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| [ Introduced ] | [ Senate Amendment 001 ] |
90_SB1313eng
35 ILCS 105/3-5.7 new
35 ILCS 110/3-5.7 new
35 ILCS 115/3-5.7 new
35 ILCS 120/2j new
35 ILCS 630/5.5 new
Amends the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act. Provides that any sale or use of a prepaid telephone
calling card or a prepaid authorization number or
reauthorization number shall be deemed the sale or use of
tangible personal property and subject only to taxes imposed
under those Acts. Amends the Telecommunications Excise Tax
Act to provide that the sale or use of the cards or numbers
is not subject to the tax imposed under that Act. Effective
immediately.
LRB9008816KDksA
SB1313 Engrossed LRB9008816KDksA
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3 as follows:
6 (35 ILCS 105/3) (from Ch. 120, par. 439.3)
7 Sec. 3. Tax imposed.
8 (1) A tax is imposed upon the privilege of using in this
9 State tangible personal property purchased at retail from a
10 retailer, including computer software, prepaid telephone
11 calling cards, prepaid telephone authorization numbers,
12 prepaid telephone reauthorization numbers, and including
13 photographs, negatives, and positives that are the product of
14 photoprocessing, but not including products of
15 photoprocessing produced for use in motion pictures for
16 commercial exhibition.
17 (2) As used in this Section:
18 "Prepaid telephone calling cards" and "prepaid telephone
19 authorization numbers" means the right to exclusively
20 purchase telecommunications services, paid for in advance,
21 that enables the origination of calls using an access number
22 and authorization code.
23 "Prepaid telephone reauthorization numbers" means the
24 right to exclusively purchase telecommunications services,
25 paid for in advance, that enables the origination of calls
26 using an access number and authorization code that was
27 previously acquired.
28 (3) If the sale of prepaid telephone calling cards,
29 prepaid telephone authorization numbers, or prepaid telephone
30 reauthorization numbers does not take place at the retailer's
31 place of business, it shall be conclusively determined to
SB1313 Engrossed -2- LRB9008816KDksA
1 take place at the customer's shipping address; or if there is
2 no item shipped, then it shall be the customer's billing
3 address, which shall be retained by the provider of the
4 prepaid telephone authorization or reauthorization number.
5 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
6 86-953; 86-1394; 86-1475; 87-876.)
7 Section 10. The Service Use Tax Act is amended by
8 changing Section 3 as follows:
9 (35 ILCS 110/3) (from Ch. 120, par. 439.33)
10 Sec. 3. Tax imposed.
11 (1) A tax is imposed upon the privilege of using in this
12 State real or tangible personal property acquired as an
13 incident to the purchase of a service from a serviceman,
14 including computer software, prepaid telephone calling cards,
15 prepaid telephone authorization numbers, prepaid telephone
16 reauthorization numbers, and including photographs,
17 negatives, and positives that are the product of
18 photoprocessing, but not including products of
19 photoprocessing produced for use in motion pictures for
20 public commercial exhibition.
21 (2) As used in this Section:
22 "Prepaid telephone calling cards" and "prepaid telephone
23 authorization numbers" means the right to exclusively
24 purchase telecommunications services, paid for in advance,
25 that enables the origination of calls using an access number
26 and authorization code.
27 "Prepaid telephone reauthorization numbers" means the
28 right to exclusively purchase telecommunications services,
29 paid for in advance, that enables the origination of calls
30 using an access number and authorization code that was
31 previously acquired.
32 (3) If the sale of prepaid telephone calling cards,
SB1313 Engrossed -3- LRB9008816KDksA
1 prepaid telephone authorization numbers, or prepaid telephone
2 reauthorization numbers does not take place at the
3 serviceman's place of business, it shall be conclusively
4 determined to take place at the customer's shipping address;
5 or if there is no item shipped, then it shall be the
6 customer's billing address, which shall be retained by the
7 provider of the prepaid telephone authorization or
8 reauthorization number.
9 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
10 86-1028; 86-1475; 87-879.)
11 Section 15. The Service Occupation Tax Act is amended by
12 changing Section 3 as follows:
13 (35 ILCS 115/3) (from Ch. 120, par. 439.103)
14 Sec. 3. Tax imposed.
15 (1) A tax is imposed upon all persons engaged in the
16 business of making sales of service (referred to as
17 "servicemen") on all tangible personal property transferred
18 as an incident of a sale of service, including computer
19 software, prepaid telephone calling cards, prepaid telephone
20 authorization numbers, prepaid telephone reauthorization
21 numbers, and including photographs, negatives, and positives
22 that are the product of photoprocessing, but not including
23 products of photoprocessing produced for use in motion
24 pictures for public commercial exhibition.
