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[ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
[ Senate Amendment 002 ] |
92_SB0088enr SB88 Enrolled LRB9202600SMdv 1 AN ACT concerning telecommunications. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 ARTICLE 5 5 Section 5-1. Short title. This Act may be cited as the 6 Simplified Municipal Telecommunications Tax Act. 7 Section 5-5. Legislative intent. The General Assembly has 8 authorized the corporate authorities of any municipality to 9 impose various fees and taxes on the privilege of originating 10 or receiving telecommunications, and on retailers engaged in 11 the business of transmitting such telecommunications, all of 12 which are remitted by such retailers directly to the imposing 13 municipality. To simplify the imposition and collection of 14 municipal telecommunications taxes and to reduce complication 15 and burden, the General Assembly is repealing the municipal 16 telecommunications tax, the municipal tax on the occupation 17 or privilege of transmitting messages, and the municipal 18 infrastructure maintenance fee, and is enacting this 19 Simplified Municipal Telecommunications Tax Act which 20 provides for a single municipally imposed telecommunications 21 tax which, for municipalities with populations of less than 22 500,000, will be collected by the Illinois Department of 23 Revenue, but which, for municipalities of 500,000 or more, 24 will continue to be collected by such municipalities. 25 Section 5-7. Definitions. For purposes of the taxes 26 authorized by this Act: 27 "Amount paid" means the amount charged to the taxpayer's 28 service address in such municipality regardless of where such 29 amount is billed or paid. SB88 Enrolled -2- LRB9202600SMdv 1 "Department" means the Illinois Department of Revenue. 2 "Gross charge" means the amount paid for the act or 3 privilege of originating or receiving telecommunications in 4 such municipality and for all services and equipment provided 5 in connection therewith by a retailer, valued in money 6 whether paid in money or otherwise, including cash, credits, 7 services and property of every kind or nature, and shall be 8 determined without any deduction on account of the cost of 9 such telecommunications, the cost of the materials used, 10 labor or service costs or any other expense whatsoever. In 11 case credit is extended, the amount thereof shall be included 12 only as and when paid. "Gross charges" for private line 13 service shall include charges imposed at each channel point 14 within this State, charges for the channel mileage between 15 each channel point within this State, and charges for that 16 portion of the interstate inter-office channel provided 17 within Illinois. However, "gross charge" shall not include: 18 (1) any amounts added to a purchaser's bill because 19 of a charge made pursuant to: (i) the tax imposed by this 20 Act, (ii) the tax imposed by the Telecommunications 21 Excise Tax Act, (iii) the tax imposed by Section 4251 of 22 the Internal Revenue Code, (iv) 911 surcharges, or (v) 23 charges added to customers' bills pursuant to the 24 provisions of Section 9-221 or 9-222 of the Public 25 Utilities Act, as amended, or any similar charges added 26 to customers' bills by retailers who are not subject to 27 rate regulation by the Illinois Commerce Commission for 28 the purpose of recovering any of the tax liabilities or 29 other amounts specified in those provisions of the Public 30 Utilities Act; 31 (2) charges for a sent collect telecommunication 32 received outside of such municipality; 33 (3) charges for leased time on equipment or charges 34 for the storage of data or information for subsequent SB88 Enrolled -3- LRB9202600SMdv 1 retrieval or the processing of data or information 2 intended to change its form or content. Such equipment 3 includes, but is not limited to, the use of calculators, 4 computers, data processing equipment, tabulating 5 equipment or accounting equipment and also includes the 6 usage of computers under a time-sharing agreement; 7 (4) charges for customer equipment, including such 8 equipment that is leased or rented by the customer from 9 any source, wherein such charges are disaggregated and 10 separately identified from other charges; 11 (5) charges to business enterprises certified as 12 exempt under Section 9-222.1 of the Public Utilities Act 13 to the extent of such exemption and during the period of 14 time specified by the Department of Commerce and 15 Community Affairs; 16 (6) charges for telecommunications and all services 17 and equipment provided in connection therewith between a 18 parent corporation and its wholly owned subsidiaries or 19 between wholly owned subsidiaries when the tax imposed 20 under this Act has already been paid to a retailer and 21 only to the extent that the charges between the parent 22 corporation and wholly owned subsidiaries or between 23 wholly owned subsidiaries represent expense allocation 24 between the corporations and not the generation of profit 25 for the corporation rendering such service; 26 (7) bad debts ("bad debt" means any portion of a 27 debt that is related to a sale at retail for which gross 28 charges are not otherwise deductible or excludable that 29 has become worthless or uncollectible, as determined 30 under applicable federal income tax standards; if the 31 portion of the debt deemed to be bad is subsequently 32 paid, the retailer shall report and pay the tax on that 33 portion during the reporting period in which the payment 34 is made); SB88 Enrolled -4- LRB9202600SMdv 1 (8) charges paid by inserting coins in 2 coin-operated telecommunication devices; or 3 (9) amounts paid by telecommunications retailers 4 under the Telecommunications Infrastructure Maintenance 5 Fee Act. 6 "Interstate telecommunications" means all 7 telecommunications that either originate or terminate outside 8 this State. 9 "Intrastate telecommunications" means all 10 telecommunications that originate and terminate within this 11 State. 12 "Person" means any natural individual, firm, trust, 13 estate, partnership, association, joint stock company, joint 14 venture, corporation, limited liability company, or a 15 receiver, trustee, guardian, or other representative 16 appointed by order of any court, the Federal and State 17 governments, including State universities created by statute, 18 or any city, town, county, or other political subdivision of 19 this State. 20 "Purchase at retail" means the acquisition, consumption 21 or use of telecommunications through a sale at retail. 22 "Retailer" means and includes every person engaged in the 23 business of making sales at retail as defined in this 24 Section. The Department may, in its discretion, upon 25 application, authorize the collection of the tax hereby 26 imposed by any retailer not maintaining a place of business 27 within this State, who, to the satisfaction of the 28 Department, furnishes adequate security to insure collection 29 and payment of the tax. Such retailer shall be issued, 30 without charge, a permit to collect such tax. When so 31 authorized, it shall be the duty of such retailer to collect 32 the tax upon all of the gross charges for telecommunications 33 in this State in the same manner and subject to the same 34 requirements as a retailer maintaining a place of business SB88 Enrolled -5- LRB9202600SMdv 1 within this State. The permit may be revoked by the 2 Department at its discretion. 3 "Retailer maintaining a place of business in this State", 4 or any like term, means and includes any retailer having or 5 maintaining within this State, directly or by a subsidiary, 6 an office, distribution facilities, transmission facilities, 7 sales office, warehouse or other place of business, or any 8 agent or other representative operating within this State 9 under the authority of the retailer or its subsidiary, 10 irrespective of whether such place of business or agent or 11 other representative is located here permanently or 12 temporarily, or whether such retailer or subsidiary is 13 licensed to do business in this State. 14 "Sale at retail" means the transmitting, supplying or 15 furnishing of telecommunications and all services and 16 equipment provided in connection therewith for a 17 consideration, to persons other than the Federal and State 18 governments, and State universities created by statute and 19 other than between a parent corporation and its wholly owned 20 subsidiaries or between wholly owned subsidiaries for their 21 use or consumption and not for resale. 22 "Service address" means the location of 23 telecommunications equipment from which telecommunications 24 services are originated or at which telecommunications 25 services are received by a taxpayer. In the event this may 26 not be a defined location, as in the case of mobile phones, 27 paging systems, and maritime systems, service address means 28 the customer's place of primary use as defined in the Mobile 29 Telecommunications Sourcing Conformity Act. For 30 air-to-ground systems and the like, "service address" shall 31 mean the location of a taxpayer's primary use of the 32 telecommunications equipment as defined by telephone number, 33 authorization code, or location in Illinois where bills are 34 sent. SB88 Enrolled -6- LRB9202600SMdv 1 "Taxpayer" means a person who individually or through his 2 or her agents, employees, or permittees engages in the act or 3 privilege of originating or receiving telecommunications in a 4 municipality and who incurs a tax liability as authorized by 5 this Act. 6 "Telecommunications", in addition to the meaning 7 ordinarily and popularly ascribed to it, includes, without 8 limitation, messages or information transmitted through use 9 of local, toll, and wide area telephone service, private line 10 services, channel services, telegraph services, 11 teletypewriter, computer exchange services, cellular mobile 12 telecommunications service, specialized mobile radio, 13 stationary two-way radio, paging service, or any other form 14 of mobile and portable one-way or two-way communications, or 15 any other transmission of messages or information by 16 electronic or similar means, between or among points by wire, 17 cable, fiber optics, laser, microwave, radio, satellite, or 18 similar facilities. As used in this Act, "private line" 19 means a dedicated non-traffic sensitive service for a single 20 customer, that entitles the customer to exclusive or priority 21 use of a communications channel or group of channels, from 22 one or more specified locations to one or more other 23 specified locations. The definition of "telecommunications" 24 shall not include value added services in which computer 25 processing applications are used to act on the form, content, 26 code, and protocol of the information for purposes other than 27 transmission. "Telecommunications" shall not include 28 purchases of telecommunications by a telecommunications 29 service provider for use as a component part of the service 30 provided by such provider to the ultimate retail consumer who 31 originates or terminates the taxable end-to-end 32 communications. Carrier access charges, right of access 33 charges, charges for use of inter-company facilities, and all 34 telecommunications resold in the subsequent provision of, SB88 Enrolled -7- LRB9202600SMdv 1 used as a component of, or integrated into, end-to-end 2 telecommunications service shall be non-taxable as sales for 3 resale. Prepaid telephone calling arrangements shall not be 4 considered "telecommunications" subject to the tax imposed 5 under this Act. For purposes of this Section, "prepaid 6 telephone calling arrangements" means that term as defined in 7 Section 2-27 of the Retailers' Occupations Tax Act. 8 Section 5-10. Authority. The corporate authorities of 9 any municipality in this State may tax any and all of the 10 following acts or privileges: 11 (a) The act or privilege of originating in such 12 municipality or receiving in such municipality intrastate 13 telecommunications by a person. However, such tax is not 14 imposed on such act or privilege to the extent such act or 15 privilege may not, under the Constitution and statutes of the 16 United States, be made the subject of taxation by 17 municipalities in this State. 18 (b) The act or privilege of originating in such 19 municipality or receiving in such municipality interstate 20 telecommunications by a person. To prevent actual multi-state 21 taxation of the act or privilege that is subject to taxation 22 under this subsection, any taxpayer, upon proof that the 23 taxpayer has paid a tax in another state on such event, shall 24 be allowed a credit against any tax enacted pursuant to or 25 authorized by this Section to the extent of the amount of 26 such tax properly due and paid in such other state which was 27 not previously allowed as a credit against any other state or 28 local tax in this State. However, such tax is not imposed on 29 the act or privilege to the extent such act or privilege may 30 not, under the Constitution and statutes of the United 31 States, be made the subject of taxation by municipalities in 32 this State. SB88 Enrolled -8- LRB9202600SMdv 1 Section 5-15. Maximum rates. 2 (a) For municipalities with a population of less than 3 500,000, the tax authorized by this Act may be imposed at a 4 rate not to exceed 6% of the gross charge for 5 telecommunications purchased at retail. If imposed, the tax 6 must be in increments of 0.25%. 7 (b) For municipalities with a population of 500,000 or 8 more, the tax authorized by this Act may be imposed at a rate 9 not to exceed 7% of the gross charge for telecommunications 10 purchased at retail. If imposed, the tax must be in 11 increments of 0.25%. 12 Section 5-20. Imposition. 13 (a) On and after January 1, 2003, for municipalities 14 with populations of less than 500,000, the tax authorized by 15 this Act shall be imposed (except as provided in Sections 16 5-25 and 5-30 of this Act), amended, or repealed by an 17 ordinance adopted by the municipality, which ordinance shall 18 be filed by the municipality with the Department pursuant to 19 the rules of the Department. 20 (1) Any ordinance adopted by a municipality with a 21 population of less than 500,000 which attempts to impose, 22 amend or repeal the tax authorized by this Act shall be 23 of no force and effect until properly filed with an 24 appropriate form with the Department. 25 (2) Any certified copy of an ordinance filed with 26 the Department prior to October 1, 2002 shall be 27 effective with respect to gross charges billed by 28 telecommunications retailers on or after January 1, 2003 29 and thereafter any certified copy of an ordinance filed 30 with the Department prior to any April 1 or October 1 31 shall be effective with respect to gross charges billed 32 by telecommunications retailers on or after the following 33 July 1 or January 1, respectively. SB88 Enrolled -9- LRB9202600SMdv 1 (b) On and after January 1, 2003, for municipalities 2 with populations of 500,000 or more, the tax authorized by 3 this Act shall be imposed, amended, or repealed, and any 4 authorized exemptions granted, by the adoption of an 5 ordinance. 6 Section 5-25. Existing telecommunications taxes and 7 fees. 8 (a) Between July 1, 2002 and August 1, 2002, the 9 Department shall publish a list of the municipalities with a 10 population of less than 500,000 that have, at any time before 11 the effective date of this Act, enacted ordinances imposing 12 any taxes or fees authorized by subparagraph 1 of Section 13 8-11-2 of the Illinois Municipal Code, Section 8-11-17 of the 14 Illinois Municipal Code, or Section 20 of the 15 Telecommunications Infrastructure Maintenance Fee Act. Such 16 list shall include the name of each such municipality, the 17 rates at which such taxes or fees are imposed as of the 18 effective date of this Act, and the rate of the new 19 Simplified Municipal Telecommunications Tax, as calculated 20 pursuant to Section 5-30 of this Act. 21 (b) In compiling the list described in this Section, the 22 Department shall collect information from retailers, 23 municipalities, the Illinois Commerce Commission, and other 24 sources deemed by the Department to be reliable. 25 (c) Any municipality appearing on the list published 26 pursuant to this Section shall not be required to adopt and 27 file an ordinance implementing the tax authorized by this 28 Act. The list shall be conclusive evidence of the imposition 29 of the tax authorized by this Act at the rate appearing on 30 such list. Any tax imposed in such manner shall take effect 31 with respect to gross charges billed by telecommunications 32 retailers on or after January 1, 2003. A municipality may 33 alter such tax only by filing an ordinance with the SB88 Enrolled -10- LRB9202600SMdv 1 Department pursuant to Section 5-20 of this Act. 2 Section 5-30. Calculation of rates for certain 3 municipalities. The rate of the Simplified Municipal 4 Telecommunications Tax for municipalities on the list 5 described in Section 5-25 of this Act shall be measured by 6 the sum of the following rates set forth in ordinances 7 enacted by the municipalities at the rates in effect on the 8 effective date of this Act: 9 (1) The rate equal to 70% of the rate set forth in 10 such ordinance pursuant to subparagraph 1 of Section 11 8-11-2 of the Illinois Municipal Code, rounded to the 12 nearest even 0.25% increment; plus 13 (2) The rate set forth in such ordinance pursuant 14 to Section 8-11-17 of the Illinois Municipal Code, 15 rounded to the nearest even 0.25% increment; plus 16 (3) The rate set forth in such ordinance pursuant 17 to Section 20 of the Telecommunications Infrastructure 18 Maintenance Fee Act. 19 Section 5-35. Rebates and exemptions. Any municipality 20 may implement the following rebates and exemptions: 21 (1) A municipality that imposes the tax authorized 22 by this Act and whose territory includes part of another 23 unit of local government or a school district, may, by 24 separate ordinance, rebate some or all of the amount of 25 such tax paid by the other unit of local government or 26 school district. Any such rebate shall be paid by the 27 municipality directly to the other unit of local 28 government or school district qualifying for the rebate 29 as determined by the municipality's ordinance, which 30 shall not be filed with the Department. 31 (2) A municipality that imposes the tax authorized 32 by this Act may, by separate ordinance, rebate some or SB88 Enrolled -11- LRB9202600SMdv 1 all of the amount of such tax to persons 65 years of age 2 or older. Any tax related to such rebate shall be 3 rebated from the municipality directly to persons 4 qualified for the rebate as determined by the 5 municipality's ordinance, which shall not be filed with 6 the Department. 7 (3) A municipality with a population of 500,000 or 8 more that imposes the tax authorized by this Act may, by 9 separate ordinance, exempt from the tax authorized by 10 this Act, charges for inbound toll-free 11 telecommunications service commonly known as "800", 12 "877", or "888" or for a similar service, to the extent 13 such municipality has passed an ordinance providing for 14 this exemption. 15 Section 5-40. Collection. 16 (a) For municipalities with populations of less than 17 500,000, the tax authorized by this Act shall be collected 18 from the taxpayer by a retailer maintaining a place of 19 business in this State and shall be remitted by such retailer 20 to the Department. Any tax required to be collected pursuant 21 to or as authorized by this Act and any such tax collected by 22 such retailer and required to be remitted to the Department 23 shall constitute a debt owed by the retailer to the State. 24 Retailers shall collect the tax from the taxpayer by adding 25 the tax to the gross charge for the act or privilege of 26 originating or receiving telecommunications when sold for 27 use, in the manner prescribed by the Department. The tax 28 authorized by this Act shall constitute a debt of the 29 taxpayer to the retailer until paid, and, if unpaid, is 30 recoverable at law in the same manner as the original charge 31 for such sale at retail. If the retailer fails to collect 32 the tax from the taxpayer, then the taxpayer shall be 33 required to pay the tax directly to the Department in the SB88 Enrolled -12- LRB9202600SMdv 1 manner provided by the Department. 2 (b) For municipalities with populations of 500,000 or 3 more, the tax authorized by this Act shall be collected from 4 the taxpayer by a retailer making or effectuating the sale at 5 retail and shall be remitted by such retailer to such 6 municipality. Any tax required to be collected pursuant to 7 an ordinance authorized by this Act and any such tax 8 collected by a retailer shall constitute a debt owed by the 9 retailer to such municipality. Retailers shall collect the 10 tax from the taxpayer by adding the tax to the gross charge 11 for the act or privilege of originating or receiving 12 telecommunications when sold for use, in the manner 13 prescribed by such municipality. The tax authorized by this 14 Act shall constitute a debt of the taxpayer to the retailer 15 who made or effectuated the sale at retail until paid and, if 16 unpaid, is recoverable at law in the same manner as the 17 original charge for the sale at retail. If the retailer 18 fails to collect the tax from the taxpayer, then the taxpayer 19 shall be required to pay the tax directly to such 20 municipality in the manner provided by such municipality. 21 The municipality imposing the tax shall provide for its 22 administration and enforcement. 23 (c) Retailers filing tax returns pursuant to this Act 24 shall, at the time of filing such return, pay to a 25 municipality with a population of 500,000 or more or to the 26 Department for all other municipalities, the amount of the 27 tax collected, less a discount of 1% which is allowed to 28 reimburse the retailer for the expenses incurred in keeping 29 records, billing the customer, preparing and filing returns, 30 remitting the tax and supplying data to a municipality or the 31 Department upon request. No discount may be claimed by a 32 retailer on returns not timely filed and for taxes not timely 33 remitted. 34 (d) Whenever possible, the tax authorized by this Act SB88 Enrolled -13- LRB9202600SMdv 1 shall, when collected, be stated as a distinct item separate 2 and apart from the gross charge for telecommunications. 3 Section 5-45. Resellers. 4 (a) If a person who originates or receives 5 telecommunications claims to be a reseller of such 6 telecommunications, such person shall apply to a municipality 7 with a population of 500,000 or more or to the Department for 8 all other municipalities, for a resale number. Such 9 applicant shall state facts which will show a municipality 10 with a population of 500,000 or more or the Department for 11 all other municipalities, why such applicant is not liable 12 for tax authorized by this Act on any of such purchases and 13 shall furnish such additional information as a municipality 14 with a population of 500,000 or more or the Department for 15 all other municipalities, may reasonably require. 16 (b) Upon approval of the application, a municipality 17 with a population of 500,000 or more or the Department for 18 all other municipalities, shall assign a resale number to the 19 applicant and shall certify such number to the applicant. A 20 municipality with a population of 500,000 or more or the 21 Department for all other municipalities, may cancel any 22 number which is obtained through misrepresentation, or which 23 is used to send or receive such telecommunication tax-free 24 when such actions in fact are not for resale, or which no 25 longer applies because of the person's having discontinued 26 the making of resales. 