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90_SB1313sam001
LRB9008816PTbdam
1 AMENDMENT TO SENATE BILL 1313
2 AMENDMENT NO. . Amend Senate Bill 1313 by replacing
3 everything after the enacting clause with the following:
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.
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1 "Prepaid telephone reauthorization numbers" means the
2 right to exclusively purchase telecommunications services,
3 paid for in advance, that enables the origination of calls
4 using an access number and authorization code that was
5 previously acquired.
6 (3) If the sale of prepaid telephone calling cards,
7 prepaid telephone authorization numbers, or prepaid telephone
8 reauthorization numbers does not take place at the retailer's
9 place of business, it shall be conclusively determined to
10 take place at the customer's shipping address; or if there is
11 no item shipped, then it shall be the customer's billing
12 address, which shall be retained by the provider of the
13 prepaid telephone authorization or reauthorization number.
14 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
15 86-953; 86-1394; 86-1475; 87-876.)
16 Section 10. The Service Use Tax Act is amended by
17 changing Section 3 as follows:
18 (35 ILCS 110/3) (from Ch. 120, par. 439.33)
19 Sec. 3. Tax imposed.
20 (1) A tax is imposed upon the privilege of using in this
21 State real or tangible personal property acquired as an
22 incident to the purchase of a service from a serviceman,
23 including computer software, prepaid telephone calling cards,
24 prepaid telephone authorization numbers, prepaid telephone
25 reauthorization numbers, and including photographs,
26 negatives, and positives that are the product of
27 photoprocessing, but not including products of
28 photoprocessing produced for use in motion pictures for
29 public commercial exhibition.
30 (2) As used in this Section:
31 "Prepaid telephone calling cards" and "prepaid telephone
32 authorization numbers" means the right to exclusively
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1 purchase telecommunications services, paid for in advance,
2 that enables the origination of calls using an access number
3 and authorization code.
4 "Prepaid telephone reauthorization numbers" means the
5 right to exclusively purchase telecommunications services,
6 paid for in advance, that enables the origination of calls
7 using an access number and authorization code that was
8 previously acquired.
9 (3) If the sale of prepaid telephone calling cards,
10 prepaid telephone authorization numbers, or prepaid telephone
11 reauthorization numbers does not take place at the
12 serviceman's place of business, it shall be conclusively
13 determined to take place at the customer's shipping address;
14 or if there is no item shipped, then it shall be the
15 customer's billing address, which shall be retained by the
16 provider of the prepaid telephone authorization or
17 reauthorization number.
18 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
19 86-1028; 86-1475; 87-879.)
20 Section 15. The Service Occupation Tax Act is amended by
21 changing Section 3 as follows:
22 (35 ILCS 115/3) (from Ch. 120, par. 439.103)
23 Sec. 3. Tax imposed.
24 (1) A tax is imposed upon all persons engaged in the
25 business of making sales of service ( referred to as
26 "servicemen") on all tangible personal property transferred
27 as an incident of a sale of service, including computer
28 software, prepaid telephone calling cards, prepaid telephone
29 authorization numbers, prepaid telephone reauthorization
30 numbers, and including photographs, negatives, and positives
31 that are the product of photoprocessing, but not including
32 products of photoprocessing produced for use in motion
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1 pictures for public commercial exhibition.
2 (2) As used in this Section:
3 "Prepaid telephone calling cards" and "prepaid telephone
4 authorization numbers" means the right to exclusively
5 purchase telecommunications services, paid for in advance,
6 that enables the origination of calls using an access number
7 and authorization code.
8 "Prepaid telephone reauthorization numbers" means the
9 right to exclusively purchase telecommunications services,
10 paid for in advance, that enables the origination of calls
11 using an access number and authorization code that was
12 previously acquired.
13 (3) If the sale of prepaid telephone calling cards,
14 prepaid telephone authorization numbers, or prepaid telephone
15 reauthorization numbers does not take place at the
16 serviceman's place of business, it shall be conclusively
17 determined to take place at the customer's shipping address;
18 or if there is no item shipped, then it shall be the
19 customer's billing address, which shall be retained by the
20 provider of the prepaid telephone authorization or
21 reauthorization number.
