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92_HB0189 LRB9202601SMdv 1 AN ACT concerning telecommunications taxes and fees. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Municipal Telecommunications Tax Act. 6 Section 5. Legislative intent. The General Assembly has 7 authorized the corporate authorities of any municipality to 8 impose various fees and taxes on the privilege of originating 9 or receiving telecommunications, and on retailers engaged in 10 the business of transmitting such telecommunications, all of 11 which are remitted by such retailers directly to the imposing 12 municipality. To simplify the imposition and collection of 13 municipal telecommunications taxes and to reduce complication 14 and burden, the General Assembly is replacing the various 15 municipal telecommunications fees and taxes with a single tax 16 by replacing the municipal telecommunications tax, the 17 municipal tax on the occupation or privilege of transmitting 18 messages, and the municipal infrastructure maintenance fee 19 with this Municipal Telecommunications Tax Act which provides 20 for a single municipally imposed telecommunications tax 21 which, for municipalities with populations of less than 22 500,000, will be collected by the Department, but which, for 23 municipalities of 500,000 or more, will continue to be 24 collected by such municipalities. So as not to impose an 25 unnecessary burden on the municipalities that currently have 26 in place one or more of the taxes or fees being replaced, the 27 General Assembly will not require such municipalities to 28 adopt a new ordinance imposing the Municipal 29 Telecommunications Tax. Instead, the General Assembly will 30 replace the existing taxes and fees with the Municipal 31 Telecommunications Tax, which may be imposed at a rate -2- LRB9202601SMdv 1 initially calculated to generate approximately the same 2 amount of revenue for the municipality as that which was 3 generated by the replaced taxes and fees; provided, however, 4 that the Municipal Telecommunications Tax shall be valid 5 whether or not it in fact generates approximately the same 6 amount of revenue as was generated by the previously imposed 7 taxes and fees. Municipalities that determine to impose the 8 Municipal Telecommunications Tax at an authorized rate other 9 than that established in Section 15, and municipalities that 10 do not currently have in place one or more of the taxes or 11 fees being replaced, may also adopt the Municipal 12 Telecommunications Tax by passage of an ordinance in 13 accordance with Section 20. 14 Section 7. Definitions. For purposes of the taxes 15 authorized by this Act: 16 "Amount paid" means the amount charged to the taxpayer's 17 service address in such municipality regardless of where such 18 amount is billed or paid. 19 "Department" means the Illinois Department of Revenue. 20 "Gross charge" means the amount paid for the act or 21 privilege of originating or receiving telecommunications in 22 such municipality and for all services and equipment provided 23 in connection therewith by a retailer, valued in money 24 whether paid in money or otherwise, including cash, credits, 25 services and property of every kind or nature, and shall be 26 determined without any deduction on account of the cost of 27 such telecommunications, the cost of the materials used, 28 labor or service costs or any other expense whatsoever. In 29 case credit is extended, the amount thereof shall be included 30 only as and when paid. "Gross charges" for private line 31 service shall include charges imposed at each channel point 32 within this State, charges for the channel mileage between 33 each channel point within this State, and charges for that -3- LRB9202601SMdv 1 portion of the interstate inter-office channel provided 2 within Illinois. However, "gross charge" shall not include: 3 (1) any amounts added to a purchaser's bill because 4 of a charge made pursuant to: (i) the tax imposed by this 5 Act, (ii) the tax imposed by the Telecommunications 6 Excise Tax Act, (iii) the tax imposed by Section 4251 of 7 the Internal Revenue Code, (iv) 911 surcharges, or (v) 8 charges added to customers' bills pursuant to the 9 provisions of Section 9-221 or 9-222 of the Public 10 Utilities Act, as amended, or any similar charges added 11 to customers' bills by retailers who are not subject to 12 rate regulation by the Illinois Commerce Commission for 13 the purpose of recovering any of the tax liabilities or 14 other amounts specified in those provisions of the Public 15 Utilities Act; 16 (2) charges for a sent collect telecommunication 17 received outside of such municipality; 18 (3) charges for leased time on equipment or charges 19 for the storage of data or information or subsequent 20 retrieval or the processing of data or information 21 intended to change its form or content. Such equipment 22 includes, but is not limited to, the use of calculators, 23 computers, data processing equipment, tabulating 24 equipment or accounting equipment and also includes the 25 usage of computers under a time-sharing agreement; 26 (4) charges for customer equipment, including such 27 equipment that is leased or rented by the customer from 28 any source, wherein such charges are disaggregated and 29 separately identified from other charges; 30 (5) charges to business enterprises certified as 31 exempt under Section 9-222.1 of the Public Utilities Act 32 to the extent of such exemption and during the period of 33 time specified by the Department of Commerce and 34 Community Affairs; -4- LRB9202601SMdv 1 (6) charges for telecommunications and all services 2 and equipment provided in connection therewith between a 3 parent corporation and its wholly owned subsidiaries or 4 between wholly owned subsidiaries when the tax imposed 5 under this Act has already been paid to a retailer and 6 only to the extent that the charges between the parent 7 corporation and wholly owned subsidiaries or between 8 wholly owned subsidiaries represent expense allocation 9 between the corporations and not the generation of profit 10 for the corporation rendering such service; 11 (7) bad debts ("bad debt" means any portion of a 12 debt that is related to a sale at retail for which gross 13 charges are not otherwise deductible or excludable that 14 has become worthless or uncollectible, as determined 15 under applicable federal income tax standards; if the 16 portion of the debt deemed to be bad is subsequently 17 paid, the retailer shall report and pay the tax on that 18 portion during the reporting period in which the payment 19 is made); 20 (8) charges paid by inserting coins in 21 coin-operated telecommunication devices; or 22 (9) amounts paid by telecommunications retailers 23 under the Telecommunications Infrastructure Maintenance 24 Fee Act. 25 "Interstate telecommunications" means all 26 telecommunications that either originate or terminate outside 27 this State. 28 "Intrastate telecommunications" means all 29 telecommunications that originate and terminate within this 30 State. 31 "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 -5- LRB9202601SMdv 1 appointed by order of any court, the Federal and State 2 governments, including State universities created by statute, 3 or any city, town, county, or other political subdivision of 4 this State. 5 "Purchase at retail" means the acquisition, consumption 6 or use of telecommunications through a sale at retail. 7 "Retailer" means and includes every person engaged in the 8 business of making sales at retail as defined in this 9 Section. The Department may, in its discretion, upon 10 application, authorize the collection of the tax hereby 11 imposed by any retailer not maintaining a place of business 12 within this State, who, to the satisfaction of the 13 Department, furnishes adequate security to insure collection 14 and payment of the tax. Such retailer shall be issued, 15 without charge, a permit to collect such tax. When so 16 authorized, it shall be the duty of such retailer to collect 17 the tax upon all of the gross charges for telecommunications 18 in this State in the same manner and subject to the same 19 requirements as a retailer maintaining a place of business 20 within this State. The permit may be revoked by the 21 Department at its discretion. 22 "Retailer maintaining a place of business in this State", 23 or any like term, means and includes any retailer having or 24 maintaining within this State, directly or by a subsidiary, 25 an office, distribution facilities, transmission facilities, 26 sales office, warehouse or other place of business, or any 27 agent or other representative operating within this State 28 under the authority of the retailer or its subsidiary, 29 irrespective of whether such place of business or agent or 30 other representative is located here permanently or 31 temporarily, or whether such retailer or subsidiary is 32 licensed to do business in this State. 33 "Sale at retail" means the transmitting, supplying or 34 furnishing of telecommunications and all services and -6- LRB9202601SMdv 1 equipment provided in connection therewith for a 2 consideration, to persons other than the Federal and State 3 governments, and State universities created by statute and 4 other than between a parent corporation and its wholly owned 5 subsidiaries or between wholly owned subsidiaries for their 6 use or consumption and not for resale. 7 "Service address" means the location of 8 telecommunications equipment from which telecommunications 9 services are originated or at which telecommunications 10 services are received by a taxpayer. In the event this may 11 not be a defined location, as in the case of mobile phones, 12 paging systems, maritime systems, air-to-ground systems and 13 the like, "service address" shall mean the location of a 14 taxpayer's primary use of the telecommunications equipment as 15 defined by telephone number, authorization code, or location 16 in Illinois where bills are sent. 17 "Taxpayer" means a person who individually or through his 18 or her agents, employees, or permittees engages in the act or 19 privilege of originating or receiving telecommunications in a 20 municipality and who incurs a tax liability as authorized by 21 this Act. 22 "Telecommunications", in addition to the meaning 23 ordinarily and popularly ascribed to it, includes, without 24 limitation, messages or information transmitted through use 25 of local, toll, and wide area telephone service, private line 26 services, channel services, telegraph services, 27 teletypewriter, computer exchange services, cellular mobile 28 telecommunications service, specialized mobile radio, 29 stationary two-way radio, paging service, or any other form 30 of mobile and portable one-way or two-way communications, or 31 any other transmission of messages or information by 32 electronic or similar means, between or among points by wire, 33 cable, fiber optics, laser, microwave, radio, satellite, or 34 similar facilities. As used in this Act, "private line" -7- LRB9202601SMdv 1 means a dedicated non-traffic sensitive service for a single 2 customer, that entitles the customer to exclusive or priority 3 use of a communications channel or group of channels, from 4 one or more specified locations to one or more other 5 specified locations. The definition of "telecommunications" 6 shall not include value added services in which computer 7 processing applications are used to act on the form, content, 8 code, and protocol of the information for purposes other than 9 transmission. "Telecommunications" shall not include 10 purchases of telecommunications by a telecommunications 11 service provider for use as a component part of the service 12 provided by such provider to the ultimate retail consumer who 13 originates or terminates the taxable end-to-end 14 communications. Carrier access charges, right of access 15 charges, charges for use of inter-company facilities, and all 16 telecommunications resold in the subsequent provision of, 17 used as a component of, or integrated into, end-to-end 18 telecommunications service shall be non-taxable as sales for 19 resale. Prepaid telephone calling arrangements shall not be 20 considered "telecommunications" subject to the tax imposed 21 under this Act. For purposes of this Section, "prepaid 22 telephone calling arrangements" means that term as defined in 23 Section 2-27 of the Retailers' Occupations Tax Act. 24 Section 10. Authority. The corporate authorities of any 25 municipality in this State may tax any or all of the 26 following acts or privileges: 27 (a) The act or privilege of originating in such 28 municipality or receiving in such municipality intrastate 29 telecommunications by a person. However, such tax is not 30 imposed on such act or privilege to the extent such act or 31 privilege may not, under the Constitution and statutes of the 32 United States, be made the subject of taxation by 33 municipalities in this State. -8- LRB9202601SMdv 1 (b) The act or privilege of originating in such 2 municipality or receiving in such municipality interstate 3 telecommunications by a person. To prevent actual multi-state 4 taxation of the act or privilege that is subject to taxation 5 under this subsection, any taxpayer, upon proof that the 6 taxpayer has paid a tax in another state on such event, shall 7 be allowed a credit against any tax enacted pursuant to or 8 authorized by this Section to the extent of the amount of 9 such tax properly due and paid in such other state which was 10 not previously allowed as a credit against any other state or 11 local tax in this State. However, such tax is not imposed on 12 the act or privilege to the extent such act or privilege may 13 not, under the Constitution and statutes of the United 14 States, be made the subject of taxation by municipalities in 15 this State. 16 Section 15. Rates. 17 (a) For municipalities with a population of less than 18 500,000, the tax authorized by this Act may be imposed at a 19 rate not to exceed 6% of the gross charge for 20 telecommunications purchased at retail. If imposed, the tax 21 must be in increments of 0.25%. 22 (b) For municipalities with a population of 500,000 or 23 more, the tax authorized by this Act may be imposed at a rate 24 not to exceed 7% of the gross charge for telecommunications 25 purchased at retail. If imposed, the tax must be in 26 increments of 0.25%. 27 Section 20. Imposition. 28 (a) On and after July 1, 2002, for municipalities with 29 populations of less than 500,000, the tax authorized by this 30 Act shall be imposed (except as provided in Section 25 of 31 this Act), amended, or repealed by an ordinance adopted by 32 the municipality, which ordinance shall be filed by the -9- LRB9202601SMdv 1 municipality with the Department pursuant to the rules of the 2 Department. 3 (1) Any ordinance adopted by a municipality with a 4 population of less than 500,000 which attempts to impose, 5 amend or repeal the tax authorized by this Act shall be 6 of no force and effect until properly filed with an 7 appropriate form with the Department. 8 (2) Any certified copy of an ordinance filed with 9 the Department prior to any October 1 or April 1 shall 10 be effective with respect to bills issued on or after the 11 following January 1 or July 1, respectively. 12 (b) On and after July 1, 2002, for municipalities with 13 populations of 500,000 or more, the tax authorized by this 14 Act shall be imposed, amended, or repealed, and any 15 authorized exemptions granted, by the adoption of an 16 ordinance. 17 Section 25. Existing telecommunications taxes and fees. 18 (a) Between January 1, 2002 and February 1, 2002, the 19 Department shall publish a list of the municipalities with a 20 population of less than 500,000 which had any taxes or fees 21 authorized by item (1) of Section 8-11-2 of the Illinois 22 Municipal Code, Section 8-11-17 of the Illinois Municipal 23 Code, or Section 20 of the Telecommunications Infrastructure 24 Maintenance Fee Act that were in effect for billing periods 25 that include January 1, 2002, whether or not bills were 26 actually issued on January 1, 2002. Such list shall include 27 the name of each such municipality, the rates at which such 28 taxes or fees were imposed, and the rate of the new Municipal 29 Telecommunications Tax, as calculated pursuant to Section 30 30 of this Act. 31 (b) In compiling the list described in this Section, the 32 Department shall collect information from retailers, 33 municipalities, the Illinois Commerce Commission, and other -10- LRB9202601SMdv 1 sources deemed by the Department to be reliable. 2 (c) Any municipality appearing on the list published 3 pursuant to this Section shall not be required to adopt and 4 file an ordinance implementing the tax authorized by this 5 Act. The list shall be conclusive evidence of the imposition 6 of the tax authorized by this Act at the rate appearing on 7 such list. A municipality may alter such tax only by filing 8 an ordinance with the Department pursuant to Section 20 of 9 this Act, before April 1, 2002. 10 Section 30. Calculation of rates for certain 11 municipalities. 12 (a) For each municipality on the list described in 13 Section 25 of this Act, the rate of the taxes and fees 14 imposed by a municipality pursuant to item (1) of Section 15 8-11-2 of the Illinois Municipal Code, Section 8-11-17 of the 16 Illinois Municipal Code, or Section 20 of the 17 Telecommunications Infrastructure Maintenance Fee Act which 18 appears on the list shall be used by the Department in 19 calculating the rate of the Municipal Telecommunications Tax 20 for such municipality. 21 (b) The rate of the Municipal Telecommunications Tax for 22 municipalities on the list shall be equal to the sum of: 23 (1) The rate equal to 70% of the rate imposed by 24 such municipality pursuant to item (1) of Section 8-11-2 25 of the Illinois Municipal Code, rounded to the nearest 26 even 0.25% increment; plus 27 (2) The rate imposed by such municipality pursuant 28 to Section 8-11-17 of the Illinois Municipal Code, 29 rounded to the nearest even 0.25% increment; plus 30 (3) The rate imposed by such municipality pursuant 31 to Section 20 of the Telecommunications Municipal 32 Infrastructure Maintenance Fee Act. 33 (c) The Department shall enter each of the rates -11- LRB9202601SMdv 1 described in subdivisions (b)(1), (b)(2), and (b)(3) of this 2 Section 30, as well as the rate of the Municipal 3 Telecommunications Tax, on the list provided for in Section 4 25 of this Act. 5 Section 35. Rebates and exemptions. Any municipality may 6 implement the following rebates and exemptions: 7 (1) A municipality that imposes the tax authorized 8 by this Act and whose territory includes part of another 9 unit of local government or a school district, may, by 10 separate ordinance, rebate some or all of the amount of 11 such tax paid by the other unit of local government or 12 school district. Any such rebate shall be paid by the 13 municipality directly to the other unit of local 14 government or school district qualifying for the rebate 15 as determined by the municipality's ordinance, which 16 shall not be filed with the Department. 17 (2) A municipality that imposes the tax authorized 18 by this Act may, by separate ordinance, rebate some or 19 all of the amount of such tax to persons 65 years of age 20 or older. Any tax related to such rebate shall be 21 rebated from the municipality directly to persons 22 qualified for the rebate as determined by the 23 municipality's ordinance, which shall not be filed with 24 the Department. 25 (3) A municipality with a population of 500,000 or 26 more that imposes the tax authorized by this Act may, by 27 separate ordinance, exempt from the tax authorized by 28 this Act, charges for inbound toll-free 29 telecommunications service commonly known as "800", 30 "877", or "888" or for a similar service, to the extent 31 such municipality has passed an ordinance providing for 32 this exemption. -12- LRB9202601SMdv 1 Section 40. Collection. 