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90_SB0614
35 ILCS 615/1 from Ch. 120, par. 467.16
35 ILCS 620/1 from Ch. 120, par. 468
35 ILCS 630/2 from Ch. 120, par. 2002
220 ILCS 5/3-121 from Ch. 111 2/3, par. 3-121
Amends the Gas Revenue Tax Act, the Public Utilities
Revenue Act, the Telecommunications Excise Tax Act, and the
Public Utilities Act to exempt school districts subject to
the School Code from liability for the taxes imposed under
those Acts.
LRB9003098KDks
LRB9003098KDks
1 AN ACT to exempt school districts from certain taxes,
2 amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Gas Revenue Tax Act is amended by
6 changing Section 1 as follows:
7 (35 ILCS 615/1) (from Ch. 120, par. 467.16)
8 Sec. 1. Definitions. For the purposes of this Act:
9 "Gross receipts" means the consideration received for gas
10 distributed, supplied, furnished or sold to persons for use
11 or consumption and not for resale, and for all services
12 (including the transportation or storage of gas for an
13 end-user) rendered in connection therewith, and shall include
14 cash, services and property of every kind or nature, and
15 shall be determined without any deduction on account of the
16 cost of the service, product or commodity supplied, the cost
17 of materials used, labor or service costs, or any other
18 expense whatsoever. However, "gross receipts" shall not
19 include receipts from:
20 (i) any minimum or other charge for gas or gas
21 service where the customer has taken no therms of gas;
22 (ii) any charge for a dishonored check;
23 (iii) any finance or credit charge, penalty or
24 charge for delayed payment, or discount for prompt
25 payment;
26 (iv) any charge for reconnection of service or for
27 replacement or relocation of facilities;
28 (v) any advance or contribution in aid of
29 construction;
30 (vi) repair, inspection or servicing of equipment
31 located on customer premises;
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1 (vii) leasing or rental of equipment, the leasing
2 or rental of which is not necessary to distributing,
3 furnishing, supplying, selling, transporting or storing
4 gas;
5 (viii) any sale to a customer if the taxpayer is
6 prohibited by federal or State constitution, treaty,
7 convention, statute or court decision from recovering the
8 related tax liability from such customer;
9 (ix) any charges added to customers' bills pursuant
10 to the provisions of Section 9-221 or Section 9-222 of
11 the Public Utilities Act, as amended, or any charges
12 added to customers' bills by taxpayers who are not
13 subject to rate regulation by the Illinois Commerce
14 Commission for the purpose of recovering any of the tax
15 liabilities or other amounts specified in such provisions
16 of such Act; and
17 (x) any charge for gas or gas services to a
18 customer who acquired contractual rights for the direct
19 purchase of gas or gas services originating from an
20 out-of-state supplier or source on or before March 1,
21 1995, except for those charges solely related to the
22 local distribution of gas by a public utility; and .
23 (xi) a sale to a school district subject to the
24 School Code.
25 In case credit is extended, the amount thereof shall be
26 included only as and when payments are received.
27 "Gross receipts" shall not include consideration received
28 from business enterprises certified under Section 9-222.1 of
29 the Public Utilities Act, as amended, to the extent of such
30 exemption and during the period of time specified by the
31 Department of Commerce and Community Affairs.
32 "Department" means the Department of Revenue of the State
33 of Illinois.
34 "Director" means the Director of Revenue for the
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1 Department of Revenue of the State of Illinois.
2 "Taxpayer" means a person engaged in the business of
3 distributing, supplying, furnishing or selling gas for use or
4 consumption and not for resale.
5 "Person" means any natural individual, firm, trust,
6 estate, partnership, association, joint stock company, joint
7 adventure, corporation, limited liability company, or a
8 receiver, trustee, guardian or other representative appointed
9 by order of any court, or any city, town, county or other
10 political subdivision of this State.