22 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
23 86-1028; 86-1475.)
24 Section 20. The Retailers' Occupation Tax Act is amended
25 by changing Section 2 as follows:
26 (35 ILCS 120/2) (from Ch. 120, par. 441)
27 Sec. 2. Tax imposed.
28 (1) A tax is imposed upon persons engaged in the
29 business of selling at retail tangible personal property,
30 including computer software, prepaid telephone calling cards,
31 prepaid telephone authorization numbers, prepaid telephone
32 reauthorization numbers, and including photographs,
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1 negatives, and positives that are the product of
2 photoprocessing, but not including products of
3 photoprocessing produced for use in motion pictures for
4 public commercial exhibition.
5 (2) As used in this Section:
6 "Prepaid telephone calling cards" and "prepaid telephone
7 authorization numbers" means the right to exclusively
8 purchase telecommunications services, paid for in advance,
9 that enables the origination of calls using an access number
10 and authorization code.
11 "Prepaid telephone reauthorization numbers" means the
12 right to exclusively purchase telecommunications services,
13 paid for in advance, that enables the origination of calls
14 using an access number and authorization code that was
15 previously acquired.
16 (3) If the sale of prepaid telephone calling cards,
17 prepaid telephone authorization numbers, or prepaid telephone
18 reauthorization numbers does not take place at the retailer's
19 place of business, it shall be conclusively determined to
20 take place at the customer's shipping address; or if there is
21 no item shipped, then it shall be the customer's billing
22 address, which shall be retained by the provider of the
23 prepaid telephone authorization or reauthorization number.
24 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
25 86-928; 86-953; 86-1394; 86-1475.)
26 Section 25. The Telecommunications Excise Tax Act is
27 amended by changing Section 2 as follows:
28 (35 ILCS 630/2) (from Ch. 120, par. 2002)
29 Sec. 2. As used in this Article, unless the context
30 clearly requires otherwise:
31 (a) "Gross charge" means the amount paid for the act or
32 privilege of originating or receiving telecommunications in
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1 this State and for all services and equipment provided in
2 connection therewith by a retailer, valued in money whether
3 paid in money or otherwise, including cash, credits, services
4 and property of every kind or nature, and shall be determined
5 without any deduction on account of the cost of such
6 telecommunications, the cost of materials used, labor or
7 service costs or any other expense whatsoever. In case
8 credit is extended, the amount thereof shall be included only
9 as and when paid. "Gross charges" for private line service
10 shall include charges imposed at each channel point within
11 this State, charges for the channel mileage between each
12 channel point within this State, and charges for that portion
13 of the interstate inter-office channel provided within
14 Illinois. However, "gross charges" shall not include:
15 (1) any amounts added to a purchaser's bill because
16 of a charge made pursuant to (i) the tax imposed by this
17 Article; (ii) charges added to customers' bills pursuant
18 to the provisions of Sections 9-221 or 9-222 of the
19 Public Utilities Act, as amended, or any similar charges
20 added to customers' bills by retailers who are not
21 subject to rate regulation by the Illinois Commerce
22 Commission for the purpose of recovering any of the tax
23 liabilities or other amounts specified in such provisions
24 of such Act; or (iii) the tax imposed by Section 4251 of
25 the Internal Revenue Code;
26 (2) charges for a sent collect telecommunication
27 received outside of the State;
28 (3) charges for leased time on equipment or charges
29 for the storage of data or information for subsequent
30 retrieval or the processing of data or information
31 intended to change its form or content. Such equipment
32 includes, but is not limited to, the use of calculators,
33 computers, data processing equipment, tabulating
34 equipment or accounting equipment and also includes the
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1 usage of computers under a time-sharing agreement;
2 (4) charges for customer equipment, including such
3 equipment that is leased or rented by the customer from
4 any source, wherein such charges are disaggregated and
5 separately identified from other charges;
6 (5) charges to business enterprises certified under
7 Section 9-222.1 of the Public Utilities Act, as amended,
8 to the extent of such exemption and during the period of
9 time specified by the Department of Commerce and
10 Community Affairs;