2 (a) For municipalities with populations of less than 3 500,000, the tax authorized by this Act shall be collected 4 from the taxpayer by a retailer maintaining a place of 5 business in this State within such municipalities and shall 6 be remitted by such retailer to the Department. Any tax 7 required to be collected pursuant to or as authorized by this 8 Act and any such tax collected by such retailer and required 9 to be remitted to the Department shall constitute a debt owed 10 by the retailer to the State. Retailers shall collect the tax 11 from the taxpayer by adding the tax to the gross charge for 12 the act or privilege of originating or receiving 13 telecommunications when sold for use, in the manner 14 prescribed by the Department. The tax authorized by this Act 15 shall constitute a debt of the taxpayer to the retailer until 16 paid, and, if unpaid, is recoverable at law in the same 17 manner as the original charge for such sale at retail. If 18 the retailer fails to collect the tax from the taxpayer, then 19 the taxpayer shall be required to pay the tax directly to the 20 Department in the manner provided by the Department. 21 (b) For municipalities with populations of 500,000 or 22 more, the tax authorized by this Act shall be collected from 23 the taxpayer by a retailer making or effectuating the sale at 24 retail and shall be remitted by such retailer to such 25 municipality. Any tax required to be collected pursuant to 26 an ordinance authorized by this Act and any such tax 27 collected by a retailer shall constitute a debt owed by the 28 retailer to such municipality. Retailers shall collect the 29 tax from the taxpayer by adding the tax to the gross charge 30 for the act or privilege of originating or receiving 31 telecommunications when sold for use, in the manner 32 prescribed by such municipality. The tax authorized by this 33 Act shall constitute a debt of the taxpayer to the retailer 34 who made or effectuated the sale at retail until paid and, if -13- LRB9202601SMdv 1 unpaid, is recoverable at law in the same manner as the 2 original charge for the sale at retail. If the retailer 3 fails to collect the tax from the taxpayer, then the taxpayer 4 shall be required to pay the tax directly to such 5 municipality in the manner provided by such municipality. 6 The municipality imposing the tax shall provide for its 7 administration and enforcement. 8 (c) Retailers filing tax returns pursuant to this Act 9 shall, at the time of filing such return, pay to a 10 municipality with a population of 500,000 or more or to the 11 Department for all other municipalities, the amount of the 12 tax collected, less a commission of 1% which is allowed to 13 reimburse the retailer for the expenses incurred in keeping 14 records, billing the customer, preparing and filing returns, 15 remitting the tax and supplying data to a municipality or 16 Department upon request. No commission may be claimed by a 17 retailer for taxes not timely remitted. 18 (d) Whenever possible, the tax authorized by this Act 19 shall, when collected, be stated as a distinct item separate 20 and apart from the gross charge for telecommunications. 21 Section 45. Resellers. 22 (a) If a person who originates or receives 23 telecommunications claims to be a reseller of such 24 telecommunications, such person shall apply to a municipality 25 with a population of 500,000 or more or to the Department for 26 all other municipalities, for a resale number. Such 27 applicant shall state facts which will show a municipality 28 with a population of 500,000 or more or the Department for 29 all other municipalities, why such applicant is not liable 30 for tax authorized by this Act on any of such purchases and 31 shall furnish such additional information as a municipality 32 with a population of 500,000 or more or the Department for 33 all other municipalities, may reasonably require. -14- LRB9202601SMdv 1 (b) Upon approval of the application, a municipality 2 with a population of 500,000 or more or the Department for 3 all other municipalities, shall assign a resale number to the 4 applicant and shall certify such number to the applicant. A 5 municipality with a population of 500,000 or more or the 6 Department for all other municipalities, may cancel any 7 number which is obtained through misrepresentation, or which 8 is used to send or receive such telecommunication tax-free 9 when such actions in fact are not for resale, or which no 10 longer applies because of the person's having discontinued 11 the making of resales. 12 (c) Except as provided hereinabove in this Section, the 13 act or privilege of originating or receiving 14 telecommunications in this State shall not be made tax-free 15 on the ground of being a sale for resale unless the person 16 has an active resale number from a municipality with a 17 population of 500,000 or more or the Department for all other 18 municipalities, and furnishes that number to the retailer in 19 connection with certifying to the retailer that any sale to 20 such person is non-taxable because of being a sale for 21 resale. 22 Section 50. Returns to the Department. 23 (a) Commencing on August 1, 2002, each retailer 24 maintaining a place of business in this State within 25 municipalities with populations of less than 500,000, shall, 26 on or before the 30th day of each month, except for the month 27 of February, on or before the 28th day of February, make a 28 return to the Department for the preceding calendar month, 29 stating: 30 (1) Its name; 31 (2) The address of its principal place of business, 32 and the address of the principal place of business (if 33 that is a different address) from which it engages in the -15- LRB9202601SMdv 1 business of transmitting telecommunications; 2 (3) Total amount of gross charges billed by it 3 during the preceding calendar month for providing 4 telecommunications during the calendar month; 5 (4) Total amount received by it during the 6 preceding calendar month on credit extended; 7 (5) Deductions allowed by law; 8 (6) Gross charges that were billed by it during the 9 preceding calendar month and upon the basis of which the 10 tax is imposed; 11 (7) Amount of tax (computed upon Item 6); 12 (8) The municipalities to which the Department 13 shall remit the taxes and the amount of such remittances; 14 (9) Such other reasonable information as the 15 Department may require. 16 (b) Any retailer required to make payments under this 17 Section may make the payments by electronic funds transfer. 18 The Department shall adopt rules necessary to effectuate a 19 program of electronic funds transfer. Any retailer who has 20 average monthly tax billings due to the Department under this 21 Act and the Telecommunications Excise Tax Act that exceed 22 $1,000 shall make all payments by electronic funds transfer 23 as required by rules of the Department. 24 (c) If the retailer's average monthly tax billings due 25 to the Department under this Act and the Telecommunications 26 Excise Tax Act do not exceed $1,000, the Department may 27 authorize such retailer's returns to be filed on a 28 quarter-annual basis, with the return for January, February, 29 and March of a given year being due by April 30th of that 30 year; with the return for April, May, and June of a given 31 year being due by July 30th of that year; with the return for 32 July, August, and September of a given year being due by 33 October 30th of that year; and with the return for October, 34 November, and December of a given year being due by January -16- LRB9202601SMdv 1 30th of the following year. 2 (d) If the retailer is otherwise required to file a 3 monthly or quarterly return and if the retailer's average 4 monthly tax billings due to the Department under this Act and 5 the Telecommunications Excise Tax Act do not exceed $400, the 6 Department may authorize such retailer's return to be filed 7 on an annual basis, with the return for a given year being 8 due by January 30th of the following year. 9 (e) Each retailer whose average monthly remittance to 10 the Department under this Act and the Telecommunications 11 Excise Tax Act was $25,000 or more during the preceding 12 calendar year, excluding the month of highest remittance and 13 the month of lowest remittance in such calendar year, and who 14 is not operated by a unit of local government, shall make 15 estimated payments to the Department on or before the 7th, 16 15th, 22nd, and last day of the month during which the tax 17 remittance is owed to the Department in an amount not less 18 than the lower of either 22.5% of the retailer's actual tax 19 collections for the month or 25% of the retailer's actual tax 20 collections for the same calendar month of the preceding 21 year. The amount of such quarter-monthly payments shall be 22 credited against the final remittance of the retailer's 23 return for that month. Any outstanding credit, approved by 24 the Department, arising from the retailer's overpayment of 25 its final remittance for any month may be applied to reduce 26 the amount of any subsequent quarter-monthly payment or 27 credited against the final remittance of the retailer's 28 return for any subsequent month. If any quarter-monthly 29 payment is not paid at the time or in the amount required by 30 this Section, the retailer shall be liable for penalty and 31 interest on the difference between the minimum amount due as 32 a payment and the amount of such payment actually and timely 33 paid, except insofar as the retailer has previously made 34 payments for that month to the Department or received credits -17- LRB9202601SMdv 1 in excess of the minimum payments previously due. 2 (f) Notwithstanding any other provision of this Section 3 containing the time within which a retailer may file his or 4 her return, in the case of any retailer who ceases to engage 5 in a kind of business that makes him or her responsible for 6 filing returns under this Section, the retailer shall file a 7 final return under this Section with the Department not more 8 than one month after discontinuing such business. 9 (g) In making such return, the retailer shall determine 10 the value of any consideration other than money received by 11 it and such retailer shall include the value in its return. 12 Such determination shall be subject to review and revision by 13 the Department in the manner hereinafter provided for the 14 correction of returns. 15 (h) Any retailer who has average monthly tax billings 16 due to the Department under this Act and the 17 Telecommunications Excise Tax Act that exceed $1,000 shall 18 file the return required by this Section by electronic means 19 as required by rules of the Department. 20 (i) The retailer filing the return herein provided for 21 shall, at the time of filing the return, pay to the 22 Department the amounts due pursuant to this Act. The 23 Department shall immediately pay over to the State Treasurer, 24 ex officio, as trustee, 99.5% of all taxes, penalties, and 25 interest collected hereunder for deposit into the Municipal 26 Telecommunications Fund, which is hereby created. The 27 remaining 0.5% received by the Department pursuant to this 28 Act shall be deposited into the Tax Compliance and 29 Administration Fund and shall be used by the Department, 30 subject to appropriation, to cover the costs of the 31 Department. On or before the 25th day of each calendar month, 32 the Department shall prepare and certify to the Comptroller 33 the disbursement of stated sums of money to be paid to named 34 municipalities from the Municipal Telecommunications Fund for -18- LRB9202601SMdv 1 amounts collected during the second preceding calendar month. 2 The named municipalities shall be those municipalities 3 identified by a retailer in such retailer's return as having 4 imposed the tax authorized by the Act. The amount of money 5 to be paid to each municipality shall be the amount (not 6 including credit memoranda) collected hereunder during the 7 second preceding calendar month by the Department, plus an 8 amount the Department determines is necessary to offset any 9 amounts that were erronenously paid to a different taxing 10 body, and not including an amount equal to the amount of 11 refunds made during the second preceding calendar month by 12 the Department on behalf of such municipality, and not 13 including any amount that the Department determines is 14 necessary to offset any amount that were payable to a 15 different taxing body but were erroneously paid to the 16 municipality. Within 10 days after receipt by the 17 Comptroller of the disbursement certification from the 18 Department, the Comptroller shall cause the orders to be 19 drawn for the respective amounts in accordance with the 20 directions contained in the certification. When certifying 21 to the Comptroller the amount of a monthly disbursement to a 22 municipality under this Section, the Department shall 23 increase or decrease the amount by an amount necessary to 24 offset any misallocation of previous disbursements. The 25 offset amount shall be the amount erroneously disbursed 26 within the previous 6 months from the time a misallocation is 27 discovered. 28 (j) For municipalities with populations of less than 29 500,000, whenever the Department determines that a refund 30 shall be made under this Section to a claimant instead of 31 issuing a credit memorandum, the Department shall notify the 32 State Comptroller, who shall cause the order to be drawn for 33 the amount specified and to the person named in the 34 notification from the Department. The refund shall be paid -19- LRB9202601SMdv 1 by the State Treasurer out of the Municipal 2 Telecommunications Fund. 3 Section 55. Pledged revenues. If a municipality has, by 4 contract, pledged or dedicated any or all of the revenues 5 collected under any of its taxes imposed pursuant to item (1) 6 of Section 8-11-2 of the Illinois Municipal Code, Section 7 8-11-17 of the Illinois Municipal Code, or Section 20 of the 8 Telecommunications Infrastructure Maintenance Fee Act as 9 shown on the list described in Section 25 of this Act, then 10 the equivalent portion of revenues collected from the tax 11 authorized by this Act shall be deemed pledged or dedicated 12 in a manner substantially similar to the pledge of the then 13 existing taxes so as to prevent disruption of such contract. 14 Section 60. Waiver of franchise fees. 15 (a) Any municipality shall be deemed to have waived its 16 right to receive all fees, charges and other compensation 17 that might accrue to the municipality after the effective 18 date of this Act, under any franchise agreement, license, or 19 similar agreement, executed on or before January 1, 1998 with 20 telecommunications retailers if: 21 (1) the municipality imposes the tax authorized by 22 this Act at a rate exceeding 5%; 23 (2) the municipality affirmatively waives such 24 fees; or 25 (3) the municipality is included in the list 26 described in Section 25 of this Act as having a municipal 27 infrastructure maintenance fee in place. 28 (b) This waiver shall be effective only during the time 29 that either the infrastructure maintenance fee or the 30 replacement tax authorized under this Act is subject to being 31 lawfully imposed on the telecommunications retailer, 32 collected by the Department, and paid over to the -20- LRB9202601SMdv 1 municipality. 2 (c) No portion of this Act shall be construed to have 3 repealed or amended the prohibition on franchise fees or 4 other charges set forth in Section 30 of the 5 Telecommunications Infrastructure Maintenance Fee Act. 6 Section 65. Incorporation by reference. On and after 7 January 1, 2002, for municipalities with populations of less 8 than 500,000, all of the provisions of Sections 7, 10, 11, 9 12, 13, 14, 15, 16, 17, 18, and 19 of the Telecommunications 10 Excise Tax Act, Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 11 5i, 5j, 6, 6a, 6b, and 6c of the Retailers' Occupation Tax 12 Act, and all the provisions of the Uniform Penalty and 13 Interest Act, which are not inconsistent with this Act, shall 14 apply, as far as practicable, to the subject matter of this 15 Act to the same extent as if such provisions were included 16 herein. References in such incorporated Sections of the 17 Retailers' Occupation Tax Act to retailers, to sellers, or to 18 persons engaged in the business of selling tangible personal 19 property mean retailers, as defined in this Act, or persons 20 engaged in the act or privilege of originating or receiving 21 telecommunications. References in such incorporated Sections 22 of the Retailers' Occupation Tax Act to purchasers of 23 tangible personal property mean purchasers of 24 telecommunications as defined in this Act. References in 25 such incorporated Sections of the Retailers' Occupation Tax 26 Act to sales of tangible personal property mean the act or 27 privilege of originating or receiving telecommunications as 28 defined in this Act. 29 Section 905. The State Revenue Sharing Act is amended by 30 changing Section 12 as follows: 31 (30 ILCS 115/12) (from Ch. 85, par. 616) -21- LRB9202601SMdv 1 Sec. 12. Personal Property Tax Replacement Fund. There 2 is hereby created the Personal Property Tax Replacement Fund, 3 a special fund in the State Treasury into which shall be paid 4 all revenue realized: 5 (a) all amounts realized from the additional personal 6 property tax replacement income tax imposed by subsections 7 (c) and (d) of Section 201 of the Illinois Income Tax Act, 8 except for those amounts deposited into the Income Tax Refund 9 Fund pursuant to subsection (c) of Section 901 of the 10 Illinois Income Tax Act; and 11 (b) all amounts realized from the additional personal 12 property replacement invested capital taxes imposed by 13 Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas 14 Revenue Tax Act, Section 2a.1 of the Public Utilities 15 Revenue Act, and Section 3 of the Water Company Invested 16 Capital Tax Act, and amounts payable to the Department of 17 Revenue under the TelecommunicationsMunicipalInfrastructure 18 Maintenance Fee Act. 19 As soon as may be after the end of each month, the 20 Department of Revenue shall certify to the Treasurer and the 21 Comptroller the amount of all refunds paid out of the General 22 Revenue Fund through the preceding month on account of 23 overpayment of liability on taxes paid into the Personal 24 Property Tax Replacement Fund. Upon receipt of such 25 certification, the Treasurer and the Comptroller shall 26 transfer the amount so certified from the Personal Property 27 Tax Replacement Fund into the General Revenue Fund. 28 The payments of revenue into the Personal Property Tax 29 Replacement Fund shall be used exclusively for distribution 30 to taxing districts as provided in this Section, payment of 31 the expenses of the Department of Revenue incurred in 32 administering the collection and distribution of monies paid 33 into the Personal Property Tax Replacement Fund and transfers 34 due to refunds to taxpayers for overpayment of liability for -22- LRB9202601SMdv 1 taxes paid into the Personal Property Tax Replacement Fund. 2 As soon as may be after the effective date of this 3 amendatory Act of 1980, the Department of Revenue shall 4 certify to the Treasurer the amount of net replacement 5 revenue paid into the General Revenue Fund prior to that 6 effective date from the additional tax imposed by Section 7 2a.1 of the Messages Tax Act; Section 2a.1 of the Gas Revenue 8 Tax Act; Section 2a.1 of the Public Utilities Revenue Act; 9 Section 3 of the Water Company Invested Capital Tax Act; 10 amounts collected by the Department of Revenue under the 11 TelecommunicationsMunicipalInfrastructure Maintenance Fee 12 Act; and the additional personal property tax replacement 13 income tax imposed by the Illinois Income Tax Act, as amended 14 by Public Act 81-1st Special Session-1. Net replacement 15 revenue shall be defined as the total amount paid into and 16 remaining in the General Revenue Fund as a result of those 17 Acts minus the amount outstanding and obligated from the 18 General Revenue Fund in state vouchers or warrants prior to 19 the effective date of this amendatory Act of 1980 as refunds 20 to taxpayers for overpayment of liability under those Acts. 21 All interest earned by monies accumulated in the Personal 22 Property Tax Replacement Fund shall be deposited in such 23 Fund. All amounts allocated pursuant to this Section are 24 appropriated on a continuing basis. 