27 (c) Except as provided hereinabove in this Section, the 28 act or privilege of originating or receiving 29 telecommunications in this State shall not be made tax-free 30 on the ground of being a sale for resale unless the person 31 has an active resale number from a municipality with a 32 population of 500,000 or more or the Department for all other 33 municipalities, and furnishes that number to the retailer in SB88 Enrolled -14- LRB9202600SMdv 1 connection with certifying to the retailer that any sale to 2 such person is non-taxable because of being a sale for 3 resale. 4 Section 5-50. Returns to the Department. 5 (a) Commencing on February 1, 2003, for the tax imposed 6 under subsection (a) of Section 5-20 of this Act, every 7 retailer maintaining a place of business in this State shall, 8 on or before the last day of each month make a return to the 9 Department for the preceding calendar month, stating: 10 (1) Its name; 11 (2) The address of its principal place of business 12 or the address of the principal place of business (if 13 that is a different address) from which it engages in the 14 business of transmitting telecommunications; 15 (3) Total amount of gross charges billed by it 16 during the preceding calendar month for providing 17 telecommunications during the calendar month; 18 (4) Total amount received by it during the 19 preceding calendar month on credit extended; 20 (5) Deductions allowed by law; 21 (6) Gross charges that were billed by it during the 22 preceding calendar month and upon the basis of which the 23 tax is imposed; 24 (7) Amount of tax (computed upon Item 6); 25 (8) The municipalities to which the Department 26 shall remit the taxes and the amount of such remittances; 27 (9) Such other reasonable information as the 28 Department may require. 29 (b) Any retailer required to make payments under this 30 Section may make the payments by electronic funds transfer. 31 The Department shall adopt rules necessary to effectuate a 32 program of electronic funds transfer. Any retailer who has 33 average monthly tax billings due to the Department under this SB88 Enrolled -15- LRB9202600SMdv 1 Act and the Telecommunications Excise Tax Act that exceed 2 $1,000 shall make all payments by electronic funds transfer 3 as required by rules of the Department. 4 (c) If the retailer's average monthly tax billings due 5 to the Department under this Act and the Telecommunications 6 Excise Tax Act do not exceed $1,000, the Department may 7 authorize such retailer's returns to be filed on a 8 quarter-annual basis, with the return for January, February, 9 and March of a given year being due by April 30th of that 10 year; with the return for April, May, and June of a given 11 year being due by July 31st of that year; with the return for 12 July, August, and September of a given year being due by 13 October 31st of that year; and with the return for October, 14 November, and December of a given year being due by January 15 31st of the following year. 16 (d) If the retailer is otherwise required to file a 17 monthly or quarterly return and if the retailer's average 18 monthly tax billings due to the Department under this Act and 19 the Telecommunications Excise Tax Act do not exceed $400, the 20 Department may authorize such retailer's return to be filed 21 on an annual basis, with the return for a given year being 22 due by January 31st of the following year. 23 (e) Each retailer whose average monthly remittance to 24 the Department under this Act and the Telecommunications 25 Excise Tax Act was $25,000 or more during the preceding 26 calendar year, excluding the month of highest remittance and 27 the month of lowest remittance in such calendar year, and who 28 is not operated by a unit of local government, shall make 29 estimated payments to the Department on or before the 7th, 30 15th, 22nd, and last day of the month during which the tax 31 remittance is owed to the Department in an amount not less 32 than the lower of either 22.5% of the retailer's actual tax 33 collections for the month or 25% of the retailer's actual tax 34 collections for the same calendar month of the preceding SB88 Enrolled -16- LRB9202600SMdv 1 year. The amount of such quarter-monthly payments shall be 2 credited against the final remittance of the retailer's 3 return for that month. Any outstanding credit, approved by 4 the Department, arising from the retailer's overpayment of 5 its final remittance for any month may be applied to reduce 6 the amount of any subsequent quarter-monthly payment or 7 credited against the final remittance of the retailer's 8 return for any subsequent month. If any quarter-monthly 9 payment is not paid at the time or in the amount required by 10 this Section, the retailer shall be liable for penalty and 11 interest on the difference between the minimum amount due as 12 a payment and the amount of such payment actually and timely 13 paid, except insofar as the retailer has previously made 14 payments for that month to the Department or received credits 15 in excess of the minimum payments previously due. 16 (f) Notwithstanding any other provision of this Section 17 containing the time within which a retailer may file his or 18 her return, in the case of any retailer who ceases to engage 19 in a kind of business that makes him or her responsible for 20 filing returns under this Section, the retailer shall file a 21 final return under this Section with the Department not more 22 than one month after discontinuing such business. 23 (g) In making such return, the retailer shall determine 24 the value of any consideration other than money received by 25 it and such retailer shall include the value in its return. 26 Such determination shall be subject to review and revision by 27 the Department in the manner hereinafter provided for the 28 correction of returns. 29 (h) Any retailer who has average monthly tax billings 30 due to the Department under this Act and the 31 Telecommunications Excise Tax Act that exceed $1,000 shall 32 file the return required by this Section by electronic means 33 as required by rules of the Department. 34 (i) The retailer filing the return herein provided for SB88 Enrolled -17- LRB9202600SMdv 1 shall, at the time of filing the return, pay to the 2 Department the amounts due pursuant to this Act. The 3 Department shall immediately pay over to the State Treasurer, 4 ex officio, as trustee, 99.5% of all taxes, penalties, and 5 interest collected hereunder for deposit into the Municipal 6 Telecommunications Fund, which is hereby created. The 7 remaining 0.5% received by the Department pursuant to this 8 Act shall be deposited into the Tax Compliance and 9 Administration Fund and shall be used by the Department, 10 subject to appropriation, to cover the costs of the 11 Department. On or before the 25th day of each calendar month, 12 the Department shall prepare and certify to the Comptroller 13 the disbursement of stated sums of money to be paid to named 14 municipalities from the Municipal Telecommunications Fund for 15 amounts collected during the second preceding calendar month. 16 The named municipalities shall be those municipalities 17 identified by a retailer in such retailer's return as having 18 imposed the tax authorized by the Act. The amount of money 19 to be paid to each municipality shall be the amount (not 20 including credit memoranda) collected hereunder during the 21 second preceding calendar month by the Department, plus an 22 amount the Department determines is necessary to offset any 23 amounts that were erronenously paid to a different taxing 24 body, and not including an amount equal to the amount of 25 refunds made during the second preceding calendar month by 26 the Department on behalf of such municipality, and not 27 including any amount that the Department determines is 28 necessary to offset any amount that were payable to a 29 different taxing body but were erroneously paid to the 30 municipality. Within 10 days after receipt by the 31 Comptroller of the disbursement certification from the 32 Department, the Comptroller shall cause the orders to be 33 drawn for the respective amounts in accordance with the 34 directions contained in the certification. When certifying SB88 Enrolled -18- LRB9202600SMdv 1 to the Comptroller the amount of a monthly disbursement to a 2 municipality under this Section, the Department shall 3 increase or decrease the amount by an amount necessary to 4 offset any misallocation of previous disbursements. The 5 offset amount shall be the amount erroneously disbursed 6 within the previous 6 months from the time a misallocation is 7 discovered. 8 (j) For municipalities with populations of less than 9 500,000, whenever the Department determines that a refund 10 shall be made under this Section to a claimant instead of 11 issuing a credit memorandum, the Department shall notify the 12 State Comptroller, who shall cause the order to be drawn for 13 the amount specified and to the person named in the 14 notification from the Department. The refund shall be paid 15 by the State Treasurer out of the Municipal 16 Telecommunications Fund. 17 Section 5-55. Pledged revenues. If a municipality has, 18 by contract, pledged or dedicated any or all of the revenues 19 collected under any of its taxes imposed pursuant to 20 subparagraph 1 of Section 8-11-2 of the Illinois Municipal 21 Code, Section 8-11-17 of the Illinois Municipal Code, or 22 Section 20 of the Telecommunications Infrastructure 23 Maintenance Fee Act as shown on the list described in Section 24 5-25 of this Act, then the equivalent portion of revenues 25 collected from the tax authorized by this Act shall be deemed 26 pledged or dedicated in a manner substantially similar to the 27 pledge of the then existing taxes so as to prevent disruption 28 of such contract. 29 Section 5-60. Waiver of franchise fees. 30 (a) Any municipality shall be deemed to have waived its 31 right to receive all fees, charges and other compensation 32 that might accrue to the municipality after the effective SB88 Enrolled -19- LRB9202600SMdv 1 date of this Act, under any franchise agreement, license, or 2 similar agreement, executed on or before January 1, 1998 with 3 telecommunications retailers if: 4 (1) the municipality imposes the tax authorized by 5 this Act at a rate exceeding 5%; 6 (2) the municipality affirmatively waives such 7 fees; or 8 (3) the municipality is included in the list 9 described in Section 5-25 of this Act as having an 10 infrastructure maintenance fee in place. 11 (b) This waiver shall be effective only during the time 12 that either the infrastructure maintenance fee or the 13 simplified tax authorized under this Act is subject to being 14 lawfully imposed on the telecommunications retailer, 15 collected by the municipality or the Department, and paid 16 over to the municipality. 17 (c) No portion of this Act shall be construed to have 18 repealed or amended the prohibition on franchise fees or 19 other charges set forth in Section 30 of the 20 Telecommunications Infrastructure Maintenance Fee Act. 21 Section 5-65. Incorporation by reference. On and after 22 January 1, 2003, for municipalities with populations of less 23 than 500,000, all of the provisions of Sections 7, 10, 11, 24 12, 13, 14, 15, 16, 17, 18, and 19 of the Telecommunications 25 Excise Tax Act, Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 26 5i, 5j, 6, 6a, 6b, and 6c of the Retailers' Occupation Tax 27 Act, and all the provisions of the Uniform Penalty and 28 Interest Act, which are not inconsistent with this Act, shall 29 apply, as far as practicable, to the subject matter of this 30 Act to the same extent as if such provisions were included 31 herein. References in such incorporated Sections of the 32 Retailers' Occupation Tax Act to retailers, to sellers, or to 33 persons engaged in the business of selling tangible personal SB88 Enrolled -20- LRB9202600SMdv 1 property mean retailers, as defined in this Act, or persons 2 engaged in the act or privilege of originating or receiving 3 telecommunications. References in such incorporated Sections 4 of the Retailers' Occupation Tax Act to purchasers of 5 tangible personal property mean purchasers of 6 telecommunications as defined in this Act. References in 7 such incorporated Sections of the Retailers' Occupation Tax 8 Act to sales of tangible personal property mean the act or 9 privilege of originating or receiving telecommunications as 10 defined in this Act. 11 Section 5-90. Home rule. The authorization to impose 12 municipal telecommunications taxes and fees is an exclusive 13 power and function of the State. A home rule municipality 14 may not impose municipal telecommunications taxes and fees 15 other than as authorized under this Act. This Act is a 16 denial and limitation of municipal home rule powers and 17 functions under subsection (g) of Section 6 of Article VII of 18 the Illinois Constitution. 19 ARTICLE 90 20 Section 90-5. The State Revenue Sharing Act is amended 21 by changing Section 12 as follows: 22 (30 ILCS 115/12) (from Ch. 85, par. 616) 23 Sec. 12. Personal Property Tax Replacement Fund. There 24 is hereby created the Personal Property Tax Replacement Fund, 25 a special fund in the State Treasury into which shall be paid 26 all revenue realized: 27 (a) all amounts realized from the additional personal 28 property tax replacement income tax imposed by subsections 29 (c) and (d) of Section 201 of the Illinois Income Tax Act, 30 except for those amounts deposited into the Income Tax Refund SB88 Enrolled -21- LRB9202600SMdv 1 Fund pursuant to subsection (c) of Section 901 of the 2 Illinois Income Tax Act; and 3 (b) all amounts realized from the additional personal 4 property replacement invested capital taxes imposed by 5 Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas 6 Revenue Tax Act, Section 2a.1 of the Public Utilities 7 Revenue Act, and Section 3 of the Water Company Invested 8 Capital Tax Act, and amounts payable to the Department of 9 Revenue under the TelecommunicationsMunicipalInfrastructure 10 Maintenance Fee Act. 11 As soon as may be after the end of each month, the 12 Department of Revenue shall certify to the Treasurer and the 13 Comptroller the amount of all refunds paid out of the General 14 Revenue Fund through the preceding month on account of 15 overpayment of liability on taxes paid into the Personal 16 Property Tax Replacement Fund. Upon receipt of such 17 certification, the Treasurer and the Comptroller shall 18 transfer the amount so certified from the Personal Property 19 Tax Replacement Fund into the General Revenue Fund. 20 The payments of revenue into the Personal Property Tax 21 Replacement Fund shall be used exclusively for distribution 22 to taxing districts as provided in this Section, payment of 23 the expenses of the Department of Revenue incurred in 24 administering the collection and distribution of monies paid 25 into the Personal Property Tax Replacement Fund and transfers 26 due to refunds to taxpayers for overpayment of liability for 27 taxes paid into the Personal Property Tax Replacement Fund. 28 As soon as may be after the effective date of this 29 amendatory Act of 1980, the Department of Revenue shall 30 certify to the Treasurer the amount of net replacement 31 revenue paid into the General Revenue Fund prior to that 32 effective date from the additional tax imposed by Section 33 2a.1 of the Messages Tax Act; Section 2a.1 of the Gas Revenue 34 Tax Act; Section 2a.1 of the Public Utilities Revenue Act; SB88 Enrolled -22- LRB9202600SMdv 1 Section 3 of the Water Company Invested Capital Tax Act; 2 amounts collected by the Department of Revenue under the 3 TelecommunicationsMunicipalInfrastructure Maintenance Fee 4 Act; and the additional personal property tax replacement 5 income tax imposed by the Illinois Income Tax Act, as amended 6 by Public Act 81-1st Special Session-1. Net replacement 7 revenue shall be defined as the total amount paid into and 8 remaining in the General Revenue Fund as a result of those 9 Acts minus the amount outstanding and obligated from the 10 General Revenue Fund in state vouchers or warrants prior to 11 the effective date of this amendatory Act of 1980 as refunds 12 to taxpayers for overpayment of liability under those Acts. 13 All interest earned by monies accumulated in the Personal 14 Property Tax Replacement Fund shall be deposited in such 15 Fund. All amounts allocated pursuant to this Section are 16 appropriated on a continuing basis. 17 Prior to December 31, 1980, as soon as may be after the 18 end of each quarter beginning with the quarter ending 19 December 31, 1979, and on and after December 31, 1980, as 20 soon as may be after January 1, March 1, April 1, May 1, July 21 1, August 1, October 1 and December 1 of each year, the 22 Department of Revenue shall allocate to each taxing district 23 as defined in Section 1-150 of the Property Tax Code, in 24 accordance with the provisions of paragraph (2) of this 25 Section the portion of the funds held in the Personal 26 Property Tax Replacement Fund which is required to be 27 distributed, as provided in paragraph (1), for each quarter. 28 Provided, however, under no circumstances shall any taxing 29 district during each of the first two years of distribution 30 of the taxes imposed by this amendatory Act of 1979 be 31 entitled to an annual allocation which is less than the funds 32 such taxing district collected from the 1978 personal 33 property tax. Provided further that under no circumstances 34 shall any taxing district during the third year of SB88 Enrolled -23- LRB9202600SMdv 1 distribution of the taxes imposed by this amendatory Act of 2 1979 receive less than 60% of the funds such taxing district 3 collected from the 1978 personal property tax. In the event 4 that the total of the allocations made as above provided for 5 all taxing districts, during either of such 3 years, exceeds 6 the amount available for distribution the allocation of each 7 taxing district shall be proportionately reduced. Except as 8 provided in Section 13 of this Act, the Department shall then 9 certify, pursuant to appropriation, such allocations to the 10 State Comptroller who shall pay over to the several taxing 11 districts the respective amounts allocated to them. 12 Any township which receives an allocation based in whole 13 or in part upon personal property taxes which it levied 14 pursuant to Section 6-507 or 6-512 of the Illinois Highway 15 Code and which was previously required to be paid over to a 16 municipality shall immediately pay over to that municipality 17 a proportionate share of the personal property replacement 18 funds which such township receives. 19 Any municipality or township, other than a municipality 20 with a population in excess of 500,000, which receives an 21 allocation based in whole or in part on personal property 22 taxes which it levied pursuant to Sections 3-1, 3-4 and 3-6 23 of the Illinois Local Library Act and which was previously 24 required to be paid over to a public library shall 25 immediately pay over to that library a proportionate share of 26 the personal property tax replacement funds which such 27 municipality or township receives; provided that if such a 28 public library has converted to a library organized under The 29 Illinois Public Library District Act, regardless of whether 30 such conversion has occurred on, after or before January 1, 31 1988, such proportionate share shall be immediately paid over 32 to the library district which maintains and operates the 33 library. However, any library that has converted prior to 34 January 1, 1988, and which hitherto has not received the SB88 Enrolled -24- LRB9202600SMdv 1 personal property tax replacement funds, shall receive such 2 funds commencing on January 1, 1988. 3 Any township which receives an allocation based in whole 4 or in part on personal property taxes which it levied 5 pursuant to Section 1c of the Public Graveyards Act and which 6 taxes were previously required to be paid over to or used for 7 such public cemetery or cemeteries shall immediately pay over 8 to or use for such public cemetery or cemeteries a 9 proportionate share of the personal property tax replacement 10 funds which the township receives. 11 Any taxing district which receives an allocation based in 12 whole or in part upon personal property taxes which it levied 13 for another governmental body or school district in Cook 14 County in 1976 or for another governmental body or school 15 district in the remainder of the State in 1977 shall 16 immediately pay over to that governmental body or school 17 district the amount of personal property replacement funds 18 which such governmental body or school district would receive 19 directly under the provisions of paragraph (2) of this 20 Section, had it levied its own taxes. 21 (1) The portion of the Personal Property Tax Replacement 22 Fund required to be distributed as of the time allocation is 23 required to be made shall be the amount available in such 24 Fund as of the time allocation is required to be made. 25 The amount available for distribution shall be the total 26 amount in the fund at such time minus the necessary 27 administrative expenses as limited by the appropriation and 28 the amount determined by: (a) $2.8 million for fiscal year 29 1981; (b) for fiscal year 1982, .54% of the funds distributed 30 from the fund during the preceding fiscal year; (c) for 31 fiscal year 1983 through fiscal year 1988, .54% of the funds 32 distributed from the fund during the preceding fiscal year 33 less .02% of such fund for fiscal year 1983 and less .02% of 34 such funds for each fiscal year thereafter, or (d) for fiscal SB88 Enrolled -25- LRB9202600SMdv 1 year 1989 and beyond no more than 105% of the actual 2 administrative expenses of the prior fiscal year. Such 3 portion of the fund shall be determined after the transfer 4 into the General Revenue Fund due to refunds, if any, paid 5 from the General Revenue Fund during the preceding quarter. 6 If at any time, for any reason, there is insufficient amount 7 in the Personal Property Tax Replacement Fund for payment of 8 costs of administration or for transfers due to refunds at 9 the end of any particular month, the amount of such 10 insufficiency shall be carried over for the purposes of 11 transfers into the General Revenue Fund and for purposes of 12 costs of administration to the following month or months. 13 Net replacement revenue held, and defined above, shall be 14 transferred by the Treasurer and Comptroller to the Personal 15 Property Tax Replacement Fund within 10 days of such 16 certification. 17 (2) Each quarterly allocation shall first be apportioned 18 in the following manner: 51.65% for taxing districts in Cook 19 County and 48.35% for taxing districts in the remainder of 20 the State. 21 The Personal Property Replacement Ratio of each taxing 22 district outside Cook County shall be the ratio which the Tax 23 Base of that taxing district bears to the Downstate Tax Base. 24 The Tax Base of each taxing district outside of Cook County 25 is the personal property tax collections for that taxing 26 district for the 1977 tax year. The Downstate Tax Base is 27 the personal property tax collections for all taxing 28 districts in the State outside of Cook County for the 1977 29 tax year. The Department of Revenue shall have authority to 30 review for accuracy and completeness the personal property 31 tax collections for each taxing district outside Cook County 32 for the 1977 tax year. 33 The Personal Property Replacement Ratio of each Cook 34 County taxing district shall be the ratio which the Tax Base SB88 Enrolled -26- LRB9202600SMdv 1 of that taxing district bears to the Cook County Tax Base. 2 The Tax Base of each Cook County taxing district is the 3 personal property tax collections for that taxing district 4 for the 1976 tax year. The Cook County Tax Base is the 5 personal property tax collections for all taxing districts in 6 Cook County for the 1976 tax year. The Department of Revenue 7 shall have authority to review for accuracy and completeness 8 the personal property tax collections for each taxing 9 district within Cook County for the 1976 tax year. 10 For all purposes of this Section 12, amounts paid to a 11 taxing district for such tax years as may be applicable by a 12 foreign corporation under the provisions of Section 7-202 of 13 the Public Utilities Act, as amended, shall be deemed to be 14 personal property taxes collected by such taxing district for 15 such tax years as may be applicable. The Director shall 16 determine from the Illinois Commerce Commission, for any tax 17 year as may be applicable, the amounts so paid by any such 18 foreign corporation to any and all taxing districts. The 19 Illinois Commerce Commission shall furnish such information 20 to the Director. For all purposes of this Section 12, the 21 Director shall deem such amounts to be collected personal 22 property taxes of each such taxing district for the 23 applicable tax year or years. 