25 (2) As used in this Section:
26 "Prepaid telephone calling cards" and "prepaid telephone
27 authorization numbers" means the right to exclusively
28 purchase telecommunications services, paid for in advance,
29 that enables the origination of calls using an access number
30 and authorization code.
31 "Prepaid telephone reauthorization numbers" means the
32 right to exclusively purchase telecommunications services,
SB1313 Engrossed -4- LRB9008816KDksA
1 paid for in advance, that enables the origination of calls
2 using an access number and authorization code that was
3 previously acquired.
4 (3) If the sale of prepaid telephone calling cards,
5 prepaid telephone authorization numbers, or prepaid telephone
6 reauthorization numbers does not take place at the
7 serviceman's place of business, it shall be conclusively
8 determined to take place at the customer's shipping address;
9 or if there is no item shipped, then it shall be the
10 customer's billing address, which shall be retained by the
11 provider of the prepaid telephone authorization or
12 reauthorization number.
13 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
14 86-1028; 86-1475.)
15 Section 20. The Retailers' Occupation Tax Act is amended
16 by changing Section 2 as follows:
17 (35 ILCS 120/2) (from Ch. 120, par. 441)
18 Sec. 2. Tax imposed.
19 (1) A tax is imposed upon persons engaged in the
20 business of selling at retail tangible personal property,
21 including computer software, prepaid telephone calling cards,
22 prepaid telephone authorization numbers, prepaid telephone
23 reauthorization numbers, and including photographs,
24 negatives, and positives that are the product of
25 photoprocessing, but not including products of
26 photoprocessing produced for use in motion pictures for
27 public commercial exhibition.
28 (2) As used in this Section:
29 "Prepaid telephone calling cards" and "prepaid telephone
30 authorization numbers" means the right to exclusively
31 purchase telecommunications services, paid for in advance,
32 that enables the origination of calls using an access number
SB1313 Engrossed -5- LRB9008816KDksA
1 and authorization code.
2 "Prepaid telephone reauthorization numbers" means the
3 right to exclusively purchase telecommunications services,
4 paid for in advance, that enables the origination of calls
5 using an access number and authorization code that was
6 previously acquired.
7 (3) If the sale of prepaid telephone calling cards,
8 prepaid telephone authorization numbers, or prepaid telephone
9 reauthorization numbers does not take place at the retailer's
10 place of business, it shall be conclusively determined to
11 take place at the customer's shipping address; or if there is
12 no item shipped, then it shall be the customer's billing
13 address, which shall be retained by the provider of the
14 prepaid telephone authorization or reauthorization number.
15 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
16 86-928; 86-953; 86-1394; 86-1475.)
17 Section 25. The Telecommunications Excise Tax Act is
18 amended by changing Section 2 as follows:
19 (35 ILCS 630/2) (from Ch. 120, par. 2002)
20 Sec. 2. As used in this Article, unless the context
21 clearly requires otherwise:
22 (a) "Gross charge" means the amount paid for the act or
23 privilege of originating or receiving telecommunications in
24 this State and for all services and equipment provided in
25 connection therewith by a retailer, valued in money whether
26 paid in money or otherwise, including cash, credits, services
27 and property of every kind or nature, and shall be determined
28 without any deduction on account of the cost of such
29 telecommunications, the cost of materials used, labor or
30 service costs or any other expense whatsoever. In case
31 credit is extended, the amount thereof shall be included only
32 as and when paid. "Gross charges" for private line service
SB1313 Engrossed -6- LRB9008816KDksA
1 shall include charges imposed at each channel point within
2 this State, charges for the channel mileage between each
3 channel point within this State, and charges for that portion
4 of the interstate inter-office channel provided within
5 Illinois. However, "gross charges" shall not include:
6 (1) any amounts added to a purchaser's bill because
7 of a charge made pursuant to (i) the tax imposed by this
8 Article; (ii) charges added to customers' bills pursuant
9 to the provisions of Sections 9-221 or 9-222 of the
10 Public Utilities Act, as amended, or any similar charges
11 added to customers' bills by retailers who are not
12 subject to rate regulation by the Illinois Commerce
13 Commission for the purpose of recovering any of the tax
14 liabilities or other amounts specified in such provisions
15 of such Act; or (iii) the tax imposed by Section 4251 of
16 the Internal Revenue Code;
17 (2) charges for a sent collect telecommunication
18 received outside of the State;
19 (3) charges for leased time on equipment or charges