25 Prior to December 31, 1980, as soon as may be after the 26 end of each quarter beginning with the quarter ending 27 December 31, 1979, and on and after December 31, 1980, as 28 soon as may be after January 1, March 1, April 1, May 1, July 29 1, August 1, October 1 and December 1 of each year, the 30 Department of Revenue shall allocate to each taxing district 31 as defined in Section 1-150 of the Property Tax Code, in 32 accordance with the provisions of paragraph (2) of this 33 Section the portion of the funds held in the Personal 34 Property Tax Replacement Fund which is required to be -23- LRB9202601SMdv 1 distributed, as provided in paragraph (1), for each quarter. 2 Provided, however, under no circumstances shall any taxing 3 district during each of the first two years of distribution 4 of the taxes imposed by this amendatory Act of 1979 be 5 entitled to an annual allocation which is less than the funds 6 such taxing district collected from the 1978 personal 7 property tax. Provided further that under no circumstances 8 shall any taxing district during the third year of 9 distribution of the taxes imposed by this amendatory Act of 10 1979 receive less than 60% of the funds such taxing district 11 collected from the 1978 personal property tax. In the event 12 that the total of the allocations made as above provided for 13 all taxing districts, during either of such 3 years, exceeds 14 the amount available for distribution the allocation of each 15 taxing district shall be proportionately reduced. Except as 16 provided in Section 13 of this Act, the Department shall then 17 certify, pursuant to appropriation, such allocations to the 18 State Comptroller who shall pay over to the several taxing 19 districts the respective amounts allocated to them. 20 Any township which receives an allocation based in whole 21 or in part upon personal property taxes which it levied 22 pursuant to Section 6-507 or 6-512 of the Illinois Highway 23 Code and which was previously required to be paid over to a 24 municipality shall immediately pay over to that municipality 25 a proportionate share of the personal property replacement 26 funds which such township receives. 27 Any municipality or township, other than a municipality 28 with a population in excess of 500,000, which receives an 29 allocation based in whole or in part on personal property 30 taxes which it levied pursuant to Sections 3-1, 3-4 and 3-6 31 of the Illinois Local Library Act and which was previously 32 required to be paid over to a public library shall 33 immediately pay over to that library a proportionate share of 34 the personal property tax replacement funds which such -24- LRB9202601SMdv 1 municipality or township receives; provided that if such a 2 public library has converted to a library organized under The 3 Illinois Public Library District Act, regardless of whether 4 such conversion has occurred on, after or before January 1, 5 1988, such proportionate share shall be immediately paid over 6 to the library district which maintains and operates the 7 library. However, any library that has converted prior to 8 January 1, 1988, and which hitherto has not received the 9 personal property tax replacement funds, shall receive such 10 funds commencing on January 1, 1988. 11 Any township which receives an allocation based in whole 12 or in part on personal property taxes which it levied 13 pursuant to Section 1c of the Public Graveyards Act and which 14 taxes were previously required to be paid over to or used for 15 such public cemetery or cemeteries shall immediately pay over 16 to or use for such public cemetery or cemeteries a 17 proportionate share of the personal property tax replacement 18 funds which the township receives. 19 Any taxing district which receives an allocation based in 20 whole or in part upon personal property taxes which it levied 21 for another governmental body or school district in Cook 22 County in 1976 or for another governmental body or school 23 district in the remainder of the State in 1977 shall 24 immediately pay over to that governmental body or school 25 district the amount of personal property replacement funds 26 which such governmental body or school district would receive 27 directly under the provisions of paragraph (2) of this 28 Section, had it levied its own taxes. 29 (1) The portion of the Personal Property Tax Replacement 30 Fund required to be distributed as of the time allocation is 31 required to be made shall be the amount available in such 32 Fund as of the time allocation is required to be made. 33 The amount available for distribution shall be the total 34 amount in the fund at such time minus the necessary -25- LRB9202601SMdv 1 administrative expenses as limited by the appropriation and 2 the amount determined by: (a) $2.8 million for fiscal year 3 1981; (b) for fiscal year 1982, .54% of the funds distributed 4 from the fund during the preceding fiscal year; (c) for 5 fiscal year 1983 through fiscal year 1988, .54% of the funds 6 distributed from the fund during the preceding fiscal year 7 less .02% of such fund for fiscal year 1983 and less .02% of 8 such funds for each fiscal year thereafter, or (d) for fiscal 9 year 1989 and beyond no more than 105% of the actual 10 administrative expenses of the prior fiscal year. Such 11 portion of the fund shall be determined after the transfer 12 into the General Revenue Fund due to refunds, if any, paid 13 from the General Revenue Fund during the preceding quarter. 14 If at any time, for any reason, there is insufficient amount 15 in the Personal Property Tax Replacement Fund for payment of 16 costs of administration or for transfers due to refunds at 17 the end of any particular month, the amount of such 18 insufficiency shall be carried over for the purposes of 19 transfers into the General Revenue Fund and for purposes of 20 costs of administration to the following month or months. 21 Net replacement revenue held, and defined above, shall be 22 transferred by the Treasurer and Comptroller to the Personal 23 Property Tax Replacement Fund within 10 days of such 24 certification. 25 (2) Each quarterly allocation shall first be apportioned 26 in the following manner: 51.65% for taxing districts in Cook 27 County and 48.35% for taxing districts in the remainder of 28 the State. 29 The Personal Property Replacement Ratio of each taxing 30 district outside Cook County shall be the ratio which the Tax 31 Base of that taxing district bears to the Downstate Tax Base. 32 The Tax Base of each taxing district outside of Cook County 33 is the personal property tax collections for that taxing 34 district for the 1977 tax year. The Downstate Tax Base is -26- LRB9202601SMdv 1 the personal property tax collections for all taxing 2 districts in the State outside of Cook County for the 1977 3 tax year. The Department of Revenue shall have authority to 4 review for accuracy and completeness the personal property 5 tax collections for each taxing district outside Cook County 6 for the 1977 tax year. 7 The Personal Property Replacement Ratio of each Cook 8 County taxing district shall be the ratio which the Tax Base 9 of that taxing district bears to the Cook County Tax Base. 10 The Tax Base of each Cook County taxing district is the 11 personal property tax collections for that taxing district 12 for the 1976 tax year. The Cook County Tax Base is the 13 personal property tax collections for all taxing districts in 14 Cook County for the 1976 tax year. The Department of Revenue 15 shall have authority to review for accuracy and completeness 16 the personal property tax collections for each taxing 17 district within Cook County for the 1976 tax year. 18 For all purposes of this Section 12, amounts paid to a 19 taxing district for such tax years as may be applicable by a 20 foreign corporation under the provisions of Section 7-202 of 21 the Public Utilities Act, as amended, shall be deemed to be 22 personal property taxes collected by such taxing district for 23 such tax years as may be applicable. The Director shall 24 determine from the Illinois Commerce Commission, for any tax 25 year as may be applicable, the amounts so paid by any such 26 foreign corporation to any and all taxing districts. The 27 Illinois Commerce Commission shall furnish such information 28 to the Director. For all purposes of this Section 12, the 29 Director shall deem such amounts to be collected personal 30 property taxes of each such taxing district for the 31 applicable tax year or years. 32 Taxing districts located both in Cook County and in one 33 or more other counties shall receive both a Cook County 34 allocation and a Downstate allocation determined in the same -27- LRB9202601SMdv 1 way as all other taxing districts. 2 If any taxing district in existence on July 1, 1979 3 ceases to exist, or discontinues its operations, its Tax Base 4 shall thereafter be deemed to be zero. If the powers, duties 5 and obligations of the discontinued taxing district are 6 assumed by another taxing district, the Tax Base of the 7 discontinued taxing district shall be added to the Tax Base 8 of the taxing district assuming such powers, duties and 9 obligations. 10 If two or more taxing districts in existence on July 1, 11 1979, or a successor or successors thereto shall consolidate 12 into one taxing district, the Tax Base of such consolidated 13 taxing district shall be the sum of the Tax Bases of each of 14 the taxing districts which have consolidated. 15 If a single taxing district in existence on July 1, 1979, 16 or a successor or successors thereto shall be divided into 17 two or more separate taxing districts, the tax base of the 18 taxing district so divided shall be allocated to each of the 19 resulting taxing districts in proportion to the then current 20 equalized assessed value of each resulting taxing district. 21 If a portion of the territory of a taxing district is 22 disconnected and annexed to another taxing district of the 23 same type, the Tax Base of the taxing district from which 24 disconnection was made shall be reduced in proportion to the 25 then current equalized assessed value of the disconnected 26 territory as compared with the then current equalized 27 assessed value within the entire territory of the taxing 28 district prior to disconnection, and the amount of such 29 reduction shall be added to the Tax Base of the taxing 30 district to which annexation is made. 31 If a community college district is created after July 1, 32 1979, beginning on the effective date of this amendatory Act 33 of 1995, its Tax Base shall be 3.5% of the sum of the 34 personal property tax collected for the 1977 tax year within -28- LRB9202601SMdv 1 the territorial jurisdiction of the district. 2 The amounts allocated and paid to taxing districts 3 pursuant to the provisions of this amendatory Act of 1979 4 shall be deemed to be substitute revenues for the revenues 5 derived from taxes imposed on personal property pursuant to 6 the provisions of the "Revenue Act of 1939" or "An Act for 7 the assessment and taxation of private car line companies", 8 approved July 22, 1943, as amended, or Section 414 of the 9 Illinois Insurance Code, prior to the abolition of such taxes 10 and shall be used for the same purposes as the revenues 11 derived from ad valorem taxes on real estate. 12 Monies received by any taxing districts from the Personal 13 Property Tax Replacement Fund shall be first applied toward 14 payment of the proportionate amount of debt service which was 15 previously levied and collected from extensions against 16 personal property on bonds outstanding as of December 31, 17 1978 and next applied toward payment of the proportionate 18 share of the pension or retirement obligations of the taxing 19 district which were previously levied and collected from 20 extensions against personal property. For each such 21 outstanding bond issue, the County Clerk shall determine the 22 percentage of the debt service which was collected from 23 extensions against real estate in the taxing district for 24 1978 taxes payable in 1979, as related to the total amount of 25 such levies and collections from extensions against both real 26 and personal property. For 1979 and subsequent years' taxes, 27 the County Clerk shall levy and extend taxes against the real 28 estate of each taxing district which will yield the said 29 percentage or percentages of the debt service on such 30 outstanding bonds. The balance of the amount necessary to 31 fully pay such debt service shall constitute a first and 32 prior lien upon the monies received by each such taxing 33 district through the Personal Property Tax Replacement Fund 34 and shall be first applied or set aside for such purpose. In -29- LRB9202601SMdv 1 counties having fewer than 3,000,000 inhabitants, the 2 amendments to this paragraph as made by this amendatory Act 3 of 1980 shall be first applicable to 1980 taxes to be 4 collected in 1981. 5 (Source: P.A. 89-327, eff. 1-1-96; 90-154, eff. 1-1-98.) 6 Section 910. The Telecommunications Excise Tax Act is 7 amended by changing Sections 2, 6, and 15 as follows: 8 (35 ILCS 630/2) (from Ch. 120, par. 2002) 9 Sec. 2. As used in this Article, unless the context 10 clearly requires otherwise: 11 (a) "Gross charge" means the amount paid for the act or 12 privilege of originating or receiving telecommunications in 13 this State and for all services and equipment provided in 14 connection therewith by a retailer, valued in money whether 15 paid in money or otherwise, including cash, credits, services 16 and property of every kind or nature, and shall be determined 17 without any deduction on account of the cost of such 18 telecommunications, the cost of materials used, labor or 19 service costs or any other expense whatsoever. In case 20 credit is extended, the amount thereof shall be included only 21 as and when paid. "Gross charges" for private line service 22 shall include charges imposed at each channel point within 23 this State, charges for the channel mileage between each 24 channel point within this State, and charges for that portion 25 of the interstate inter-office channel provided within 26 Illinois. However, "gross charges" shall not include: 27 (1) any amounts added to a purchaser's bill because 28 of a charge made pursuant to (i) the tax imposed by this 29 Article; (ii) charges added to customers' bills pursuant 30 to the provisions of Sections 9-221 or 9-222 of the 31 Public Utilities Act, as amended, or any similar charges 32 added to customers' bills by retailers who are not -30- LRB9202601SMdv 1 subject to rate regulation by the Illinois Commerce 2 Commission for the purpose of recovering any of the tax 3 liabilities or other amounts specified in such provisions 4 of such Act;or(iii) the tax imposed by Section 4251 of 5 the Internal Revenue Code; (iv) 911 surcharges; or (v) 6 the tax imposed by the Municipal Telecommunications Tax 7 Act; 8 (2) charges for a sent collect telecommunication 9 received outside of the State; 10 (3) charges for leased time on equipment or charges 11 for the storage of data or information for subsequent 12 retrieval or the processing of data or information 13 intended to change its form or content. Such equipment 14 includes, but is not limited to, the use of calculators, 15 computers, data processing equipment, tabulating 16 equipment or accounting equipment and also includes the 17 usage of computers under a time-sharing agreement; 18 (4) charges for customer equipment, including such 19 equipment that is leased or rented by the customer from 20 any source, wherein such charges are disaggregated and 21 separately identified from other charges; 22 (5) charges to business enterprises certified under 23 Section 9-222.1 of the Public Utilities Act, as amended, 24 to the extent of such exemption and during the period of 25 time specified by the Department of Commerce and 26 Community Affairs; 27 (6) charges for telecommunications and all services 28 and equipment provided in connection therewith between a 29 parent corporation and its wholly owned subsidiaries or 30 between wholly owned subsidiaries when the tax imposed 31 under this Article has already been paid to a retailer 32 and only to the extent that the charges between the 33 parent corporation and wholly owned subsidiaries or 34 between wholly owned subsidiaries represent expense -31- LRB9202601SMdv 1 allocation between the corporations and not the 2 generation of profit for the corporation rendering such 3 service; 4 (7) bad debts. Bad debt means any portion of a debt 5 that is related to a sale at retail for which gross 6 charges are not otherwise deductible or excludable that 7 has become worthless or uncollectable, as determined 8 under applicable federal income tax standards. If the 9 portion of the debt deemed to be bad is subsequently 10 paid, the retailer shall report and pay the tax on that 11 portion during the reporting period in which the payment 12 is made; 13 (8) charges paid by inserting coins in 14 coin-operated telecommunication devices; 15 (9) amounts paid by telecommunications retailers 16 under the TelecommunicationsMunicipalInfrastructure 17 Maintenance Fee Act. 18 (b) "Amount paid" means the amount charged to the 19 taxpayer's service address in this State regardless of where 20 such amount is billed or paid. 21 (c) "Telecommunications", in addition to the meaning 22 ordinarily and popularly ascribed to it, includes, without 23 limitation, messages or information transmitted through use 24 of local, toll and wide area telephone service; private line 25 services; channel services; telegraph services; 26 teletypewriter; computer exchange services; cellular mobile 27 telecommunications service; specialized mobile radio; 28 stationary two way radio; paging service; or any other form 29 of mobile and portable one-way or two-way communications; or 30 any other transmission of messages or information by 31 electronic or similar means, between or among points by wire, 32 cable, fiber-optics, laser, microwave, radio, satellite or 33 similar facilities. As used in this Act, "private line" means 34 a dedicated non-traffic sensitive service for a single -32- LRB9202601SMdv 1 customer, that entitles the customer to exclusive or priority 2 use of a communications channel or group of channels, from 3 one or more specified locations to one or more other 4 specified locations. The definition of "telecommunications" 5 shall not include value added services in which computer 6 processing applications are used to act on the form, content, 7 code and protocol of the information for purposes other than 8 transmission. "Telecommunications" shall not include 9 purchases of telecommunications by a telecommunications 10 service provider for use as a component part of the service 11 provided by him to the ultimate retail consumer who 12 originates or terminates the taxable end-to-end 13 communications. Carrier access charges, right of access 14 charges, charges for use of inter-company facilities, and all 15 telecommunications resold in the subsequent provision of, 16 used as a component of, or integrated into end-to-end 17 telecommunications service shall be non-taxable as sales for 18 resale. 19 (d) "Interstate telecommunications" means all 20 telecommunications that either originate or terminate outside 21 this State. 22 (e) "Intrastate telecommunications" means all 23 telecommunications that originate and terminate within this 24 State. 25 (f) "Department" means the Department of Revenue of the 26 State of Illinois. 27 (g) "Director" means the Director of Revenue for the 28 Department of Revenue of the State of Illinois. 