24 Taxing districts located both in Cook County and in one 25 or more other counties shall receive both a Cook County 26 allocation and a Downstate allocation determined in the same 27 way as all other taxing districts. 28 If any taxing district in existence on July 1, 1979 29 ceases to exist, or discontinues its operations, its Tax Base 30 shall thereafter be deemed to be zero. If the powers, duties 31 and obligations of the discontinued taxing district are 32 assumed by another taxing district, the Tax Base of the 33 discontinued taxing district shall be added to the Tax Base 34 of the taxing district assuming such powers, duties and SB88 Enrolled -27- LRB9202600SMdv 1 obligations. 2 If two or more taxing districts in existence on July 1, 3 1979, or a successor or successors thereto shall consolidate 4 into one taxing district, the Tax Base of such consolidated 5 taxing district shall be the sum of the Tax Bases of each of 6 the taxing districts which have consolidated. 7 If a single taxing district in existence on July 1, 1979, 8 or a successor or successors thereto shall be divided into 9 two or more separate taxing districts, the tax base of the 10 taxing district so divided shall be allocated to each of the 11 resulting taxing districts in proportion to the then current 12 equalized assessed value of each resulting taxing district. 13 If a portion of the territory of a taxing district is 14 disconnected and annexed to another taxing district of the 15 same type, the Tax Base of the taxing district from which 16 disconnection was made shall be reduced in proportion to the 17 then current equalized assessed value of the disconnected 18 territory as compared with the then current equalized 19 assessed value within the entire territory of the taxing 20 district prior to disconnection, and the amount of such 21 reduction shall be added to the Tax Base of the taxing 22 district to which annexation is made. 23 If a community college district is created after July 1, 24 1979, beginning on the effective date of this amendatory Act 25 of 1995, its Tax Base shall be 3.5% of the sum of the 26 personal property tax collected for the 1977 tax year within 27 the territorial jurisdiction of the district. 28 The amounts allocated and paid to taxing districts 29 pursuant to the provisions of this amendatory Act of 1979 30 shall be deemed to be substitute revenues for the revenues 31 derived from taxes imposed on personal property pursuant to 32 the provisions of the "Revenue Act of 1939" or "An Act for 33 the assessment and taxation of private car line companies", 34 approved July 22, 1943, as amended, or Section 414 of the SB88 Enrolled -28- LRB9202600SMdv 1 Illinois Insurance Code, prior to the abolition of such taxes 2 and shall be used for the same purposes as the revenues 3 derived from ad valorem taxes on real estate. 4 Monies received by any taxing districts from the Personal 5 Property Tax Replacement Fund shall be first applied toward 6 payment of the proportionate amount of debt service which was 7 previously levied and collected from extensions against 8 personal property on bonds outstanding as of December 31, 9 1978 and next applied toward payment of the proportionate 10 share of the pension or retirement obligations of the taxing 11 district which were previously levied and collected from 12 extensions against personal property. For each such 13 outstanding bond issue, the County Clerk shall determine the 14 percentage of the debt service which was collected from 15 extensions against real estate in the taxing district for 16 1978 taxes payable in 1979, as related to the total amount of 17 such levies and collections from extensions against both real 18 and personal property. For 1979 and subsequent years' taxes, 19 the County Clerk shall levy and extend taxes against the real 20 estate of each taxing district which will yield the said 21 percentage or percentages of the debt service on such 22 outstanding bonds. The balance of the amount necessary to 23 fully pay such debt service shall constitute a first and 24 prior lien upon the monies received by each such taxing 25 district through the Personal Property Tax Replacement Fund 26 and shall be first applied or set aside for such purpose. In 27 counties having fewer than 3,000,000 inhabitants, the 28 amendments to this paragraph as made by this amendatory Act 29 of 1980 shall be first applicable to 1980 taxes to be 30 collected in 1981. 31 (Source: P.A. 89-327, eff. 1-1-96; 90-154, eff. 1-1-98.) 32 Section 90-10. The Telecommunications Excise Tax Act is 33 amended by changing Sections 2, 6, and 15 as follows: SB88 Enrolled -29- LRB9202600SMdv 1 (35 ILCS 630/2) (from Ch. 120, par. 2002) 2 (Text of Section before amendment by P.A. 92-474) 3 Sec. 2. As used in this Article, unless the context 4 clearly requires otherwise: 5 (a) "Gross charge" means the amount paid for the act or 6 privilege of originating or receiving telecommunications in 7 this State and for all services and equipment provided in 8 connection therewith by a retailer, valued in money whether 9 paid in money or otherwise, including cash, credits, services 10 and property of every kind or nature, and shall be determined 11 without any deduction on account of the cost of such 12 telecommunications, the cost of materials used, labor or 13 service costs or any other expense whatsoever. In case 14 credit is extended, the amount thereof shall be included only 15 as and when paid. "Gross charges" for private line service 16 shall include charges imposed at each channel point within 17 this State, charges for the channel mileage between each 18 channel point within this State, and charges for that portion 19 of the interstate inter-office channel provided within 20 Illinois. However, "gross charges" shall not include: 21 (1) any amounts added to a purchaser's bill because 22 of a charge made pursuant to (i) the tax imposed by this 23 Article; (ii) charges added to customers' bills pursuant 24 to the provisions of Sections 9-221 or 9-222 of the 25 Public Utilities Act, as amended, or any similar charges 26 added to customers' bills by retailers who are not 27 subject to rate regulation by the Illinois Commerce 28 Commission for the purpose of recovering any of the tax 29 liabilities or other amounts specified in such provisions 30 of such Act;or(iii) the tax imposed by Section 4251 of 31 the Internal Revenue Code; (iv) 911 surcharges; or (v) 32 the tax imposed by the Simplified Municipal 33 Telecommunications Tax Act; 34 (2) charges for a sent collect telecommunication SB88 Enrolled -30- LRB9202600SMdv 1 received outside of the State; 2 (3) charges for leased time on equipment or charges 3 for the storage of data or information for subsequent 4 retrieval or the processing of data or information 5 intended to change its form or content. Such equipment 6 includes, but is not limited to, the use of calculators, 7 computers, data processing equipment, tabulating 8 equipment or accounting equipment and also includes the 9 usage of computers under a time-sharing agreement; 10 (4) charges for customer equipment, including such 11 equipment that is leased or rented by the customer from 12 any source, wherein such charges are disaggregated and 13 separately identified from other charges; 14 (5) charges to business enterprises certified under 15 Section 9-222.1 of the Public Utilities Act, as amended, 16 to the extent of such exemption and during the period of 17 time specified by the Department of Commerce and 18 Community Affairs; 19 (6) charges for telecommunications and all services 20 and equipment provided in connection therewith between a 21 parent corporation and its wholly owned subsidiaries or 22 between wholly owned subsidiaries when the tax imposed 23 under this Article has already been paid to a retailer 24 and only to the extent that the charges between the 25 parent corporation and wholly owned subsidiaries or 26 between wholly owned subsidiaries represent expense 27 allocation between the corporations and not the 28 generation of profit for the corporation rendering such 29 service; 30 (7) bad debts. Bad debt means any portion of a debt 31 that is related to a sale at retail for which gross 32 charges are not otherwise deductible or excludable that 33 has become worthless or uncollectable, as determined 34 under applicable federal income tax standards. If the SB88 Enrolled -31- LRB9202600SMdv 1 portion of the debt deemed to be bad is subsequently 2 paid, the retailer shall report and pay the tax on that 3 portion during the reporting period in which the payment 4 is made; 5 (8) charges paid by inserting coins in 6 coin-operated telecommunication devices; 7 (9) amounts paid by telecommunications retailers 8 under the TelecommunicationsMunicipalInfrastructure 9 Maintenance Fee Act. 10 (b) "Amount paid" means the amount charged to the 11 taxpayer's service address in this State regardless of where 12 such amount is billed or paid. 13 (c) "Telecommunications", in addition to the meaning 14 ordinarily and popularly ascribed to it, includes, without 15 limitation, messages or information transmitted through use 16 of local, toll and wide area telephone service; private line 17 services; channel services; telegraph services; 18 teletypewriter; computer exchange services; cellular mobile 19 telecommunications service; specialized mobile radio; 20 stationary two way radio; paging service; or any other form 21 of mobile and portable one-way or two-way communications; or 22 any other transmission of messages or information by 23 electronic or similar means, between or among points by wire, 24 cable, fiber-optics, laser, microwave, radio, satellite or 25 similar facilities. As used in this Act, "private line" means 26 a dedicated non-traffic sensitive service for a single 27 customer, that entitles the customer to exclusive or priority 28 use of a communications channel or group of channels, from 29 one or more specified locations to one or more other 30 specified locations. The definition of "telecommunications" 31 shall not include value added services in which computer 32 processing applications are used to act on the form, content, 33 code and protocol of the information for purposes other than 34 transmission. "Telecommunications" shall not include SB88 Enrolled -32- LRB9202600SMdv 1 purchases of telecommunications by a telecommunications 2 service provider for use as a component part of the service 3 provided by him to the ultimate retail consumer who 4 originates or terminates the taxable end-to-end 5 communications. Carrier access charges, right of access 6 charges, charges for use of inter-company facilities, and all 7 telecommunications resold in the subsequent provision of, 8 used as a component of, or integrated into end-to-end 9 telecommunications service shall be non-taxable as sales for 10 resale. 11 (d) "Interstate telecommunications" means all 12 telecommunications that either originate or terminate outside 13 this State. 14 (e) "Intrastate telecommunications" means all 15 telecommunications that originate and terminate within this 16 State. 17 (f) "Department" means the Department of Revenue of the 18 State of Illinois. 19 (g) "Director" means the Director of Revenue for the 20 Department of Revenue of the State of Illinois. 21 (h) "Taxpayer" means a person who individually or 22 through his agents, employees or permittees engages in the 23 act or privilege of originating or receiving 24 telecommunications in this State and who incurs a tax 25 liability under this Article. 26 (i) "Person" means any natural individual, firm, trust, 27 estate, partnership, association, joint stock company, joint 28 venture, corporation, limited liability company, or a 29 receiver, trustee, guardian or other representative appointed 30 by order of any court, the Federal and State governments, 31 including State universities created by statute or any city, 32 town, county or other political subdivision of this State. 33 (j) "Purchase at retail" means the acquisition, 34 consumption or use of telecommunication through a sale at SB88 Enrolled -33- LRB9202600SMdv 1 retail. 2 (k) "Sale at retail" means the transmitting, supplying 3 or furnishing of telecommunications and all services and 4 equipment provided in connection therewith for a 5 consideration to persons other than the Federal and State 6 governments, and State universities created by statute and 7 other than between a parent corporation and its wholly owned 8 subsidiaries or between wholly owned subsidiaries for their 9 use or consumption and not for resale. 10 (l) "Retailer" means and includes every person engaged 11 in the business of making sales at retail as defined in this 12 Article. The Department may, in its discretion, upon 13 application, authorize the collection of the tax hereby 14 imposed by any retailer not maintaining a place of business 15 within this State, who, to the satisfaction of the 16 Department, furnishes adequate security to insure collection 17 and payment of the tax. Such retailer shall be issued, 18 without charge, a permit to collect such tax. When so 19 authorized, it shall be the duty of such retailer to collect 20 the tax upon all of the gross charges for telecommunications 21 in this State in the same manner and subject to the same 22 requirements as a retailer maintaining a place of business 23 within this State. The permit may be revoked by the 24 Department at its discretion. 25 (m) "Retailer maintaining a place of business in this 26 State", or any like term, means and includes any retailer 27 having or maintaining within this State, directly or by a 28 subsidiary, an office, distribution facilities, transmission 29 facilities, sales office, warehouse or other place of 30 business, or any agent or other representative operating 31 within this State under the authority of the retailer or its 32 subsidiary, irrespective of whether such place of business or 33 agent or other representative is located here permanently or 34 temporarily, or whether such retailer or subsidiary is SB88 Enrolled -34- LRB9202600SMdv 1 licensed to do business in this State. 2 (n) "Service address" means the location of 3 telecommunications equipment from which the 4 telecommunications services are originated or at which 5 telecommunications services are received by a taxpayer. In 6 the event this may not be a defined location, as in the case 7 of mobile phones, paging systems, maritime systems, 8 air-to-ground systems and the like, service address shall 9 mean the location of a taxpayer's primary use of the 10 telecommunications equipment as defined by telephone number, 11 authorization code, or location in Illinois where bills are 12 sent. 13 (o) "Prepaid telephone calling arrangements" mean the 14 right to exclusively purchase telephone or telecommunications 15 services that must be paid for in advance and enable the 16 origination of one or more intrastate, interstate, or 17 international telephone calls or other telecommunications 18 using an access number, an authorization code, or both, 19 whether manually or electronically dialed, for which payment 20 to a retailer must be made in advance, provided that, unless 21 recharged, no further service is provided once that prepaid 22 amount of service has been consumed. Prepaid telephone 23 calling arrangements include the recharge of a prepaid 24 calling arrangement. For purposes of this subsection, 25 "recharge" means the purchase of additional prepaid telephone 26 or telecommunications services whether or not the purchaser 27 acquires a different access number or authorization code. 28 "Prepaid telephone calling arrangement" does not include an 29 arrangement whereby a customer purchases a payment card and 30 pursuant to which the service provider reflects the amount of 31 such purchase as a credit on an invoice issued to that 32 customer under an existing subscription plan. 33 (Source: P.A. 90-562, eff. 12-16-97; 91-870, eff. 6-22-00.) 34 (Text of Section after amendment by P.A. 92-474) SB88 Enrolled -35- LRB9202600SMdv 1 Sec. 2. As used in this Article, unless the context 2 clearly requires otherwise: 3 (a) "Gross charge" means the amount paid for the act or 4 privilege of originating or receiving telecommunications in 5 this State and for all services and equipment provided in 6 connection therewith by a retailer, valued in money whether 7 paid in money or otherwise, including cash, credits, services 8 and property of every kind or nature, and shall be determined 9 without any deduction on account of the cost of such 10 telecommunications, the cost of materials used, labor or 11 service costs or any other expense whatsoever. In case 12 credit is extended, the amount thereof shall be included only 13 as and when paid. "Gross charges" for private line service 14 shall include charges imposed at each channel point within 15 this State, charges for the channel mileage between each 16 channel point within this State, and charges for that portion 17 of the interstate inter-office channel provided within 18 Illinois. However, "gross charges" shall not include: 19 (1) any amounts added to a purchaser's bill because 20 of a charge made pursuant to (i) the tax imposed by this 21 Article; (ii) charges added to customers' bills pursuant 22 to the provisions of Sections 9-221 or 9-222 of the 23 Public Utilities Act, as amended, or any similar charges 24 added to customers' bills by retailers who are not 25 subject to rate regulation by the Illinois Commerce 26 Commission for the purpose of recovering any of the tax 27 liabilities or other amounts specified in such provisions 28 of such Act;or(iii) the tax imposed by Section 4251 of 29 the Internal Revenue Code; (iv) 911 surcharges; or (v) 30 the tax imposed by the Simplified Municipal 31 Telecommunications Tax Act; 32 (2) charges for a sent collect telecommunication 33 received outside of the State; 34 (3) charges for leased time on equipment or charges SB88 Enrolled -36- LRB9202600SMdv 1 for the storage of data or information for subsequent 2 retrieval or the processing of data or information 3 intended to change its form or content. Such equipment 4 includes, but is not limited to, the use of calculators, 5 computers, data processing equipment, tabulating 6 equipment or accounting equipment and also includes the 7 usage of computers under a time-sharing agreement; 8 (4) charges for customer equipment, including such 9 equipment that is leased or rented by the customer from 10 any source, wherein such charges are disaggregated and 11 separately identified from other charges; 12 (5) charges to business enterprises certified under 13 Section 9-222.1 of the Public Utilities Act, as amended, 14 to the extent of such exemption and during the period of 15 time specified by the Department of Commerce and 16 Community Affairs; 17 (6) charges for telecommunications and all services 18 and equipment provided in connection therewith between a 19 parent corporation and its wholly owned subsidiaries or 20 between wholly owned subsidiaries when the tax imposed 21 under this Article has already been paid to a retailer 22 and only to the extent that the charges between the 23 parent corporation and wholly owned subsidiaries or 24 between wholly owned subsidiaries represent expense 25 allocation between the corporations and not the 26 generation of profit for the corporation rendering such 27 service; 28 (7) bad debts. Bad debt means any portion of a debt 29 that is related to a sale at retail for which gross 30 charges are not otherwise deductible or excludable that 31 has become worthless or uncollectable, as determined 32 under applicable federal income tax standards. If the 33 portion of the debt deemed to be bad is subsequently 34 paid, the retailer shall report and pay the tax on that SB88 Enrolled -37- LRB9202600SMdv 1 portion during the reporting period in which the payment 2 is made; 3 (8) charges paid by inserting coins in 4 coin-operated telecommunication devices; 5 (9) amounts paid by telecommunications retailers 6 under the Telecommunications Municipal Infrastructure 7 Maintenance Fee Act. 8 (b) "Amount paid" means the amount charged to the 9 taxpayer's service address in this State regardless of where 10 such amount is billed or paid. 11 (c) "Telecommunications", in addition to the meaning 12 ordinarily and popularly ascribed to it, includes, without 13 limitation, messages or information transmitted through use 14 of local, toll and wide area telephone service; private line 15 services; channel services; telegraph services; 16 teletypewriter; computer exchange services; cellular mobile 17 telecommunications service; specialized mobile radio; 18 stationary two way radio; paging service; or any other form 19 of mobile and portable one-way or two-way communications; or 20 any other transmission of messages or information by 21 electronic or similar means, between or among points by wire, 22 cable, fiber-optics, laser, microwave, radio, satellite or 23 similar facilities. As used in this Act, "private line" means 24 a dedicated non-traffic sensitive service for a single 25 customer, that entitles the customer to exclusive or priority 26 use of a communications channel or group of channels, from 27 one or more specified locations to one or more other 28 specified locations. The definition of "telecommunications" 29 shall not include value added services in which computer 30 processing applications are used to act on the form, content, 31 code and protocol of the information for purposes other than 32 transmission. "Telecommunications" shall not include 33 purchases of telecommunications by a telecommunications 34 service provider for use as a component part of the service SB88 Enrolled -38- LRB9202600SMdv 1 provided by him to the ultimate retail consumer who 2 originates or terminates the taxable end-to-end 3 communications. Carrier access charges, right of access 4 charges, charges for use of inter-company facilities, and all 5 telecommunications resold in the subsequent provision of, 6 used as a component of, or integrated into end-to-end 7 telecommunications service shall be non-taxable as sales for 8 resale. 9 (d) "Interstate telecommunications" means all 10 telecommunications that either originate or terminate outside 11 this State. 12 (e) "Intrastate telecommunications" means all 13 telecommunications that originate and terminate within this 14 State. 15 (f) "Department" means the Department of Revenue of the 16 State of Illinois. 17 (g) "Director" means the Director of Revenue for the 18 Department of Revenue of the State of Illinois. 19 (h) "Taxpayer" means a person who individually or 20 through his agents, employees or permittees engages in the 21 act or privilege of originating or receiving 22 telecommunications in this State and who incurs a tax 23 liability under this Article. 