11 (6) charges for telecommunications and all services
12 and equipment provided in connection therewith between a
13 parent corporation and its wholly owned subsidiaries or
14 between wholly owned subsidiaries when the tax imposed
15 under this Article has already been paid to a retailer
16 and only to the extent that the charges between the
17 parent corporation and wholly owned subsidiaries or
18 between wholly owned subsidiaries represent expense
19 allocation between the corporations and not the
20 generation of profit for the corporation rendering such
21 service;
22 (7) bad debts. Bad debt means any portion of a debt
23 that is related to a sale at retail for which gross
24 charges are not otherwise deductible or excludable that
25 has become worthless or uncollectable, as determined
26 under applicable federal income tax standards. If the
27 portion of the debt deemed to be bad is subsequently
28 paid, the retailer shall report and pay the tax on that
29 portion during the reporting period in which the payment
30 is made;
31 (8) charges paid by inserting coins in
32 coin-operated telecommunication devices;
33 (9) amounts paid by telecommunications retailers
34 under the Telecommunications Municipal Infrastructure
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1 Maintenance Fee Act.
2 (b) "Amount paid" means the amount charged to the
3 taxpayer's service address in this State regardless of where
4 such amount is billed or paid.
5 (c) "Telecommunications", in addition to the meaning
6 ordinarily and popularly ascribed to it, includes, without
7 limitation, messages or information transmitted through use
8 of local, toll and wide area telephone service; private line
9 services; channel services; telegraph services;
10 teletypewriter; computer exchange services; cellular mobile
11 telecommunications service; specialized mobile radio;
12 stationary two way radio; paging service; or any other form
13 of mobile and portable one-way or two-way communications; or
14 any other transmission of messages or information by
15 electronic or similar means, between or among points by wire,
16 cable, fiber-optics, laser, microwave, radio, satellite or
17 similar facilities. As used in this Act, "private line" means
18 a dedicated non-traffic sensitive service for a single
19 customer, that entitles the customer to exclusive or priority
20 use of a communications channel or group of channels, from
21 one or more specified locations to one or more other
22 specified locations. The definition of "telecommunications"
23 shall not include value added services in which computer
24 processing applications are used to act on the form, content,
25 code and protocol of the information for purposes other than
26 transmission. "Telecommunications" shall not include
27 purchases of telecommunications by a telecommunications
28 service provider for use as a component part of the service
29 provided by him to the ultimate retail consumer who
30 originates or terminates the taxable end-to-end
31 communications. Carrier access charges, right of access
32 charges, charges for use of inter-company facilities, and all
33 telecommunications resold in the subsequent provision of,
34 used as a component of, or integrated into end-to-end
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1 telecommunications service shall be non-taxable as sales for
2 resale.
3 "Telecommunications" shall not include communications
4 attributable to prepaid telephone calling cards, prepaid
5 telephone authorization numbers, or prepaid telephone
6 reauthorization numbers. As used in this paragraph,
7 "prepaid telephone calling cards" and "prepaid telephone
8 authorization numbers" means the right to exclusively
9 purchase telecommunications services, paid for in advance,
10 that enables the origination of calls using an access number
11 and authorization code, and "prepaid telephone
12 reauthorization numbers" means the right to exclusively
13 purchase telecommunications services, paid for in advance,
14 that enables the origination of calls using an access number
15 and authorization code that was previously acquired.
16 (d) "Interstate telecommunications" means all
17 telecommunications that either originate or terminate outside
18 this State.
19 (e) "Intrastate telecommunications" means all
20 telecommunications that originate and terminate within this
21 State.
22 (f) "Department" means the Department of Revenue of the
23 State of Illinois.
24 (g) "Director" means the Director of Revenue for the
25 Department of Revenue of the State of Illinois.
26 (h) "Taxpayer" means a person who individually or
27 through his agents, employees or permittees engages in the
28 act or privilege of originating or receiving
29 telecommunications in this State and who incurs a tax
30 liability under this Article.