29 (h) "Taxpayer" means a person who individually or 30 through his agents, employees or permittees engages in the 31 act or privilege of originating or receiving 32 telecommunications in this State and who incurs a tax 33 liability under this Article. 34 (i) "Person" means any natural individual, firm, trust, -33- LRB9202601SMdv 1 estate, partnership, association, joint stock company, joint 2 venture, corporation, limited liability company, or a 3 receiver, trustee, guardian or other representative appointed 4 by order of any court, the Federal and State governments, 5 including State universities created by statute or any city, 6 town, county or other political subdivision of this State. 7 (j) "Purchase at retail" means the acquisition, 8 consumption or use of telecommunication through a sale at 9 retail. 10 (k) "Sale at retail" means the transmitting, supplying 11 or furnishing of telecommunications and all services and 12 equipment provided in connection therewith for a 13 consideration to persons other than the Federal and State 14 governments, and State universities created by statute and 15 other than between a parent corporation and its wholly owned 16 subsidiaries or between wholly owned subsidiaries for their 17 use or consumption and not for resale. 18 (l) "Retailer" means and includes every person engaged 19 in the business of making sales at retail as defined in this 20 Article. The Department may, in its discretion, upon 21 application, authorize the collection of the tax hereby 22 imposed by any retailer not maintaining a place of business 23 within this State, who, to the satisfaction of the 24 Department, furnishes adequate security to insure collection 25 and payment of the tax. Such retailer shall be issued, 26 without charge, a permit to collect such tax. When so 27 authorized, it shall be the duty of such retailer to collect 28 the tax upon all of the gross charges for telecommunications 29 in this State in the same manner and subject to the same 30 requirements as a retailer maintaining a place of business 31 within this State. The permit may be revoked by the 32 Department at its discretion. 33 (m) "Retailer maintaining a place of business in this 34 State", or any like term, means and includes any retailer -34- LRB9202601SMdv 1 having or maintaining within this State, directly or by a 2 subsidiary, an office, distribution facilities, transmission 3 facilities, sales office, warehouse or other place of 4 business, or any agent or other representative operating 5 within this State under the authority of the retailer or its 6 subsidiary, irrespective of whether such place of business or 7 agent 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 (n) "Service address" means the location of 11 telecommunications equipment from which the 12 telecommunications services are originated or at which 13 telecommunications services are received by a taxpayer. In 14 the event this may not be a defined location, as in the case 15 of mobile phones, paging systems, maritime systems, 16 air-to-ground systems and the like, service address shall 17 mean the location of a taxpayer's primary use of the 18 telecommunications equipment as defined by telephone number, 19 authorization code, or location in Illinois where bills are 20 sent. 21 (o) "Prepaid telephone calling arrangements" mean the 22 right to exclusively purchase telephone or telecommunications 23 services that must be paid for in advance and enable the 24 origination of one or more intrastate, interstate, or 25 international telephone calls or other telecommunications 26 using an access number, an authorization code, or both, 27 whether manually or electronically dialed, for which payment 28 to a retailer must be made in advance, provided that, unless 29 recharged, no further service is provided once that prepaid 30 amount of service has been consumed. Prepaid telephone 31 calling arrangements include the recharge of a prepaid 32 calling arrangement. For purposes of this subsection, 33 "recharge" means the purchase of additional prepaid telephone 34 or telecommunications services whether or not the purchaser -35- LRB9202601SMdv 1 acquires a different access number or authorization code. 2 "Prepaid telephone calling arrangement" does not include an 3 arrangement whereby a customer purchases a payment card and 4 pursuant to which the service provider reflects the amount of 5 such purchase as a credit on an invoice issued to that 6 customer under an existing subscription plan. 7 (Source: P.A. 90-562, eff. 12-16-97; 91-870, eff. 6-22-00.) 8 (35 ILCS 630/6) (from Ch. 120, par. 2006) 9 Sec. 6. Except as provided hereinafter in this Section, 10 on or before the 30th15thday of each month, except for the 11 month of February, on or before the 28th day of February, 12 each retailer maintaining a place of business in this State 13 shall make a return to the Department for the preceding 14 calendar month, stating: 15 1. His name; 16 2. The address of his principal place of business, 17 and the address of the principal place of business (if 18 that is a different address) from which he engages in the 19 business of transmitting telecommunications; 20 3. Total amount of gross charges billed by him 21 during the preceding calendar month for providing 22 telecommunications during such calendar month; 23 4. Total amount received by him during the 24 preceding calendar month on credit extended; 25 5. Deductions allowed by law; 26 6. Gross charges which were billed by him during 27 the preceding calendar month and upon the basis of which 28 the tax is imposed; 29 7. Amount of tax (computed upon Item 6); 30 8. Such other reasonable information as the 31 Department may require. 32 Any taxpayer required to make payments under this Section 33 may make the payments by electronic funds transfer. The -36- LRB9202601SMdv 1 Department shall adopt rules necessary to effectuate a 2 program of electronic funds transfer. Any taxpayer who has 3 average monthly tax billings due to the Department under this 4 Act and the Municipal Telecommunications Tax Act that exceed 5 $1,000 shall make all payments by electronic funds transfer 6 as required by rules of the Department and shall file the 7 return required by this Section by electronic means as 8 required by rules of the Department. 9 If the retailer's average monthly tax billings due to the 10 Department under this Act and the Municipal 11 Telecommunications Tax Act do not exceed $1,000$200, the 12 Department may authorize his returns to be filed on a quarter 13 annual basis, with the return for January, February and March 14 of a given year being due by April 3015of such year; with 15 the return for April, May and June of a given year being due 16 by July 3015of such year; with the return for July, August 17 and September of a given year being due by October 3015of 18 such year; and with the return of October, November and 19 December of a given year being due by January 3015of the 20 following year. 21 If the retailer is otherwise required to file a monthly 22 or quarterly return and if the retailer's average monthly tax 23 billings due to the Department under this Act and the 24 Municipal Telecommunications Tax Act do not exceed $400$50, 25 the Department may authorize his or her return to be filed on 26 an annual basis, with the return for a given year being due 27 by January 30th15thof the following year. 28 Notwithstanding any other provision of this Article 29 containing the time within which a retailer may file his 30 return, in the case of any retailer who ceases to engage in a 31 kind of business which makes him responsible for filing 32 returns under this Article, such retailer shall file a final 33 return under this Article with the Department not more than 34 one month after discontinuing such business. -37- LRB9202601SMdv 1 In making such return, the retailer shall determine the 2 value of any consideration other than money received by him 3 and he shall include such value in his return. Such 4 determination shall be subject to review and revision by the 5 Department in the manner hereinafter provided for the 6 correction of returns. 7 Each retailer whose average monthly liability to the 8 Department under this Article and the Municipal 9 Telecommunications Tax Act was $25,000$10,000or more during 10 the preceding calendar year, excluding the month of highest 11 liability and the month of lowest liability in such calendar 12 year, and who is not operated by a unit of local government, 13 shall make estimated payments to the Department on or before 14 the 7th, 15th, 22nd and last day of the month during which 15 tax collection liability to the Department is incurred in an 16 amount not less than the lower of either 22.5% of the 17 retailer's actual tax collections for the month or 25% of the 18 retailer's actual tax collections for the same calendar month 19 of the preceding year. The amount of such quarter monthly 20 payments shall be credited against the final liability of the 21 retailer's return for that month. Any outstanding credit, 22 approved by the Department, arising from the retailer's 23 overpayment of its final liability for any month may be 24 applied to reduce the amount of any subsequent quarter 25 monthly payment or credited against the final liability of 26 the retailer's return for any subsequent month. If any 27 quarter monthly payment is not paid at the time or in the 28 amount required by this Section, the retailer shall be liable 29 for penalty and interest on the difference between the 30 minimum amount due as a payment and the amount of such 31 payment actually and timely paid, except insofar as the 32 retailer has previously made payments for that month to the 33 Department in excess of the minimum payments previously due. 34If the Director finds that the information required for-38- LRB9202601SMdv 1the making of an accurate return cannot reasonably be2compiled by a retailer within 15 days after the close of the3calendar month for which a return is to be made, he may grant4an extension of time for the filing of such return for a5period of not to exceed 31 calendar days. The granting of6such an extension may be conditioned upon the deposit by the7retailer with the Department of an amount of money not8exceeding the amount estimated by the Director to be due with9the return so extended. All such deposits, including any10heretofore made with the Department, shall be credited11against the retailer's liabilities under this Article. If12any such deposit exceeds the retailer's present and probable13future liabilities under this Article, the Department shall14issue to the retailer a credit memorandum, which may be15assigned by the retailer to a similar retailer under this16Article, in accordance with reasonable rules and regulations17to be prescribed by the Department.18 The retailer making the return herein provided for shall, 19 at the time of making such return, pay to the Department the 20 amount of tax herein imposed, less a commission of 1% which 21 is allowed to reimburse the retailer for the expenses 22 incurred in keeping records, billing the customer, preparing 23 and filing returns, remitting the tax, and supplying data to 24 the Department upon request. No commission may be claimed by 25 a retailer for taxes not timely remitted. On and after the 26 effective date of this Article of 1985, $1,000,000 of the 27 moneys received by the Department of Revenue pursuant to this 28 Article shall be paid each month into the Common School Fund 29 and the remainder into the General Revenue Fund. On and after 30 February 1, 1998, however, of the moneys received by the 31 Department of Revenue pursuant to the additional taxes 32 imposed by this amendatory Act of 1997 one-half shall be 33 deposited into the School Infrastructure Fund and one-half 34 shall be deposited into the Common School Fund. On and after -39- LRB9202601SMdv 1 the effective date of this amendatory Act of the 91st General 2 Assembly, if in any fiscal year the total of the moneys 3 deposited into the School Infrastructure Fund under this Act 4 is less than the total of the moneys deposited into that Fund 5 from the additional taxes imposed by Public Act 90-548 during 6 fiscal year 1999, then, as soon as possible after the close 7 of the fiscal year, the Comptroller shall order transferred 8 and the Treasurer shall transfer from the General Revenue 9 Fund to the School Infrastructure Fund an amount equal to the 10 difference between the fiscal year total deposits and the 11 total amount deposited into the Fund in fiscal year 1999. 12 (Source: P.A. 90-16, eff. 6-16-97; 90-548, eff. 12-4-97; 13 91-541, eff. 8-13-99; 91-870, 6-22-00.) 14 (35 ILCS 630/15) (from Ch. 120, par. 2015) 15 Sec. 15. Confidential information. All information 16 received by the Department from returns filed under this 17 Article, or from any investigations conducted under this 18 Article, shall be confidential, except for official purposes, 19 and any person who divulges any such information in any 20 manner, except in accordance with a proper judicial order or 21 as otherwise provided by law, shall be guilty of a Class B 22 misdemeanor. 23 Provided, that nothing contained in this Article shall 24 prevent the Director from publishing or making available to 25 the public the names and addresses of retailers or taxpayers 26 filing returns under this Article, or from publishing or 27 making available reasonable statistics concerning the 28 operation of the tax wherein the contents of returns are 29 grouped into aggregates in such a way that the information 30 contained in any individual return shall not be disclosed. 31 And provided, that nothing contained in this Article 32 shall prevent the Director from making available to the 33 United States Government or the government of any other -40- LRB9202601SMdv 1 state, or any officer or agency thereof, for exclusively 2 official purposes, information received by the Department in 3 the administration of this Article, if such other 4 governmental agency agrees to divulge requested tax 5 information to the Department. 6 The furnishing upon request of the Auditor General, or 7 his authorized agents, for official use, of returns filed and 8 information related thereto under this Article is deemed to 9 be an official purpose within the meaning of this Section. 10 The furnishing of financial information to a municipality 11 that has imposed a tax under the Municipal Telecommunications 12 Tax Act, upon request of the chief executive thereof, is an 13 official purpose within the meaning of this Section, provided 14 that the municipality agrees in writing to the requirements 15 of this Section. Information so provided shall be subject to 16 all confidentiality provisions of this Section. The written 17 agreement shall provide for reciprocity, limitations on 18 access, disclosure, and procedures for requesting 19 information. 20 The Director shall make available for public inspection 21 in the Department's principal office and for publication, at 22 cost, administrative decisions issued on or after January 1, 23 1995. These decisions are to be made available in a manner so 24 that the following taxpayer information is not disclosed: 25 (1) The names, addresses, and identification 26 numbers of the taxpayer, related entities, and employees. 27 (2) At the sole discretion of the Director, trade 28 secrets or other confidential information identified as 29 such by the taxpayer, no later than 30 days after receipt 30 of an administrative decision, by such means as the 31 Department shall provide by rule. 32 The Director shall determine the appropriate extent of 33 the deletions allowed in paragraph (2). In the event the 34 taxpayer does not submit deletions, the Director shall make -41- LRB9202601SMdv 1 only the deletions specified in paragraph (1). 2 The Director shall make available for public inspection 3 and publication an administrative decision within 180 days 4 after the issuance of the administrative decision. The term 5 "administrative decision" has the same meaning as defined in 6 Section 3-101 of Article III of the Code of Civil Procedure. 7 Costs collected under this Section shall be paid into the Tax 8 Compliance and Administration Fund. 9 Nothing contained in this Act shall prevent the Director 10 from divulging information to any person pursuant to a 11 request or authorization made by the taxpayer or by an 12 authorized representative of the taxpayer. 13 (Source: P.A. 90-491, eff. 1-1-98.) 14 Section 915. The Telecommunications Municipal 15 Infrastructure Maintenance Fee Act is amended by changing 16 Sections 1, 5, 10, 15, 25, 27, 27.35, and 30 as follows: 17 (35 ILCS 635/1) 18 Sec. 1. Short title. This Act may be cited as the 19 TelecommunicationsMunicipalInfrastructure Maintenance Fee 20 Act. 21 (Source: P.A. 90-154, eff. 1-1-98.) 22 (35 ILCS 635/5) 23 Sec. 5. Legislative intent. 24 (a) The General Assembly imposed a tax on invested 25 capital of utilities to partially replace the personal 26 property tax that was abolished by the Illinois Constitution 27 of 1970. Since that tax was imposed, telecommunications 28 retailers have evolved from utility status into an 29 increasingly competitive industry serving the public. 30 (b) This Act is intended to abolish the invested capital 31 tax on telecommunications retailers (that is, persons engaged -42- LRB9202601SMdv 1 in the business of transmitting messages and acting as a 2 retailer of telecommunications as defined in Section 2 of the 3 Telecommunications Excise Tax Act). Cellular 4 telecommunications retailers have already been excluded from 5 application of the invested capital tax by earlier 6 legislative action. 7 (c) This Act is also intended to abolish municipal 8 franchise fees with respect to telecommunications retailers,9create a uniform system for the collection and distribution10of fees associated with the privilege of use of the public11right of way for telecommunications activity,and to provide 12 municipalities with a new source of revenue to compensate for 13 the loss of municipal franchise fees. It is the intent of 14 the General Assembly that the rate of a municipal 15 infrastructure maintenance fee permitted under this Act is 16 subject only to the limits prescribed in Section 20 and need 17 not relate to use of the public rights-of-way or the costs 18 associated with maintaining and regulating the use of the 19 public rights-of-way. It is also the intent of the General 20 Assembly that proceeds of the municipal infrastructure 21 maintenance fee may be used for any lawful corporate purpose, 22 and any proceeds collected prior to the effective date of 23 these changes to Subsection (c) may also be used for any 24 lawful purpose. These changes to this Subsection (c) made by 25 this amendatory Act of the 91st General Assembly are 26 declarative of existing law. 27 (d) On and after July 1, 2002, the enactment by the 28 General Assembly of the Municipal Telecommunications Tax Act 29 creates a replacement source of revenue for municipalities in 30 substitution for, among other things, the municipal 31 infrastructure maintenance fee and the optional 32 infrastructure maintenance fee. This amendatory Act of the 33 91st General Assembly is intended to repeal both the 34 municipal infrastructure maintenance fee and the optional -43- LRB9202601SMdv 1 infrastructure maintenance feea comprehensive method of2compensation for telecommunications activity including the3recovery of reasonable costs of regulating the use of the4public rights-of-way for telecommunications activity. 5 (Source: P.A. 90-154, eff. 1-1-98; 91-533, eff. 8-13-99.) 6 (35 ILCS 635/10) 7 Sec. 10. Definitions. 