribers, advertisers, or other persons; | 5 | | (7) revenue from any service that is subject to
tax | 6 | | under the Service Occupation Tax Act, Retailers'
| 7 | | Occupation Tax Act, Service Use Tax Act, or Use Tax
Act; | 8 | | (8) the tax imposed by this Act or any other tax
of | 9 | | general applicability imposed on a provider or a
purchaser | 10 | | of direct-to-home satellite service, direct
broadcast | 11 | | satellite service, or digital audio-visual
works by a | 12 | | federal, State, or local governmental
entity and required | 13 | | to be collected by a person and
remitted to the taxing | 14 | | entity; | 15 | | (9) charges, other than those charges
specifically | 16 | | described in this Act, that are
aggregated or bundled with | 17 | | such specifically-described
charges on a subscriber's | 18 | | bill, if the
provider can reasonably identify the charges | 19 | | in its
books and records kept in the regular course of
| 20 | | business; | 21 | | (10) revenue from advertising services; or | 22 | | (11) charges that may not be taxed pursuant to
the | 23 | | federal Internet Tax Freedom Act. | 24 | | "Permanent" means perpetual or for an
indefinite or | 25 | | unspecified length of time. | 26 | | "Person" means a natural individual, firm, trust,
estate, |
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| 1 | | partnership, association, joint stock company,
joint venture, | 2 | | corporation, or limited liability company, or a
receiver, | 3 | | trustee, guardian, or other representative
appointed by order | 4 | | of any court, and includes the federal and State
governments, | 5 | | including State universities created by
statute, and | 6 | | municipalities, counties, and other political
subdivisions of | 7 | | this State. | 8 | | "Premises" means a residence or place of business of a
| 9 | | subscriber in this State. | 10 | | "Provider" means a person who transmits, broadcasts,
| 11 | | sells, or distributes direct-to-home satellite service,
direct | 12 | | broadcast satellite service, or digital audio-visual
works to | 13 | | subscribers in the State. | 14 | | "Subscriber" means a member of the
general public who | 15 | | receives direct-to-home satellite
service, direct broadcast | 16 | | satellite service, or digital
audio-visual works from a | 17 | | provider and does not further
distribute the service in the | 18 | | ordinary course of
business. | 19 | | Section 10-15. Imposition of tax. | 20 | | (a) A tax is imposed upon the act or privilege of
providing | 21 | | direct-to-home satellite service, direct
broadcast satellite | 22 | | service, or digital audio-visual works
to a subscriber in this | 23 | | State by any provider
at the rate of 5% of the provider's gross | 24 | | revenues derived
from or attributable to that subscriber. | 25 | | (b) For purposes of the tax imposed by subsection (a),
a |
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| 1 | | subscriber is in this State if the
subscriber's street address | 2 | | representative of
where the subscriber's use or access of the | 3 | | direct-to-home
satellite service, direct broadcast satellite | 4 | | service, or
digital audio visual work primarily occurs, which | 5 | | must be
the street address of the subscriber based on
such | 6 | | other information kept by the provider in the regular
course of | 7 | | its business. | 8 | | (c) The tax imposed by subsection (a) may be passed
through | 9 | | to, and collected from, the provider's subscribers in
Illinois. | 10 | | To the extent allowed under federal or State
law, a provider | 11 | | may identify as a separate line item on
each regular bill | 12 | | issued to a subscriber the
amount of the total bill assessed as | 13 | | a tax under this Act. | 14 | | (d) To prevent actual multi-state taxation upon the act or | 15 | | privilege that is subject to taxation under this Act, any | 16 | | taxpayer, upon proof that that taxpayer has paid a tax in | 17 | | another state on such event, shall be allowed a credit against | 18 | | the tax imposed in this Act to the extent of the amount of such | 19 | | tax properly due and paid in such other state. However, such | 20 | | tax is not imposed on the act or privilege to the extent such | 21 | | act or privilege may not, under the Constitution and statutes | 22 | | of the United States, be made the subject of taxation by the | 23 | | State. | 24 | | Section 10-20. Remittances. | 25 | | (a) On or before the twentieth day of each calendar
month, |
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| 1 | | every provider of direct-to-home satellite service,
direct | 2 | | broadcast satellite service, or digital audio-visual
works | 3 | | that provides such service or services to a
subscriber in this | 4 | | State during the preceding
calendar month shall file a return | 5 | | with the Department, in