20 for the storage of data or information for subsequent
21 retrieval or the processing of data or information
22 intended to change its form or content. Such equipment
23 includes, but is not limited to, the use of calculators,
24 computers, data processing equipment, tabulating
25 equipment or accounting equipment and also includes the
26 usage of computers under a time-sharing agreement;
27 (4) charges for customer equipment, including such
28 equipment that is leased or rented by the customer from
29 any source, wherein such charges are disaggregated and
30 separately identified from other charges;
31 (5) charges to business enterprises certified under
32 Section 9-222.1 of the Public Utilities Act, as amended,
33 to the extent of such exemption and during the period of
34 time specified by the Department of Commerce and
SB1313 Engrossed -7- LRB9008816KDksA
1 Community Affairs;
2 (6) charges for telecommunications and all services
3 and equipment provided in connection therewith between a
4 parent corporation and its wholly owned subsidiaries or
5 between wholly owned subsidiaries when the tax imposed
6 under this Article has already been paid to a retailer
7 and only to the extent that the charges between the
8 parent corporation and wholly owned subsidiaries or
9 between wholly owned subsidiaries represent expense
10 allocation between the corporations and not the
11 generation of profit for the corporation rendering such
12 service;
13 (7) bad debts. Bad debt means any portion of a debt
14 that is related to a sale at retail for which gross
15 charges are not otherwise deductible or excludable that
16 has become worthless or uncollectable, as determined
17 under applicable federal income tax standards. If the
18 portion of the debt deemed to be bad is subsequently
19 paid, the retailer shall report and pay the tax on that
20 portion during the reporting period in which the payment
21 is made;
22 (8) charges paid by inserting coins in
23 coin-operated telecommunication devices;
24 (9) amounts paid by telecommunications retailers
25 under the Telecommunications Municipal Infrastructure
26 Maintenance Fee Act.
27 (b) "Amount paid" means the amount charged to the
28 taxpayer's service address in this State regardless of where
29 such amount is billed or paid.
30 (c) "Telecommunications", in addition to the meaning
31 ordinarily and popularly ascribed to it, includes, without
32 limitation, messages or information transmitted through use
33 of local, toll and wide area telephone service; private line
34 services; channel services; telegraph services;
SB1313 Engrossed -8- LRB9008816KDksA
1 teletypewriter; computer exchange services; cellular mobile
2 telecommunications service; specialized mobile radio;
3 stationary two way radio; paging service; or any other form
4 of mobile and portable one-way or two-way communications; or
5 any other transmission of messages or information by
6 electronic or similar means, between or among points by wire,
7 cable, fiber-optics, laser, microwave, radio, satellite or
8 similar facilities. As used in this Act, "private line" means
9 a dedicated non-traffic sensitive service for a single
10 customer, that entitles the customer to exclusive or priority
11 use of a communications channel or group of channels, from
12 one or more specified locations to one or more other
13 specified locations. The definition of "telecommunications"
14 shall not include value added services in which computer
15 processing applications are used to act on the form, content,
16 code and protocol of the information for purposes other than
17 transmission. "Telecommunications" shall not include
18 purchases of telecommunications by a telecommunications
19 service provider for use as a component part of the service
20 provided by him to the ultimate retail consumer who
21 originates or terminates the taxable end-to-end
22 communications. Carrier access charges, right of access
23 charges, charges for use of inter-company facilities, and all
24 telecommunications resold in the subsequent provision of,
25 used as a component of, or integrated into end-to-end
26 telecommunications service shall be non-taxable as sales for
27 resale.
28 "Telecommunications" shall not include communications
29 attributable to prepaid telephone calling cards, prepaid
30 telephone authorization numbers, or prepaid telephone
31 reauthorization numbers. As used in this paragraph,
32 "prepaid telephone calling cards" and "prepaid telephone
33 authorization numbers" means the right to exclusively
34 purchase telecommunications services, paid for in advance,
SB1313 Engrossed -9- LRB9008816KDksA
1 that enables the origination of calls using an access number
2 and authorization code, and "prepaid telephone
3 reauthorization numbers" means the right to exclusively
4 purchase telecommunications services, paid for in advance,
5 that enables the origination of calls using an access number
6 and authorization code that was previously acquired.