11 "Invested capital" means that amount equal to (i) the
12 average of the balances at the beginning and end of each
13 taxable period of the taxpayer's total stockholder's equity
14 and total long-term debt, less investments in and advances to
15 all corporations, as set forth on the balance sheets included
16 in the taxpayer's annual report to the Illinois Commerce
17 Commission for the taxable period; (ii) multiplied by a
18 fraction determined under Sections 301 and 304(a) of the
19 Illinois "Illinois Income Tax Act" and reported on the
20 Illinois income tax return for the taxable period ending in
21 or with the taxable period in question. However,
22 notwithstanding the income tax return reporting requirement
23 stated above, beginning July 1, 1979, no taxpayer's
24 denominators used to compute the sales, property or payroll
25 factors under subsection (a) of Section 304 of the Illinois
26 Income Tax Act shall include payroll, property or sales of
27 any corporate entity other than the taxpayer for the purposes
28 of determining an allocation for the invested capital tax.
29 This amendatory Act of 1982, Public Act 82-1024, is not
30 intended to and does not make any change in the meaning of
31 any provision of this Act, it having been the intent of the
32 General Assembly in initially enacting the definition of
33 "invested capital" to provide for apportionment of the
34 invested capital of each company, based solely upon the
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1 sales, property and payroll of that company.
2 "Taxable period" means each period which ends after the
3 effective date of this Act and which is covered by an annual
4 report filed by the taxpayer with the Illinois Commerce
5 Commission.
6 (Source: P.A. 88-480; 89-417, eff. 1-1-96.)
7 Section 10. The Public Utilities Revenue Act is amended
8 by changing Section 1 as follows:
9 (35 ILCS 620/1) (from Ch. 120, par. 468)
10 Sec. 1. Definitions. For the purposes of this Act:
11 "Gross receipts" means the consideration received for
12 electricity distributed, supplied, furnished or sold to
13 persons for use or consumption and not for resale, and for
14 all services (including the transmission of electricity for
15 an end-user) rendered in connection therewith, and includes
16 cash, services and property of every kind or nature, and
17 shall be determined without any deduction on account of the
18 cost of the service, product or commodity supplied, the cost
19 of materials used, labor or service costs, or any other
20 expense whatsoever. However, "gross receipts" shall not
21 include receipts from:
22 (i) any minimum or other charge for electricity or
23 electric service where the customer has taken no
24 kilowatt-hours of electricity;
25 (ii) any charge for a dishonored check;
26 (iii) any finance or credit charge, penalty or
27 charge for delayed payment, or discount for prompt
28 payment;
29 (iv) any charge for reconnection of service or for
30 replacement or relocation of facilities;
31 (v) any advance or contribution in aid of
32 construction;
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1 (vi) repair, inspection or servicing of equipment
2 located on customer premises;
3 (vii) leasing or rental of equipment, the leasing
4 or rental of which is not necessary to distributing,
5 furnishing, supplying, selling or transporting
6 electricity;
7 (viii) any sale to a customer if the taxpayer is
8 prohibited by federal or State constitution, treaty,
9 convention, statute or court decision from recovering the
10 related tax liability from such customer; and
11 (ix) any charges added to customers' bills pursuant
12 to the provisions of Section 9-221 or Section 9-222 of
13 the Public Utilities Act, as amended, or any charges
14 added to customers' bills by taxpayers who are not
15 subject to rate regulation by the Illinois Commerce
16 Commission for the purpose of recovering any of the tax
17 liabilities or other amount specified in such provisions
18 of such Act. In case credit is extended, the amount
19 thereof shall be included only as and when payments are
20 received; and.
21 (x) a sale to a school district subject to the
22 School Code.
23 "Gross receipts" shall not include consideration received
24 from business enterprises certified under Section 9-222.1 of
25 the Public Utilities Act, as amended, to the extent of such
26 exemption and during the period of time specified by the
27 Department of Commerce and Community Affairs.
28 "Department" means the Department of Revenue of the State
29 of Illinois.
30 "Director" means the Director of Revenue for the
31 Department of Revenue of the State of Illinois.
32 "Taxpayer" means a person engaged in the business of
33 distributing, supplying, furnishing or selling electricity
34 for use or consumption and not for resale.