a form prescribed by the Department, | 6 | | stating: | 7 | | (1) the name of the provider; | 8 | | (2) the address of the provider's principal
place of | 9 | | business; | 10 | | (3) the total amount of gross revenues received by
the | 11 | | provider during the preceding calendar month,
quarter, or | 12 | | year, as the case may be, from the
provision of | 13 | | direct-to-home satellite service, direct
broadcast | 14 | | satellite service, or digital audio-visual
works during | 15 | | that preceding calendar month, quarter,
or year and upon | 16 | | the basis of which the tax is
imposed; | 17 | | (4) the amount of tax due; | 18 | | (5) the signature of the taxpayer; and | 19 | | (6) such other reasonable information as the
| 20 | | Department may require. | 21 | | (b) If a taxpayer fails to sign a return within 30
days | 22 | | after the proper notice and demand for signature by
the | 23 | | Department is received by the taxpayer, then the return
shall | 24 | | be considered valid and any amount shown to be due on
the | 25 | | return shall be deemed assessed. | 26 | | (c) If the provider is otherwise required to file a
monthly |
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| 1 | | return, and if the provider's average monthly tax
liability to | 2 | | the Department under this Act does not exceed
$200, the | 3 | | Department may authorize the provider's returns
to be filed on | 4 | | a quarter annual basis, with the return for
January, February, | 5 | | and March of a given year being due by
April 20 of that year; | 6 | | with the return for April, May, and
June of a given year being | 7 | | due by July 20 of that year;
with the return for July, August, | 8 | | and September of a given
year being due by October 20 of that | 9 | | year, and with the
return for October, November, and December | 10 | | of a given year
being due by January 20 of the following year. | 11 | | (d) If the provider is otherwise required to file a
monthly | 12 | | or quarterly return, and if the provider's average
monthly tax | 13 | | liability with the Department under this Act
does not exceed | 14 | | $50, the Department may authorize the
provider's returns to be | 15 | | filed on an annual basis, with the
return for a given year | 16 | | being due by January 20 of the
following year. | 17 | | (e) Those quarterly and annual returns shall be
subject to | 18 | | the same requirements as to form and substance
as monthly | 19 | | returns. | 20 | | (f) A taxpayer who has an annual tax liability in the | 21 | | amount
set forth in subsection (b) of Section 2505-210 of the
| 22 | | Department of Revenue Law shall make all payments required
by | 23 | | rules of the Department by electronic funds transfer. | 24 | | Any taxpayer not required to make payments by
electronic | 25 | | funds transfer may make payments by electronic
funds transfer | 26 | | with the permission of the Department. |
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| 1 | | All taxpayers required to make payment by
electronic funds | 2 | | transfer and any taxpayers authorized to
voluntarily make | 3 | | payments by electronic funds transfer
shall make those payments | 4 | | in the manner authorized by the
Department. | 5 | | Section 10-25. Records. | 6 | | (a) A provider on whom the tax is imposed by this Act
shall | 7 | | maintain the necessary records, and any other
information | 8 | | required by the Department, to determine the
amount of the tax | 9 | | that the provider is required to remit
and any credit that the | 10 | | provider is entitled to claim under
this Act. | 11 | | (b) The records shall be open at all times to
inspection by | 12 | | the Department. | 13 | | Section 10-30. Rules. The Department is authorized to adopt | 14 | | and
enforce any reasonable rules and to prescribe such forms
| 15 | | relating to the administration and enforcement of this Act
as | 16 | | it may deem appropriate. | 17 | | Section 10-35. Incorporation of Retailers' Occupation Tax | 18 | | Act and Uniform Penalty and Interest Act. All of the provisions | 19 | | of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, and 5j of the | 20 | | Retailers' Occupation Tax Act, which are not inconsistent with | 21 | | this Act, and the Uniform Penalty and Interest Act, shall | 22 | | apply, as far as practicable, to the subject matter of this Act | 23 | | to the same extent as if such provisions were included herein. |
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| 1 | | References in those incorporated Sections to taxpayers and to | 2 | | persons engaged in the business of selling tangible personal | 3 | | property at retail mean providers of direct-to-home satellite | 4 | | service,
direct broadcast satellite service, or digital | 5 | | audio-visual