31 (i) "Person" means any natural individual, firm, trust,
32 estate, partnership, association, joint stock company, joint
33 venture, corporation, limited liability company, or a
34 receiver, trustee, guardian or other representative appointed
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1 by order of any court, the Federal and State governments,
2 including State universities created by statute or any city,
3 town, county or other political subdivision of this State.
4 (j) "Purchase at retail" means the acquisition,
5 consumption or use of telecommunication through a sale at
6 retail.
7 (k) "Sale at retail" means the transmitting, supplying
8 or furnishing of telecommunications and all services and
9 equipment provided in connection therewith for a
10 consideration to persons other than the Federal and State
11 governments, and State universities created by statute and
12 other than between a parent corporation and its wholly owned
13 subsidiaries or between wholly owned subsidiaries for their
14 use or consumption and not for resale.
15 (l) "Retailer" means and includes every person engaged
16 in the business of making sales at retail as defined in this
17 Article. The Department may, in its discretion, upon
18 application, authorize the collection of the tax hereby
19 imposed by any retailer not maintaining a place of business
20 within this State, who, to the satisfaction of the
21 Department, furnishes adequate security to insure collection
22 and payment of the tax. Such retailer shall be issued,
23 without charge, a permit to collect such tax. When so
24 authorized, it shall be the duty of such retailer to collect
25 the tax upon all of the gross charges for telecommunications
26 in this State in the same manner and subject to the same
27 requirements as a retailer maintaining a place of business
28 within this State. The permit may be revoked by the
29 Department at its discretion.
30 (m) "Retailer maintaining a place of business in this
31 State", or any like term, means and includes any retailer
32 having or maintaining within this State, directly or by a
33 subsidiary, an office, distribution facilities, transmission
34 facilities, sales office, warehouse or other place of
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1 business, or any agent or other representative operating
2 within this State under the authority of the retailer or its
3 subsidiary, irrespective of whether such place of business or
4 agent or other representative is located here permanently or
5 temporarily, or whether such retailer or subsidiary is
6 licensed to do business in this State.
7 (n) "Service address" means the location of
8 telecommunications equipment from which the
9 telecommunications services are originated or at which
10 telecommunications services are received by a taxpayer. In
11 the event this may not be a defined location, as in the case
12 of mobile phones, paging systems, maritime systems,
13 air-to-ground systems and the like, service address shall
14 mean the location of a taxpayer's primary use of the
15 telecommunications equipment as defined by telephone number,
16 authorization code, or location in Illinois where bills are
17 sent.
18 (Source: P.A. 90-562, eff. 12-16-97.)
19 Section 30. The Illinois Municipal Code is amended by
20 changing Section 8-11-17 as follows:
21 (65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17)
22 Sec. 8-11-17. Municipal telecommunications tax.
23 (a) Beginning on the effective date of this amendatory
24 Act of 1991, the corporate authorities of any municipality in
25 this State may tax any or all of the following acts or
26 privileges:
27 (1) The act or privilege of originating in such
28 municipality or receiving in such municipality intrastate
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. However, such
32 tax is not imposed on such act or privilege to the extent
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1 such act or privilege may not, under the Constitution and
2 statutes of the United States, be made the subject of
3 taxation by municipalities in this State.
4 (2) The act or privilege of originating in such
5 municipality or receiving in such municipality interstate
6 telecommunications by a person at a rate not to exceed 5%
7 of the gross charge for such telecommunications purchased
8 at retail from a retailer by such person. To prevent
9 actual multi-state taxation of the act or privilege that
10 is subject to taxation under this paragraph, any
11 taxpayer, upon proof that the taxpayer has paid a tax in
12 another state on such event, shall be allowed a credit
13 against any tax enacted pursuant to an ordinance
14 authorized by this paragraph to the extent of the amount
15 of such tax properly due and paid in such other state
16 which was not previously allowed as a credit against any
17 other state or local tax in this State. However, such
18 tax is not imposed on the act or privilege to the extent
19 such act or privilege may not, under the Constitution and
20 statutes of the United States, be made the subject of
21 taxation by municipalities in this State.