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1 "Person" means any natural individual, firm, trust,
2 estate, partnership, association, joint stock company, joint
3 adventure, corporation, limited liability company, or a
4 receiver, trustee, guardian or other representative appointed
5 by order of any court, or any city, town, county or other
6 political subdivision of this State.
7 "Invested capital" means that amount equal to (i) the
8 average of the balances at the beginning and end of each
9 taxable period of the taxpayer's total stockholder's equity
10 and total long-term debt, less investments in and advances to
11 all corporations, as set forth on the balance sheets included
12 in the taxpayer's annual report to the Illinois Commerce
13 Commission for the taxable period; (ii) multiplied by a
14 fraction determined under Sections 301 and 304(a) of the
15 Illinois "Illinois Income Tax Act" and reported on the
16 Illinois income tax return for the taxable period ending in
17 or with the taxable period in question. However,
18 notwithstanding the income tax return reporting requirement
19 stated above, beginning July 1, 1979, no taxpayer's
20 denominators used to compute the sales, property or payroll
21 factors under subsection (a) of Section 304 of the Illinois
22 Income Tax Act shall include payroll, property or sales of
23 any corporate entity other than the taxpayer for the purposes
24 of determining an allocation for the invested capital tax.
25 This amendatory Act of 1982, Public Act 82-1024, is not
26 intended to and does not make any change in the meaning of
27 any provision of this Act, it having been the intent of the
28 General Assembly in initially enacting the definition of
29 "invested capital" to provide for apportionment of the
30 invested capital of each company, based solely upon the
31 sales, property and payroll of that company.
32 In the case of an electric cooperative subject to the tax
33 imposed by Section 2a.1, "invested capital" means an amount
34 equal to the product determined by multiplying, (i) the
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1 average of the balances at the beginning and end of the
2 taxable period of the taxpayer's total equity (including
3 memberships, patronage capital, operating margins,
4 non-operating margins, other margins and other equities), as
5 set forth on the balance sheets included in the taxpayer's
6 annual report to the United States Department of Agriculture
7 Rural Electrification Administration (established pursuant to
8 the federal Rural Electrification Act of 1936, as amended),
9 by (ii) the fraction determined under Sections 301 and 304(a)
10 of the Illinois Income Tax Act, as amended, for the taxable
11 period.
12 "Taxable period" means each period which ends after the
13 effective date of this Act and which is covered by an annual
14 report filed by the taxpayer with the Illinois Commerce
15 Commission. In the case of an electric cooperative subject
16 to the tax imposed by Section 2a.1, "taxable period" means
17 each calendar year ending after the effective date of this
18 Act and covered by an annual report filed by the taxpayer
19 with the United States Department of Agriculture Rural
20 Electrification Administration.
21 (Source: P.A. 88-480.)
22 Section 15. The Telecommunications Excise Tax Act is
23 amended by changing Section 2 as follows:
24 (35 ILCS 630/2) (from Ch. 120, par. 2002)
25 Sec. 2. Definitions. As used in this Article, unless
26 the context clearly requires otherwise:
27 (a) "Gross charge" means the amount paid for the act or
28 privilege of originating or receiving telecommunications in
29 this State and for all services and equipment provided in
30 connection therewith by a retailer, valued in money whether
31 paid in money or otherwise, including cash, credits, services
32 and property of every kind or nature, and shall be determined
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1 without any deduction on account of the cost of such
2 telecommunications, the cost of materials used, labor or
3 service costs or any other expense whatsoever. In case
4 credit is extended, the amount thereof shall be included only
5 as and when paid. "Gross charges" for private line service
6 shall include charges imposed at each channel point within
7 this State, charges for the channel mileage between each
8 channel point within this State, and charges for that portion
9 of the interstate inter-office channel provided within
10 Illinois. However, "gross charges" shall not include:
11 (1) any amounts added to a purchaser's bill because
12 of a charge made pursuant to (i) the tax imposed by this
13 Article; (ii) charges added to customers' bills pursuant
14 to the provisions of Sections 9-221 or 9-222 of the