works when used in this Act. | 6 | | ARTICLE 15. ENTERTAINMENT TAX FAIRNESS ACT | 7 | | Section 15-1. Short title. This Act may be cited as the | 8 | | Entertainment Tax Fairness Act. | 9 | | Section 15-5. Application. This Act applies to all | 10 | | subscribers of entertainment in this State for the privilege to | 11 | | witness, view, or otherwise enjoy the entertainment. | 12 | | This Act does not apply to: (1) satellite radio service or
| 13 | | subscription radio service whereby a digital radio signal
is | 14 | | broadcast without any corresponding or related video
| 15 | | programming or services; or (2) a satellite television
| 16 | | transmission of simulcast horse races broadcast from or
| 17 | | received at locations operated by an organization licensee,
an | 18 | | inter-track wagering licensee, or an inter-track
wagering | 19 | | location licensee licensed under the Illinois
Horse Racing Act | 20 | | of 1975. | 21 | | Section 15-10. Definitions. As used in this Act: | 22 | | "Cable service" has the meaning given to that term in item |
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| 1 | | (6) of 47 U.S.C. 522. | 2 | | "Department" means the Department of Revenue. | 3 | | "Digital audio-visual works service" means the | 4 | | transmission of a series of related
images that, when shown in | 5 | | succession, impart an
impression of motion, together with | 6 | | accompanying sounds, if
any, sold to an end user with rights of | 7 | | less than permanent
use. "Digital audio-visual works service" | 8 | | does not include
cable service or
video service. | 9 | | "Direct broadcast satellite service" means video
services | 10 | | transmitted or broadcast by satellite directly to
the | 11 | | subscriber's premises with the use of or accompanied by
ground | 12 | | receiving or distribution equipment, including, but not
| 13 | | limited to, infrastructure to provide Internet access used
in | 14 | | the transmission or broadcast of such video services, at
the | 15 | | subscriber's premises, but not in the uplink process to
the | 16 | | satellite, and includes, but is not limited to, the
| 17 | | retransmission of local broadcast television, the provision
of | 18 | | premium channels, other recurring monthly services,
service | 19 | | and pay-per-view, video-on-demand, and other
event-based | 20 | | services. | 21 | | "Direct-to-home satellite service" has the meaning given | 22 | | to that term in Public Law No. 104-104,
Title VI, Section | 23 | | 602(a), February 8, 1996, 110 Stat. 144
(reprinted at 47 U.S.C. | 24 | | 152). | 25 | | "End user" means any person other than a
person who | 26 | | receives by contract a product transferred
electronically for |
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| 1 | | further commercial broadcast,
rebroadcast, transmission, | 2 | | retransmission, licensing,
relicensing, distribution, | 3 | | redistribution, or
exhibition of the product, in whole or in | 4 | | part, to
another person or persons. | 5 | | "Entertainment" means any paid video programming whether | 6 | | transmitted by cable service, direct-to-home satellite | 7 | | service, direct broadcast satellite service, digital | 8 | | audio-visual works service, or video service to a subscriber in | 9 | | this State. | 10 | | "Permanent" means perpetual or for an
indefinite or | 11 | | unspecified length of time. | 12 | | "Provider" means a person who transmits, broadcasts,
| 13 | | sells, or distributes cable service, direct-to-home satellite | 14 | | service,
direct broadcast satellite service, digital | 15 | | audio-visual works service, or video service to subscribers in | 16 | | the State. | 17 | | "Subscriber" means a member of the
general public who | 18 | | receives cable service, direct-to-home satellite
service, | 19 | | direct broadcast satellite service, or digital
audio-visual | 20 | | works service, or video service from a provider and does not | 21 | | further
distribute the service in the ordinary course of
| 22 | | business. | 23 | | "Video service" has the meaning given to that term in the | 24 | | Cable and Video Competition Law of 2007 of the Public Utilities | 25 | | Act. |
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| 1 | | Section 15-15. Imposition of tax. | 2 | | (a) A tax is imposed upon the subscribers of entertainment | 3 | | in this State at the rate of 1% of the charges paid for the | 4 | | privilege to witness, view, or otherwise enjoy the | 5 | | entertainment. | 6 | | (b) For purposes of the tax imposed by subsection (a),
a | 7 | | subscriber is in this State if the
subscriber's street address | 8 | | is representative of
where the subscriber's use or access of | 9 | | the entertainment primarily occurs, which must be
the street | 10 | | address of the subscriber based on
such other information kept | 11 | | by the provider in the regular
course of its business. | 12 | | (c) The provider of the entertainment shall collect and | 13 | | secure from each subscriber the tax imposed by this Act and | 14 | | remit the tax to the Department as set forth in Section 15-20 | 15 | | of this Act. | 16 | | Section 15-20. Remittances. | 17 | | (a) On or before the twentieth day of each calendar