24 (i) "Person" means any natural individual, firm, trust, 25 estate, partnership, association, joint stock company, joint 26 venture, corporation, limited liability company, or a 27 receiver, trustee, guardian or other representative appointed 28 by order of any court, the Federal and State governments, 29 including State universities created by statute or any city, 30 town, county or other political subdivision of this State. 31 (j) "Purchase at retail" means the acquisition, 32 consumption or use of telecommunication through a sale at 33 retail. 34 (k) "Sale at retail" means the transmitting, supplying SB88 Enrolled -39- LRB9202600SMdv 1 or furnishing of telecommunications and all services and 2 equipment provided in connection therewith for a 3 consideration to persons other than the Federal and State 4 governments, and State universities created by statute and 5 other than between a parent corporation and its wholly owned 6 subsidiaries or between wholly owned subsidiaries for their 7 use or consumption and not for resale. 8 (l) "Retailer" means and includes every person engaged 9 in the business of making sales at retail as defined in this 10 Article. The Department may, in its discretion, upon 11 application, authorize the collection of the tax hereby 12 imposed by any retailer not maintaining a place of business 13 within this State, who, to the satisfaction of the 14 Department, furnishes adequate security to insure collection 15 and payment of the tax. Such retailer shall be issued, 16 without charge, a permit to collect such tax. When so 17 authorized, it shall be the duty of such retailer to collect 18 the tax upon all of the gross charges for telecommunications 19 in this State in the same manner and subject to the same 20 requirements as a retailer maintaining a place of business 21 within this State. The permit may be revoked by the 22 Department at its discretion. 23 (m) "Retailer maintaining a place of business in this 24 State", or any like term, means and includes any retailer 25 having or maintaining within this State, directly or by a 26 subsidiary, an office, distribution facilities, transmission 27 facilities, sales office, warehouse or other place of 28 business, or any agent or other representative operating 29 within this State under the authority of the retailer or its 30 subsidiary, irrespective of whether such place of business or 31 agent or other representative is located here permanently or 32 temporarily, or whether such retailer or subsidiary is 33 licensed to do business in this State. 34 (n) "Service address" means the location of SB88 Enrolled -40- LRB9202600SMdv 1 telecommunications equipment from which the 2 telecommunications services are originated or at which 3 telecommunications services are received by a taxpayer. In 4 the event this may not be a defined location, as in the case 5 of mobile phones, paging systems, maritime systems, service 6 address means the customer's place of primary use as defined 7 in the Mobile Telecommunications Sourcing Conformity Act. 8 For air-to-ground systems and the like, service address shall 9 mean the location of a taxpayer's primary use of the 10 telecommunications equipment as defined by telephone number, 11 authorization code, or location in Illinois where bills are 12 sent. 13 (o) "Prepaid telephone calling arrangements" mean the 14 right to exclusively purchase telephone or telecommunications 15 services that must be paid for in advance and enable the 16 origination of one or more intrastate, interstate, or 17 international telephone calls or other telecommunications 18 using an access number, an authorization code, or both, 19 whether manually or electronically dialed, for which payment 20 to a retailer must be made in advance, provided that, unless 21 recharged, no further service is provided once that prepaid 22 amount of service has been consumed. Prepaid telephone 23 calling arrangements include the recharge of a prepaid 24 calling arrangement. For purposes of this subsection, 25 "recharge" means the purchase of additional prepaid telephone 26 or telecommunications services whether or not the purchaser 27 acquires a different access number or authorization code. 28 "Prepaid telephone calling arrangement" does not include an 29 arrangement whereby a customer purchases a payment card and 30 pursuant to which the service provider reflects the amount of 31 such purchase as a credit on an invoice issued to that 32 customer under an existing subscription plan. 33 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02.) SB88 Enrolled -41- LRB9202600SMdv 1 (35 ILCS 630/6) (from Ch. 120, par. 2006) 2 Sec. 6. Except as provided hereinafter in this Section, 3 on or before the last15thday of each month, each retailer 4 maintaining a place of business in this State shall make a 5 return to the Department for the preceding calendar month, 6 stating: 7 1. His name; 8 2. The address of his principal place of business, 9 orandthe address of the principal place of business (if 10 that is a different address) from which he engages in the 11 business of transmitting telecommunications; 12 3. Total amount of gross charges billed by him 13 during the preceding calendar month for providing 14 telecommunications during such calendar month; 15 4. Total amount received by him during the 16 preceding calendar month on credit extended; 17 5. Deductions allowed by law; 18 6. Gross charges which were billed by him during 19 the preceding calendar month and upon the basis of which 20 the tax is imposed; 21 7. Amount of tax (computed upon Item 6); 22 8. Such other reasonable information as the 23 Department may require. 24 Any taxpayer required to make payments under this Section 25 may make the payments by electronic funds transfer. The 26 Department shall adopt rules necessary to effectuate a 27 program of electronic funds transfer. Any taxpayer who has 28 average monthly tax billings due to the Department under this 29 Act and the Simplified Municipal Telecommunications Tax Act 30 that exceed $1,000 shall make all payments by electronic 31 funds transfer as required by rules of the Department and 32 shall file the return required by this Section by electronic 33 means as required by rules of the Department. 34 If the retailer's average monthly tax billings due to the SB88 Enrolled -42- LRB9202600SMdv 1 Department under this Act and the Simplified Municipal 2 Telecommunications Tax Act do not exceed $1,000$200, the 3 Department may authorize his returns to be filed on a quarter 4 annual basis, with the return for January, February and March 5 of a given year being due by April 3015of such year; with 6 the return for April, May and June of a given year being due 7 by July 31st15of such year; with the return for July, 8 August and September of a given year being due by October 9 31st15of such year; and with the return of October, 10 November and December of a given year being due by January 11 31st15of the following year. 12 If the retailer is otherwise required to file a monthly 13 or quarterly return and if the retailer's average monthly tax 14 billings due to the Department under this Act and the 15 Simplified Municipal Telecommunications Tax Act do not exceed 16 $400$50, the Department may authorize his or her return to 17 be filed on an annual basis, with the return for a given year 18 being due by January 31st15thof the following year. 19 Notwithstanding any other provision of this Article 20 containing the time within which a retailer may file his 21 return, in the case of any retailer who ceases to engage in a 22 kind of business which makes him responsible for filing 23 returns under this Article, such retailer shall file a final 24 return under this Article with the Department not more than 25 one month after discontinuing such business. 26 In making such return, the retailer shall determine the 27 value of any consideration other than money received by him 28 and he shall include such value in his return. Such 29 determination shall be subject to review and revision by the 30 Department in the manner hereinafter provided for the 31 correction of returns. 32 Each retailer whose average monthly liability to the 33 Department under this Article and the Simplified Municipal 34 Telecommunications Tax Act was $25,000$10,000or more during SB88 Enrolled -43- LRB9202600SMdv 1 the preceding calendar year, excluding the month of highest 2 liability and the month of lowest liability in such calendar 3 year, and who is not operated by a unit of local government, 4 shall make estimated payments to the Department on or before 5 the 7th, 15th, 22nd and last day of the month during which 6 tax collection liability to the Department is incurred in an 7 amount not less than the lower of either 22.5% of the 8 retailer's actual tax collections for the month or 25% of the 9 retailer's actual tax collections for the same calendar month 10 of the preceding year. The amount of such quarter monthly 11 payments shall be credited against the final liability of the 12 retailer's return for that month. Any outstanding credit, 13 approved by the Department, arising from the retailer's 14 overpayment of its final liability for any month may be 15 applied to reduce the amount of any subsequent quarter 16 monthly payment or credited against the final liability of 17 the retailer's return for any subsequent month. If any 18 quarter monthly payment is not paid at the time or in the 19 amount required by this Section, the retailer shall be liable 20 for penalty and interest on the difference between the 21 minimum amount due as a payment and the amount of such 22 payment actually and timely paid, except insofar as the 23 retailer has previously made payments for that month to the 24 Department in excess of the minimum payments previously due. 25If the Director finds that the information required for26the making of an accurate return cannot reasonably be27compiled by a retailer within 15 days after the close of the28calendar month for which a return is to be made, he may grant29an extension of time for the filing of such return for a30period of not to exceed 31 calendar days. The granting of31such an extension may be conditioned upon the deposit by the32retailer with the Department of an amount of money not33exceeding the amount estimated by the Director to be due with34the return so extended. All such deposits, including anySB88 Enrolled -44- LRB9202600SMdv 1heretofore made with the Department, shall be credited2against the retailer's liabilities under this Article. If3any such deposit exceeds the retailer's present and probable4future liabilities under this Article, the Department shall5issue to the retailer a credit memorandum, which may be6assigned by the retailer to a similar retailer under this7Article, in accordance with reasonable rules and regulations8to be prescribed by the Department.9 The retailer making the return herein provided for shall, 10 at the time of making such return, pay to the Department the 11 amount of tax herein imposed, less a discount of 1% which is 12 allowed to reimburse the retailer for the expenses incurred 13 in keeping records, billing the customer, preparing and 14 filing returns, remitting the tax, and supplying data to the 15 Department upon request. No discount may be claimed by a 16 retailer on returns not timely filed and for taxes not timely 17 remitted. On and after the effective date of this Article of 18 1985, $1,000,000 of the moneys received by the Department of 19 Revenue pursuant to this Article shall be paid each month 20 into the Common School Fund and the remainder into the 21 General Revenue Fund. On and after February 1, 1998, however, 22 of the moneys received by the Department of Revenue pursuant 23 to the additional taxes imposed by this amendatory Act of 24 1997 one-half shall be deposited into the School 25 Infrastructure Fund and one-half shall be deposited into the 26 Common School Fund. On and after the effective date of this 27 amendatory Act of the 91st General Assembly, if in any fiscal 28 year the total of the moneys deposited into the School 29 Infrastructure Fund under this Act is less than the total of 30 the moneys deposited into that Fund from the additional taxes 31 imposed by Public Act 90-548 during fiscal year 1999, then, 32 as soon as possible after the close of the fiscal year, the 33 Comptroller shall order transferred and the Treasurer shall 34 transfer from the General Revenue Fund to the School SB88 Enrolled -45- LRB9202600SMdv 1 Infrastructure Fund an amount equal to the difference between 2 the fiscal year total deposits and the total amount deposited 3 into the Fund in fiscal year 1999. 4 (Source: P.A. 90-16, eff. 6-16-97; 90-548, eff. 12-4-97; 5 91-541, eff. 8-13-99; 91-870, 6-22-00.) 6 (35 ILCS 630/15) (from Ch. 120, par. 2015) 7 Sec. 15. Confidential information. All information 8 received by the Department from returns filed under this 9 Article, or from any investigations conducted under this 10 Article, shall be confidential, except for official purposes, 11 and any person who divulges any such information in any 12 manner, except in accordance with a proper judicial order or 13 as otherwise provided by law, shall be guilty of a Class B 14 misdemeanor. 15 Provided, that nothing contained in this Article shall 16 prevent the Director from publishing or making available to 17 the public the names and addresses of retailers or taxpayers 18 filing returns under this Article, or from publishing or 19 making available reasonable statistics concerning the 20 operation of the tax wherein the contents of returns are 21 grouped into aggregates in such a way that the information 22 contained in any individual return shall not be disclosed. 23 And provided, that nothing contained in this Article 24 shall prevent the Director from making available to the 25 United States Government or the government of any other 26 state, or any officer or agency thereof, for exclusively 27 official purposes, information received by the Department in 28 the administration of this Article, if such other 29 governmental agency agrees to divulge requested tax 30 information to the Department. 31 The furnishing upon request of the Auditor General, or 32 his authorized agents, for official use, of returns filed and 33 information related thereto under this Article is deemed to SB88 Enrolled -46- LRB9202600SMdv 1 be an official purpose within the meaning of this Section. 2 The furnishing of financial information to a municipality 3 that has imposed a tax under the Simplified Municipal 4 Telecommunications Tax Act, upon request of the chief 5 executive thereof, is an official purpose within the meaning 6 of this Section, provided that the municipality agrees in 7 writing to the requirements of this Section. Information so 8 provided shall be subject to all confidentiality provisions 9 of this Section. The written agreement shall provide for 10 reciprocity, limitations on access, disclosure, and 11 procedures for requesting information. 12 The Director shall make available for public inspection 13 in the Department's principal office and for publication, at 14 cost, administrative decisions issued on or after January 1, 15 1995. These decisions are to be made available in a manner so 16 that the following taxpayer information is not disclosed: 17 (1) The names, addresses, and identification 18 numbers of the taxpayer, related entities, and employees. 19 (2) At the sole discretion of the Director, trade 20 secrets or other confidential information identified as 21 such by the taxpayer, no later than 30 days after receipt 22 of an administrative decision, by such means as the 23 Department shall provide by rule. 24 The Director shall determine the appropriate extent of 25 the deletions allowed in paragraph (2). In the event the 26 taxpayer does not submit deletions, the Director shall make 27 only the deletions specified in paragraph (1). 28 The Director shall make available for public inspection 29 and publication an administrative decision within 180 days 30 after the issuance of the administrative decision. The term 31 "administrative decision" has the same meaning as defined in 32 Section 3-101 of Article III of the Code of Civil Procedure. 33 Costs collected under this Section shall be paid into the Tax 34 Compliance and Administration Fund. SB88 Enrolled -47- LRB9202600SMdv 1 Nothing contained in this Act shall prevent the Director 2 from divulging information to any person pursuant to a 3 request or authorization made by the taxpayer or by an 4 authorized representative of the taxpayer. 5 (Source: P.A. 90-491, eff. 1-1-98.) 6 Section 90-15. The Telecommunications Municipal 7 Infrastructure Maintenance Fee Act is amended by changing 8 Sections 1, 5, 10, 15, 20, 25, 27, 27.35, 30, and 35 as 9 follows: 10 (35 ILCS 635/1) 11 Sec. 1. Short title. This Act may be cited as the 12 TelecommunicationsMunicipalInfrastructure Maintenance Fee 13 Act. 14 (Source: P.A. 90-154, eff. 1-1-98.) 15 (35 ILCS 635/5) 16 Sec. 5. Legislative intent. 17 (a) The General Assembly imposed a tax on invested 18 capital of utilities to partially replace the personal 19 property tax that was abolished by the Illinois Constitution 20 of 1970. Since that tax was imposed, telecommunications 21 retailers have evolved from utility status into an 22 increasingly competitive industry serving the public. 23 (b) This Act is intended to abolish the invested capital 24 tax on telecommunications retailers (that is, persons engaged 25 in the business of transmitting messages and acting as a 26 retailer of telecommunications as defined in Section 2 of the 27 Telecommunications Excise Tax Act). Cellular 28 telecommunications retailers have already been excluded from 29 application of the invested capital tax by earlier 30 legislative action. 31 (c) For the period prior to the effective date of this SB88 Enrolled -48- LRB9202600SMdv 1 amendatory Act of the 92nd General Assembly, this Act is also 2 intended to abolish municipal franchise fees with respect to 3 telecommunications retailers, create a uniform system for the 4 collection and distribution of fees associated with the 5 privilege of use of the public right of way for 6 telecommunications activity, and provide municipalities with 7 a comprehensive method of compensation for telecommunications 8 activity including the recovery of reasonable costs of 9 regulating the use of the public rights-of-way for 10 telecommunications activity. 11 (d) For the period from the effective date of this 12 amendatory Act of the 92nd General Assembly through December 13 31, 2002, it is the intent of the General Assembly that the 14 municipal infrastructure maintenance fee and its rate are 15 subject only to the limits prescribed in Section 20, and that 16 the fee and the rate of the fee do not relate to use of the 17 public rights-of-way or the costs associated with maintaining 18 and regulating the use of the public rights-of-way. It is 19 also the intent of the General Assembly that proceeds of the 20 municipal infrastructure maintenance fee may be used for any 21 lawful corporate purpose. It is not the intent of the 22 General Assembly that the municipal infrastructure 23 maintenance fee is in any way compensation for use of the 24 public rights-of-way. It is the intent of the General 25 Assembly that the fee be paid by all telecommunications 26 retailers, regardless of whether they have equipment in the 27 public rights-of-way. 28 (e) This amendatory Act of the 92nd General Assembly is 29 intended to repeal the municipal infrastructure maintenance 30 fee and the optional infrastructure maintenance fee effective 31 January 1, 2003. 32 (Source: P.A. 90-154, eff. 1-1-98; 91-533, eff. 8-13-99.) 33 (35 ILCS 635/10) SB88 Enrolled -49- LRB9202600SMdv 1 (Text of Section before amendment by P.A. 92-474) 2 Sec. 10. Definitions. 3 (a) "Gross charges" means the amount paid to a 4 telecommunications retailer for the act or privilege of 5 originating or receiving telecommunications in this Stateor6the municipality imposing the fee under this Act, as the7context requires,and for all services rendered in connection 8 therewith, valued in money whether paid in money or 9 otherwise, including cash, credits, services, and property of 10 every kind or nature, and shall be determined without any 11 deduction on account of the cost of such telecommunications, 12 the cost of the materials used, labor or service costs, or 13 any other expense whatsoever. In case credit is extended, 14 the amount thereof shall be included only as and when paid. 15 "Gross charges" for private line service shall include 16 charges imposed at each channel point within this Stateor17the municipality imposing the fee under this Act, charges for 18 the channel mileage between each channel point within this 19 Stateor the municipality imposing the fee under this Act, 20 and charges for that portion of the interstate inter-office 21 channel provided within Illinoisor the municipality imposing22the fee under this Act. However, "gross charges" shall not 23 include: 24 (1) any amounts added to a purchaser's bill because 25 of a charge made under: (i) the fee imposed by this 26 Section, (ii) additional charges added to a purchaser's 27 bill under Section 9-221 or 9-222 of the Public Utilities 28 Act, (iii)amounts collected under Section 8-11-17 of the29Illinois Municipal Code, (iv)the tax imposed by the 30 Telecommunications Excise Tax Act, (iv)(v)911 31 surcharges, (v)or (vi)the tax imposed by Section 4251 32 of the Internal Revenue Code, or (vi) the tax imposed by 33 the Simplified Municipal Telecommunications Tax Act; 34 (2) charges for a sent collect telecommunication SB88 Enrolled -50- LRB9202600SMdv 1 received outside of this Stateor the municipality2imposing the fee, as the context requires; 3 (3) charges for leased time on equipment or charges 4 for the storage of data or information or subsequent 5 retrieval or the processing of data or information 6 intended to change its form or content. Such equipment 7 includes, but is not limited to, the use of calculators, 8 computers, data processing equipment, tabulating 9 equipment, or accounting equipment and also includes the 10 usage of computers under a time-sharing agreement. 11 (4) charges for customer equipment, including such 12 equipment that is leased or rented by the customer from 13 any source, wherein such charges are disaggregated and 14 separately identified from other charges; 15 (5) charges to business enterprises certified under 16 Section 9-222.1 of the Public Utilities Act to the extent 17 of such exemption and during the period of time specified 18 by the Department of Commerce and Community Affairsor by19the municipality imposing the fee under the Act, as the20context requires; 21 (6) charges for telecommunications and all services 22 and equipment provided in connection therewith between a 23 parent corporation and its wholly owned subsidiaries or 24 between wholly owned subsidiaries, and only to the extent 25 that the charges between the parent corporation and 26 wholly owned subsidiaries or between wholly owned 27 subsidiaries represent expense allocation between the 28 corporations and not the generation of profit other than 29 a regulatory required profit for the corporation 30 rendering such services; 31 (7) bad debts ("bad debt" means any portion of a 32 debt that is related to a sale at retail for which gross 33 charges are not otherwise deductible or excludable that 34 has become worthless or uncollectible, as determined SB88 Enrolled -51- LRB9202600SMdv 1 under applicable federal income tax standards; if the 2 portion of the debt deemed to be bad is subsequently 3 paid, the retailer shall report and pay the tax on that 4 portion during the reporting period in which the payment 5 is made); or 6 (8) charges paid by inserting coins in 7 coin-operated telecommunication devices.; or8(9) charges for telecommunications and all services9and equipment provided to a municipality imposing the10infrastructure maintenance fee.11 (a-5) "Department" means the Illinois Department of 12 Revenue. 