22 (3) The taxes authorized by paragraphs (1) and (2)
23 of subsection (a) of this Section may only be levied if
24 such municipality does not then have in effect an
25 occupation tax imposed on persons engaged in the business
26 of transmitting messages by means of electricity as
27 authorized by Section 8-11-2 of the Illinois Municipal
28 Code.
29 (b) The tax authorized by this Section shall be
30 collected from the taxpayer by a retailer maintaining a place
31 of business in this State and making or effectuating the sale
32 at retail and shall be remitted by such retailer to the
33 municipality. Any tax required to be collected pursuant to
34 an ordinance authorized by this Section and any such tax
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1 collected by such retailer shall constitute a debt owed by
2 the retailer to such municipality. Retailers shall collect
3 the tax from the taxpayer by adding the tax to the gross
4 charge for the act or privilege of originating or receiving
5 telecommunications when sold for use, in the manner
6 prescribed by the municipality. The tax authorized by this
7 Section shall constitute a debt of the purchaser to the
8 retailer who provides such taxable services until paid and,
9 if unpaid, is recoverable at law in the same manner as the
10 original charge for such taxable services. If the retailer
11 fails to collect the tax from the taxpayer, then the taxpayer
12 shall be required to pay the tax directly to the municipality
13 in the manner provided by the municipality. The municipality
14 imposing the tax shall provide for its administration and
15 enforcement.
16 Beginning January 1, 1994, retailers filing tax returns
17 pursuant to this Section shall, at the time of filing such
18 return, pay to the municipality the amount of the tax imposed
19 by this Section, less a commission of 1.75% which is allowed
20 to reimburse the retailer for the expenses incurred in
21 keeping records, billing the customer, preparing and filing
22 returns, remitting the tax and supplying data to the
23 municipality upon request. No commission may be claimed by a
24 retailer for tax not timely remitted to the municipality.
25 Whenever possible, the tax authorized by this Section
26 shall, when collected, be stated as a distinct item separate
27 and apart from the gross charge for telecommunications.
28 (c) For the purpose of the taxes authorized by this
29 Section:
30 (1) "Amount paid" means the amount charged to the
31 taxpayer's service address in such municipality
32 regardless of where such amount is billed or paid.
33 (2) "Gross charge" means the amount paid for the
34 act or privilege of originating or receiving
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1 telecommunications in such municipality and for all
2 services rendered in connection therewith, valued in
3 money whether paid in money or otherwise, including cash,
4 credits, services and property of every kind or nature,
5 and shall be determined without any deduction on account
6 of the cost of such telecommunications, the cost of the
7 materials used, labor or service costs or any other
8 expense whatsoever. In case credit is extended, the
9 amount thereof shall be included only as and when paid.
10 However, "gross charge" shall not include:
11 (A) any amounts added to a purchaser's bill
12 because of a charge made pursuant to: (i) the tax
13 imposed by this Section, (ii) additional charges
14 added to a purchaser's bill pursuant to Section
15 9-222 of the Public Utilities Act, (iii) the tax
16 imposed by the Telecommunications Excise Tax Act, or
17 (iv) the tax imposed by Section 4251 of the Internal
18 Revenue Code;
19 (B) charges for a sent collect
20 telecommunication received outside of such
21 municipality;
22 (C) charges for leased time on equipment or
23 charges for the storage of data or information or
24 subsequent retrieval or the processing of data or
25 information intended to change its form or content.