month, | 18 | | every provider shall file a return with the Department, in
a | 19 | | form prescribed by the Department, stating: | 20 | | (1) the name of the provider; | 21 | | (2) the address of the provider's principal
place of | 22 | | business; | 23 | | (3) the total amount of tax revenues collected by
the | 24 | | provider under this Act during the preceding calendar | 25 | | month,
quarter, or year, as the case may be, during that |
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| 1 | | preceding calendar month, quarter,
or year and upon the | 2 | | basis of which the tax is
imposed; | 3 | | (4) the amount of tax due; | 4 | | (5) the signature of the provider; and | 5 | | (6) such other reasonable information as the
| 6 | | Department may require. | 7 | | (b) If a provider fails to sign a return within 30
days | 8 | | after the proper notice and demand for signature by
the | 9 | | Department is received by the provider, then the return
shall | 10 | | be considered valid and any amount shown to be due on
the | 11 | | return shall be deemed assessed. | 12 | | (c) If the provider is otherwise required to file a
monthly | 13 | | return, and if the amount collected by the provider under this | 14 | | Act does not exceed
$200, the Department may authorize the | 15 | | provider's returns
to be filed on a quarter annual basis, with | 16 | | the return for
January, February, and March of a given year | 17 | | being due by
April 20 of that year; with the return for April, | 18 | | May, and
June of a given year being due by July 20 of that year;
| 19 | | with the return for July, August, and September of a given
year | 20 | | being due by October 20 of that year, and with the
return for | 21 | | October, November, and December of a given year
being due by | 22 | | January 20 of the following year. | 23 | | (d) If the provider is otherwise required to file a
monthly | 24 | | or quarterly return, and if the amount collected by the | 25 | | provider under this Act
does not exceed $50, the Department may | 26 | | authorize the
provider's returns to be filed on an annual |
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| 1 | | basis, with the
return for a given year being due by January 20 | 2 | | of the
following year. | 3 | | (e) Those quarterly and annual returns shall be
subject to | 4 | | the same requirements as to form and substance
as monthly | 5 | | returns. | 6 | | (f) A provider responsible for collecting and remitting the | 7 | | amount
set forth in subsection (b) of Section 2505-210 of the
| 8 | | Department of Revenue Law shall make all payments required
by | 9 | | rules of the Department by electronic funds transfer. | 10 | | Any provider not required to make payments by
electronic | 11 | | funds transfer may make payments by electronic
funds transfer | 12 | | with the permission of the Department. | 13 | | All providers required to make payment by
electronic funds | 14 | | transfer and any taxpayers authorized to
voluntarily make | 15 | | payments by electronic funds transfer
shall make those payments | 16 | | in the manner authorized by the
Department. | 17 | | Section 15-25. Records. | 18 | | (a) A provider subject to this Act
shall maintain the | 19 | | necessary records, and any other
information required by the | 20 | | Department, to determine the
amount of the tax that the | 21 | | provider is required to collect and remit
and any credit that | 22 | | the provider is entitled to claim under
this Act. | 23 | | (b) The records shall be open at all times to
inspection by | 24 | | the Department. |
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| 1 | | Section 15-30. Rules. The Department is authorized to adopt | 2 | | and
enforce any reasonable rules and to prescribe such forms
| 3 | | relating to the administration and enforcement of this Act
as | 4 | | it may deem appropriate. | 5 | | Section 15-35. Incorporation of Retailers' Occupation Tax | 6 | | Act and Uniform Penalty and Interest Act. All of the provisions | 7 | | of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, and 5j of the | 8 | | Retailers' Occupation Tax Act, which are not inconsistent with | 9 | | this Act, and the Uniform Penalty and Interest Act, shall | 10 | | apply, as far as practicable, to the subject matter of this Act | 11 | | to the same extent as if such provisions were included herein. | 12 | | References in those incorporated Sections to taxpayers and to | 13 | | persons engaged in the business of selling tangible personal | 14 | | property at retail mean providers of direct-to-home satellite | 15 | | service,
direct broadcast satellite service, or digital | 16 | | audio-visual
works service when used in this Act.
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