13 (b) "Telecommunications" includes, but is not limited 14 to, messages or information transmitted through use of local, 15 toll, and wide area telephone service, channel services, 16 telegraph services, teletypewriter service, computer exchange 17 services, private line services, specialized mobile radio 18 services, or any other transmission of messages or 19 information by electronic or similar means, between or among 20 points by wire, cable, fiber optics, laser, microwave, radio, 21 satellite, or similar facilities. Unless the context clearly 22 requires otherwise, "telecommunications" shall also include 23 wireless telecommunications as hereinafter defined. 24 "Telecommunications" shall not include value added services 25 in which computer processing applications are used to act on 26 the form, content, code, and protocol of the information for 27 purposes other than transmission. "Telecommunications" shall 28 not include purchase of telecommunications by a 29 telecommunications service provider for use as a component 30 part of the service provided by him or her to the ultimate 31 retail consumer who originates or terminates the end-to-end 32 communications. Retailer access charges, right of access 33 charges, charges for use of intercompany facilities, and all 34 telecommunications resold in the subsequent provision and SB88 Enrolled -52- LRB9202600SMdv 1 used as a component of, or integrated into, end-to-end 2 telecommunications service shall not be included in gross 3 charges as sales for resale. "Telecommunications" shall not 4 include the provision of cable services through a cable 5 system as defined in the Cable Communications Act of 1984 (47 6 U.S.C. Sections 521 and following) as now or hereafter 7 amended or through an open video system as defined in the 8 Rules of the Federal Communications Commission (47 C.D.F. 9 76.1550 and following) as now or hereafter amended. Beginning 10 January 1, 2001, prepaid telephone calling arrangements shall 11 not be considered "telecommunications" subject to the tax 12 imposed under this Act. For purposes of this Section, 13 "prepaid telephone calling arrangements" means that term as 14 defined in Section 2-27 of the Retailers' Occupation Tax Act. 15 (c) "Wireless telecommunications" includes cellular 16 mobile telephone services, personal wireless services as 17 defined in Section 704(C) of the Telecommunications Act of 18 1996 (Public Law No. 104-104) as now or hereafter amended, 19 including all commercial mobile radio services, and paging 20 services. 21 (d) "Telecommunications retailer" or "retailer" or 22 "carrier" means and includes every person engaged in the 23 business of making sales of telecommunications at retail as 24 defined in this Section. TheIllinoisDepartmentof Revenue25or the municipality imposing the fee, as the case may be,26 may, in its discretion, upon applications, authorize the 27 collection of the fee hereby imposed by any retailer not 28 maintaining a place of business within this State, who, to 29 the satisfaction of the Departmentor municipality, furnishes 30 adequate security to insure collection and payment of the 31 fee. When so authorized, it shall be the duty of such 32 retailer to pay the fee upon all of the gross charges for 33 telecommunications in the same manner and subject to the same 34 requirements as a retailer maintaining a place of business SB88 Enrolled -53- LRB9202600SMdv 1 within thistheStateor municipality imposing the fee. 2 (e) "Retailer maintaining a place of business in this 3 State", or any like term, means and includes any retailer 4 having or maintaining within this State, directly or by a 5 subsidiary, an office, distribution facilities, transmission 6 facilities, sales office, warehouse, or other place of 7 business, or any agent or other representative operating 8 within this State under the authority of the retailer or its 9 subsidiary, irrespective of whether such place of business or 10 agent or other representative is located here permanently or 11 temporarily, or whether such retailer or subsidiary is 12 licensed to do business in this State. 13 (f) "Sale of telecommunications at retail" means the 14 transmitting, supplying, or furnishing of telecommunications 15 and all services rendered in connection therewith for a 16 consideration, other than between a parent corporation and 17 its wholly owned subsidiaries or between wholly owned 18 subsidiaries, when the gross charge made by one such 19 corporation to another such corporation is not greater than 20 the gross charge paid to the retailer for their use or 21 consumption and not for sale. 22 (g) "Service address" means the location of 23 telecommunications equipment from which telecommunications 24 services are originated or at which telecommunications 25 services are received. If this is not a defined location, as 26 in the case of wireless telecommunications, paging systems, 27 maritime systems, air-to-ground systems, and the like, 28 "service address" shall mean the location of the customer's 29 primary use of the telecommunications equipment as defined by 30 the location in Illinois where bills are sent. 31 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97; 32 91-870, eff. 6-22-00.) 33 (Text of Section after amendment by P.A. 92-474) 34 Sec. 10. Definitions. SB88 Enrolled -54- LRB9202600SMdv 1 (a) "Gross charges" means the amount paid to a 2 telecommunications retailer for the act or privilege of 3 originating or receiving telecommunications in this Stateor4the municipality imposing the fee under this Act, as the5context requires,and for all services rendered in connection 6 therewith, valued in money whether paid in money or 7 otherwise, including cash, credits, services, and property of 8 every kind or nature, and shall be determined without any 9 deduction on account of the cost of such telecommunications, 10 the cost of the materials used, labor or service costs, or 11 any other expense whatsoever. In case credit is extended, 12 the amount thereof shall be included only as and when paid. 13 "Gross charges" for private line service shall include 14 charges imposed at each channel point within this Stateor15the municipality imposing the fee under this Act, charges for 16 the channel mileage between each channel point within this 17 Stateor the municipality imposing the fee under this Act, 18 and charges for that portion of the interstate inter-office 19 channel provided within Illinoisor the municipality imposing20the fee under this Act. However, "gross charges" shall not 21 include: 22 (1) any amounts added to a purchaser's bill because 23 of a charge made under: (i) the fee imposed by this 24 Section, (ii) additional charges added to a purchaser's 25 bill under Section 9-221 or 9-222 of the Public Utilities 26 Act, (iii)amounts collected under Section 8-11-17 of the27Illinois Municipal Code, (iv)the tax imposed by the 28 Telecommunications Excise Tax Act, (iv)(v)911 29 surcharges, (v)or (vi)the tax imposed by Section 4251 30 of the Internal Revenue Code, or (vi) the tax imposed by 31 the Simplified Municipal Telecommunications Tax Act; 32 (2) charges for a sent collect telecommunication 33 received outside of this Stateor the municipality34imposing the fee, as the context requires; SB88 Enrolled -55- LRB9202600SMdv 1 (3) charges for leased time on equipment or charges 2 for the storage of data or information or subsequent 3 retrieval or the processing of data or information 4 intended to change its form or content. Such equipment 5 includes, but is not limited to, the use of calculators, 6 computers, data processing equipment, tabulating 7 equipment, or accounting equipment and also includes the 8 usage of computers under a time-sharing agreement; 9 (4) charges for customer equipment, including such 10 equipment that is leased or rented by the customer from 11 any source, wherein such charges are disaggregated and 12 separately identified from other charges; 13 (5) charges to business enterprises certified under 14 Section 9-222.1 of the Public Utilities Act to the extent 15 of such exemption and during the period of time specified 16 by the Department of Commerce and Community Affairsor by17the municipality imposing the fee under the Act, as the18context requires; 19 (6) charges for telecommunications and all services 20 and equipment provided in connection therewith between a 21 parent corporation and its wholly owned subsidiaries or 22 between wholly owned subsidiaries, and only to the extent 23 that the charges between the parent corporation and 24 wholly owned subsidiaries or between wholly owned 25 subsidiaries represent expense allocation between the 26 corporations and not the generation of profit other than 27 a regulatory required profit for the corporation 28 rendering such services; 29 (7) bad debts ("bad debt" means any portion of a 30 debt that is related to a sale at retail for which gross 31 charges are not otherwise deductible or excludable that 32 has become worthless or uncollectible, as determined 33 under applicable federal income tax standards; if the 34 portion of the debt deemed to be bad is subsequently SB88 Enrolled -56- LRB9202600SMdv 1 paid, the retailer shall report and pay the tax on that 2 portion during the reporting period in which the payment 3 is made); or 4 (8) charges paid by inserting coins in 5 coin-operated telecommunication devices.; or6(9) charges for telecommunications and all services7and equipment provided to a municipality imposing the8infrastructure maintenance fee.9 (a-5) "Department" means the Illinois Department of 10 Revenue. 11 (b) "Telecommunications" includes, but is not limited 12 to, messages or information transmitted through use of local, 13 toll, and wide area telephone service, channel services, 14 telegraph services, teletypewriter service, computer exchange 15 services, private line services, specialized mobile radio 16 services, or any other transmission of messages or 17 information by electronic or similar means, between or among 18 points by wire, cable, fiber optics, laser, microwave, radio, 19 satellite, or similar facilities. Unless the context clearly 20 requires otherwise, "telecommunications" shall also include 21 wireless telecommunications as hereinafter defined. 22 "Telecommunications" shall not include value added services 23 in which computer processing applications are used to act on 24 the form, content, code, and protocol of the information for 25 purposes other than transmission. "Telecommunications" shall 26 not include purchase of telecommunications by a 27 telecommunications service provider for use as a component 28 part of the service provided by him or her to the ultimate 29 retail consumer who originates or terminates the end-to-end 30 communications. Retailer access charges, right of access 31 charges, charges for use of intercompany facilities, and all 32 telecommunications resold in the subsequent provision and 33 used as a component of, or integrated into, end-to-end 34 telecommunications service shall not be included in gross SB88 Enrolled -57- LRB9202600SMdv 1 charges as sales for resale. "Telecommunications" shall not 2 include the provision of cable services through a cable 3 system as defined in the Cable Communications Act of 1984 (47 4 U.S.C. Sections 521 and following) as now or hereafter 5 amended or through an open video system as defined in the 6 Rules of the Federal Communications Commission (47 C.D.F. 7 76.1550 and following) as now or hereafter amended. Beginning 8 January 1, 2001, prepaid telephone calling arrangements shall 9 not be considered "telecommunications" subject to the tax 10 imposed under this Act. For purposes of this Section, 11 "prepaid telephone calling arrangements" means that term as 12 defined in Section 2-27 of the Retailers' Occupation Tax Act. 13 (c) "Wireless telecommunications" includes cellular 14 mobile telephone services, personal wireless services as 15 defined in Section 704(C) of the Telecommunications Act of 16 1996 (Public Law No. 104-104) as now or hereafter amended, 17 including all commercial mobile radio services, and paging 18 services. 19 (d) "Telecommunications retailer" or "retailer" or 20 "carrier" means and includes every person engaged in the 21 business of making sales of telecommunications at retail as 22 defined in this Section. TheIllinoisDepartmentof Revenue23or the municipality imposing the fee, as the case may be,24 may, in its discretion, upon applications, authorize the 25 collection of the fee hereby imposed by any retailer not 26 maintaining a place of business within this State, who, to 27 the satisfaction of the Departmentor municipality, furnishes 28 adequate security to insure collection and payment of the 29 fee. When so authorized, it shall be the duty of such 30 retailer to pay the fee upon all of the gross charges for 31 telecommunications in the same manner and subject to the same 32 requirements as a retailer maintaining a place of business 33 within thistheStateor municipality imposing the fee. 34 (e) "Retailer maintaining a place of business in this SB88 Enrolled -58- LRB9202600SMdv 1 State", or any like term, means and includes any retailer 2 having or maintaining within this State, directly or by a 3 subsidiary, an office, distribution facilities, transmission 4 facilities, sales office, warehouse, or other place of 5 business, or any agent or other representative operating 6 within this State under the authority of the retailer or its 7 subsidiary, irrespective of whether such place of business or 8 agent or other representative is located here permanently or 9 temporarily, or whether such retailer or subsidiary is 10 licensed to do business in this State. 11 (f) "Sale of telecommunications at retail" means the 12 transmitting, supplying, or furnishing of telecommunications 13 and all services rendered in connection therewith for a 14 consideration, other than between a parent corporation and 15 its wholly owned subsidiaries or between wholly owned 16 subsidiaries, when the gross charge made by one such 17 corporation to another such corporation is not greater than 18 the gross charge paid to the retailer for their use or 19 consumption and not for sale. 20 (g) "Service address" means the location of 21 telecommunications equipment from which telecommunications 22 services are originated or at which telecommunications 23 services are received. If this is not a defined location, as 24 in the case of wireless telecommunications, paging systems, 25 maritime systems, service address means the customer's place 26 of primary use as defined in the Mobile Telecommunications 27 Sourcing Conformity Act. For air-to-ground systems, and the 28 like, "service address" shall mean the location of the 29 customer's primary use of the telecommunications equipment as 30 defined by the location in Illinois where bills are sent. 31 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02.) 32 (35 ILCS 635/15) 33 Sec. 15. State telecommunications infrastructure SB88 Enrolled -59- LRB9202600SMdv 1 maintenance fees. 2 (a) A State infrastructure maintenance fee is hereby 3 imposed upon telecommunications retailers as a replacement 4 for the personal property tax in an amount specified in 5 subsection (b). 6 (b) The amount of the State infrastructure maintenance 7 fee imposed upon a telecommunications retailer under this 8 Section shall be equal to 0.5% of all gross charges charged 9 by the telecommunications retailer to service addresses in 10 this State for telecommunications, other than wireless 11 telecommunications, originating or received in this State. 12 However, the State infrastructure maintenance fee is not 13 imposed in any case in which the imposition of the fee would 14 violate the Constitution or statutes of the United States. 15 (c) (Blank).An optional infrastructure maintenance fee16is hereby created. A telecommunications retailer may elect17to pay the optional infrastructure maintenance fee with18respect to the gross charges charged by the19telecommunications retailer to service addresses in a20particular municipality for telecommunications, other than21wireless telecommunications, originating or received in the22municipality if (1) the telecommunications retailer is not23required to pay any compensation to the municipality under an24existing franchise agreement and (2) the municipality has not25imposed a municipal infrastructure maintenance fee as26authorized in Section 20 of this Act. A telecommunications27retailer electing to pay the optional infrastructure28maintenance fee shall notify the Department of such election29on the application for certificate of registration. If a30telecommunications retailer elects to pay this fee with31respect to the gross charges charged by the32telecommunications retailer to service addresses in a33particular municipality, such election shall remain in full34force and effect until such time as the municipality imposesSB88 Enrolled -60- LRB9202600SMdv 1a municipal infrastructure maintenance fee.2 (d) (Blank).The amount of the optional infrastructure3maintenance fee which a telecommunications retailer may elect4to pay with respect to a particular municipality shall be5equal to 25% of the maximum amount of the municipal6infrastructure maintenance fee which the municipality could7impose under Section 20 of this Act.8 (e) The State infrastructure maintenance feeand the9optional infrastructure maintenance feeauthorized by this 10 Section shall be collected, enforced, and administered as set 11 forth in subsection (b) of Section 25 of this Act. 12 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97.) 13 (35 ILCS 635/20) 14 Sec. 20. Municipal telecommunications infrastructure 15 maintenance fee. 16 (a) A municipality may impose a municipal infrastructure 17 maintenance fee upon telecommunications retailers in an 18 amount specified in subsection (b). On and after the 19 effective date of this amendatory Act of 1997, a certified 20 copy of an ordinance or resolution imposing a fee under this 21 Section shall be filed with the Department within 30 days 22 after the effective date of this amendatory Act or the 23 effective date of the ordinance or resolution imposing such 24 fee, whichever is later. Failure to file a certified copy of 25 the ordinance or resolution imposing a fee under this Section 26 shall have no effect on the validity of the ordinance or 27 resolution. The Department shall create and maintain a list 28 of all ordinances and resolutions filed pursuant to this 29 Section and make that list, as well as copies of the 30 ordinances and resolutions, available to the public for a 31 reasonable fee. 32 (b) The amount of the municipal infrastructure 33 maintenance fee imposed upon a telecommunications retailer SB88 Enrolled -61- LRB9202600SMdv 1 under this Section shall not exceed: (i) in a municipality 2 with a population of more than 500,000, 2.0% of all gross 3 charges charged by the telecommunications retailer to service 4 addresses in the municipality for telecommunications 5 originating or received in the municipality; and (ii) in a 6 municipality with a population of 500,000 or less, 1.0% of 7 all gross charges charged by the telecommunications retailer 8 to service addresses in the municipality for 9 telecommunications originating or received in the 10 municipality which fee, for the period commencing on the 11 effective date of this amendatory Act of the 92nd General 12 Assembly through December 31, 2002, may be imposed at the 13 rates set forth herein without regard to the provisions of 14 Sections 8-11-2 and 8-11-17 of the Illinois Municipal Code. 15 If imposed, the municipal telecommunications infrastructure 16 fee must be in 1/4% increments. However, the fee shall not be 17 imposed in any case in which the imposition of the fee would 18 violate the Constitution or statutes of the United States. 19 (c) The municipal telecommunications infrastructure fee 20 authorized by this Section shall be collected, enforced, and 21 administered as set forth in subsection (c) of Section 25 of 22 this Act. 23 (d) A municipality with a population of more than 24 500,000 that imposes a municipal infrastructure maintenance 25 fee under this Section may, by ordinance, exempt from the fee 26 all charges for the inbound toll-free telecommunications 27 service commonly known as "800", "877", or "888" or for a 28 similar service. 29 (e) For the period from the effective date of this 30 amendatory Act of the 92nd General Assembly through December 31 31, 2002, any ordinance previously enacted for the purpose of 32 imposing a municipal infrastructure maintenance fee shall be 33 valid and effective for the purpose of imposing the municipal 34 infrastructure maintenance fee described in subsection (d) of SB88 Enrolled -62- LRB9202600SMdv 1 Section 5 of this Act. 2 (f) This Section is repealed on January 1, 2003. 3 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97; 4 91-870, eff. 6-22-00.) 5 (35 ILCS 635/25) 6 Sec. 25. Collection, enforcement, and administration of 7 State telecommunications infrastructure maintenance fees. 8 (a) A telecommunications retailer shall charge each 9 customer an additional charge equal tothe sum of (1) an10amount equal tothe State infrastructure maintenance fee 11 attributable to that customer's service addressand (2) an12amount equal to the optional infrastructure maintenance fee,13if any, attributable to that customer's service address and14(3) an amount equal to the municipal infrastructure15maintenance fee, if any, attributable to that customer's16service address. Such additional charge shall be shown 17 separately on the bill to each customer. 18 (b) The State infrastructure maintenance feeand the19optional infrastructure maintenance feeshall be designated 20 as a replacement for the personal property tax and shall be 21 remitted by the telecommunications retailer to theIllinois22 Departmentof Revenue; provided, however, that the 23 telecommunications retailer may retain an amount not to 24 exceed 2% of the State infrastructure maintenance feeand the25optional infrastructure maintenance fee, if any,paid to the 26 Department, with a timely paid and timely filed return to 27 reimburse itself for expenses incurred in collecting, 28 accounting for, and remitting the fee. All amounts herein 29 remitted to the Department shall be transferred to the 30 Personal Property Tax Replacement Fund in the State Treasury. 