7 (d) "Interstate telecommunications" means all
8 telecommunications that either originate or terminate outside
9 this State.
10 (e) "Intrastate telecommunications" means all
11 telecommunications that originate and terminate within this
12 State.
13 (f) "Department" means the Department of Revenue of the
14 State of Illinois.
15 (g) "Director" means the Director of Revenue for the
16 Department of Revenue of the State of Illinois.
17 (h) "Taxpayer" means a person who individually or
18 through his agents, employees or permittees engages in the
19 act or privilege of originating or receiving
20 telecommunications in this State and who incurs a tax
21 liability under this Article.
22 (i) "Person" means any natural individual, firm, trust,
23 estate, partnership, association, joint stock company, joint
24 venture, corporation, limited liability company, or a
25 receiver, trustee, guardian or other representative appointed
26 by order of any court, the Federal and State governments,
27 including State universities created by statute or any city,
28 town, county or other political subdivision of this State.
29 (j) "Purchase at retail" means the acquisition,
30 consumption or use of telecommunication through a sale at
31 retail.
32 (k) "Sale at retail" means the transmitting, supplying
33 or furnishing of telecommunications and all services and
34 equipment provided in connection therewith for a
SB1313 Engrossed -10- LRB9008816KDksA
1 consideration to persons other than the Federal and State
2 governments, and State universities created by statute and
3 other than between a parent corporation and its wholly owned
4 subsidiaries or between wholly owned subsidiaries for their
5 use or consumption and not for resale.
6 (l) "Retailer" means and includes every person engaged
7 in the business of making sales at retail as defined in this
8 Article. The Department may, in its discretion, upon
9 application, authorize the collection of the tax hereby
10 imposed by any retailer not maintaining a place of business
11 within this State, who, to the satisfaction of the
12 Department, furnishes adequate security to insure collection
13 and payment of the tax. Such retailer shall be issued,
14 without charge, a permit to collect such tax. When so
15 authorized, it shall be the duty of such retailer to collect
16 the tax upon all of the gross charges for telecommunications
17 in this State in the same manner and subject to the same
18 requirements as a retailer maintaining a place of business
19 within this State. The permit may be revoked by the
20 Department at its discretion.
21 (m) "Retailer maintaining a place of business in this
22 State", or any like term, means and includes any retailer
23 having or maintaining within this State, directly or by a
24 subsidiary, an office, distribution facilities, transmission
25 facilities, sales office, warehouse or other place of
26 business, or any agent or other representative operating
27 within this State under the authority of the retailer or its
28 subsidiary, irrespective of whether such place of business or
29 agent or other representative is located here permanently or
30 temporarily, or whether such retailer or subsidiary is
31 licensed to do business in this State.
32 (n) "Service address" means the location of
33 telecommunications equipment from which the
34 telecommunications services are originated or at which
SB1313 Engrossed -11- LRB9008816KDksA
1 telecommunications services are received by a taxpayer. In
2 the event this may not be a defined location, as in the case
3 of mobile phones, paging systems, maritime systems,
4 air-to-ground systems and the like, service address shall
5 mean the location of a taxpayer's primary use of the
6 telecommunications equipment as defined by telephone number,
7 authorization code, or location in Illinois where bills are
8 sent.
9 (Source: P.A. 90-562, eff. 12-16-97.)
10 Section 30. The Illinois Municipal Code is amended by
11 changing Section 8-11-17 as follows:
12 (65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17)
13 Sec. 8-11-17. Municipal telecommunications tax.
14 (a) Beginning on the effective date of this amendatory
15 Act of 1991, the corporate authorities of any municipality in
16 this State may tax any or all of the following acts or
17 privileges:
18 (1) The act or privilege of originating in such
19 municipality or receiving in such municipality intrastate
20 telecommunications by a person at a rate not to exceed 5%
21 of the gross charge for such telecommunications purchased
22 at retail from a retailer by such person. However, such
23 tax is not imposed on such act or privilege to the extent
24 such act or privilege may not, under the Constitution and
25 statutes of the United States, be made the subject of
26 taxation by municipalities in this State.