8 (a) "Gross charges" means the amount paid to a 9 telecommunications retailer for the act or privilege of 10 originating or receiving telecommunications in this Stateor11the municipality imposing the fee under this Act, as the12context requires,and for all services rendered in connection 13 therewith, valued in money whether paid in money or 14 otherwise, including cash, credits, services, and property of 15 every kind or nature, and shall be determined without any 16 deduction on account of the cost of such telecommunications, 17 the cost of the materials used, labor or service costs, or 18 any other expense whatsoever. In case credit is extended, 19 the amount thereof shall be included only as and when paid. 20 "Gross charges" for private line service shall include 21 charges imposed at each channel point within this Stateor22the municipality imposing the fee under this Act, charges for 23 the channel mileage between each channel point within this 24 Stateor the municipality imposing the fee under this Act, 25 and charges for that portion of the interstate inter-office 26 channel provided within Illinoisor the municipality imposing27the fee under this Act. However, "gross charges" shall not 28 include: 29 (1) any amounts added to a purchaser's bill because 30 of a charge made under: (i) the fee imposed by this 31 Section, (ii) additional charges added to a purchaser's 32 bill under Section 9-221 or 9-222 of the Public Utilities 33 Act, (iii)amounts collected under Section 8-11-17 of the-44- LRB9202601SMdv 1Illinois Municipal Code, (iv)the tax imposed by the 2 Telecommunications Excise Tax Act, (iv)(v)911 3 surcharges, or (v)(vi)the tax imposed by Section 4251 4 of the Internal Revenue Code; 5 (2) charges for a sent collect telecommunication 6 received outside of this Stateor the municipality7imposing the fee, as the context requires; 8 (3) charges for leased time on equipment or charges 9 for the storage of data or information or subsequent 10 retrieval or the processing of data or information 11 intended to change its form or content. Such equipment 12 includes, but is not limited to, the use of calculators, 13 computers, data processing equipment, tabulating 14 equipment, or accounting equipment and also includes the 15 usage of computers under a time-sharing agreement. 16 (4) charges for customer equipment, including such 17 equipment that is leased or rented by the customer from 18 any source, wherein such charges are disaggregated and 19 separately identified from other charges; 20 (5) charges to business enterprises certified under 21 Section 9-222.1 of the Public Utilities Act to the extent 22 of such exemption and during the period of time specified 23 by the Department of Commerce and Community Affairsor by24the municipality imposing the fee under the Act, as the25context requires; 26 (6) charges for telecommunications and all services 27 and equipment provided in connection therewith between a 28 parent corporation and its wholly owned subsidiaries or 29 between wholly owned subsidiaries, and only to the extent 30 that the charges between the parent corporation and 31 wholly owned subsidiaries or between wholly owned 32 subsidiaries represent expense allocation between the 33 corporations and not the generation of profit other than 34 a regulatory required profit for the corporation -45- LRB9202601SMdv 1 rendering such services; 2 (7) bad debts ("bad debt" means any portion of a 3 debt that is related to a sale at retail for which gross 4 charges are not otherwise deductible or excludable that 5 has become worthless or uncollectible, as determined 6 under applicable federal income tax standards; if the 7 portion of the debt deemed to be bad is subsequently 8 paid, the retailer shall report and pay the tax on that 9 portion during the reporting period in which the payment 10 is made); or 11 (8) charges paid by inserting coins in 12 coin-operated telecommunication devices.; or13(9) charges for telecommunications and all services14and equipment provided to a municipality imposing the15infrastructure maintenance fee.16 (a-5) "Department" means the Illinois Department of 17 Revenue. 18 (b) "Telecommunications" includes, but is not limited 19 to, messages or information transmitted through use of local, 20 toll, and wide area telephone service, channel services, 21 telegraph services, teletypewriter service, computer exchange 22 services, private line services, specialized mobile radio 23 services, or any other transmission of messages or 24 information by electronic or similar means, between or among 25 points by wire, cable, fiber optics, laser, microwave, radio, 26 satellite, or similar facilities. Unless the context clearly 27 requires otherwise, "telecommunications" shall also include 28 wireless telecommunications as hereinafter defined. 29 "Telecommunications" shall not include value added services 30 in which computer processing applications are used to act on 31 the form, content, code, and protocol of the information for 32 purposes other than transmission. "Telecommunications" shall 33 not include purchase of telecommunications by a 34 telecommunications service provider for use as a component -46- LRB9202601SMdv 1 part of the service provided by him or her to the ultimate 2 retail consumer who originates or terminates the end-to-end 3 communications. Retailer access charges, right of access 4 charges, charges for use of intercompany facilities, and all 5 telecommunications resold in the subsequent provision and 6 used as a component of, or integrated into, end-to-end 7 telecommunications service shall not be included in gross 8 charges as sales for resale. "Telecommunications" shall not 9 include the provision of cable services through a cable 10 system as defined in the Cable Communications Act of 1984 (47 11 U.S.C. Sections 521 and following) as now or hereafter 12 amended or through an open video system as defined in the 13 Rules of the Federal Communications Commission (47 C.D.F. 14 76.1550 and following) as now or hereafter amended. Beginning 15 January 1, 2001, prepaid telephone calling arrangements shall 16 not be considered "telecommunications" subject to the tax 17 imposed under this Act. For purposes of this Section, 18 "prepaid telephone calling arrangements" means that term as 19 defined in Section 2-27 of the Retailers' Occupation Tax Act. 20 (c) "Wireless telecommunications" includes cellular 21 mobile telephone services, personal wireless services as 22 defined in Section 704(C) of the Telecommunications Act of 23 1996 (Public Law No. 104-104) as now or hereafter amended, 24 including all commercial mobile radio services, and paging 25 services. 26 (d) "Telecommunications retailer" or "retailer" or 27 "carrier" means and includes every person engaged in the 28 business of making sales of telecommunications at retail as 29 defined in this Section. TheIllinoisDepartmentof Revenue30or the municipality imposing the fee, as the case may be,31 may, in its discretion, upon applications, authorize the 32 collection of the fee hereby imposed by any retailer not 33 maintaining a place of business within this State, who, to 34 the satisfaction of the Departmentor municipality, furnishes -47- LRB9202601SMdv 1 adequate security to insure collection and payment of the 2 fee. When so authorized, it shall be the duty of such 3 retailer to pay the fee upon all of the gross charges for 4 telecommunications in the same manner and subject to the same 5 requirements as a retailer maintaining a place of business 6 within thistheStateor municipality imposing the fee. 7 (e) "Retailer maintaining a place of business in this 8 State", or any like term, means and includes any retailer 9 having or maintaining within this State, directly or by a 10 subsidiary, an office, distribution facilities, transmission 11 facilities, sales office, warehouse, or other place of 12 business, or any agent or other representative operating 13 within this State under the authority of the retailer or its 14 subsidiary, irrespective of whether such place of business or 15 agent or other representative is located here permanently or 16 temporarily, or whether such retailer or subsidiary is 17 licensed to do business in this State. 18 (f) "Sale of telecommunications at retail" means the 19 transmitting, supplying, or furnishing of telecommunications 20 and all services rendered in connection therewith for a 21 consideration, other than between a parent corporation and 22 its wholly owned subsidiaries or between wholly owned 23 subsidiaries, when the gross charge made by one such 24 corporation to another such corporation is not greater than 25 the gross charge paid to the retailer for their use or 26 consumption and not for sale. 27 (g) "Service address" means the location of 28 telecommunications equipment from which telecommunications 29 services are originated or at which telecommunications 30 services are received. If this is not a defined location, as 31 in the case of wireless telecommunications, paging systems, 32 maritime systems, air-to-ground systems, and the like, 33 "service address" shall mean the location of the customer's 34 primary use of the telecommunications equipment as defined by -48- LRB9202601SMdv 1 the location in Illinois where bills are sent. 2 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97; 3 91-870, eff. 6-22-00.) 4 (35 ILCS 635/15) 5 Sec. 15. State telecommunications infrastructure 6 maintenance fees. 7 (a) A State infrastructure maintenance fee is hereby 8 imposed upon telecommunications retailers as a replacement 9 for the personal property tax in an amount specified in 10 subsection (b). 11 (b) The amount of the State infrastructure maintenance 12 fee imposed upon a telecommunications retailer under this 13 Section shall be equal to 0.5% of all gross charges charged 14 by the telecommunications retailer to service addresses in 15 this State for telecommunications, other than wireless 16 telecommunications, originating or received in this State. 17 However, the State infrastructure maintenance fee is not 18 imposed in any case in which the imposition of the fee would 19 violate the Constitution or statutes of the United States. 20 (c) (Blank).An optional infrastructure maintenance fee21is hereby created. A telecommunications retailer may elect22to pay the optional infrastructure maintenance fee with23respect to the gross charges charged by the24telecommunications retailer to service addresses in a25particular municipality for telecommunications, other than26wireless telecommunications, originating or received in the27municipality if (1) the telecommunications retailer is not28required to pay any compensation to the municipality under an29existing franchise agreement and (2) the municipality has not30imposed a municipal infrastructure maintenance fee as31authorized in Section 20 of this Act. A telecommunications32retailer electing to pay the optional infrastructure33maintenance fee shall notify the Department of such election-49- LRB9202601SMdv 1on the application for certificate of registration. If a2telecommunications retailer elects to pay this fee with3respect to the gross charges charged by the4telecommunications retailer to service addresses in a5particular municipality, such election shall remain in full6force and effect until such time as the municipality imposes7a municipal infrastructure maintenance fee.8 (d) (Blank).The amount of the optional infrastructure9maintenance fee which a telecommunications retailer may elect10to pay with respect to a particular municipality shall be11equal to 25% of the maximum amount of the municipal12infrastructure maintenance fee which the municipality could13impose under Section 20 of this Act.14 (e) The State infrastructure maintenance feeand the15optional infrastructure maintenance feeauthorized by this 16 Section shall be collected, enforced, and administered as set 17 forth in subsection (b) of Section 25 of this Act. 18 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97.) 19 (35 ILCS 635/25) 20 Sec. 25. Collection, enforcement, and administration of 21 telecommunications infrastructure maintenance fees. 22 (a) A telecommunications retailer shall charge each 23 customer an additional charge equal to thesum of (1) an24amount equal to theState infrastructure maintenance fee 25 attributable to that customer's service addressand (2) an26amount equal to the optional infrastructure maintenance fee,27if any, attributable to that customer's service address and28(3) an amount equal to the municipal infrastructure29maintenance fee, if any, attributable to that customer's30service address. Such additional charge shall be shown 31 separately on the bill to each customer. 32 (b) The State infrastructure maintenance feeand the33optional infrastructure maintenance feeshall be designated -50- LRB9202601SMdv 1 as a replacement for the personal property tax and shall be 2 remitted by the telecommunications retailer to theIllinois3 Departmentof Revenue; provided, however, that the 4 telecommunications retailer may retain an amount not to 5 exceed 2% of the State infrastructure maintenance feeand the6optional infrastructure maintenance fee, if any,paid to the 7 Department, with a timely paid and timely filed return to 8 reimburse itself for expenses incurred in collecting, 9 accounting for, and remitting the fee. All amounts herein 10 remitted to the Department shall be transferred to the 11 Personal Property Tax Replacement Fund in the State Treasury. 12(c) The municipal infrastructure maintenance fee shall13be remitted by the telecommunications retailer to the14municipality imposing the municipal infrastructure15maintenance fee; provided, however, that the16telecommunications retailer may retain an amount not to17exceed 2% of the municipal infrastructure maintenance fee18collected by it to reimburse itself for expenses incurred in19accounting for and remitting the fee. The municipality20imposing the municipal infrastructure maintenance fee shall21collect, enforce, and administer the fee.22(d) Except as provided in subsection (e), during any23period of time when a municipality receives any compensation24other than the municipal infrastructure maintenance fee set25forth in Section 20, for a telecommunications retailer's use26of the public right-of-way, no municipal infrastructure27maintenance fee may be imposed by such municipality pursuant28to this Act.29(e) A municipality that, pursuant to a franchise30agreement in existence on the effective date of this Act,31receives compensation from a telecommunications retailer for32the use of the public right of way, may impose a municipal33infrastructure maintenance fee pursuant to this Act only on34the condition that such municipality (1) waives its right to-51- LRB9202601SMdv 1receive all fees, charges and other compensation under all2existing franchise agreements or the like with3telecommunications retailers during the time that the4municipality imposes a municipal infrastructure maintenance5fee and (2) imposes by ordinance (or other proper means) a6municipal infrastructure maintenance fee which becomes7effective no sooner than 90 days after such municipality has8provided written notice by certified mail to each9telecommunications retailer with whom the municipality has an10existing franchise agreement, that the municipality waives11all compensation under such existing franchise agreement.12 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97; 13 90-655, eff. 7-30-98.) 14 (35 ILCS 635/27) 15 Sec. 27. Returns by telecommunications retailer; 16 extensions. Except as provided hereinafter in this Section, 17 on or before the 30th day of each month each 18 telecommunications retailer maintaining a place of business 19 in this State shall make a return and payment of fees to the 20 Department for the preceding calendar month on a form 21 prescribed and furnished by the Department. The return shall 22 be signed by the telecommunications retailer under penalties 23 of perjury and shall contain the following information: 24 1. His or her name; 25 2. The address of his or her principal place of 26 business, and the address of the principal place of 27 business (if that is a different address) from which he 28 or she engages in the business of transmitting 29 telecommunications; 30 3. The total amount of gross charges charged by him 31 or her during the preceding calendar month for providing 32 telecommunications during such calendar month; 33 4. The total amount received by him or her during -52- LRB9202601SMdv 1 the preceding calendar month on credit extended; 2 5. Deductions allowed by law; 3 6. Gross charges that were charged by him or her 4 during the preceding calendar month and upon the basis of 5 which the State infrastructure maintenance fee is 6 imposed; 7 7. (Blank)Gross charges that were charged by him8or her during the preceding calendar month and upon the9basis of which the optional infrastructure maintenance10fee, if any, is imposed for each particular municipality; 11 8. Amounts of fees due; 12 9. Such other reasonable information as the 13 Department may require. 14 If the telecommunications retailer's average monthly 15 liability to the Department does not exceed $100, the 16 Department may authorize his or her returns to be filed on a 17 quarter annual basis, with the return for January, February, 18 and March of a given year being due by April 15 of such year; 19 with the return for April, May, and June of a given year 20 being due by July 15 of such year; with the return for July, 21 August, and September of a given year being due by October 15 22 of such year; and with the return of October, November, and 23 December of a given year being due by January 15 of the 24 following year. 25 Notwithstanding any other provision of this Act 26 concerning the time within which a telecommunications 27 retailer may file his or her return, in the case of any 28 telecommunications retailer who ceases to engage in a kind of 29 business which makes him or her responsible for filing 30 returns under this Act, such telecommunications retailer 31 shall file a final return under this Act with the Department 32 not more than one month after discontinuing such business. 33 In making such return, the telecommunications retailer 34 shall determine the value of any consideration other than -53- LRB9202601SMdv 1 money received by him or her and he or she shall include such 2 value in his or her return. Such determination shall be 3 subject to review and revision by the Department in the 4 manner hereinafter provided for the correction of returns. 5 If any payment provided for in this Section exceeds the 6 telecommunications retailer's liabilities under this Act, as 7 shown on an original monthly return, the Department may 8 authorize the telecommunications retailer to credit such 9 excess payment against liability subsequently to be remitted 10 to the Department under this Act, in accordance with 11 reasonable rules and regulations prescribed by the 12 Department. If the Department subsequently determines that 13 all or any part of the credit taken was not actually due to 14 the telecommunications retailer, the telecommunications 15 retailer's 2% discount shall be reduced by 2% of the 16 difference between the credit taken and that actually due, 17 and that telecommunications retailer shall be liable for 18 penalties and interest on such difference. 19If the Director finds that the information required for20the making of an accurate return cannot reasonably be21compiled by a telecommunications retailer within 15 days22after the close of the calendar month for which a return is23to be made, he or she may grant an extension of time for the24filing of such return for a period of not to exceed 3125calendar days. The granting of such an extension may be26conditioned upon the deposit by the telecommunications27retailer with the Department of an amount of money not28exceeding the amount estimated by the Director to be due with29the return so extended. All such deposits, including any30heretofore made with the Department, shall be credited31against the telecommunications retailer's liabilities under32this Act. If any such deposit exceeds the telecommunications33retailer's present and probable future liabilities under this34Act, the Department shall issue to the telecommunications-54- LRB9202601SMdv 1retailer a credit memorandum, which may be assigned by the2telecommunications retailer to a similar telecommunications3retailer under this Act, in accordance with reasonable rules4and regulations to be prescribed by the Department.5 Any telecommunications retailer required to make payments 6 under this Section may make the payments by electronic funds 7 transfer. The Department shall adopt rules necessary to 8 effectuate a program of electronic funds transfer. 