31(c) The municipal infrastructure maintenance fee shall32be remitted by the telecommunications retailer to the33municipality imposing the municipal infrastructureSB88 Enrolled -63- LRB9202600SMdv 1maintenance fee; provided, however, that the2telecommunications retailer may retain an amount not to3exceed 2% of the municipal infrastructure maintenance fee4collected by it to reimburse itself for expenses incurred in5accounting for and remitting the fee. The municipality6imposing the municipal infrastructure maintenance fee shall7collect, enforce, and administer the fee.8(d) Except as provided in subsection (e), During any9period of time when a municipality receives any compensation10other than the municipal infrastructure maintenance fee set11forth in Section 20, for a telecommunications retailer's use12of the public right-of-way, no municipal infrastructure13maintenance fee may be imposed by such municipality pursuant14to this Act.15(e) A municipality that, pursuant to a franchise16agreement in existence on the effective date of this Act,17receives compensation from a telecommunications retailer for18the use of the public right of way, may impose a municipal19infrastructure maintenance fee pursuant to this Act only on20the condition that such municipality (1) waives its right to21receive all fees, charges and other compensation under all22existing franchise agreements or the like with23telecommunications retailers during the time that the24municipality imposes a municipal infrastructure maintenance25fee and (2) imposes by ordinance (or other proper means) a26municipal infrastructure maintenance fee which becomes27effective no sooner than 90 days after such municipality has28provided written notice by certified mail to each29telecommunications retailer with whom the municipality has an30existing franchise agreement, that the municipality waives31all compensation under such existing franchise agreement.32 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97; 33 90-655, eff. 7-30-98.) SB88 Enrolled -64- LRB9202600SMdv 1 (35 ILCS 635/27) 2 Sec. 27. Returns by telecommunications retailer; 3 extensions. Except as provided hereinafter in this Section, 4 on or before the 30th day of each month each 5 telecommunications retailer maintaining a place of business 6 in this State shall make a return and payment of fees to the 7 Department for the preceding calendar month on a form 8 prescribed and furnished by the Department. The return shall 9 be signed by the telecommunications retailer under penalties 10 of perjury and shall contain the following information: 11 1. His or her name; 12 2. The address of his or her principal place of 13 business, orandthe address of the principal place of 14 business (if that is a different address) from which he 15 or she engages in the business of transmitting 16 telecommunications; 17 3. The total amount of gross charges charged by him 18 or her during the preceding calendar month for providing 19 telecommunications during such calendar month; 20 4. The total amount received by him or her during 21 the preceding calendar month on credit extended; 22 5. Deductions allowed by law; 23 6. Gross charges that were charged by him or her 24 during the preceding calendar month and upon the basis of 25 which the State infrastructure maintenance fee is 26 imposed; 27 7. (Blank)Gross charges that were charged by him28or her during the preceding calendar month and upon the29basis of which the optional infrastructure maintenance30fee, if any, is imposed for each particular municipality; 31 8. Amounts of fees due; 32 9. Such other reasonable information as the 33 Department may require. 34 If the telecommunications retailer's average monthly SB88 Enrolled -65- LRB9202600SMdv 1 liability to the Department does not exceed $100, the 2 Department may authorize his or her returns to be filed on a 3 quarter annual basis, with the return for January, February, 4 and March of a given year being due by April 15 of such year; 5 with the return for April, May, and June of a given year 6 being due by July 15 of such year; with the return for July, 7 August, and September of a given year being due by October 15 8 of such year; and with the return of October, November, and 9 December of a given year being due by January 15 of the 10 following year. 11 Notwithstanding any other provision of this Act 12 concerning the time within which a telecommunications 13 retailer may file his or her return, in the case of any 14 telecommunications retailer who ceases to engage in a kind of 15 business which makes him or her responsible for filing 16 returns under this Act, such telecommunications retailer 17 shall file a final return under this Act with the Department 18 not more than one month after discontinuing such business. 19 In making such return, the telecommunications retailer 20 shall determine the value of any consideration other than 21 money received by him or her and he or she shall include such 22 value in his or her return. Such determination shall be 23 subject to review and revision by the Department in the 24 manner hereinafter provided for the correction of returns. 25 If any payment provided for in this Section exceeds the 26 telecommunications retailer's liabilities under this Act, as 27 shown on an original monthly return, the Department may 28 authorize the telecommunications retailer to credit such 29 excess payment against liability subsequently to be remitted 30 to the Department under this Act, in accordance with 31 reasonable rules and regulations prescribed by the 32 Department. If the Department subsequently determines that 33 all or any part of the credit taken was not actually due to 34 the telecommunications retailer, the telecommunications SB88 Enrolled -66- LRB9202600SMdv 1 retailer's 2% discount shall be reduced by 2% of the 2 difference between the credit taken and that actually due, 3 and that telecommunications retailer shall be liable for 4 penalties and interest on such difference. 5If the Director finds that the information required for6the making of an accurate return cannot reasonably be7compiled by a telecommunications retailer within 15 days8after the close of the calendar month for which a return is9to be made, he or she may grant an extension of time for the10filing of such return for a period of not to exceed 3111calendar days. The granting of such an extension may be12conditioned upon the deposit by the telecommunications13retailer with the Department of an amount of money not14exceeding the amount estimated by the Director to be due with15the return so extended. All such deposits, including any16heretofore made with the Department, shall be credited17against the telecommunications retailer's liabilities under18this Act. If any such deposit exceeds the telecommunications19retailer's present and probable future liabilities under this20Act, the Department shall issue to the telecommunications21retailer a credit memorandum, which may be assigned by the22telecommunications retailer to a similar telecommunications23retailer under this Act, in accordance with reasonable rules24and regulations to be prescribed by the Department.25 Any telecommunications retailer required to make payments 26 under this Section may make the payments by electronic funds 27 transfer. The Department shall adopt rules necessary to 28 effectuate a program of electronic funds transfer. 29 (Source: P.A. 90-562, eff. 12-16-97.) 30 (35 ILCS 635/27.35) 31 Sec. 27.35. Rules and regulations; notice to 32 telecommunications retailer; hearings. The Department may 33 make, promulgate, and enforce such reasonable rules and SB88 Enrolled -67- LRB9202600SMdv 1 regulations relating to the administration and enforcement of 2 only the State infrastructure maintenance feeand the3optional infrastructure maintenance feeauthorized by this 4 Act.Such rules and regulations shall not apply to the5administration and enforcement of the municipal6infrastructure maintenance fee authorized by this Act.7 Whenever notice to a telecommunications retailer is 8 required by this Act, such notice may be given by United 9 States certified or registered mail, addressed to the 10 telecommunications retailer concerned at his or her last 11 known address, and proof of such mailing shall be sufficient 12 for the purposes of this Act. In the case of a notice of 13 hearing, such notice shall be mailed not less than 7 days 14 prior to the day fixed for the hearing. 15 All hearings provided for in this Act with respect to a 16 telecommunications retailer having his or her principal place 17 of business other than in Cook County shall be held at the 18 Department's office nearest to the location of the 19 telecommunications retailer's principal place of business: 20 Provided that if the telecommunications retailer has his or 21 her principal place of business in Cook County, such hearing 22 shall be held in Cook County; and provided further that if 23 the telecommunications retailer does not have his principal 24 place of business in this State, such hearings shall be held 25 in Sangamon County. 26 Whenever any proceeding provided by this Act has been 27 begun by the Department or by a person subject thereto and 28 such person thereafter dies or becomes a person under legal 29 disability before the proceeding has been concluded, the 30 legal representative of the deceased person or a person under 31 legal disability shall notify the Department of such death or 32 legal disability. The legal representative, as such, shall 33 then be substituted by the Department in place of and for the 34 person. Within 20 days after notice to the legal SB88 Enrolled -68- LRB9202600SMdv 1 representative of the time fixed for that purpose, the 2 proceeding may proceed in all respects and with like effect 3 as though the person had not died or become a person under 4 legal disability. 5 (Source: P.A. 90-562, eff. 12-16-97.) 6 (35 ILCS 635/30) 7 Sec. 30. Validity of existing franchise fees and 8 agreements. 9 (a)Upon the effective date of this Act, the municipal10infrastructure maintenance fee authorized by this Act shall11be the only fee or compensation for recovering the reasonable12costs of regulating the use of the public rights-of-way and13for the use of public rights-of-way that may be levied by or14otherwise required by ordinance, resolution, or contract to15be paid to a municipality for the use of its public way by16telecommunications retailers.No new franchise fees or other 17 charges for the use of the public rights-of-way, including 18 charges for the recovery of reasonable costs of regulating 19 the use of the public rights-of-way, shall be imposed upon, 20 levied on, or otherwise required of telecommunications 21 retailers by ordinance, resolution, or contract, nor shall 22 anyorother new charges be required from telecommunications 23 retailers by municipalities from and after the effective date 24 of this Act.No telecommunications retailer paying either25the applicable municipal infrastructure maintenance fee or26the optional infrastructure maintenance fee authorized by27this Act may be denied the use, directly or indirectly, of28the public way of the municipality either imposing the29municipal infrastructure maintenance fee or to which the30optional infrastructure maintenance fee relates, as the case31may be, as authorized under the Telephone Company Act.32 Nothing in this Act shall excuse any person or entity from 33 obligations imposed under any law concerning generally SB88 Enrolled -69- LRB9202600SMdv 1 applicable taxes or standards for construction on, over, 2 under, or within, use of or repair of the public 3 rights-of-way, including standards relating to free standing 4 towers and other structures upon the public way, nor shall 5 any person or entity be excused from any liability imposed by 6 any such law for the failure to comply with such generally 7 applicable taxes or standards governing construction on, 8 over, under, or within, use of or repair of the public 9 rights-of-way. 10 (b) Agreements between telecommunications retailers and 11 municipalities entered into before the effective date of this 12 Act regarding use of the public ways shall remain valid 13 according to and for their stated terms, except as to fees or 14 charges waived under Section 5-60 of the Simplified Municipal 15 Telecommunications Tax Act.If, following the effective date16of this Act, such an agreement is renewed automatically or by17agreement of the parties, the compensation or fee under the18agreement shall be equal to the maximum amount of the19municipal infrastructure maintenance fee which the20municipality could impose under Section 20 of this Act.21 (c) The regulation of the terms and conditions upon 22 which poles, conduits, and other facilities located in the 23 public way may be shared by or between telecommunications 24 retailers shall be committed exclusively to the jurisdiction 25 of the Illinois Commerce Commission and the Federal 26 Communications Commission, and such regulation shall not be 27 among the home rule powers and functions described in 28 subsection (h) of Section 6 of Article VII of the Illinois 29 Constitution. Moreover, no municipality may enter into any 30 contract or agreement with a telecommunications retailer with 31 respect to the terms and conditions upon which poles, 32 conduits, and other facilities located in the public way may 33 be shared by or between telecommunications retailers. 34 (Source: P.A. 90-154, eff. 1-1-98.) SB88 Enrolled -70- LRB9202600SMdv 1 (35 ILCS 635/35) 2 Sec. 35. Home rule. The authorization of infrastructure 3 maintenance feesand other fees relating to the use of the4public right-of-way for telecommunications activity imposed5upon telecommunications retailersis an exclusive power and 6 function of the State. A home rule municipality may not 7 impose franchise or other fees upon or require other 8 compensation from telecommunications retailers for use of the 9 public way, other than the municipal infrastructure10maintenance fee authorized by this Act. This Act is a denial 11 and limitation of municipal home rule powers and functions 12 under subsection (g)(h)of Section 6 of Article VII of the 13 Illinois Constitution. 14 (Source: P.A. 90-154, eff. 1-1-98.) 15 Section 90-20. The Emergency Telephone System Act is 16 amended by changing Section 15.3 as follows: 17 (50 ILCS 750/15.3) (from Ch. 134, par. 45.3) 18 (Text of Section before amendment by P.A. 92-474) 19 Sec. 15.3. (a) The corporate authorities of any 20 municipality or any county may, subject to the limitations of 21 subsections (c), (d), and (h), and in addition to any tax 22 levied pursuant to the Simplified Municipal 23 Telecommunications Tax ActSection 8-11-2 of the Illinois24Municipal Code, impose a monthly surcharge on billed 25 subscribers of network connection provided by 26 telecommunication carriers engaged in the business of 27 transmitting messages by means of electricity originating 28 within the corporate limits of the municipality or county 29 imposing the surcharge at a rate per network connection 30 determined in accordance with subsection (c). A municipality 31 may enter into an intergovernmental agreement with any county 32 in which it is partially located, when the county has adopted SB88 Enrolled -71- LRB9202600SMdv 1 an ordinance to impose a surcharge as provided in subsection 2 (c), to include that portion of the municipality lying 3 outside the county in that county's surcharge referendum. If 4 the county's surcharge referendum is approved, the portion of 5 the municipality identified in the intergovernmental 6 agreement shall automatically be disconnected from the county 7 in which it lies and connected to the county which approved 8 the referendum for purposes of a surcharge on 9 telecommunications carriers. 10 (b) For purposes of computing the surcharge imposed by 11 subsection (a), the network connections to which the 12 surcharge shall apply shall be those in-service network 13 connections, other than those network connections assigned to 14 the municipality or county, where the service address for 15 each such network connection or connections is located within 16 the corporate limits of the municipality or county levying 17 the surcharge. The "service address" shall mean the location 18 of the primary use of the network connection or connections. 19 With respect to network connections provided for use with pay 20 telephone services for which there is no billed subscriber, 21 the telecommunications carrier providing the network 22 connection shall be deemed to be its own billed subscriber 23 for purposes of applying the surcharge. 24 (c) Upon the passage of an ordinance to impose a 25 surcharge under this Section the clerk of the municipality or 26 county shall certify the question of whether the surcharge 27 may be imposed to the proper election authority who shall 28 submit the public question to the electors of the 29 municipality or county in accordance with the general 30 election law; provided that such question shall not be 31 submitted at a consolidated primary election. The public 32 question shall be in substantially the following form: 33 ------------------------------------------------------------- 34 Shall the county (or city, village SB88 Enrolled -72- LRB9202600SMdv 1 or incorporated town) of.....impose YES 2 a surcharge of up to...¢ per month per 3 network connection, which surcharge will 4 be added to the monthly bill you receive ------------------ 5 for telephone or telecommunications 6 charges, for the purpose of installing 7 (or improving) a 9-1-1 Emergency NO 8 Telephone System? 9 ------------------------------------------------------------- 10 If a majority of the votes cast upon the public question 11 are in favor thereof, the surcharge shall be imposed. 12 However, if a Joint Emergency Telephone System Board is 13 to be created pursuant to an intergovernmental agreement 14 under Section 15.4, the ordinance to impose the surcharge 15 shall be subject to the approval of a majority of the total 16 number of votes cast upon the public question by the electors 17 of all of the municipalities or counties, or combination 18 thereof, that are parties to the intergovernmental agreement. 19 The referendum requirement of this subsection (c) shall 20 not apply to any municipality with a population over 500,000 21 or to any county in which a proposition as to whether a 22 sophisticated 9-1-1 Emergency Telephone System should be 23 installed in the county, at a cost not to exceed a specified 24 monthly amount per network connection, has previously been 25 approved by a majority of the electors of the county voting 26 on the proposition at an election conducted before the 27 effective date of this amendatory Act of 1987. 28 (d) A county may not impose a surcharge, unless 29 requested by a municipality, in any incorporated area which 30 has previously approved a surcharge as provided in subsection 31 (c) or in any incorporated area where the corporate 32 authorities of the municipality have previously entered into 33 a binding contract or letter of intent with a 34 telecommunications carrier to provide sophisticated 9-1-1 SB88 Enrolled -73- LRB9202600SMdv 1 service through municipal funds. 2 (e) A municipality or county may at any time by 3 ordinance change the rate of the surcharge imposed under this 4 Section if the new rate does not exceed the rate specified in 5 the referendum held pursuant to subsection (c). 6 (f) The surcharge authorized by this Section shall be 7 collected from the subscriber by the telecommunications 8 carrier providing the subscriber the network connection as a 9 separately stated item on the subscriber's bill. 10 (g) The amount of surcharge collected by the 11 telecommunications carrier shall be paid to the particular 12 municipality or county or Joint Emergency Telephone System 13 Board not later than 30 days after the surcharge is 14 collected, net of any network or other 9-1-1 or sophisticated 15 9-1-1 system charges then due the particular 16 telecommunications carrier, as shown on an itemized bill. 17 The telecommunications carrier collecting the surcharge shall 18 also be entitled to deduct 3% of the gross amount of 19 surcharge collected to reimburse the telecommunications 20 carrier for the expense of accounting and collecting the 21 surcharge. 22 (h) A municipality with a population over 500,000 may 23 not impose a monthly surcharge in excess of $1.25 per network 24 connection. 25 (i) Any municipality or county or joint emergency 26 telephone system board that has imposed a surcharge pursuant 27 to this Section prior to the effective date of this 28 amendatory Act of 1990 shall hereafter impose the surcharge 29 in accordance with subsection (b) of this Section. 30 (j) The corporate authorities of any municipality or 31 county may issue, in accordance with Illinois law, bonds, 32 notes or other obligations secured in whole or in part by the 33 proceeds of the surcharge described in this Section. 34 Notwithstanding any change in law subsequent to the issuance SB88 Enrolled -74- LRB9202600SMdv 1 of any bonds, notes or other obligations secured by the 2 surcharge, every municipality or county issuing such bonds, 3 notes or other obligations shall be authorized to impose the 4 surcharge as though the laws relating to the imposition of 5 the surcharge in effect at the time of issuance of the bonds, 6 notes or other obligations were in full force and effect 7 until the bonds, notes or other obligations are paid in full. 8 The State of Illinois pledges and agrees that it will not 9 limit or alter the rights and powers vested in municipalities 10 and counties by this Section to impose the surcharge so as to 11 impair the terms of or affect the security for bonds, notes 12 or other obligations secured in whole or in part with the 13 proceeds of the surcharge described in this Section. 14 (k) Any surcharge collected by or imposed on a 15 telecommunications carrier pursuant to this Section shall be 16 held to be a special fund in trust for the municipality, 17 county or Joint Emergency Telephone Board imposing the 18 surcharge. Except for the 3% deduction provided in 19 subsection (g) above, the special fund shall not be subject 20 to the claims of creditors of the telecommunication carrier. 21 (Source: P.A. 86-101; 86-1344.) 22 (Text of Section after amendment by P.A. 92-474) 23 Sec. 15.3. (a) The corporate authorities of any 24 municipality or any county may, subject to the limitations of 25 subsections (c), (d), and (h), and in addition to any tax 26 levied pursuant to the Simplified Municipal 27 Telecommunications Tax ActSection 8-11-2 of the Illinois28Municipal Code, impose a monthly surcharge on billed 29 subscribers of network connection provided by 30 telecommunication carriers engaged in the business of 31 transmitting messages by means of electricity originating 32 within the corporate limits of the municipality or county 33 imposing the surcharge at a rate per network connection 34 determined in accordance with subsection (c). For mobile SB88 Enrolled -75- LRB9202600SMdv 1 telecommunications services, if a surcharge is imposed it 2 shall be imposed based upon the municipality or county that 3 encompasses the customer's place of primary use as defined in 4 the Mobile Telecommunications Sourcing Conformity Act. A 5 municipality may enter into an intergovernmental agreement 6 with any county in which it is partially located, when the 7 county has adopted an ordinance to impose a surcharge as 8 provided in subsection (c), to include that portion of the 9 municipality lying outside the county in that county's 10 surcharge referendum. If the county's surcharge referendum 11 is approved, the portion of the municipality identified in 12 the intergovernmental agreement shall automatically be 13 disconnected from the county in which it lies and connected 14 to the county which approved the referendum for purposes of a 15 surcharge on telecommunications carriers. 16 (b) For purposes of computing the surcharge imposed by 17 subsection (a), the network connections to which the 18 surcharge shall apply shall be those in-service network 19 connections, other than those network connections assigned to 20 the municipality or county, where the service address for 21 each such network connection or connections is located within 22 the corporate limits of the municipality or county levying 23 the surcharge. Except for mobile telecommunication services, 24 the "service address" shall mean the location of the primary 25 use of the network connection or connections. For mobile 26 telecommunication services, "service address" means the 27 customer's place of primary use as defined in the Mobile 28 Telecommunications Sourcing Conformity Act. With respect to 29 network connections provided for use with pay telephone 30 services for which there is no billed subscriber, the 31 telecommunications carrier providing the network connection 32 shall be deemed to be its own billed subscriber for purposes 33 of applying the surcharge. 