27 (2) The act or privilege of originating in such
28 municipality or receiving in such municipality interstate
29 telecommunications by a person at a rate not to exceed 5%
30 of the gross charge for such telecommunications purchased
31 at retail from a retailer by such person. To prevent
32 actual multi-state taxation of the act or privilege that
SB1313 Engrossed -12- LRB9008816KDksA
1 is subject to taxation under this paragraph, any
2 taxpayer, upon proof that the taxpayer has paid a tax in
3 another state on such event, shall be allowed a credit
4 against any tax enacted pursuant to an ordinance
5 authorized by this paragraph to the extent of the amount
6 of such tax properly due and paid in such other state
7 which was not previously allowed as a credit against any
8 other state or local tax in this State. However, such
9 tax is not imposed on the act or privilege to the extent
10 such act or privilege may not, under the Constitution and
11 statutes of the United States, be made the subject of
12 taxation by municipalities in this State.
13 (3) The taxes authorized by paragraphs (1) and (2)
14 of subsection (a) of this Section may only be levied if
15 such municipality does not then have in effect an
16 occupation tax imposed on persons engaged in the business
17 of transmitting messages by means of electricity as
18 authorized by Section 8-11-2 of the Illinois Municipal
19 Code.
20 (b) The tax authorized by this Section shall be
21 collected from the taxpayer by a retailer maintaining a place
22 of business in this State and making or effectuating the sale
23 at retail and shall be remitted by such retailer to the
24 municipality. Any tax required to be collected pursuant to
25 an ordinance authorized by this Section and any such tax
26 collected by such retailer shall constitute a debt owed by
27 the retailer to such municipality. Retailers shall collect
28 the tax from the taxpayer by adding the tax to the gross
29 charge for the act or privilege of originating or receiving
30 telecommunications when sold for use, in the manner
31 prescribed by the municipality. The tax authorized by this
32 Section shall constitute a debt of the purchaser to the
33 retailer who provides such taxable services until paid and,
34 if unpaid, is recoverable at law in the same manner as the
SB1313 Engrossed -13- LRB9008816KDksA
1 original charge for such taxable services. If the retailer
2 fails to collect the tax from the taxpayer, then the taxpayer
3 shall be required to pay the tax directly to the municipality
4 in the manner provided by the municipality. The municipality
5 imposing the tax shall provide for its administration and
6 enforcement.
7 Beginning January 1, 1994, retailers filing tax returns
8 pursuant to this Section shall, at the time of filing such
9 return, pay to the municipality the amount of the tax imposed
10 by this Section, less a commission of 1.75% which is allowed
11 to reimburse the retailer for the expenses incurred in
12 keeping records, billing the customer, preparing and filing
13 returns, remitting the tax and supplying data to the
14 municipality upon request. No commission may be claimed by a
15 retailer for tax not timely remitted to the municipality.
16 Whenever possible, the tax authorized by this Section
17 shall, when collected, be stated as a distinct item separate
18 and apart from the gross charge for telecommunications.
19 (c) For the purpose of the taxes authorized by this
20 Section:
21 (1) "Amount paid" means the amount charged to the
22 taxpayer's service address in such municipality
23 regardless of where such amount is billed or paid.
24 (2) "Gross charge" means the amount paid for the
25 act or privilege of originating or receiving
26 telecommunications in such municipality and for all
27 services rendered in connection therewith, valued in
28 money whether paid in money or otherwise, including cash,
29 credits, services and property of every kind or nature,
30 and shall be determined without any deduction on account
31 of the cost of such telecommunications, the cost of the
32 materials used, labor or service costs or any other
33 expense whatsoever. In case credit is extended, the
34 amount thereof shall be included only as and when paid.
SB1313 Engrossed -14- LRB9008816KDksA
1 However, "gross charge" shall not include:
2 (A) any amounts added to a purchaser's bill
3 because of a charge made pursuant to: (i) the tax
4 imposed by this Section, (ii) additional charges
5 added to a purchaser's bill pursuant to Section
6 9-222 of the Public Utilities Act, (iii) the tax
7 imposed by the Telecommunications Excise Tax Act, or
8 (iv) the tax imposed by Section 4251 of the Internal
9 Revenue Code;
10 (B) charges for a sent collect
11 telecommunication received outside of such
12 municipality;
13 (C) charges for leased time on equipment or
14 charges for the storage of data or information or
15 subsequent retrieval or the processing of data or
16 information intended to change its form or content.