15 Public Utilities Act, as amended, or any similar charges
16 added to customers' bills by retailers who are not
17 subject to rate regulation by the Illinois Commerce
18 Commission for the purpose of recovering any of the tax
19 liabilities or other amounts specified in such provisions
20 of such Act; or (iii) the tax imposed by Section 4251 of
21 the Internal Revenue Code;
22 (2) charges for a sent collect telecommunication
23 received outside of the State;
24 (3) charges for leased time on equipment or charges
25 for the storage of data or information for subsequent
26 retrieval or the processing of data or information
27 intended to change its form or content. Such equipment
28 includes, but is not limited to, the use of calculators,
29 computers, data processing equipment, tabulating
30 equipment or accounting equipment and also includes the
31 usage of computers under a time-sharing agreement;
32 (4) charges for customer equipment, including such
33 equipment that is leased or rented by the customer from
34 any source, wherein such charges are disaggregated and
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1 separately identified from other charges;
2 (5) charges to business enterprises certified under
3 Section 9-222.1 of the Public Utilities Act, as amended,
4 to the extent of such exemption and during the period of
5 time specified by the Department of Commerce and
6 Community Affairs;
7 (6) charges for telecommunications and all services
8 and equipment provided in connection therewith between a
9 parent corporation and its wholly owned subsidiaries or
10 between wholly owned subsidiaries when the tax imposed
11 under this Article has already been paid to a retailer
12 and only to the extent that the charges between the
13 parent corporation and wholly owned subsidiaries or
14 between wholly owned subsidiaries represent expense
15 allocation between the corporations and not the
16 generation of profit for the corporation rendering such
17 service;
18 (7) bad debts. Bad debt means any portion of a debt
19 that is related to a sale at retail for which gross
20 charges are not otherwise deductible or excludable that
21 has become worthless or uncollectable, as determined
22 under applicable federal income tax standards. If the
23 portion of the debt deemed to be bad is subsequently
24 paid, the retailer shall report and pay the tax on that
25 portion during the reporting period in which the payment
26 is made;
27 (8) charges paid by inserting coins in
28 coin-operated telecommunication devices;.
29 (9) charges to school districts subject to the
30 School Code.
31 (b) "Amount paid" means the amount charged to the
32 taxpayer's service address in this State regardless of where
33 such amount is billed or paid.
34 (c) "Telecommunications", in addition to the meaning
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1 ordinarily and popularly ascribed to it, includes, without
2 limitation, messages or information transmitted through use
3 of local, toll and wide area telephone service; private line
4 services; channel services; telegraph services;
5 teletypewriter; computer exchange services; cellular mobile
6 telecommunications service; specialized mobile radio;
7 stationary two way radio; paging service; or any other form
8 of mobile and portable one-way or two-way communications; or
9 any other transmission of messages or information by
10 electronic or similar means, between or among points by wire,
11 cable, fiber-optics, laser, microwave, radio, satellite or
12 similar facilities. As used in this Act, "private line" means
13 a dedicated non-traffic sensitive service for a single
14 customer, that entitles the customer to exclusive or priority
15 use of a communications channel or group of channels, from
16 one or more specified locations to one or more other
17 specified locations. The definition of "telecommunications"
18 shall not include value added services in which computer
19 processing applications are used to act on the form, content,
20 code and protocol of the information for purposes other than
21 transmission. "Telecommunications" shall not include
22 purchases of telecommunications by a telecommunications
23 service provider for use as a component part of the service
24 provided by him to the ultimate retail consumer who
25 originates or terminates the taxable end-to-end
26 communications. Carrier access charges, right of access
27 charges, charges for use of inter-company facilities, and all
28 telecommunications resold in the subsequent provision of,
29 used as a component of, or integrated into end-to-end
30 telecommunications service shall be non-taxable as sales for
31 resale.
32 (d) "Interstate telecommunications" means all
33 telecommunications that either originate or terminate outside
34 this State.