9 (Source: P.A. 90-562, eff. 12-16-97.) 10 (35 ILCS 635/27.35) 11 Sec. 27.35. Rules and regulations; notice to 12 telecommunications retailer; hearings. The Department may 13 make, promulgate, and enforce such reasonable rules and 14 regulations relating to the administration and enforcement of 15onlythe State infrastructure maintenance feeand the16optional infrastructure maintenance feeauthorized by this 17 Act.Such rules and regulations shall not apply to the18administration and enforcement of the municipal19infrastructure maintenance fee authorized by this Act.20 Whenever notice to a telecommunications retailer is 21 required by this Act, such notice may be given by United 22 States certified or registered mail, addressed to the 23 telecommunications retailer concerned at his or her last 24 known address, and proof of such mailing shall be sufficient 25 for the purposes of this Act. In the case of a notice of 26 hearing, such notice shall be mailed not less than 7 days 27 prior to the day fixed for the hearing. 28 All hearings provided for in this Act with respect to a 29 telecommunications retailer having his or her principal place 30 of business other than in Cook County shall be held at the 31 Department's office nearest to the location of the 32 telecommunications retailer's principal place of business: 33 Provided that if the telecommunications retailer has his or -55- LRB9202601SMdv 1 her principal place of business in Cook County, such hearing 2 shall be held in Cook County; and provided further that if 3 the telecommunications retailer does not have his principal 4 place of business in this State, such hearings shall be held 5 in Sangamon County. 6 Whenever any proceeding provided by this Act has been 7 begun by the Department or by a person subject thereto and 8 such person thereafter dies or becomes a person under legal 9 disability before the proceeding has been concluded, the 10 legal representative of the deceased person or a person under 11 legal disability shall notify the Department of such death or 12 legal disability. The legal representative, as such, shall 13 then be substituted by the Department in place of and for the 14 person. Within 20 days after notice to the legal 15 representative of the time fixed for that purpose, the 16 proceeding may proceed in all respects and with like effect 17 as though the person had not died or become a person under 18 legal disability. 19 (Source: P.A. 90-562, eff. 12-16-97.) 20 (35 ILCS 635/30) 21 Sec. 30. Validity of existing franchise fees and 22 agreements. 23 (a)Upon the effective date of this Act, the municipal24infrastructure maintenance fee authorized by this Act shall25be the only fee or compensation for recovering the reasonable26costs of regulating the use of the public rights-of-way and27for the use of public rights-of-way that may be levied by or28otherwise required by ordinance, resolution, or contract to29be paid to a municipality for the use of its public way by30telecommunications retailers.No new franchise fees or other 31 charges for the use of the public rights-of-way, including 32 those for the recovery of reasonable costs of regulating the 33 use of the public rights-of-way, shall be imposed upon, -56- LRB9202601SMdv 1 levied on, or otherwise required of telecommunications 2 retailers by ordinance, resolution, or contract, or other 3 charges required from telecommunications retailers by 4 municipalities from and after the effective date of this Act. 5No telecommunications retailer paying either the applicable6municipal infrastructure maintenance fee or the optional7infrastructure maintenance fee authorized by this Act may be8denied the use, directly or indirectly, of the public way of9the municipality either imposing the municipal infrastructure10maintenance fee or to which the optional infrastructure11maintenance fee relates, as the case may be, as authorized12under the Telephone Company Act.Nothing in this Act shall 13 excuse any person or entity from obligations imposed under 14 any law concerning generally applicable taxes or standards 15 for construction on, over, under, or within, use of or repair 16 of the public rights-of-way, including standards relating to 17 free standing towers and other structures upon the public 18 way, nor shall any person or entity be excused from any 19 liability imposed by any such law for the failure to comply 20 with such generally applicable taxes or standards governing 21 construction on, over, under, or within, use of or repair of 22 the public rights-of-way. 23 (b) Agreements between telecommunications retailers and 24 municipalities entered into before the effective date of this 25 Act regarding use of the public ways shall remain valid 26 according to and for their stated terms, except as to fees or 27 charges waived under Section 60 of the Municipal 28 Telecommunications Tax Act.If, following the effective date29of this Act, such an agreement is renewed automatically or by30agreement of the parties, the compensation or fee under the31agreement shall be equal to the maximum amount of the32municipal infrastructure maintenance fee which the33municipality could impose under Section 20 of this Act.34 (c) The regulation of the terms and conditions upon -57- LRB9202601SMdv 1 which poles, conduits, and other facilities located in the 2 public way may be shared by or between telecommunications 3 retailers shall be committed exclusively to the jurisdiction 4 of the Illinois Commerce Commission and the Federal 5 Communications Commission, and such regulation shall not be 6 among the home rule powers and functions described in 7 subsection (h) of Section 6 of Article VII of the Illinois 8 Constitution. Moreover, no municipality may enter into any 9 contract or agreement with a telecommunications retailer with 10 respect to the terms and conditions upon which poles, 11 conduits, and other facilities located in the public way may 12 be shared by or between telecommunications retailers. 13 (Source: P.A. 90-154, eff. 1-1-98.) 14 (35 ILCS 635/20 rep.) 15 Section 917. The Telecommunications Municipal 16 Infrastructure Maintenance Fee Act is amended by repealing 17 Section 20. 18 Section 920. The Emergency Telephone System Act is 19 amended by changing Section 15.3 as follows: 20 (50 ILCS 750/15.3) (from Ch. 134, par. 45.3) 21 Sec. 15.3. (a) The corporate authorities of any 22 municipality or any county may, subject to the limitations of 23 subsections (c), (d), and (h), and in addition to any tax 24 levied pursuant to the Municipal Telecommunications Tax Act 25Section 8-11-2 of the Illinois Municipal Code, impose a 26 monthly surcharge on billed subscribers of network connection 27 provided by telecommunication carriers engaged in the 28 business of transmitting messages by means of electricity 29 originating within the corporate limits of the municipality 30 or county imposing the surcharge at a rate per network 31 connection determined in accordance with subsection (c). A -58- LRB9202601SMdv 1 municipality may enter into an intergovernmental agreement 2 with any county in which it is partially located, when the 3 county has adopted an ordinance to impose a surcharge as 4 provided in subsection (c), to include that portion of the 5 municipality lying outside the county in that county's 6 surcharge referendum. If the county's surcharge referendum 7 is approved, the portion of the municipality identified in 8 the intergovernmental agreement shall automatically be 9 disconnected from the county in which it lies and connected 10 to the county which approved the referendum for purposes of a 11 surcharge on telecommunications carriers. 12 (b) For purposes of computing the surcharge imposed by 13 subsection (a), the network connections to which the 14 surcharge shall apply shall be those in-service network 15 connections, other than those network connections assigned to 16 the municipality or county, where the service address for 17 each such network connection or connections is located within 18 the corporate limits of the municipality or county levying 19 the surcharge. The "service address" shall mean the location 20 of the primary use of the network connection or connections. 21 With respect to network connections provided for use with pay 22 telephone services for which there is no billed subscriber, 23 the telecommunications carrier providing the network 24 connection shall be deemed to be its own billed subscriber 25 for purposes of applying the surcharge. 26 (c) Upon the passage of an ordinance to impose a 27 surcharge under this Section the clerk of the municipality or 28 county shall certify the question of whether the surcharge 29 may be imposed to the proper election authority who shall 30 submit the public question to the electors of the 31 municipality or county in accordance with the general 32 election law; provided that such question shall not be 33 submitted at a consolidated primary election. The public 34 question shall be in substantially the following form: -59- LRB9202601SMdv 1 ------------------------------------------------------------- 2 Shall the county (or city, village 3 or incorporated town) of.....impose YES 4 a surcharge of up to...¢ per month per 5 network connection, which surcharge will 6 be added to the monthly bill you receive ------------------ 7 for telephone or telecommunications 8 charges, for the purpose of installing 9 (or improving) a 9-1-1 Emergency NO 10 Telephone System? 11 ------------------------------------------------------------- 12 If a majority of the votes cast upon the public question 13 are in favor thereof, the surcharge shall be imposed. 14 However, if a Joint Emergency Telephone System Board is 15 to be created pursuant to an intergovernmental agreement 16 under Section 15.4, the ordinance to impose the surcharge 17 shall be subject to the approval of a majority of the total 18 number of votes cast upon the public question by the electors 19 of all of the municipalities or counties, or combination 20 thereof, that are parties to the intergovernmental agreement. 21 The referendum requirement of this subsection (c) shall 22 not apply to any municipality with a population over 500,000 23 or to any county in which a proposition as to whether a 24 sophisticated 9-1-1 Emergency Telephone System should be 25 installed in the county, at a cost not to exceed a specified 26 monthly amount per network connection, has previously been 27 approved by a majority of the electors of the county voting 28 on the proposition at an election conducted before the 29 effective date of this amendatory Act of 1987. 30 (d) A county may not impose a surcharge, unless 31 requested by a municipality, in any incorporated area which 32 has previously approved a surcharge as provided in subsection 33 (c) or in any incorporated area where the corporate 34 authorities of the municipality have previously entered into -60- LRB9202601SMdv 1 a binding contract or letter of intent with a 2 telecommunications carrier to provide sophisticated 9-1-1 3 service through municipal funds. 4 (e) A municipality or county may at any time by 5 ordinance change the rate of the surcharge imposed under this 6 Section if the new rate does not exceed the rate specified in 7 the referendum held pursuant to subsection (c). 8 (f) The surcharge authorized by this Section shall be 9 collected from the subscriber by the telecommunications 10 carrier providing the subscriber the network connection as a 11 separately stated item on the subscriber's bill. 12 (g) The amount of surcharge collected by the 13 telecommunications carrier shall be paid to the particular 14 municipality or county or Joint Emergency Telephone System 15 Board not later than 30 days after the surcharge is 16 collected, net of any network or other 9-1-1 or sophisticated 17 9-1-1 system charges then due the particular 18 telecommunications carrier, as shown on an itemized bill. 19 The telecommunications carrier collecting the surcharge shall 20 also be entitled to deduct 3% of the gross amount of 21 surcharge collected to reimburse the telecommunications 22 carrier for the expense of accounting and collecting the 23 surcharge. 24 (h) A municipality with a population over 500,000 may 25 not impose a monthly surcharge in excess of $1.25 per network 26 connection. 27 (i) Any municipality or county or joint emergency 28 telephone system board that has imposed a surcharge pursuant 29 to this Section prior to the effective date of this 30 amendatory Act of 1990 shall hereafter impose the surcharge 31 in accordance with subsection (b) of this Section. 32 (j) The corporate authorities of any municipality or 33 county may issue, in accordance with Illinois law, bonds, 34 notes or other obligations secured in whole or in part by the -61- LRB9202601SMdv 1 proceeds of the surcharge described in this Section. 2 Notwithstanding any change in law subsequent to the issuance 3 of any bonds, notes or other obligations secured by the 4 surcharge, every municipality or county issuing such bonds, 5 notes or other obligations shall be authorized to impose the 6 surcharge as though the laws relating to the imposition of 7 the surcharge in effect at the time of issuance of the bonds, 8 notes or other obligations were in full force and effect 9 until the bonds, notes or other obligations are paid in full. 10 The State of Illinois pledges and agrees that it will not 11 limit or alter the rights and powers vested in municipalities 12 and counties by this Section to impose the surcharge so as to 13 impair the terms of or affect the security for bonds, notes 14 or other obligations secured in whole or in part with the 15 proceeds of the surcharge described in this Section. 16 (k) Any surcharge collected by or imposed on a 17 telecommunications carrier pursuant to this Section shall be 18 held to be a special fund in trust for the municipality, 19 county or Joint Emergency Telephone Board imposing the 20 surcharge. Except for the 3% deduction provided in 21 subsection (g) above, the special fund shall not be subject 22 to the claims of creditors of the telecommunication carrier. 23 (Source: P.A. 86-101; 86-1344.) 24 Section 925. The Illinois Municipal Code is amended by 25 changing Section 8-11-2 as follows: 26 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2) 27 Sec. 8-11-2. The corporate authorities of any 28 municipality may tax any or all of the following occupations 29 or privileges: 30 1. (Blank).Persons engaged in the business of31transmitting messages by means of electricity or radio32magnetic waves, or fiber optics, at a rate not to exceed-62- LRB9202601SMdv 15% of the gross receipts from that business originating2within the corporate limits of the municipality.3Beginning January 1, 2001, prepaid telephone calling4arrangements shall not be subject to the tax imposed5under this Section. For purposes of this Section,6"prepaid telephone calling arrangements" means that term7as defined in Section 2-27 of the Retailers' Occupation8Tax Act.9 2. Persons engaged in the business of distributing, 10 supplying, furnishing, or selling gas for use or 11 consumption within the corporate limits of a municipality 12 of 500,000 or fewer population, and not for resale, at a 13 rate not to exceed 5% of the gross receipts therefrom. 14 2a. Persons engaged in the business of 15 distributing, supplying, furnishing, or selling gas for 16 use or consumption within the corporate limits of a 17 municipality of over 500,000 population, and not for 18 resale, at a rate not to exceed 8% of the gross receipts 19 therefrom. If imposed, this tax shall be paid in monthly 20 payments. 21 3. The privilege of using or consuming electricity 22 acquired in a purchase at retail and used or consumed 23 within the corporate limits of the municipality at rates 24 not to exceed the following maximum rates, calculated on 25 a monthly basis for each purchaser: 26 (i) For the first 2,000 kilowatt-hours used or 27 consumed in a month; 0.61 cents per kilowatt-hour; 28 (ii) For the next 48,000 kilowatt-hours used or 29 consumed in a month; 0.40 cents per kilowatt-hour; 30 (iii) For the next 50,000 kilowatt-hours used or 31 consumed in a month; 0.36 cents per kilowatt-hour; 32 (iv) For the next 400,000 kilowatt-hours used or 33 consumed in a month; 0.35 cents per kilowatt-hour; 34 (v) For the next 500,000 kilowatt-hours used or -63- LRB9202601SMdv 1 consumed in a month; 0.34 cents per kilowatt-hour; 2 (vi) For the next 2,000,000 kilowatt-hours used or 3 consumed in a month; 0.32 cents per kilowatt-hour; 4 (vii) For the next 2,000,000 kilowatt-hours used or 5 consumed in a month; 0.315 cents per kilowatt-hour; 6 (viii) For the next 5,000,000 kilowatt-hours used 7 or consumed in a month; 0.31 cents per kilowatt-hour; 8 (ix) For the next 10,000,000 kilowatt-hours used or 9 consumed in a month; 0.305 cents per kilowatt-hour; and 10 (x) For all electricity used or consumed in excess 11 of 20,000,000 kilowatt-hours in a month, 0.30 cents per 12 kilowatt-hour. 13 If a municipality imposes a tax at rates lower than 14 either the maximum rates specified in this Section or the 15 alternative maximum rates promulgated by the Illinois 16 Commerce Commission, as provided below, the tax rates 17 shall be imposed upon the kilowatt hour categories set 18 forth above with the same proportional relationship as 19 that which exists among such maximum rates. 20 Notwithstanding the foregoing, until December 31, 2008, 21 no municipality shall establish rates that are in excess 22 of rates reasonably calculated to produce revenues that 23 equal the maximum total revenues such municipality could 24 have received under the tax authorized by this 25 subparagraph in the last full calendar year prior to the 26 effective date of Section 65 of this amendatory Act of 27 1997; provided that this shall not be a limitation on the 28 amount of tax revenues actually collected by such 29 municipality. 30 Upon the request of the corporate authorities of a 31 municipality, the Illinois Commerce Commission shall, 32 within 90 days after receipt of such request, promulgate 33 alternative rates for each of these kilowatt-hour 34 categories that will reflect, as closely as reasonably -64- LRB9202601SMdv 1 practical for that municipality, the distribution of the 2 tax among classes of purchasers as if the tax were based 3 on a uniform percentage of the purchase price of 4 electricity. A municipality that has adopted an 5 ordinance imposing a tax pursuant to subparagraph 3 as it 6 existed prior to the effective date of Section 65 of this 7 amendatory Act of 1997 may, rather than imposing the tax 8 permitted by this amendatory Act of 1997, continue to 9 impose the tax pursuant to that ordinance with respect to 10 gross receipts received from residential customers 11 through July 31, 1999, and with respect to gross receipts 12 from any non-residential customer until the first bill 13 issued to such customer for delivery services in 14 accordance with Section 16-104 of the Public Utilities 15 Act but in no case later than the last bill issued to 16 such customer before December 31, 2000. No ordinance 17 imposing the tax permitted by this amendatory Act of 1997 18 shall be applicable to any non-residential customer until 19 the first bill issued to such customer for delivery 20 services in accordance with Section 16-104 of the Public 21 Utilities Act but in no case later than the last bill 22 issued to such non-residential customer before December 23 31, 2000. 24 4. Persons engaged in the business of distributing, 25 supplying, furnishing, or selling water for use or 26 consumption within the corporate limits of the 27 municipality, and not for resale, at a rate not to exceed 28 5% of the gross receipts therefrom. 