26 Such equipment includes, but is not limited to, the
27 use of calculators, computers, data processing
28 equipment, tabulating equipment or accounting
29 equipment and also includes the usage of computers
30 under a time-sharing agreement;
31 (D) charges for customer equipment, including
32 such equipment that is leased or rented by the
33 customer from any source, wherein such charges are
34 disaggregated and separately identified from other
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1 charges;
2 (E) charges to business enterprises certified
3 under Section 9-222.1 of the Public Utilities Act to
4 the extent of such exemption and during the period
5 of time specified by the Department of Commerce and
6 Community Affairs;
7 (F) charges for telecommunications and all
8 services and equipment provided in connection
9 therewith between a parent corporation and its
10 wholly owned subsidiaries or between wholly owned
11 subsidiaries when the tax imposed under this Section
12 has already been paid to a retailer and only to the
13 extent that the charges between the parent
14 corporation and wholly owned subsidiaries or between
15 wholly owned subsidiaries represent expense
16 allocation between the corporations and not the
17 generation of profit for the corporation rendering
18 such service;
19 (G) bad debts ("bad debt" means any portion of
20 a debt that is related to a sale at retail for which
21 gross charges are not otherwise deductible or
22 excludable that has become worthless or
23 uncollectable, as determined under applicable
24 federal income tax standards; if the portion of the
25 debt deemed to be bad is subsequently paid, the
26 retailer shall report and pay the tax on that
27 portion during the reporting period in which the
28 payment is made);
29 (H) charges paid by inserting coins in
30 coin-operated telecommunication devices; or
31 (I) amounts paid by telecommunications
32 retailers under the Telecommunications Municipal
33 Infrastructure Maintenance Fee Act.
34 (3) "Interstate telecommunications" means all
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1 telecommunications that either originate or terminate
2 outside this State.
3 (4) "Intrastate telecommunications" means all
4 telecommunications that originate and terminate within
5 this State.
6 (5) "Person" means any natural individual, firm,
7 trust, estate, partnership, association, joint stock
8 company, joint venture, corporation, limited liability
9 company, or a receiver, trustee, guardian or other
10 representative appointed by order of any court, the
11 Federal and State governments, including State
12 universities created by statute, or any city, town,
13 county, or other political subdivision of this State.
14 (6) "Purchase at retail" means the acquisition,
15 consumption or use of telecommunications through a sale
16 at retail.
17 (7) "Retailer" means and includes every person
18 engaged in the business of making sales at retail as
19 defined in this Section. A municipality may, in its
20 discretion, upon application, authorize the collection of
21 the tax hereby imposed by any retailer not maintaining a
22 place of business within this State, who to the
23 satisfaction of the municipality, furnishes adequate
24 security to insure collection and payment of the tax.
25 Such retailer shall be issued, without charge, a permit
26 to collect such tax. When so authorized, it shall be the
27 duty of such retailer to collect the tax upon all of the
28 gross charges for telecommunications in such municipality
29 in the same manner and subject to the same requirements
30 as a retailer maintaining a place of business within such
31 municipality.
32 (8) "Retailer maintaining a place of business in
33 this State", or any like term, means and includes any
34 retailer having or maintaining within this State,
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1 directly or by a subsidiary, an office, distribution
2 facilities, transmission facilities, sales office,
3 warehouse or other place of business, or any agent or
4 other representative operating within this State under
5 the authority of the retailer or its subsidiary,
6 irrespective of whether such place of business or agent
7 or other representative is located here permanently or
8 temporarily, or whether such retailer or subsidiary is
9 licensed to do business in this State.
10 (9) "Sale at retail" means the transmitting,
11 supplying or furnishing of telecommunications and all
12 services rendered in connection therewith for a
13 consideration, to persons other than the Federal and
14 State governments, and State universities created by
15 statute and other than between a parent corporation and
16 its wholly owned subsidiaries or between wholly owned
17 subsidiaries, when the tax has already been paid to a
18 retailer and the gross charge made by one such
19 corporation to another such corporation is not greater
20 than the gross charge paid to the retailer for their use
21 or consumption and not for resale.
22 (10) "Service address" means the location of
23 telecommunications equipment from which
24 telecommunications services are originated or at which
25 telecommunications services are received by a taxpayer.
26 If this is not a defined location, as in the case of
27 mobile phones, paging systems, maritime systems,
28 air-to-ground systems and the like, "service address"
29 shall mean the location of a taxpayer's primary use of
30 the telecommunication equipment as defined by telephone
31 number, authorization code, or location in Illinois where
32 bills are sent.
