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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.