29 None of the taxes authorized by this Section may be 30 imposed with respect to any transaction in interstate 31 commerce or otherwise to the extent to which the business or 32 privilege may not, under the constitution and statutes of the 33 United States, be made the subject of taxation by this State 34 or any political sub-division thereof; nor shall any persons -65- LRB9202601SMdv 1 engaged in the business of distributing, supplying, 2 furnishing, selling or transmitting gas, water, or 3 electricity,or engaged in the business of transmitting4messages,or using or consuming electricity acquired in a 5 purchase at retail, be subject to taxation under the 6 provisions of this Section for those transactions that are or 7 may become subject to taxation under the provisions of the 8 "Municipal Retailers' Occupation Tax Act" authorized by 9 Section 8-11-1; nor shall any tax authorized by this Section 10 be imposed upon any person engaged in a business or on any 11 privilege unless the tax is imposed in like manner and at the 12 same rate upon all persons engaged in businesses of the same 13 class in the municipality, whether privately or municipally 14 owned or operated, or exercising the same privilege within 15 the municipality. 16 Any of the taxes enumerated in this Section may be in 17 addition to the payment of money, or value of products or 18 services furnished to the municipality by the taxpayer as 19 compensation for the use of its streets, alleys, or other 20 public places, or installation and maintenance therein, 21 thereon or thereunder of poles, wires, pipes or other 22 equipment used in the operation of the taxpayer's business. 23 (a) If the corporate authorities of any home rule 24 municipality have adopted an ordinance that imposed a tax on 25 public utility customers, between July 1, 1971, and October 26 1, 1981, on the good faith belief that they were exercising 27 authority pursuant to Section 6 of Article VII of the 1970 28 Illinois Constitution, that action of the corporate 29 authorities shall be declared legal and valid, 30 notwithstanding a later decision of a judicial tribunal 31 declaring the ordinance invalid. No municipality shall be 32 required to rebate, refund, or issue credits for any taxes 33 described in this paragraph, and those taxes shall be deemed 34 to have been levied and collected in accordance with the -66- LRB9202601SMdv 1 Constitution and laws of this State. 2 (b) In any case in which (i) prior to October 19, 1979, 3 the corporate authorities of any municipality have adopted an 4 ordinance imposing a tax authorized by this Section (or by 5 the predecessor provision of the "Revised Cities and Villages 6 Act") and have explicitly or in practice interpreted gross 7 receipts to include either charges added to customers' bills 8 pursuant to the provision of paragraph (a) of Section 36 of 9 the Public Utilities Act or charges added to customers' bills 10 by taxpayers who are not subject to rate regulation by the 11 Illinois Commerce Commission for the purpose of recovering 12 any of the tax liabilities or other amounts specified in such 13 paragraph (a) of Section 36 of that Act, and (ii) on or after 14 October 19, 1979, a judicial tribunal has construed gross 15 receipts to exclude all or part of those charges, then 16 neither those municipality nor any taxpayer who paid the tax 17 shall be required to rebate, refund, or issue credits for any 18 tax imposed or charge collected from customers pursuant to 19 the municipality's interpretation prior to October 19, 1979. 20 This paragraph reflects a legislative finding that it would 21 be contrary to the public interest to require a municipality 22 or its taxpayers to refund taxes or charges attributable to 23 the municipality's more inclusive interpretation of gross 24 receipts prior to October 19, 1979, and is not intended to 25 prescribe or limit judicial construction of this Section. The 26 legislative finding set forth in this subsection does not 27 apply to taxes imposed after the effective date of this 28 amendatory Act of 1995. 29 (c) The tax authorized by subparagraph 3 shall be 30 collected from the purchaser by the person maintaining a 31 place of business in this State who delivers the electricity 32 to the purchaser. This tax shall constitute a debt of the 33 purchaser to the person who delivers the electricity to the 34 purchaser and if unpaid, is recoverable in the same manner as -67- LRB9202601SMdv 1 the original charge for delivering the electricity. Any tax 2 required to be collected pursuant to an ordinance authorized 3 by subparagraph 3 and any such tax collected by a person 4 delivering electricity shall constitute a debt owed to the 5 municipality by such person delivering the electricity, 6 provided, that the person delivering electricity shall be 7 allowed credit for such tax related to deliveries of 8 electricity the charges for which are written off as 9 uncollectible, and provided further, that if such charges are 10 thereafter collected, the delivering supplier shall be 11 obligated to remit such tax. For purposes of this subsection 12 (c), any partial payment not specifically identified by the 13 purchaser shall be deemed to be for the delivery of 14 electricity. Persons delivering electricity shall collect the 15 tax from the purchaser by adding such tax to the gross charge 16 for delivering the electricity, in the manner prescribed by 17 the municipality. Persons delivering electricity shall also 18 be authorized to add to such gross charge an amount equal to 19 3% of the tax to reimburse the person delivering electricity 20 for the expenses incurred in keeping records, billing 21 customers, preparing and filing returns, remitting the tax 22 and supplying data to the municipality upon request. If the 23 person delivering electricity fails to collect the tax from 24 the purchaser, then the purchaser shall be required to pay 25 the tax directly to the municipality in the manner prescribed 26 by the municipality. Persons delivering electricity who file 27 returns pursuant to this paragraph (c) shall, at the time of 28 filing such return, pay the municipality the amount of the 29 tax collected pursuant to subparagraph 3. 30 (d) For the purpose of the taxes enumerated in this 31 Section: 32 "Gross receipts" means the consideration received forthe33transmission of messages, the consideration received for34 distributing, supplying, furnishing or selling gas for use or -68- LRB9202601SMdv 1 consumption and not for resale,and the consideration 2 received for distributing, supplying, furnishing or selling 3 water for use or consumption and not for resale, and for all 4 services rendered in connection therewith valued in money, 5 whether received in money or otherwise, including cash, 6 credit, services and property of every kind and material and 7 for all services rendered therewith, and shall be determined 8without any deduction on account of the cost of transmitting9such messages,without any deduction on account of the cost 10 of the service, product or commodity supplied, the cost of 11 materials used, labor or service cost, or any other expenses 12 whatsoever. "Gross receipts" shall not include that portion 13 of the consideration received for distributing, supplying, 14 furnishing, or selling gas or water to, or for the15transmission of messages for,business enterprises described 16 in paragraph (e) of this Section to the extent and during the 17 period in which the exemption authorized by paragraph (e) is 18 in effect or for school districts or units of local 19 government described in paragraph (f) during the period in 20 which the exemption authorized in paragraph (f) is in effect. 21"Gross receipts" shall not include amounts paid by22telecommunications retailers under the Telecommunications23Municipal Infrastructure Maintenance Fee Act.24 For utility bills issued on or after May 1, 1996, but 25 before May 1, 1997, and for receipts from those utility 26 bills, "gross receipts" does not include one-third of (i) 27 amounts added to customers' bills under Section 9-222 of the 28 Public Utilities Act, or (ii) amounts added to customers' 29 bills by taxpayers who are not subject to rate regulation by 30 the Illinois Commerce Commission for the purpose of 31 recovering any of the tax liabilities described in Section 32 9-222 of the Public Utilities Act. For utility bills issued 33 on or after May 1, 1997, but before May 1, 1998, and for 34 receipts from those utility bills, "gross receipts" does not -69- LRB9202601SMdv 1 include two-thirds of (i) amounts added to customers' bills 2 under Section 9-222 of the Public Utilities Act, or (ii) 3 amount added to customers' bills by taxpayers who are not 4 subject to rate regulation by the Illinois Commerce 5 Commission for the purpose of recovering any of the tax 6 liabilities described in Section 9-222 of the Public 7 Utilities Act. For utility bills issued on or after May 1, 8 1998, and for receipts from those utility bills, "gross 9 receipts" does not include(i)amounts added to customers' 10 bills under Section 9-222 of the Public Utilities Act, or 11 (ii) amounts added to customers' bills by taxpayers who are 12 not subject to rate regulation by the Illinois Commerce 13 Commission for the purpose of recovering any of the tax 14 liabilities described in Section 9-222 of the Public 15 Utilities Act. 16 For purposes of this Section "gross receipts" shall not 17 include(i)amounts added to customers' bills under Section 18 9-221 of the Public Utilities Act, or (ii) charges added to19customers' bills to recover the surcharge imposed under the20Emergency Telephone System Act. This paragraph is not 21 intended to nor does it make any change in the meaning of 22 "gross receipts" for the purposes of this Section, but is 23 intended to remove possible ambiguities, thereby confirming 24 the existing meaning of "gross receipts" prior to the 25 effective date of this amendatory Act of 1995. 26The words "transmitting messages", in addition to the27usual and popular meaning of person to person communication,28shall include the furnishing, for a consideration, of29services or facilities (whether owned or leased), or both, to30persons in connection with the transmission of messages where31those persons do not, in turn, receive any consideration in32connection therewith, but shall not include such furnishing33of services or facilities to persons for the transmission of34messages to the extent that any such services or facilities-70- LRB9202601SMdv 1for the transmission of messages are furnished for a2consideration, by those persons to other persons, for the3transmission of messages.4 "Person" as used in this Section means any natural 5 individual, firm, trust, estate, partnership, association, 6 joint stock company, joint adventure, corporation, limited 7 liability company, municipal corporation, the State or any of 8 its political subdivisions, any State university created by 9 statute, or a receiver, trustee, guardian or other 10 representative appointed by order of any court. 11 "Person maintaining a place of business in this State" 12 shall mean any person having or maintaining within this 13 State, directly or by a subsidiary or other affiliate, an 14 office, generation facility, distribution facility, 15 transmission facility, sales office or other place of 16 business, or any employee, agent, or other representative 17 operating within this State under the authority of the person 18 or its subsidiary or other affiliate, irrespective of whether 19 such place of business or agent or other representative is 20 located in this State permanently or temporarily, or whether 21 such person, subsidiary or other affiliate is licensed or 22 qualified to do business in this State. 23 "Public utility" shall have the meaning ascribed to it in 24 Section 3-105 of the Public Utilities Act and shall include 25telecommunications carriers as defined in Section 13-202 of26that Act andalternative retail electric suppliers as defined 27 in Section 16-102 of that Act. 28 "Purchase at retail" shall mean any acquisition of 29 electricity by a purchaser for purposes of use or 30 consumption, and not for resale, but shall not include the 31 use of electricity by a public utility directly in the 32 generation, production, transmission, delivery or sale of 33 electricity. 34 "Purchaser" shall mean any person who uses or consumes, -71- LRB9202601SMdv 1 within the corporate limits of the municipality, electricity 2 acquired in a purchase at retail. 3In the case of persons engaged in the business of4transmitting messages through the use of mobile equipment,5such as cellular phones and paging systems, the gross6receipts from the business shall be deemed to originate7within the corporate limits of a municipality only if the8address to which the bills for the service are sent is within9those corporate limits. If, however, that address is not10located within a municipality that imposes a tax under this11Section, then (i) if the party responsible for the bill is12not an individual, the gross receipts from the business shall13be deemed to originate within the corporate limits of the14municipality where that party's principal place of business15in Illinois is located, and (ii) if the party responsible for16the bill is an individual, the gross receipts from the17business shall be deemed to originate within the corporate18limits of the municipality where that party's principal19residence in Illinois is located.20 (e) Any municipality that imposes taxes upon public 21 utilities or upon the privilege of using or consuming 22 electricity pursuant to this Section whose territory includes 23 any part of an enterprise zone or federally designated 24 Foreign Trade Zone or Sub-Zone may, by a majority vote of its 25 corporate authorities, exempt from those taxes for a period 26 not exceeding 20 years any specified percentage of gross 27 receipts of public utilities received from, or electricity 28 used or consumed by, business enterprises that: 29 (1) either (i) make investments that cause the 30 creation of a minimum of 200 full-time equivalent jobs in 31 Illinois, (ii) make investments of at least $175,000,000 32 that cause the creation of a minimum of 150 full-time 33 equivalent jobs in Illinois, or (iii) make investments 34 that cause the retention of a minimum of 1,000 full-time -72- LRB9202601SMdv 1 jobs in Illinois; and 2 (2) are either (i) located in an Enterprise Zone 3 established pursuant to the Illinois Enterprise Zone Act 4 or (ii) Department of Commerce and Community Affairs 5 designated High Impact Businesses located in a federally 6 designated Foreign Trade Zone or Sub-Zone; and 7 (3) are certified by the Department of Commerce and 8 Community Affairs as complying with the requirements 9 specified in clauses (1) and (2) of this paragraph (e). 10 Upon adoption of the ordinance authorizing the exemption, 11 the municipal clerk shall transmit a copy of that ordinance 12 to the Department of Commerce and Community Affairs. The 13 Department of Commerce and Community Affairs shall determine 14 whether the business enterprises located in the municipality 15 meet the criteria prescribed in this paragraph. If the 16 Department of Commerce and Community Affairs determines that 17 the business enterprises meet the criteria, it shall grant 18 certification. The Department of Commerce and Community 19 Affairs shall act upon certification requests within 30 days 20 after receipt of the ordinance. 21 Upon certification of the business enterprise by the 22 Department of Commerce and Community Affairs, the Department 23 of Commerce and Community Affairs shall notify the Department 24 of Revenue of the certification. The Department of Revenue 25 shall notify the public utilities of the exemption status of 26 the gross receipts received from, and the electricity used or 27 consumed by, the certified business enterprises. Such 28 exemption status shall be effective within 3 months after 29 certification. 30 (f) A municipality that imposes taxes upon public 31 utilities or upon the privilege of using or consuming 32 electricity under this Section and whose territory includes 33 part of another unit of local government or a school district 34 may by ordinance exempt the other unit of local government or -73- LRB9202601SMdv 1 school district from those taxes. 2 (g) The amendment of this Section by Public Act 84-127 3 shall take precedence over any other amendment of this 4 Section by any other amendatory Act passed by the 84th 5 General Assembly before the effective date of Public Act 6 84-127. 7 (h) In any case in which, before July 1, 1992, a person 8 engaged in the business of transmitting messages through the 9 use of mobile equipment, such as cellular phones and paging 10 systems, has determined the municipality within which the 11 gross receipts from the business originated by reference to 12 the location of its transmitting or switching equipment, then 13 (i) neither the municipality to which tax was paid on that 14 basis nor the taxpayer that paid tax on that basis shall be 15 required to rebate, refund, or issue credits for any such tax 16 or charge collected from customers to reimburse the taxpayer 17 for the tax and (ii) no municipality to which tax would have 18 been paid with respect to those gross receipts if the 19 provisions of this amendatory Act of 1991 had been in effect 20 before July 1, 1992, shall have any claim against the 21 taxpayer for any amount of the tax. 22 (Source: P.A. 90-16, eff. 6-16-97; 90-561, eff. 8-1-98; 23 90-562, eff. 12-16-97; 90-655, eff. 7-30-98; 91-870, eff. 24 6-22-00.) 25 (65 ILCS 5/8-11-17 rep.) 26 Section 927. The Illinois Municipal Code is amended by 27 repealing Section 8-11-17. 28 Section 930. The Public Utilities Act is amended by 29 changing Sections 2-202 and 13-511 as follows: 30 (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202) 31 Sec. 2-202. (a) It is declared to be the public policy of -74- LRB9202601SMdv 1 this State that in order to maintain and foster the effective 2 regulation of public utilities under this Act in the 3 interests of the People of the State of Illinois and the 4 public utilities as well, the public utilities subject to 5 regulation under this Act and which enjoy the privilege of 6 operating as public utilities in this State, shall bear the 7 expense of administering this Act by means of a tax on such 8 privilege measured by the annual gross revenue of such public 9 utilities in the manner provided in this Section. For 10 purposes of this Section, "expense of administering this Act" 11 includes any costs incident to studies, whether made by the 12 Commission or under contract entered into by the Commission, 13 concerning environmental pollution problems caused or 14 contributed to by public utilities and the means for 15 eliminating or abating those problems. Such proceeds shall be 16 deposited in the Public Utility Fund in the State treasury. 17 (b) All of the ordinary and contingent expenses of the 18 Commission incident to the administration of this Act shall 19 be paid out of the Public Utility Fund except the 20 compensation of the members of the Commission which shall be 21 paid from the General Revenue Fund. Notwithstanding other 22 provisions of this Act to the contrary, the ordinary and 23 contingent expenses of the Commission incident to the 24 administration of the Illinois Commercial Transportation Law 25 may be paid from appropriations from the Public Utility Fund 26 through the end of fiscal year 1986. 27 (c) A tax is imposed upon each public utility subject to 28 the provisions of this Act equal to .08% of its gross revenue 29 for each calendar year commencing with the calendar year 30 beginning January 1, 1982, except that the Commission may, by 31 rule, establish a different rate no greater than 0.1%. For 32 purposes of this Section, "gross revenue" shall not include 33 revenue from the production, transmission, distribution, 34 sale, delivery, or furnishing of electricity. "Gross revenue" -75- LRB9202601SMdv 1 shall not include amounts paid by telecommunications 2 retailers under the TelecommunicationsMunicipal3 Infrastructure Maintenance Fee Act. 4 (d) Annual gross revenue returns shall be filed in 5 accordance with paragraph (1) or (2) of this subsection (d). 