17 Such equipment includes, but is not limited to, the
18 use of calculators, computers, data processing
19 equipment, tabulating equipment or accounting
20 equipment and also includes the usage of computers
21 under a time-sharing agreement;
22 (D) charges for customer equipment, including
23 such equipment that is leased or rented by the
24 customer from any source, wherein such charges are
25 disaggregated and separately identified from other
26 charges;
27 (E) charges to business enterprises certified
28 under Section 9-222.1 of the Public Utilities Act to
29 the extent of such exemption and during the period
30 of time specified by the Department of Commerce and
31 Community Affairs;
32 (F) charges for telecommunications and all
33 services and equipment provided in connection
34 therewith between a parent corporation and its
SB1313 Engrossed -15- LRB9008816KDksA
1 wholly owned subsidiaries or between wholly owned
2 subsidiaries when the tax imposed under this Section
3 has already been paid to a retailer and only to the
4 extent that the charges between the parent
5 corporation and wholly owned subsidiaries or between
6 wholly owned subsidiaries represent expense
7 allocation between the corporations and not the
8 generation of profit for the corporation rendering
9 such service;
10 (G) bad debts ("bad debt" means any portion of
11 a debt that is related to a sale at retail for which
12 gross charges are not otherwise deductible or
13 excludable that has become worthless or
14 uncollectable, as determined under applicable
15 federal income tax standards; if the portion of the
16 debt deemed to be bad is subsequently paid, the
17 retailer shall report and pay the tax on that
18 portion during the reporting period in which the
19 payment is made);
20 (H) charges paid by inserting coins in
21 coin-operated telecommunication devices; or
22 (I) amounts paid by telecommunications
23 retailers under the Telecommunications Municipal
24 Infrastructure Maintenance Fee Act.
25 (3) "Interstate telecommunications" means all
26 telecommunications that either originate or terminate
27 outside this State.
28 (4) "Intrastate telecommunications" means all
29 telecommunications that originate and terminate within
30 this State.
31 (5) "Person" means any natural individual, firm,
32 trust, estate, partnership, association, joint stock
33 company, joint venture, corporation, limited liability
34 company, or a receiver, trustee, guardian or other
SB1313 Engrossed -16- LRB9008816KDksA
1 representative appointed by order of any court, the
2 Federal and State governments, including State
3 universities created by statute, or any city, town,
4 county, or other political subdivision of this State.
5 (6) "Purchase at retail" means the acquisition,
6 consumption or use of telecommunications through a sale
7 at retail.
8 (7) "Retailer" means and includes every person
9 engaged in the business of making sales at retail as
10 defined in this Section. A municipality may, in its
11 discretion, upon application, authorize the collection of
12 the tax hereby imposed by any retailer not maintaining a
13 place of business within this State, who to the
14 satisfaction of the municipality, furnishes adequate
15 security to insure collection and payment of the tax.
16 Such retailer shall be issued, without charge, a permit
17 to collect such tax. When so authorized, it shall be the
18 duty of such retailer to collect the tax upon all of the
19 gross charges for telecommunications in such municipality
20 in the same manner and subject to the same requirements
21 as a retailer maintaining a place of business within such
22 municipality.
23 (8) "Retailer maintaining a place of business in
24 this State", or any like term, means and includes any
25 retailer having or maintaining within this State,
26 directly or by a subsidiary, an office, distribution
27 facilities, transmission facilities, sales office,
28 warehouse or other place of business, or any agent or
29 other representative operating within this State under
30 the authority of the retailer or its subsidiary,
31 irrespective of whether such place of business or agent
32 or other representative is located here permanently or
33 temporarily, or whether such retailer or subsidiary is
34 licensed to do business in this State.
SB1313 Engrossed -17- LRB9008816KDksA
1 (9) "Sale at retail" means the transmitting,
2 supplying or furnishing of telecommunications and all
3 services rendered in connection therewith for a
4 consideration, to persons other than the Federal and
5 State governments, and State universities created by
6 statute and other than between a parent corporation and
7 its wholly owned subsidiaries or between wholly owned
8 subsidiaries, when the tax has already been paid to a
9 retailer and the gross charge made by one such
10 corporation to another such corporation is not greater
11 than the gross charge paid to the retailer for their use
12 or consumption and not for resale.
13 (10) "Service address" means the location of
14 telecommunications equipment from which
15 telecommunications services are originated or at which
16 telecommunications services are received by a taxpayer.