34 (c) Upon the passage of an ordinance to impose a SB88 Enrolled -76- LRB9202600SMdv 1 surcharge under this Section the clerk of the municipality or 2 county shall certify the question of whether the surcharge 3 may be imposed to the proper election authority who shall 4 submit the public question to the electors of the 5 municipality or county in accordance with the general 6 election law; provided that such question shall not be 7 submitted at a consolidated primary election. The public 8 question shall be in substantially the following form: 9 ------------------------------------------------------------- 10 Shall the county (or city, village 11 or incorporated town) of.....impose YES 12 a surcharge of up to...¢ per month per 13 network connection, which surcharge will 14 be added to the monthly bill you receive ------------------ 15 for telephone or telecommunications 16 charges, for the purpose of installing 17 (or improving) a 9-1-1 Emergency NO 18 Telephone System? 19 ------------------------------------------------------------- 20 If a majority of the votes cast upon the public question 21 are in favor thereof, the surcharge shall be imposed. 22 However, if a Joint Emergency Telephone System Board is 23 to be created pursuant to an intergovernmental agreement 24 under Section 15.4, the ordinance to impose the surcharge 25 shall be subject to the approval of a majority of the total 26 number of votes cast upon the public question by the electors 27 of all of the municipalities or counties, or combination 28 thereof, that are parties to the intergovernmental agreement. 29 The referendum requirement of this subsection (c) shall 30 not apply to any municipality with a population over 500,000 31 or to any county in which a proposition as to whether a 32 sophisticated 9-1-1 Emergency Telephone System should be 33 installed in the county, at a cost not to exceed a specified 34 monthly amount per network connection, has previously been SB88 Enrolled -77- LRB9202600SMdv 1 approved by a majority of the electors of the county voting 2 on the proposition at an election conducted before the 3 effective date of this amendatory Act of 1987. 4 (d) A county may not impose a surcharge, unless 5 requested by a municipality, in any incorporated area which 6 has previously approved a surcharge as provided in subsection 7 (c) or in any incorporated area where the corporate 8 authorities of the municipality have previously entered into 9 a binding contract or letter of intent with a 10 telecommunications carrier to provide sophisticated 9-1-1 11 service through municipal funds. 12 (e) A municipality or county may at any time by 13 ordinance change the rate of the surcharge imposed under this 14 Section if the new rate does not exceed the rate specified in 15 the referendum held pursuant to subsection (c). 16 (f) The surcharge authorized by this Section shall be 17 collected from the subscriber by the telecommunications 18 carrier providing the subscriber the network connection as a 19 separately stated item on the subscriber's bill. 20 (g) The amount of surcharge collected by the 21 telecommunications carrier shall be paid to the particular 22 municipality or county or Joint Emergency Telephone System 23 Board not later than 30 days after the surcharge is 24 collected, net of any network or other 9-1-1 or sophisticated 25 9-1-1 system charges then due the particular 26 telecommunications carrier, as shown on an itemized bill. 27 The telecommunications carrier collecting the surcharge shall 28 also be entitled to deduct 3% of the gross amount of 29 surcharge collected to reimburse the telecommunications 30 carrier for the expense of accounting and collecting the 31 surcharge. 32 (h) A municipality with a population over 500,000 may 33 not impose a monthly surcharge in excess of $1.25 per network 34 connection. SB88 Enrolled -78- LRB9202600SMdv 1 (i) Any municipality or county or joint emergency 2 telephone system board that has imposed a surcharge pursuant 3 to this Section prior to the effective date of this 4 amendatory Act of 1990 shall hereafter impose the surcharge 5 in accordance with subsection (b) of this Section. 6 (j) The corporate authorities of any municipality or 7 county may issue, in accordance with Illinois law, bonds, 8 notes or other obligations secured in whole or in part by the 9 proceeds of the surcharge described in this Section. 10 Notwithstanding any change in law subsequent to the issuance 11 of any bonds, notes or other obligations secured by the 12 surcharge, every municipality or county issuing such bonds, 13 notes or other obligations shall be authorized to impose the 14 surcharge as though the laws relating to the imposition of 15 the surcharge in effect at the time of issuance of the bonds, 16 notes or other obligations were in full force and effect 17 until the bonds, notes or other obligations are paid in full. 18 The State of Illinois pledges and agrees that it will not 19 limit or alter the rights and powers vested in municipalities 20 and counties by this Section to impose the surcharge so as to 21 impair the terms of or affect the security for bonds, notes 22 or other obligations secured in whole or in part with the 23 proceeds of the surcharge described in this Section. 24 (k) Any surcharge collected by or imposed on a 25 telecommunications carrier pursuant to this Section shall be 26 held to be a special fund in trust for the municipality, 27 county or Joint Emergency Telephone Board imposing the 28 surcharge. Except for the 3% deduction provided in 29 subsection (g) above, the special fund shall not be subject 30 to the claims of creditors of the telecommunication carrier. 31 (Source: P.A. 92-474, eff. 8-1-02.) 32 Section 90-22. The Wireless Emergency Telephone Safety 33 Act is amended by changing Sections 17 and 45 as follows: SB88 Enrolled -79- LRB9202600SMdv 1 (50 ILCS 751/17) 2 (Section scheduled to be repealed on April 1, 2005) 3 Sec. 17. Wireless carrier surcharge. 4 (a) Except as provided in Section 45, each wireless 5 carrier shall impose a monthly wireless carrier surcharge per 6 CMRS connection that either has a telephone number within an 7 area code assigned to Illinois by the North American 8 Numbering Plan Administrator or has a billing address in this 9 State. No wireless carrier shall impose the surcharge 10 authorized by this Section upon any subscriber who is subject 11 to the surcharge imposed by a unit of local government 12 pursuant to Section 45. The wireless carrier that provides 13 wireless service to the subscriber shall collect the 14 surcharge set by the Wireless Enhanced 9-1-1 Board from the 15 subscriber. For mobile telecommunications services provided 16 on and after August 1, 2002, any surcharge imposed under this 17 Act shall be imposed based upon the municipality or county 18 that encompasses the customer's place of primary use as 19 defined in the Mobile Telecommunications Sourcing Conformity 20 Act. The surcharge shall be stated as a separate item on 21 the subscriber's monthly bill. The wireless carrier shall 22 begin collecting the surcharge on bills issued within 90 days 23 after the Wireless Enhanced 9-1-1 Board sets the monthly 24 wireless surcharge. State and local taxes shall not apply to 25 the wireless carrier surcharge. 26 (b) Except as provided in Section 45, a wireless carrier 27 shall, within 45 days of collection, remit, either by check 28 or by electronic funds transfer, to the State Treasurer the 29 amount of the wireless carrier surcharge collected from each 30 subscriber. Of the amounts remitted under this subsection, 31 the State Treasurer shall deposit one-third into the Wireless 32 Carrier Reimbursement Fund and two-thirds into the Wireless 33 Service Emergency Fund. 34 (c) The first such remittance by wireless carriers shall SB88 Enrolled -80- LRB9202600SMdv 1 include the number of customers by zip code, and the 9-digit 2 zip code if currently being used or later implemented by the 3 carrier, that shall be the means by which the Department of 4 Central Management Services shall determine distributions 5 from the Wireless Service Emergency Fund. This information 6 shall be updated no less often than every year. Wireless 7 carriers are not required to remit surcharge moneys that are 8 billed to subscribers but not yet collected. 9 (Source: P.A. 91-660, eff. 12-22-99.) 10 (50 ILCS 751/45) 11 (Section scheduled to be repealed on April 1, 2005) 12 Sec. 45. Continuation of current practices. 13 Notwithstanding any other provision of this Act, a unit of 14 local government or emergency telephone system board 15 providing wireless 9-1-1 service and imposing and collecting 16 a wireless carrier surcharge prior to July 1, 1998 may 17 continue its practices of imposing and collecting its 18 wireless carrier surcharge, but in no event shall that 19 monthly surcharge exceed $1.25 per commercial mobile radio 20 service (CMRS) connection or in-service telephone number 21 billed on a monthly basis. For mobile telecommunications 22 services provided on and after August 1, 2002, any surcharge 23 imposed shall be imposed based upon the municipality or 24 county that encompasses the customer's place of primary use 25 as defined in the Mobile Telecommunications Sourcing 26 Conformity Act. 27 (Source: P.A. 91-660, eff. 12-22-99.) 28 Section 90-25. The Illinois Municipal Code is amended by 29 changing Section 8-11-2 as follows: 30 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2) 31 (Text of Section before amendment by P.A. 92-474) SB88 Enrolled -81- LRB9202600SMdv 1 Sec. 8-11-2. The corporate authorities of any 2 municipality may tax any or all of the following occupations 3 or privileges: 4 1. (Blank).Persons engaged in the business of5transmitting messages by means of electricity or radio6magnetic waves, or fiber optics, at a rate not to exceed75% of the gross receipts from that business originating8within the corporate limits of the municipality.9Beginning January 1, 2001, prepaid telephone calling10arrangements shall not be subject to the tax imposed11under this Section. For purposes of this Section,12"prepaid telephone calling arrangements" means that term13as defined in Section 2-27 of the Retailers' Occupation14Tax Act.15 2. Persons engaged in the business of distributing, 16 supplying, furnishing, or selling gas for use or 17 consumption within the corporate limits of a municipality 18 of 500,000 or fewer population, and not for resale, at a 19 rate not to exceed 5% of the gross receipts therefrom. 20 2a. Persons engaged in the business of 21 distributing, supplying, furnishing, or selling gas for 22 use or consumption within the corporate limits of a 23 municipality of over 500,000 population, and not for 24 resale, at a rate not to exceed 8% of the gross receipts 25 therefrom. If imposed, this tax shall be paid in monthly 26 payments. 27 3. The privilege of using or consuming electricity 28 acquired in a purchase at retail and used or consumed 29 within the corporate limits of the municipality at rates 30 not to exceed the following maximum rates, calculated on 31 a monthly basis for each purchaser: 32 (i) For the first 2,000 kilowatt-hours used or 33 consumed in a month; 0.61 cents per kilowatt-hour; 34 (ii) For the next 48,000 kilowatt-hours used or SB88 Enrolled -82- LRB9202600SMdv 1 consumed in a month; 0.40 cents per kilowatt-hour; 2 (iii) For the next 50,000 kilowatt-hours used or 3 consumed in a month; 0.36 cents per kilowatt-hour; 4 (iv) For the next 400,000 kilowatt-hours used or 5 consumed in a month; 0.35 cents per kilowatt-hour; 6 (v) For the next 500,000 kilowatt-hours used or 7 consumed in a month; 0.34 cents per kilowatt-hour; 8 (vi) For the next 2,000,000 kilowatt-hours used or 9 consumed in a month; 0.32 cents per kilowatt-hour; 10 (vii) For the next 2,000,000 kilowatt-hours used or 11 consumed in a month; 0.315 cents per kilowatt-hour; 12 (viii) For the next 5,000,000 kilowatt-hours used 13 or consumed in a month; 0.31 cents per kilowatt-hour; 14 (ix) For the next 10,000,000 kilowatt-hours used or 15 consumed in a month; 0.305 cents per kilowatt-hour; and 16 (x) For all electricity used or consumed in excess 17 of 20,000,000 kilowatt-hours in a month, 0.30 cents per 18 kilowatt-hour. 19 If a municipality imposes a tax at rates lower than 20 either the maximum rates specified in this Section or the 21 alternative maximum rates promulgated by the Illinois 22 Commerce Commission, as provided below, the tax rates 23 shall be imposed upon the kilowatt hour categories set 24 forth above with the same proportional relationship as 25 that which exists among such maximum rates. 26 Notwithstanding the foregoing, until December 31, 2008, 27 no municipality shall establish rates that are in excess 28 of rates reasonably calculated to produce revenues that 29 equal the maximum total revenues such municipality could 30 have received under the tax authorized by this 31 subparagraph in the last full calendar year prior to the 32 effective date of Section 65 of this amendatory Act of 33 1997; provided that this shall not be a limitation on the 34 amount of tax revenues actually collected by such SB88 Enrolled -83- LRB9202600SMdv 1 municipality. 2 Upon the request of the corporate authorities of a 3 municipality, the Illinois Commerce Commission shall, 4 within 90 days after receipt of such request, promulgate 5 alternative rates for each of these kilowatt-hour 6 categories that will reflect, as closely as reasonably 7 practical for that municipality, the distribution of the 8 tax among classes of purchasers as if the tax were based 9 on a uniform percentage of the purchase price of 10 electricity. A municipality that has adopted an 11 ordinance imposing a tax pursuant to subparagraph 3 as it 12 existed prior to the effective date of Section 65 of this 13 amendatory Act of 1997 may, rather than imposing the tax 14 permitted by this amendatory Act of 1997, continue to 15 impose the tax pursuant to that ordinance with respect to 16 gross receipts received from residential customers 17 through July 31, 1999, and with respect to gross receipts 18 from any non-residential customer until the first bill 19 issued to such customer for delivery services in 20 accordance with Section 16-104 of the Public Utilities 21 Act but in no case later than the last bill issued to 22 such customer before December 31, 2000. No ordinance 23 imposing the tax permitted by this amendatory Act of 1997 24 shall be applicable to any non-residential customer until 25 the first bill issued to such customer for delivery 26 services in accordance with Section 16-104 of the Public 27 Utilities Act but in no case later than the last bill 28 issued to such non-residential customer before December 29 31, 2000. 30 4. Persons engaged in the business of distributing, 31 supplying, furnishing, or selling water for use or 32 consumption within the corporate limits of the 33 municipality, and not for resale, at a rate not to exceed 34 5% of the gross receipts therefrom. SB88 Enrolled -84- LRB9202600SMdv 1 None of the taxes authorized by this Section may be 2 imposed with respect to any transaction in interstate 3 commerce or otherwise to the extent to which the business or 4 privilege may not, under the constitution and statutes of the 5 United States, be made the subject of taxation by this State 6 or any political sub-division thereof; nor shall any persons 7 engaged in the business of distributing, supplying, 8 furnishing, selling or transmitting gas, water, or 9 electricity,or engaged in the business of transmitting10messages,or using or consuming electricity acquired in a 11 purchase at retail, be subject to taxation under the 12 provisions of this Section for those transactions that are or 13 may become subject to taxation under the provisions of the 14 "Municipal Retailers' Occupation Tax Act" authorized by 15 Section 8-11-1; nor shall any tax authorized by this Section 16 be imposed upon any person engaged in a business or on any 17 privilege unless the tax is imposed in like manner and at the 18 same rate upon all persons engaged in businesses of the same 19 class in the municipality, whether privately or municipally 20 owned or operated, or exercising the same privilege within 21 the municipality. 22 Any of the taxes enumerated in this Section may be in 23 addition to the payment of money, or value of products or 24 services furnished to the municipality by the taxpayer as 25 compensation for the use of its streets, alleys, or other 26 public places, or installation and maintenance therein, 27 thereon or thereunder of poles, wires, pipes or other 28 equipment used in the operation of the taxpayer's business. 29 (a) If the corporate authorities of any home rule 30 municipality have adopted an ordinance that imposed a tax on 31 public utility customers, between July 1, 1971, and October 32 1, 1981, on the good faith belief that they were exercising 33 authority pursuant to Section 6 of Article VII of the 1970 34 Illinois Constitution, that action of the corporate SB88 Enrolled -85- LRB9202600SMdv 1 authorities shall be declared legal and valid, 2 notwithstanding a later decision of a judicial tribunal 3 declaring the ordinance invalid. No municipality shall be 4 required to rebate, refund, or issue credits for any taxes 5 described in this paragraph, and those taxes shall be deemed 6 to have been levied and collected in accordance with the 7 Constitution and laws of this State. 8 (b) In any case in which (i) prior to October 19, 1979, 9 the corporate authorities of any municipality have adopted an 10 ordinance imposing a tax authorized by this Section (or by 11 the predecessor provision of the "Revised Cities and Villages 12 Act") and have explicitly or in practice interpreted gross 13 receipts to include either charges added to customers' bills 14 pursuant to the provision of paragraph (a) of Section 36 of 15 the Public Utilities Act or charges added to customers' bills 16 by taxpayers who are not subject to rate regulation by the 17 Illinois Commerce Commission for the purpose of recovering 18 any of the tax liabilities or other amounts specified in such 19 paragraph (a) of Section 36 of that Act, and (ii) on or after 20 October 19, 1979, a judicial tribunal has construed gross 21 receipts to exclude all or part of those charges, then 22 neither those municipality nor any taxpayer who paid the tax 23 shall be required to rebate, refund, or issue credits for any 24 tax imposed or charge collected from customers pursuant to 25 the municipality's interpretation prior to October 19, 1979. 26 This paragraph reflects a legislative finding that it would 27 be contrary to the public interest to require a municipality 28 or its taxpayers to refund taxes or charges attributable to 29 the municipality's more inclusive interpretation of gross 30 receipts prior to October 19, 1979, and is not intended to 31 prescribe or limit judicial construction of this Section. The 32 legislative finding set forth in this subsection does not 33 apply to taxes imposed after the effective date of this 34 amendatory Act of 1995. SB88 Enrolled -86- LRB9202600SMdv 1 (c) The tax authorized by subparagraph 3 shall be 2 collected from the purchaser by the person maintaining a 3 place of business in this State who delivers the electricity 4 to the purchaser. This tax shall constitute a debt of the 5 purchaser to the person who delivers the electricity to the 6 purchaser and if unpaid, is recoverable in the same manner as 7 the original charge for delivering the electricity. Any tax 8 required to be collected pursuant to an ordinance authorized 9 by subparagraph 3 and any such tax collected by a person 10 delivering electricity shall constitute a debt owed to the 11 municipality by such person delivering the electricity, 12 provided, that the person delivering electricity shall be 13 allowed credit for such tax related to deliveries of 14 electricity the charges for which are written off as 15 uncollectible, and provided further, that if such charges are 16 thereafter collected, the delivering supplier shall be 17 obligated to remit such tax. For purposes of this subsection 18 (c), any partial payment not specifically identified by the 19 purchaser shall be deemed to be for the delivery of 20 electricity. Persons delivering electricity shall collect the 21 tax from the purchaser by adding such tax to the gross charge 22 for delivering the electricity, in the manner prescribed by 23 the municipality. Persons delivering electricity shall also 24 be authorized to add to such gross charge an amount equal to 25 3% of the tax to reimburse the person delivering electricity 26 for the expenses incurred in keeping records, billing 27 customers, preparing and filing returns, remitting the tax 28 and supplying data to the municipality upon request. If the 29 person delivering electricity fails to collect the tax from 30 the purchaser, then the purchaser shall be required to pay 31 the tax directly to the municipality in the manner prescribed 32 by the municipality. Persons delivering electricity who file 33 returns pursuant to this paragraph (c) shall, at the time of 34 filing such return, pay the municipality the amount of the SB88 Enrolled -87- LRB9202600SMdv 1 tax collected pursuant to subparagraph 3. 2 (d) For the purpose of the taxes enumerated in this 3 Section: 4 "Gross receipts" means the consideration received forthe5transmission of messages, the consideration received for6 distributing, supplying, furnishing or selling gas for use or 7 consumption and not for resale, and the consideration 8 received for distributing, supplying, furnishing or selling 9 water for use or consumption and not for resale, and for all 10 services rendered in connection therewith valued in money, 11 whether received in money or otherwise, including cash, 12 credit, services and property of every kind and material and 13 for all services rendered therewith, and shall be determined 14without any deduction on account of the cost of transmitting15such messages,without any deduction on account of the cost 16 of the service, product or commodity supplied, the cost of 17 materials used, labor or service cost, or any other expenses 18 whatsoever. "Gross receipts" shall not include that portion 19 of the consideration received for distributing, supplying, 20 furnishing, or selling gas or water to, or for the21transmission of messages for,business enterprises described 22 in paragraph (e) of this Section to the extent and during the 23 period in which the exemption authorized by paragraph (e) is 24 in effect or for school districts or units of local 25 government described in paragraph (f) during the period in 26 which the exemption authorized in paragraph (f) is in effect. 27"Gross receipts" shall not include amounts paid by28telecommunications retailers under the Telecommunications29Municipal Infrastructure Maintenance Fee Act.30 For utility bills issued on or after May 1, 1996, but 31 before May 1, 1997, and for receipts from those utility 32 bills, "gross receipts" does not include one-third of (i) 33 amounts added to customers' bills under Section 9-222 of the 34 Public Utilities Act, or (ii) amounts added to customers' SB88 Enrolled -88- LRB9202600SMdv 1 bills by taxpayers who are not subject to rate regulation by 2 the Illinois Commerce Commission for the purpose of 3 recovering any of the tax liabilities described in Section 4 9-222 of the Public Utilities Act. For utility bills issued 5 on or after May 1, 1997, but before May 1, 1998, and for 6 receipts from those utility bills, "gross receipts" does not 7 include two-thirds of (i) amounts added to customers' bills 8 under Section 9-222 of the Public Utilities Act, or (ii) 9 amount added to customers' bills by taxpayers who are not 10 subject to rate regulation by the Illinois Commerce 11 Commission for the purpose of recovering any of the tax 12 liabilities described in Section 9-222 of the Public 13 Utilities Act. For utility bills issued on or after May 1, 14 1998, and for receipts from those utility bills, "gross 15 receipts" does not include (i) amounts added to customers' 16 bills under Section 9-222 of the Public Utilities Act, or 17 (ii) amounts added to customers' bills by taxpayers who are 18 not subject to rate regulation by the Illinois Commerce 19 Commission for the purpose of recovering any of the tax 20 liabilities described in Section 9-222 of the Public 21 Utilities Act. 22 For purposes of this Section "gross receipts" shall not 23 include(i)amounts added to customers' bills under Section 24 9-221 of the Public Utilities Act, or (ii) charges added to25customers' bills to recover the surcharge imposed under the26Emergency Telephone System Act. This paragraph is not 27 intended to nor does it make any change in the meaning of 28 "gross receipts" for the purposes of this Section, but is 29 intended to remove possible ambiguities, thereby confirming 30 the existing meaning of "gross receipts" prior to the 31 effective date of this amendatory Act of 1995. 