6 (1) Except as provided in paragraph (2) of this 7 subsection (d), on or before January 10 of each year each 8 public utility subject to the provisions of this Act 9 shall file with the Commission an estimated annual gross 10 revenue return containing an estimate of the amount of 11 its gross revenue for the calendar year commencing 12 January 1 of said year and a statement of the amount of 13 tax due for said calendar year on the basis of that 14 estimate. Public utilities may also file revised returns 15 containing updated estimates and updated amounts of tax 16 due during the calendar year. These revised returns, if 17 filed, shall form the basis for quarterly payments due 18 during the remainder of the calendar year. In addition, 19 on or before February 15 of each year, each public 20 utility shall file an amended return showing the actual 21 amount of gross revenues shown by the company's books and 22 records as of December 31 of the previous year. Forms and 23 instructions for such estimated, revised, and amended 24 returns shall be devised and supplied by the Commission. 25 (2) Beginning January 1, 1993, the requirements of 26 paragraph (1) of this subsection (d) shall not apply to 27 any public utility in any calendar year for which the 28 total tax the public utility owes under this Section is 29 less than $1,000. For such public utilities with respect 30 to such years, the public utility shall file with the 31 Commission, on or before January 31 of the following 32 year, an annual gross revenue return for the year and a 33 statement of the amount of tax due for that year on the 34 basis of such a return. Forms and instructions for such -76- LRB9202601SMdv 1 returns and corrected returns shall be devised and 2 supplied by the Commission. 3 (e) All returns submitted to the Commission by a public 4 utility as provided in this subsection (e) or subsection (d) 5 of this Section shall contain or be verified by a written 6 declaration by an appropriate officer of the public utility 7 that the return is made under the penalties of perjury. The 8 Commission may audit each such return submitted and may, 9 under the provisions of Section 5-101 of this Act, take such 10 measures as are necessary to ascertain the correctness of the 11 returns submitted. The Commission has the power to direct the 12 filing of a corrected return by any utility which has filed 13 an incorrect return and to direct the filing of a return by 14 any utility which has failed to submit a return. A 15 taxpayer's signing a fraudulent return under this Section is 16 perjury, as defined in Section 32-2 of the Criminal Code of 17 1961. 18 (f) (1) For all public utilities subject to paragraph 19 (1) of subsection (d), at least one quarter of the annual 20 amount of tax due under subsection (c) shall be paid to the 21 Commission on or before the tenth day of January, April, 22 July, and October of the calendar year subject to tax. In 23 the event that an adjustment in the amount of tax due should 24 be necessary as a result of the filing of an amended or 25 corrected return under subsection (d) or subsection (e) of 26 this Section, the amount of any deficiency shall be paid by 27 the public utility together with the amended or corrected 28 return and the amount of any excess shall, after the filing 29 of a claim for credit by the public utility, be returned to 30 the public utility in the form of a credit memorandum in the 31 amount of such excess or be refunded to the public utility in 32 accordance with the provisions of subsection (k) of this 33 Section. However, if such deficiency or excess is less than 34 $1, then the public utility need not pay the deficiency and -77- LRB9202601SMdv 1 may not claim a credit. 2 (2) Any public utility subject to paragraph (2) of 3 subsection (d) shall pay the amount of tax due under 4 subsection (c) on or before January 31 next following the end 5 of the calendar year subject to tax. In the event that an 6 adjustment in the amount of tax due should be necessary as a 7 result of the filing of a corrected return under subsection 8 (e), the amount of any deficiency shall be paid by the public 9 utility at the time the corrected return is filed. Any excess 10 tax payment by the public utility shall be returned to it 11 after the filing of a claim for credit, in the form of a 12 credit memorandum in the amount of the excess. However, if 13 such deficiency or excess is less than $1, the public utility 14 need not pay the deficiency and may not claim a credit. 15 (g) Each installment or required payment of the tax 16 imposed by subsection (c) becomes delinquent at midnight of 17 the date that it is due. Failure to make a payment as 18 required by this Section shall result in the imposition of a 19 late payment penalty, an underestimation penalty, or both, as 20 provided by this subsection. The late payment penalty shall 21 be the greater of: 22 (1) $25 for each month or portion of a month that 23 the installment or required payment is unpaid or 24 (2) an amount equal to the difference between what 25 should have been paid on the due date, based upon the 26 most recently filed estimate, and what was actually paid, 27 times 1%, for each month or portion of a month that the 28 installment or required payment goes unpaid. This 29 penalty may be assessed as soon as the installment or 30 required payment becomes delinquent. 31 The underestimation penalty shall apply to those public 32 utilities subject to paragraph (1) of subsection (d) and 33 shall be calculated after the filing of the amended return. 34 It shall be imposed if the amount actually paid on any of the -78- LRB9202601SMdv 1 dates specified in subsection (f) is not equal to at least 2 one-fourth of the amount actually due for the year, and shall 3 equal the greater of: 4 (1) $25 for each month or portion of a month that 5 the amount due is unpaid or 6 (2) an amount equal to the difference between what 7 should have been paid, based on the amended return, and 8 what was actually paid as of the date specified in 9 subsection (f), times a percentage equal to 1/12 of the 10 sum of 10% and the percentage most recently established 11 by the Commission for interest to be paid on customer 12 deposits under 83 Ill. Adm. Code 280.70(e)(1), for each 13 month or portion of a month that the amount due goes 14 unpaid, except that no underestimation penalty shall be 15 assessed if the amount actually paid on each of the dates 16 specified in subsection (f) was based on an estimate of 17 gross revenues at least equal to the actual gross 18 revenues for the previous year. The Commission may 19 enforce the collection of any delinquent installment or 20 payment, or portion thereof by legal action or in any 21 other manner by which the collection of debts due the 22 State of Illinois may be enforced under the laws of this 23 State. The executive director or his designee may excuse 24 the payment of an assessed penalty if he determines that 25 enforced collection of the penalty would be unjust. 26 (h) All sums collected by the Commission under the 27 provisions of this Section shall be paid promptly after the 28 receipt of the same, accompanied by a detailed statement 29 thereof, into the Public Utility Fund in the State treasury. 30 (i) During the month of October of each odd-numbered 31 year the Commission shall: 32 (1) determine the amount of all moneys deposited in 33 the Public Utility Fund during the preceding fiscal 34 biennium plus the balance, if any, in that fund at the -79- LRB9202601SMdv 1 beginning of that biennium; 2 (2) determine the sum total of the following items: 3 (A) all moneys expended or obligated against 4 appropriations made from the Public Utility Fund during 5 the preceding fiscal biennium, plus (B) the sum of the 6 credit memoranda then outstanding against the Public 7 Utility Fund, if any; and 8 (3) determine the amount, if any, by which the sum 9 determined as provided in item (1) exceeds the amount 10 determined as provided in item (2). 11 If the amount determined as provided in item (3) of this 12 subsection exceeds $2,500,000, the Commission shall then 13 compute the proportionate amount, if any, which (x) the tax 14 paid hereunder by each utility during the preceding biennium, 15 and (y) the amount paid into the Public Utility Fund during 16 the preceding biennium by the Department of Revenue pursuant 17 to Sections 2-9 and 2-11 of the Electricity Excise Tax Law, 18 bears to the difference between the amount determined as 19 provided in item (3) of this subsection (i) and $2,500,000. 20 The Commission shall cause the proportionate amount 21 determined with respect to payments made under the 22 Electricity Excise Tax Law to be transferred into the General 23 Revenue Fund in the State Treasury, and notify each public 24 utility that it may file during the 3 month period after the 25 date of notification a claim for credit for the proportionate 26 amount determined with respect to payments made hereunder by 27 the public utility. If the proportionate amount is less than 28 $10, no notification will be sent by the Commission, and no 29 right to a claim exists as to that amount. Upon the filing of 30 a claim for credit within the period provided, the Commission 31 shall issue a credit memorandum in such amount to such public 32 utility. Any claim for credit filed after the period provided 33 for in this Section is void. 34 (j) Credit memoranda issued pursuant to subsection (f) -80- LRB9202601SMdv 1 and credit memoranda issued after notification and filing 2 pursuant to subsection (i) may be applied for the 2 year 3 period from the date of issuance, against the payment of any 4 amount due during that period under the tax imposed by 5 subsection (c), or, subject to reasonable rule of the 6 Commission including requirement of notification, may be 7 assigned to any other public utility subject to regulation 8 under this Act. Any application of credit memoranda after the 9 period provided for in this Section is void. 10 (k) The chairman or executive director may make refund 11 of fees, taxes or other charges whenever he shall determine 12 that the person or public utility will not be liable for 13 payment of such fees, taxes or charges during the next 24 14 months and he determines that the issuance of a credit 15 memorandum would be unjust. 16 (Source: P.A. 90-561, eff. 8-1-98; 90-562, 12-16-97; 90-655, 17 eff. 7-30-98.) 18 (220 ILCS 5/13-511) 19 (Section scheduled to be repealed on July 1, 2001) 20 Sec. 13-511. TelecommunicationsMunicipalInfrastructure 21 Maintenance Fee Act; rate adjustments. With respect to any 22 telecommunications retailer that is regulated by the Illinois 23 Commerce Commission, the Commission shall order such rate 24 adjustments as shall be necessary to assure that the 25 implementation of the TelecommunicationsMunicipal26 Infrastructure Maintenance Fee Act,including the payment of27the State infrastructure maintenance fee, optional28infrastructure maintenance fee, and municipal infrastructure29maintenance fee, if any,net of (1) the termination of any 30 fee, license fee, rent, or lease payment subject to the 31 TelecommunicationsMunicipalInfrastructure Maintenance Fee 32 Act, and (2) the repeal of any invested capital tax subject 33 to the TelecommunicationsMunicipalInfrastructure -81- LRB9202601SMdv 1 Maintenance Fee Act, shall have no significant impact on the 2 net income of each such telecommunications retailer. 3 Beginning with the effective date of the Telecommunications 4MunicipalInfrastructure Maintenance Fee Act, each such 5 telecommunications retailer shall maintain such records and 6 accounts as will enable the Commission to make such findings 7 and determinations as are necessary to such order. 8 (Source: P.A. 90-154, eff. 1-1-98.) 9 Section 935. The Telephone Company Act is amended by 10 changing Section 4 as follows: 11 (220 ILCS 65/4) (from Ch. 134, par. 20) 12 Sec. 4. Right of condemnation. Every telecommunications 13telecommunciationscarrier as defined in the 14 TelecommunicationsMunicipalInfrastructure Maintenance Fee 15 Act may, when it shall be necessary for the construction, 16 maintenance, alteration or extension of its 17 telecommunications system, or any part thereof, enter upon, 18 take or damage private property in the manner provided for 19 in, and the compensation therefor shall be ascertained and 20 made in conformity to the provisions of the Telegraph Act and 21 every telecommunications carrier is authorized to construct, 22 maintain, alter and extend its poles, wires, and other 23 appliances as a proper use of highways, along, upon, under 24 and across any highway, street, alley, public right-of-way 25 dedicated or commonly used for utility purposes, or water in 26 this State, but so as not to incommode the public in the use 27 thereof: Provided, that nothing in this act shall interfere 28 with the control now vested in cities, incorporated towns and 29 villages in relation to the regulation of the poles, wires, 30 cables and other appliances, and provided, that before any 31 such lines shall be constructed along any such highway, 32 street, alley, public right-of-way dedicated or commonly used -82- LRB9202601SMdv 1 for utility purposes, or water it shall be the duty of the 2 telecommunications carrier proposing to construct any such 3 line, to give (in the case of cities, villages, and 4 incorporated towns) to the corporate authorities of the 5 municipality or their designees (hereinafter, municipal 6 corporate authorities) or (in other cases) to the highway 7 commissioners having jurisdiction and control over the road 8 or part thereof along and over which such line is proposed to 9 be constructed, notice in writing in the form of plans, 10 specifications, and documentation of the purpose and 11 intention of the company to construct such line over and 12 along the highway, street, alley, public right-of-way 13 dedicated or commonly used for utility purposes, or water, 14 which notice shall be served at least 10 days before the line 15 shall be placed or constructed over and along the highway, 16 street, alley, public right-of-way dedicated or commonly used 17 for utility purposes, or water (30 days in the case of any 18 notice providing for excavation relating to new construction 19 in a public highway, street, alley, public right-of-way 20 dedicated or commonly used for utility purposes, or water); 21 and upon the giving of the notice it shall be the duty of the 22 municipal corporate authorities or the highway commissioners 23 to specify the portion of such highway, street, alley, public 24 right-of-way dedicated or commonly used for utility purposes, 25 or water upon which the line may be placed, used, and 26 constructed, and it shall thereupon be the duty of the 27 telecommunications retailer to provide the municipal 28 authorities or highway commissioners with any and all plans, 29 specifications, and documentation available and to construct 30 its line in accordance with such specifications; but in the 31 event that the municipal corporate authorities or the highway 32 commissioners fail to provide such specification within 10 33 days after the service of such notice, (25 days in the case 34 of excavation relating to new construction) then the -83- LRB9202601SMdv 1 telecommunications retailer, without such specification 2 having been made, may proceed to place and erect its line 3 along the highway, street, alley, public right-of-way 4 dedicated or commonly used for utility purposes, or water by 5 placing its posts, poles and abutments so as not to interfere 6 with other proper uses of the highway, street, alley, public 7 right-of-way dedicated or commonly used for utility purposes, 8 or water. The telecommunications carrier proposing to 9 construct any such line shall comply with the provisions of 10 Section 9-113 of the Illinois Highway Code. Provided, that 11 the telecommunications carrier shall not have the right to 12 condemn any portion of the right-of-way of any railroad 13 company except as much thereof as is necessary to cross the 14 same. 15 The Illinois Commerce Commission may adopt reasonable 16 rules governing the negotiation procedures that are used by a 17 telecommunications carrier during precondemnation 18 negotiations for the purchase of land rights-of-way and 19 easements, including procedures for providing information to 20 the public and affected landowners concerning the project and 21 the right-of-way easements sought in connection therewith. 22 Such rules may be made applicable to interstate, 23 competitive intrastate and noncompetitive intrastate 24 facilities, without regard to whether such facilities or the 25 telecommunications carrier proposing to construct and operate 26 them would otherwise be subject to the Illinois Commerce 27 Commission's jurisdiction under The Public Utilities Act, as 28 now or hereafter amended. However, as to facilities used to 29 provide exclusively interstate services or competitive 30 intrastate services or both, nothing in this Section confers 31 any power upon the Commission (i) to require the disclosure 32 of proprietary, competitively sensitive, or cost information 33 or information not known to the telecommunications carrier, 34 (ii) to determine whether, or conduct hearings regarding -84- LRB9202601SMdv 1 whether, any proposed fiber optic or other facilities should 2 or should not be constructed and operated, or (iii) to 3 determine or specify, or conduct hearings concerning, the 4 price or other terms or conditions of the purchase of the 5 right-of-way easements sought. With respect to facilities 6 used to provide any intrastate services classified in the 7 condemnor's tariff as noncompetitive under Section 13-502 of 8 The Public Utilities Act, the rulemaking powers conferred 9 upon the Commission under this Section are in addition to any 10 rulemaking powers arising under The Public Utilities Act. 11 No telecommunications carrier shall exercise the power to 12 condemn private property until it has first substantially 13 complied with such rules with respect to the property sought 14 to be condemned. If such rules call for providing notice or 15 information before or during negotiations, a failure to 16 provide such notice or information shall not constitute a 17 waiver of the rights granted in this Section, but the 18 telecommunications carrier shall be liable for all reasonable 19 attorney's fees of that landowner resulting from such 20 failure. 21 (Source: P.A. 90-154, eff. 1-1-98.) 22 Section 999. Effective date. This Act takes effect on 23 January 1, 2002, except that this Section and the changes 24 made to Section 5 of the Telecommunications Municipal 25 Infrastructure Maintenance Fee Act take effect upon becoming 26 law, and except that the changes made to the State Revenue 27 Sharing Act, the Telecommunications Excise Tax Act, the 28 Telecommunications Municipal Infrastructure Maintenance Fee 29 Act, the Emergency Telephone System Act, the Illinois 30 Municipal Code, the Public Utilities Act, and the Telephone 31 Company Act take effect on July 1, 2002. -85- LRB9202601SMdv 1 INDEX 2 Statutes amended in order of appearance 3 New Act 4 30 ILCS 115/12 from Ch. 85, par. 616 5 35 ILCS 630/2 from Ch. 120, par. 2002 6 35 ILCS 630/6 from Ch. 120, par. 2006 7 35 ILCS 630/15 from Ch. 120, par. 2015 8 35 ILCS 635/1 9 35 ILCS 635/5 10 35 ILCS 635/10 11 35 ILCS 635/15 12 35 ILCS 635/25 13 35 ILCS 635/27 14 35 ILCS 635/27.35 15 35 ILCS 635/30 16 35 ILCS 635/20 rep. 17 50 ILCS 750/15.3 from Ch. 134, par. 45.3 18 65 ILCS 5/8-11-2 from Ch. 24, par. 8-11-2 19 65 ILCS 5/8-11-17 rep. 20 220 ILCS 5/2-202 from Ch. 111 2/3, par. 2-202 21 220 ILCS 5/13-511 22 220 ILCS 65/4 from Ch. 134, par. 20