17 If this is not a defined location, as in the case of
18 mobile phones, paging systems, maritime systems,
19 air-to-ground systems and the like, "service address"
20 shall mean the location of a taxpayer's primary use of
21 the telecommunication equipment as defined by telephone
22 number, authorization code, or location in Illinois where
23 bills are sent.
24 (11) "Taxpayer" means a person who individually or
25 through his agents, employees, or permittees engages in
26 the act or privilege of originating in such municipality
27 or receiving in such municipality telecommunications and
28 who incurs a tax liability under any ordinance authorized
29 by this Section.
30 (12) "Telecommunications", in addition to the usual
31 and popular meaning, includes, but is not limited to,
32 messages or information transmitted through use of local,
33 toll and wide area telephone service, channel services,
34 telegraph services, teletypewriter service, computer
SB1313 Engrossed -18- LRB9008816KDksA
1 exchange services; cellular mobile telecommunications
2 service, specialized mobile radio services, paging
3 service, or any other form of mobile and portable one-way
4 or two-way communications, or any other transmission of
5 messages or information by electronic or similar means,
6 between or among points by wire, cable, fiber optics,
7 laser, microwave, radio, satellite or similar facilities.
8 The definition of "telecommunications" shall not include
9 value added services in which computer processing
10 applications are used to act on the form, content, code
11 and protocol of the information for purposes other than
12 transmission. "Telecommunications" shall not include
13 purchase of telecommunications by a telecommunications
14 service provider for use as a component part of the
15 service provided by him to the ultimate retail consumer
16 who originates or terminates the taxable end-to-end
17 communications. Carrier access charges, right of access
18 charges, charges for use of inter-company facilities, and
19 all telecommunications resold in the subsequent provision
20 used as a component of, or integrated into, end-to-end
21 telecommunications service shall be non-taxable as sales
22 for resale.
23 "Telecommunications" shall not include
24 communications attributable to prepaid telephone calling
25 cards, prepaid telephone authorization numbers, or
26 prepaid telephone reauthorization numbers. As used in
27 this paragraph, "prepaid telephone calling cards" and
28 "prepaid telephone authorization numbers" means the right
29 to exclusively purchase telecommunications services, paid
30 for in advance, that enables the origination of calls
31 using an access number and authorization code, and
32 "prepaid telephone reauthorization numbers" means the
33 right to exclusively purchase telecommunications
34 services, paid for in advance, that enables the
SB1313 Engrossed -19- LRB9008816KDksA
1 origination of calls using an access number and
2 authorization code that was previously acquired.
3 (d) If a person, who originates or receives
4 telecommunications in such municipality claims to be a
5 reseller of such telecommunications, such person shall apply
6 to the municipality for a resale number. Such applicant
7 shall state facts which will show the municipality why such
8 applicant is not liable for tax under any ordinance
9 authorized by this Section on any of such purchases and shall
10 furnish such additional information as the municipality may
11 reasonably require.
12 Upon approval of the application, the municipality shall
13 assign a resale number to the applicant and shall certify
14 such number to the applicant. The municipality may cancel
15 any number which is obtained through misrepresentation, or
16 which is used to send or receive such telecommunication
17 tax-free when such actions in fact are not for resale, or
18 which no longer applies because of the person's having
19 discontinued the making of resales.
20 Except as provided hereinabove in this Section, the act
21 or privilege of sending or receiving telecommunications in
22 this State shall not be made tax-free on the ground of being
23 a sale for resale unless the person has an active resale
24 number from the municipality and furnishes that number to the
25 retailer in connection with certifying to the retailer that
26 any sale to such person is non-taxable because of being a
27 sale for resale.
28 (e) A municipality that imposes taxes upon
29 telecommunications under this Section and whose territory
30 includes part of another unit of local government or a school
31 district may, by ordinance, exempt the other unit of local
32 government or school district from those taxes.
33 (f) A municipality that imposes taxes upon
34 telecommunications under this Section may, by ordinance, (i)
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1 reduce the rate of the tax for persons 65 years of age or
2 older or (ii) exempt persons 65 years of age or older from
3 those taxes. Taxes related to such rate reductions or
4 exemptions shall be rebated from the municipality directly to
5 persons qualified for the rate reduction or exemption as
6 determined by the municipality's ordinance.
7 (Source: P.A. 90-357, eff. 1-1-98; 90-562, eff. 12-16-97.)
8 Section 95. Application. Nothing in this amendatory Act
9 of 1998 shall eliminate or affect the collection of the tax
10 imposed by Section 2-202 of the Public Utilities Act.