33 (11) "Taxpayer" means a person who individually or
34 through his agents, employees, or permittees engages in
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1 the act or privilege of originating in such municipality
2 or receiving in such municipality telecommunications and
3 who incurs a tax liability under any ordinance authorized
4 by this Section.
5 (12) "Telecommunications", in addition to the usual
6 and popular meaning, includes, but is not limited to,
7 messages or information transmitted through use of local,
8 toll and wide area telephone service, channel services,
9 telegraph services, teletypewriter service, computer
10 exchange services; cellular mobile telecommunications
11 service, specialized mobile radio services, paging
12 service, or any other form of mobile and portable one-way
13 or two-way communications, or any other transmission of
14 messages or information by electronic or similar means,
15 between or among points by wire, cable, fiber optics,
16 laser, microwave, radio, satellite or similar facilities.
17 The definition of "telecommunications" shall not include
18 value added services in which computer processing
19 applications are used to act on the form, content, code
20 and protocol of the information for purposes other than
21 transmission. "Telecommunications" shall not include
22 purchase of telecommunications by a telecommunications
23 service provider for use as a component part of the
24 service provided by him to the ultimate retail consumer
25 who 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
28 all telecommunications resold in the subsequent provision
29 used as a component of, or integrated into, end-to-end
30 telecommunications service shall be non-taxable as sales
31 for resale.
32 "Telecommunications" shall not include
33 communications attributable to prepaid telephone calling
34 cards, prepaid telephone authorization numbers, or
-19- LRB9008816PTbdam
1 prepaid telephone reauthorization numbers. As used in
2 this paragraph, "prepaid telephone calling cards" and
3 "prepaid telephone authorization numbers" means the right
4 to exclusively purchase telecommunications services, paid
5 for in advance, that enables the origination of calls
6 using an access number and authorization code, and
7 "prepaid telephone reauthorization numbers" means the
8 right to exclusively purchase telecommunications
9 services, paid for in advance, that enables the
10 origination of calls using an access number and
11 authorization code that was previously acquired.
12 (d) If a person, who originates or receives
13 telecommunications in such municipality claims to be a
14 reseller of such telecommunications, such person shall apply
15 to the municipality for a resale number. Such applicant
16 shall state facts which will show the municipality why such
17 applicant is not liable for tax under any ordinance
18 authorized by this Section on any of such purchases and shall
19 furnish such additional information as the municipality may
20 reasonably require.
21 Upon approval of the application, the municipality shall
22 assign a resale number to the applicant and shall certify
23 such number to the applicant. The municipality may cancel
24 any number which is obtained through misrepresentation, or
25 which is used to send or receive such telecommunication
26 tax-free when such actions in fact are not for resale, or
27 which no longer applies because of the person's having
28 discontinued the making of resales.
29 Except as provided hereinabove in this Section, the act
30 or privilege of sending or receiving telecommunications in
31 this State shall not be made tax-free on the ground of being
32 a sale for resale unless the person has an active resale
33 number from the municipality and furnishes that number to the
34 retailer in connection with certifying to the retailer that
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1 any sale to such person is non-taxable because of being a
2 sale for resale.
3 (e) A municipality that imposes taxes upon
4 telecommunications under this Section and whose territory
5 includes part of another unit of local government or a school
6 district may, by ordinance, exempt the other unit of local
7 government or school district from those taxes.
8 (f) A municipality that imposes taxes upon
9 telecommunications under this Section may, by ordinance, (i)
10 reduce the rate of the tax for persons 65 years of age or
11 older or (ii) exempt persons 65 years of age or older from
12 those taxes. Taxes related to such rate reductions or
13 exemptions shall be rebated from the municipality directly to
14 persons qualified for the rate reduction or exemption as
15 determined by the municipality's ordinance.
16 (Source: P.A. 90-357, eff. 1-1-98; 90-562, eff. 12-16-97.)
17 Section 95. Application. Nothing in this amendatory Act
18 of 1998 shall eliminate or affect the collection of the tax
19 imposed by Section 2-202 of the Public Utilities Act.".