State of Illinois
92nd General Assembly
Legislation

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92_HB0647

 
                                               LRB9205363REdv

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section     5.     The    Telecommunications    Municipal
 5    Infrastructure Maintenance Fee Act  is  amended  by  changing
 6    Sections 15 and 20 as follows:

 7        (35 ILCS 635/15)
 8        Sec.    15.  State    telecommunications   infrastructure
 9    maintenance fees.
10        (a)  A State infrastructure  maintenance  fee  is  hereby
11    imposed  upon  telecommunications  retailers as a replacement
12    for the personal property  tax  in  an  amount  specified  in
13    subsection (b).
14        (b)  The  amount  of the State infrastructure maintenance
15    fee imposed upon a  telecommunications  retailer  under  this
16    Section  shall  be equal to 0.5% of all gross charges charged
17    by the telecommunications retailer to  service  addresses  in
18    this   State  for  telecommunications,  other  than  wireless
19    telecommunications, originating or received  in  this  State.
20    However,  the  State  infrastructure  maintenance  fee is not
21    imposed in any case in which the imposition of the fee  would
22    violate the Constitution or statutes of the United States.
23        (c)  An optional infrastructure maintenance fee is hereby
24    created.   A telecommunications retailer may elect to pay the
25    optional infrastructure maintenance fee with respect  to  the
26    gross  charges  charged by the telecommunications retailer to
27    service  addresses   in   a   particular   municipality   for
28    telecommunications,  other  than wireless telecommunications,
29    originating or  received  in  the  municipality  if  (1)  the
30    telecommunications  retailer  is  not  required  to  pay  any
31    compensation  to the municipality under an existing franchise
 
                            -2-                LRB9205363REdv
 1    agreement  and  (2)  the  municipality  has  not  imposed   a
 2    municipal  infrastructure  maintenance  fee  as authorized in
 3    Section  20  of  this  Act.  A  telecommunications   retailer
 4    electing  to  pay the optional infrastructure maintenance fee
 5    shall  notify  the  Department  of  such  election   on   the
 6    application   for   certificate   of   registration.   If   a
 7    telecommunications  retailer  elects  to  pay  this  fee with
 8    respect   to   the   gross    charges    charged    by    the
 9    telecommunications   retailer   to  service  addresses  in  a
10    particular municipality, such election shall remain  in  full
11    force  and effect until such time as the municipality imposes
12    a municipal infrastructure maintenance fee.
13        (d)  The   amount   of   the   optional    infrastructure
14    maintenance fee which a telecommunications retailer may elect
15    to  pay  with  respect  to a particular municipality shall be
16    equal  to  25%  of  the  maximum  amount  of  the   municipal
17    infrastructure  maintenance  fee which the municipality could
18    impose under Section 20 of this Act.
19        (e)  The State infrastructure  maintenance  fee  and  the
20    optional  infrastructure  maintenance  fee authorized by this
21    Section shall be collected, enforced, and administered as set
22    forth in subsection (b) of Section 25 of this Act.
23        (f)  A telecommunications retailer that pays the optional
24    infrastructure maintenance fee  with  respect  to  the  gross
25    charges charged by the telecommunications retailer to service
26    addresses     in     a     particular     municipality    for
27    telecommunications,  other  than   wireless   communications,
28    originating  or  received  in the municipality shall annually
29    verify with that municipality all service  addresses  located
30    in  that municipality.  For each  service address that is not
31    located in a municipality and therefore not  eligible  to  be
32    charged  the  optional  infrastructure  maintenance  fee, the
33    telecommunications retailer  shall  issue  a  refund  to  the
34    customer  of  all amounts improperly charged for the optional
 
                            -3-                LRB9205363REdv
 1    infrastructure maintenance fee plus interest at the rate of 1
 2    1/2% per month or portion thereof from the date the  fee  was
 3    improperly collected to the date the refund is issued.
 4    (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97.)

 5        (35 ILCS 635/20)
 6        Sec.   20.  Municipal  telecommunications  infrastructure
 7    maintenance fee.
 8        (a)  A municipality may impose a municipal infrastructure
 9    maintenance  fee  upon  telecommunications  retailers  in  an
10    amount  specified  in  subsection  (b).  On  and  after   the
11    effective  date  of  this amendatory Act of 1997, a certified
12    copy of an ordinance or resolution imposing a fee under  this
13    Section  shall  be  filed  with the Department within 30 days
14    after the effective  date  of  this  amendatory  Act  or  the
15    effective  date  of the ordinance or resolution imposing such
16    fee, whichever is later.  Failure to file a certified copy of
17    the ordinance or resolution imposing a fee under this Section
18    shall have no effect on the  validity  of  the  ordinance  or
19    resolution.   The Department shall create and maintain a list
20    of all ordinances and  resolutions  filed  pursuant  to  this
21    Section  and  make  that  list,  as  well  as  copies  of the
22    ordinances and resolutions, available to  the  public  for  a
23    reasonable fee.
24        (b)  The   amount   of   the   municipal   infrastructure
25    maintenance  fee  imposed  upon a telecommunications retailer
26    under this Section shall not exceed: (i)  in  a  municipality
27    with  a  population  of  more than 500,000, 2.0% of all gross
28    charges charged by the telecommunications retailer to service
29    addresses  in   the   municipality   for   telecommunications
30    originating  or  received  in the municipality; and (ii) in a
31    municipality with a population of 500,000 or  less,  1.0%  of
32    all  gross charges charged by the telecommunications retailer
33    to   service    addresses    in    the    municipality    for
 
                            -4-                LRB9205363REdv
 1    telecommunications    originating    or   received   in   the
 2    municipality. If imposed,  the  municipal  telecommunications
 3    infrastructure  fee  must be in 1/4% increments. However, the
 4    fee shall not be imposed in any case in which the  imposition
 5    of  the fee would violate the Constitution or statutes of the
 6    United States.
 7        (c)  The municipal telecommunications infrastructure  fee
 8    authorized  by this Section shall be collected, enforced, and
 9    administered as set forth in subsection (c) of Section 25  of
10    this Act.
11        (d)  A  municipality  with  a  population  of  more  than
12    500,000  that  imposes a municipal infrastructure maintenance
13    fee under this Section may, by ordinance, exempt from the fee
14    all charges  for  the  inbound  toll-free  telecommunications
15    service  commonly  known  as  "800", "877", or "888" or for a
16    similar service.
17        (e)  A  telecommunications   retailer   that   pays   the
18    municipal  infrastructure maintenance fee with respect to the
19    gross charges charged by the telecommunications  retailer  to
20    service   addresses   in   a   particular   municipality  for
21    telecommunications   originating   or   received    in    the
22    municipality shall annually verify with that municipality all
23    service  addresses  located  in  that municipality.  For each
24    service address that is not located  in  a  municipality  and
25    therefore   not   eligible   to   be  charged  the  municipal
26    infrastructure  maintenance   fee,   the   telecommunications
27    retailer  shall issue a refund to the customer of all amounts
28    improperly   charged   for   the   municipal   infrastructure
29    maintenance fee plus interest at the rate of 1 1/2% per month
30    or portion thereof from  the  date  the  fee  was  improperly
31    collected to the date the refund is issued.
32    (Source:  P.A.  90-154,  eff.  1-1-98; 90-562, eff. 12-16-97;
33    91-870, eff. 6-22-00.)
 
                            -5-                LRB9205363REdv
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.

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