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1 (e) "Intrastate telecommunications" means all
2 telecommunications that originate and terminate within this
3 State.
4 (f) "Department" means the Department of Revenue of the
5 State of Illinois.
6 (g) "Director" means the Director of Revenue for the
7 Department of Revenue of the State of Illinois.
8 (h) "Taxpayer" means a person who individually or
9 through his agents, employees or permittees engages in the
10 act or privilege of originating or receiving
11 telecommunications in this State and who incurs a tax
12 liability under this Article.
13 (i) "Person" means any natural individual, firm, trust,
14 estate, partnership, association, joint stock company, joint
15 venture, corporation, limited liability company, or a
16 receiver, trustee, guardian or other representative appointed
17 by order of any court, the Federal and State governments,
18 including State universities created by statute or any city,
19 town, county or other political subdivision of this State.
20 (j) "Purchase at retail" means the acquisition,
21 consumption or use of telecommunication through a sale at
22 retail.
23 (k) "Sale at retail" means the transmitting, supplying
24 or furnishing of telecommunications and all services and
25 equipment provided in connection therewith for a
26 consideration to persons other than the Federal and State
27 governments, and State universities created by statute and
28 other than between a parent corporation and its wholly owned
29 subsidiaries or between wholly owned subsidiaries for their
30 use or consumption and not for resale.
31 (l) "Retailer" means and includes every person engaged
32 in the business of making sales at retail as defined in this
33 Article. The Department may, in its discretion, upon
34 application, authorize the collection of the tax hereby
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1 imposed by any retailer not maintaining a place of business
2 within this State, who, to the satisfaction of the
3 Department, furnishes adequate security to insure collection
4 and payment of the tax. Such retailer shall be issued,
5 without charge, a permit to collect such tax. When so
6 authorized, it shall be the duty of such retailer to collect
7 the tax upon all of the gross charges for telecommunications
8 in this State in the same manner and subject to the same
9 requirements as a retailer maintaining a place of business
10 within this State. The permit may be revoked by the
11 Department at its discretion.
12 (m) "Retailer maintaining a place of business in this
13 State", or any like term, means and includes any retailer
14 having or maintaining within this State, directly or by a
15 subsidiary, an office, distribution facilities, transmission
16 facilities, sales office, warehouse or other place of
17 business, or any agent or other representative operating
18 within this State under the authority of the retailer or its
19 subsidiary, irrespective of whether such place of business or
20 agent or other representative is located here permanently or
21 temporarily, or whether such retailer or subsidiary is
22 licensed to do business in this State.
23 (n) "Service address" means the location of
24 telecommunications equipment from which the
25 telecommunications services are originated or at which
26 telecommunications services are received by a taxpayer. In
27 the event this may not be a defined location, as in the case
28 of mobile phones, paging systems, maritime systems,
29 air-to-ground systems and the like, service address shall
30 mean the location of a taxpayer's primary use of the
31 telecommunications equipment as defined by telephone number,
32 authorization code, or location in Illinois where bills are
33 sent.
34 (Source: P.A. 88-480.)
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1 Section 20. The Public Utilities Act is amended by
2 changing Section 3-121 as follows:
3 (220 ILCS 5/3-121) (from Ch. 111 2/3, par. 3-121)
4 Sec. 3-121. Gross revenue. As used in Section 2-202 of
5 this Act, the term "gross revenue" includes all revenue which
6 (1) is collected by a public utility subject to regulations
7 under this Act (a) pursuant to the rates, other charges, and
8 classifications which it is required to file under Section
9 9-102 of this Act and (b) pursuant to emergency rates as
10 permitted by Section 9-104 of this Act, and (2) is derived
11 from the intrastate public utility business of such a
12 utility. Such term does not include revenue derived by such a
13 public utility from the sale of public utility services,
14 products or commodities to another public utility or to an
15 electric cooperative for resale by such public utility or
16 electric cooperative or to school districts subject to the
17 School Code. "Gross revenue" shall not include any charges
18 added to customers' bills pursuant to the provisions of
19 Section 9-221, 9-221.1 and 9-222 of this Act or consideration
20 received from business enterprises certified under Section
21 9-222.1 of this Act to the extent of such exemption and
22 during the period in which the exemption is in effect.
23 (Source: P.A. 85-1021.)