PETERSON AND LAUZEN.
USE OCC TXS-PREPAID PHONE CARD
Synopsis of Bill as introduced:
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.
SENATE AMENDMENT NO. 1.
Deletes reference to:
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
Adds reference to:
35 ILCS 105/3 from Ch. 120, par. 439.3
35 ILCS 110/3 from Ch. 120, par. 439.33
35 ILCS 115/3 from Ch. 120, par. 439.103
35 ILCS 120/2 from Ch. 120, par. 441
35 ILCS 630/2 from Ch. 120, par. 2002
65 ILCS 5/8-11-17 from Ch. 24, par. 8-11-17
Deletes everything after the enacting clause. Amends the Use Tax
Act, the Service Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act.
Subjects to the taxes imposed under these Acts prepaid telephone
calling cards, prepaid telephone authorization numbers, and prepaid
telephone reauthorization numbers.
Provides that if the sale of these items does not take place at the
retailer's place of business, then it is shall be conclusively
determined to take place at the customer's address, which shall be
retained by the provider of the authorization or reauthorization
number. Amends the Telecommunications Excise Tax Act and the municipal
telecommunications tax provisions of the Illinois Municipal Code.
Excludes from these tax provisions communications attributable to
prepaid telephone calling cards, prepaid telephone authorization
numbers, or prepaid telephone reauthorization numbers. Provides that
nothing in the amendatory Act shall eliminate or affect the collection
of the tax imposed by Section 2-202 of the Public Utilities Act.
FISCAL NOTE (Dpt. Revenue)
There may be a negative fiscal impact to the State from chang-
ing the tax rate from 7% (telecommunications excise tax) to
6.25% (sales tax). Specific data is not available to determine
the resulting fiscal impact.
STATE MANDATES ACT FISCAL NOTE
Fails to create a State mandate.
HOME RULE NOTE
Contains no language preempting home rule authority.
Last action on Bill: SESSION SINE DIE
Last action date: 99-01-12
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 1
END OF INQUIRY
Full Text Bill Status