32The words "transmitting messages", in addition to the33usual and popular meaning of person to person communication,34shall include the furnishing, for a consideration, ofSB88 Enrolled -89- LRB9202600SMdv 1services or facilities (whether owned or leased), or both, to2persons in connection with the transmission of messages where3those persons do not, in turn, receive any consideration in4connection therewith, but shall not include such furnishing5of services or facilities to persons for the transmission of6messages to the extent that any such services or facilities7for the transmission of messages are furnished for a8consideration, by those persons to other persons, for the9transmission of messages.10 "Person" as used in this Section means any natural 11 individual, firm, trust, estate, partnership, association, 12 joint stock company, joint adventure, corporation, limited 13 liability company, municipal corporation, the State or any of 14 its political subdivisions, any State university created by 15 statute, or a receiver, trustee, guardian or other 16 representative appointed by order of any court. 17 "Person maintaining a place of business in this State" 18 shall mean any person having or maintaining within this 19 State, directly or by a subsidiary or other affiliate, an 20 office, generation facility, distribution facility, 21 transmission facility, sales office or other place of 22 business, or any employee, agent, or other representative 23 operating within this State under the authority of the person 24 or its subsidiary or other affiliate, irrespective of whether 25 such place of business or agent or other representative is 26 located in this State permanently or temporarily, or whether 27 such person, subsidiary or other affiliate is licensed or 28 qualified to do business in this State. 29 "Public utility" shall have the meaning ascribed to it in 30 Section 3-105 of the Public Utilities Act and shall include 31telecommunications carriers as defined in Section 13-202 of32that Act andalternative retail electric suppliers as defined 33 in Section 16-102 of that Act. 34 "Purchase at retail" shall mean any acquisition of SB88 Enrolled -90- LRB9202600SMdv 1 electricity by a purchaser for purposes of use or 2 consumption, and not for resale, but shall not include the 3 use of electricity by a public utility directly in the 4 generation, production, transmission, delivery or sale of 5 electricity. 6 "Purchaser" shall mean any person who uses or consumes, 7 within the corporate limits of the municipality, electricity 8 acquired in a purchase at retail. 9In the case of persons engaged in the business of10transmitting messages through the use of mobile equipment,11such as cellular phones and paging systems, the gross12receipts from the business shall be deemed to originate13within the corporate limits of a municipality only if the14address to which the bills for the service are sent is within15those corporate limits. If, however, that address is not16located within a municipality that imposes a tax under this17Section, then (i) if the party responsible for the bill is18not an individual, the gross receipts from the business shall19be deemed to originate within the corporate limits of the20municipality where that party's principal place of business21in Illinois is located, and (ii) if the party responsible for22the bill is an individual, the gross receipts from the23business shall be deemed to originate within the corporate24limits of the municipality where that party's principal25residence in Illinois is located.26 (e) Any municipality that imposes taxes upon public 27 utilities or upon the privilege of using or consuming 28 electricity pursuant to this Section whose territory includes 29 any part of an enterprise zone or federally designated 30 Foreign Trade Zone or Sub-Zone may, by a majority vote of its 31 corporate authorities, exempt from those taxes for a period 32 not exceeding 20 years any specified percentage of gross 33 receipts of public utilities received from, or electricity 34 used or consumed by, business enterprises that: SB88 Enrolled -91- LRB9202600SMdv 1 (1) either (i) make investments that cause the 2 creation of a minimum of 200 full-time equivalent jobs in 3 Illinois, (ii) make investments of at least $175,000,000 4 that cause the creation of a minimum of 150 full-time 5 equivalent jobs in Illinois, or (iii) make investments 6 that cause the retention of a minimum of 1,000 full-time 7 jobs in Illinois; and 8 (2) are either (i) located in an Enterprise Zone 9 established pursuant to the Illinois Enterprise Zone Act 10 or (ii) Department of Commerce and Community Affairs 11 designated High Impact Businesses located in a federally 12 designated Foreign Trade Zone or Sub-Zone; and 13 (3) are certified by the Department of Commerce and 14 Community Affairs as complying with the requirements 15 specified in clauses (1) and (2) of this paragraph (e). 16 Upon adoption of the ordinance authorizing the exemption, 17 the municipal clerk shall transmit a copy of that ordinance 18 to the Department of Commerce and Community Affairs. The 19 Department of Commerce and Community Affairs shall determine 20 whether the business enterprises located in the municipality 21 meet the criteria prescribed in this paragraph. If the 22 Department of Commerce and Community Affairs determines that 23 the business enterprises meet the criteria, it shall grant 24 certification. The Department of Commerce and Community 25 Affairs shall act upon certification requests within 30 days 26 after receipt of the ordinance. 27 Upon certification of the business enterprise by the 28 Department of Commerce and Community Affairs, the Department 29 of Commerce and Community Affairs shall notify the Department 30 of Revenue of the certification. The Department of Revenue 31 shall notify the public utilities of the exemption status of 32 the gross receipts received from, and the electricity used or 33 consumed by, the certified business enterprises. Such 34 exemption status shall be effective within 3 months after SB88 Enrolled -92- LRB9202600SMdv 1 certification. 2 (f) A municipality that imposes taxes upon public 3 utilities or upon the privilege of using or consuming 4 electricity under this Section and whose territory includes 5 part of another unit of local government or a school district 6 may by ordinance exempt the other unit of local government or 7 school district from those taxes. 8 (g) The amendment of this Section by Public Act 84-127 9 shall take precedence over any other amendment of this 10 Section by any other amendatory Act passed by the 84th 11 General Assembly before the effective date of Public Act 12 84-127. 13 (h) In any case in which, before July 1, 1992, a person 14 engaged in the business of transmitting messages through the 15 use of mobile equipment, such as cellular phones and paging 16 systems, has determined the municipality within which the 17 gross receipts from the business originated by reference to 18 the location of its transmitting or switching equipment, then 19 (i) neither the municipality to which tax was paid on that 20 basis nor the taxpayer that paid tax on that basis shall be 21 required to rebate, refund, or issue credits for any such tax 22 or charge collected from customers to reimburse the taxpayer 23 for the tax and (ii) no municipality to which tax would have 24 been paid with respect to those gross receipts if the 25 provisions of this amendatory Act of 1991 had been in effect 26 before July 1, 1992, shall have any claim against the 27 taxpayer for any amount of the tax. 28 (Source: P.A. 90-16, eff. 6-16-97; 90-561, eff. 8-1-98; 29 90-562, eff. 12-16-97; 90-655, eff. 7-30-98; 91-870, eff. 30 6-22-00.) 31 (Text of Section after amendment by P.A. 92-474) 32 Sec. 8-11-2. The corporate authorities of any 33 municipality may tax any or all of the following occupations 34 or privileges: SB88 Enrolled -93- LRB9202600SMdv 1 1. (Blank).Persons engaged in the business of2transmitting messages by means of electricity or radio3magnetic waves, or fiber optics, at a rate not to exceed45% of the gross receipts from that business originating5within the corporate limits of the municipality.6Beginning January 1, 2001, prepaid telephone calling7arrangements shall not be subject to the tax imposed8under this Section. For purposes of this Section,9"prepaid telephone calling arrangements" means that term10as defined in Section 2-27 of the Retailers' Occupation11Tax Act.12 2. Persons engaged in the business of distributing, 13 supplying, furnishing, or selling gas for use or 14 consumption within the corporate limits of a municipality 15 of 500,000 or fewer population, and not for resale, at a 16 rate not to exceed 5% of the gross receipts therefrom. 17 2a. Persons engaged in the business of 18 distributing, supplying, furnishing, or selling gas for 19 use or consumption within the corporate limits of a 20 municipality of over 500,000 population, and not for 21 resale, at a rate not to exceed 8% of the gross receipts 22 therefrom. If imposed, this tax shall be paid in monthly 23 payments. 24 3. The privilege of using or consuming electricity 25 acquired in a purchase at retail and used or consumed 26 within the corporate limits of the municipality at rates 27 not to exceed the following maximum rates, calculated on 28 a monthly basis for each purchaser: 29 (i) For the first 2,000 kilowatt-hours used or 30 consumed in a month; 0.61 cents per kilowatt-hour; 31 (ii) For the next 48,000 kilowatt-hours used or 32 consumed in a month; 0.40 cents per kilowatt-hour; 33 (iii) For the next 50,000 kilowatt-hours used or 34 consumed in a month; 0.36 cents per kilowatt-hour; SB88 Enrolled -94- LRB9202600SMdv 1 (iv) For the next 400,000 kilowatt-hours used or 2 consumed in a month; 0.35 cents per kilowatt-hour; 3 (v) For the next 500,000 kilowatt-hours used or 4 consumed in a month; 0.34 cents per kilowatt-hour; 5 (vi) For the next 2,000,000 kilowatt-hours used or 6 consumed in a month; 0.32 cents per kilowatt-hour; 7 (vii) For the next 2,000,000 kilowatt-hours used or 8 consumed in a month; 0.315 cents per kilowatt-hour; 9 (viii) For the next 5,000,000 kilowatt-hours used 10 or consumed in a month; 0.31 cents per kilowatt-hour; 11 (ix) For the next 10,000,000 kilowatt-hours used or 12 consumed in a month; 0.305 cents per kilowatt-hour; and 13 (x) For all electricity used or consumed in excess 14 of 20,000,000 kilowatt-hours in a month, 0.30 cents per 15 kilowatt-hour. 16 If a municipality imposes a tax at rates lower than 17 either the maximum rates specified in this Section or the 18 alternative maximum rates promulgated by the Illinois 19 Commerce Commission, as provided below, the tax rates 20 shall be imposed upon the kilowatt hour categories set 21 forth above with the same proportional relationship as 22 that which exists among such maximum rates. 23 Notwithstanding the foregoing, until December 31, 2008, 24 no municipality shall establish rates that are in excess 25 of rates reasonably calculated to produce revenues that 26 equal the maximum total revenues such municipality could 27 have received under the tax authorized by this 28 subparagraph in the last full calendar year prior to the 29 effective date of Section 65 of this amendatory Act of 30 1997; provided that this shall not be a limitation on the 31 amount of tax revenues actually collected by such 32 municipality. 33 Upon the request of the corporate authorities of a 34 municipality, the Illinois Commerce Commission shall, SB88 Enrolled -95- LRB9202600SMdv 1 within 90 days after receipt of such request, promulgate 2 alternative rates for each of these kilowatt-hour 3 categories that will reflect, as closely as reasonably 4 practical for that municipality, the distribution of the 5 tax among classes of purchasers as if the tax were based 6 on a uniform percentage of the purchase price of 7 electricity. A municipality that has adopted an 8 ordinance imposing a tax pursuant to subparagraph 3 as it 9 existed prior to the effective date of Section 65 of this 10 amendatory Act of 1997 may, rather than imposing the tax 11 permitted by this amendatory Act of 1997, continue to 12 impose the tax pursuant to that ordinance with respect to 13 gross receipts received from residential customers 14 through July 31, 1999, and with respect to gross receipts 15 from any non-residential customer until the first bill 16 issued to such customer for delivery services in 17 accordance with Section 16-104 of the Public Utilities 18 Act but in no case later than the last bill issued to 19 such customer before December 31, 2000. No ordinance 20 imposing the tax permitted by this amendatory Act of 1997 21 shall be applicable to any non-residential customer until 22 the first bill issued to such customer for delivery 23 services in accordance with Section 16-104 of the Public 24 Utilities Act but in no case later than the last bill 25 issued to such non-residential customer before December 26 31, 2000. 27 4. Persons engaged in the business of distributing, 28 supplying, furnishing, or selling water for use or 29 consumption within the corporate limits of the 30 municipality, and not for resale, at a rate not to exceed 31 5% of the gross receipts therefrom. 32 None of the taxes authorized by this Section may be 33 imposed with respect to any transaction in interstate 34 commerce or otherwise to the extent to which the business or SB88 Enrolled -96- LRB9202600SMdv 1 privilege may not, under the constitution and statutes of the 2 United States, be made the subject of taxation by this State 3 or any political sub-division thereof; nor shall any persons 4 engaged in the business of distributing, supplying, 5 furnishing, selling or transmitting gas, water, or 6 electricity,or engaged in the business of transmitting7messages,or using or consuming electricity acquired in a 8 purchase at retail, be subject to taxation under the 9 provisions of this Section for those transactions that are or 10 may become subject to taxation under the provisions of the 11 "Municipal Retailers' Occupation Tax Act" authorized by 12 Section 8-11-1; nor shall any tax authorized by this Section 13 be imposed upon any person engaged in a business or on any 14 privilege unless the tax is imposed in like manner and at the 15 same rate upon all persons engaged in businesses of the same 16 class in the municipality, whether privately or municipally 17 owned or operated, or exercising the same privilege within 18 the municipality. 19 Any of the taxes enumerated in this Section may be in 20 addition to the payment of money, or value of products or 21 services furnished to the municipality by the taxpayer as 22 compensation for the use of its streets, alleys, or other 23 public places, or installation and maintenance therein, 24 thereon or thereunder of poles, wires, pipes or other 25 equipment used in the operation of the taxpayer's business. 26 (a) If the corporate authorities of any home rule 27 municipality have adopted an ordinance that imposed a tax on 28 public utility customers, between July 1, 1971, and October 29 1, 1981, on the good faith belief that they were exercising 30 authority pursuant to Section 6 of Article VII of the 1970 31 Illinois Constitution, that action of the corporate 32 authorities shall be declared legal and valid, 33 notwithstanding a later decision of a judicial tribunal 34 declaring the ordinance invalid. No municipality shall be SB88 Enrolled -97- LRB9202600SMdv 1 required to rebate, refund, or issue credits for any taxes 2 described in this paragraph, and those taxes shall be deemed 3 to have been levied and collected in accordance with the 4 Constitution and laws of this State. 5 (b) In any case in which (i) prior to October 19, 1979, 6 the corporate authorities of any municipality have adopted an 7 ordinance imposing a tax authorized by this Section (or by 8 the predecessor provision of the "Revised Cities and Villages 9 Act") and have explicitly or in practice interpreted gross 10 receipts to include either charges added to customers' bills 11 pursuant to the provision of paragraph (a) of Section 36 of 12 the Public Utilities Act or charges added to customers' bills 13 by taxpayers who are not subject to rate regulation by the 14 Illinois Commerce Commission for the purpose of recovering 15 any of the tax liabilities or other amounts specified in such 16 paragraph (a) of Section 36 of that Act, and (ii) on or after 17 October 19, 1979, a judicial tribunal has construed gross 18 receipts to exclude all or part of those charges, then 19 neither those municipality nor any taxpayer who paid the tax 20 shall be required to rebate, refund, or issue credits for any 21 tax imposed or charge collected from customers pursuant to 22 the municipality's interpretation prior to October 19, 1979. 23 This paragraph reflects a legislative finding that it would 24 be contrary to the public interest to require a municipality 25 or its taxpayers to refund taxes or charges attributable to 26 the municipality's more inclusive interpretation of gross 27 receipts prior to October 19, 1979, and is not intended to 28 prescribe or limit judicial construction of this Section. The 29 legislative finding set forth in this subsection does not 30 apply to taxes imposed after the effective date of this 31 amendatory Act of 1995. 32 (c) The tax authorized by subparagraph 3 shall be 33 collected from the purchaser by the person maintaining a 34 place of business in this State who delivers the electricity SB88 Enrolled -98- LRB9202600SMdv 1 to the purchaser. This tax shall constitute a debt of the 2 purchaser to the person who delivers the electricity to the 3 purchaser and if unpaid, is recoverable in the same manner as 4 the original charge for delivering the electricity. Any tax 5 required to be collected pursuant to an ordinance authorized 6 by subparagraph 3 and any such tax collected by a person 7 delivering electricity shall constitute a debt owed to the 8 municipality by such person delivering the electricity, 9 provided, that the person delivering electricity shall be 10 allowed credit for such tax related to deliveries of 11 electricity the charges for which are written off as 12 uncollectible, and provided further, that if such charges are 13 thereafter collected, the delivering supplier shall be 14 obligated to remit such tax. For purposes of this subsection 15 (c), any partial payment not specifically identified by the 16 purchaser shall be deemed to be for the delivery of 17 electricity. Persons delivering electricity shall collect the 18 tax from the purchaser by adding such tax to the gross charge 19 for delivering the electricity, in the manner prescribed by 20 the municipality. Persons delivering electricity shall also 21 be authorized to add to such gross charge an amount equal to 22 3% of the tax to reimburse the person delivering electricity 23 for the expenses incurred in keeping records, billing 24 customers, preparing and filing returns, remitting the tax 25 and supplying data to the municipality upon request. If the 26 person delivering electricity fails to collect the tax from 27 the purchaser, then the purchaser shall be required to pay 28 the tax directly to the municipality in the manner prescribed 29 by the municipality. Persons delivering electricity who file 30 returns pursuant to this paragraph (c) shall, at the time of 31 filing such return, pay the municipality the amount of the 32 tax collected pursuant to subparagraph 3. 33 (d) For the purpose of the taxes enumerated in this 34 Section: SB88 Enrolled -99- LRB9202600SMdv 1 "Gross receipts" means the consideration received forthe2transmission of messages, the consideration received for3 distributing, supplying, furnishing or selling gas for use or 4 consumption and not for resale, and the consideration 5 received for distributing, supplying, furnishing or selling 6 water for use or consumption and not for resale, and for all 7 services rendered in connection therewith valued in money, 8 whether received in money or otherwise, including cash, 9 credit, services and property of every kind and material and 10 for all services rendered therewith, and shall be determined 11without any deduction on account of the cost of transmitting12such messages,without any deduction on account of the cost 13 of the service, product or commodity supplied, the cost of 14 materials used, labor or service cost, or any other expenses 15 whatsoever. "Gross receipts" shall not include that portion 16 of the consideration received for distributing, supplying, 17 furnishing, or selling gas or water to, or for the18transmission of messages for,business enterprises described 19 in paragraph (e) of this Section to the extent and during the 20 period in which the exemption authorized by paragraph (e) is 21 in effect or for school districts or units of local 22 government described in paragraph (f) during the period in 23 which the exemption authorized in paragraph (f) is in effect. 24"Gross receipts" shall not include amounts paid by25telecommunications retailers under the Telecommunications26Municipal Infrastructure Maintenance Fee Act.27 For utility bills issued on or after May 1, 1996, but 28 before May 1, 1997, and for receipts from those utility 29 bills, "gross receipts" does not include one-third of (i) 30 amounts added to customers' bills under Section 9-222 of the 31 Public Utilities Act, or (ii) amounts added to customers' 32 bills by taxpayers who are not subject to rate regulation by 33 the Illinois Commerce Commission for the purpose of 34 recovering any of the tax liabilities described in Section SB88 Enrolled -100- LRB9202600SMdv 1 9-222 of the Public Utilities Act. For utility bills issued 2 on or after May 1, 1997, but before May 1, 1998, and for 3 receipts from those utility bills, "gross receipts" does not 4 include two-thirds of (i) amounts added to customers' bills 5 under Section 9-222 of the Public Utilities Act, or (ii) 6 amount added to customers' bills by taxpayers who are not 7 subject to rate regulation by the Illinois Commerce 8 Commission for the purpose of recovering any of the tax 9 liabilities described in Section 9-222 of the Public 10 Utilities Act. For utility bills issued on or after May 1, 11 1998, and for receipts from those utility bills, "gross 12 receipts" does not include (i) amounts added to customers' 13 bills under Section 9-222 of the Public Utilities Act, or 14 (ii) amounts added to customers' bills by taxpayers who are 15 not subject to rate regulation by the Illinois Commerce 16 Commission for the purpose of recovering any of the tax 17 liabilities described in Section 9-222 of the Public 18 Utilities Act. 19 For purposes of this Section "gross receipts" shall not 20 include(i)amounts added to customers' bills under Section 21 9-221 of the Public Utilities Act, or (ii) charges added to22customers' bills to recover the surcharge imposed under the23Emergency Telephone System Act. This paragraph is not 24 intended to nor does it make any change in the meaning of 25 "gross receipts" for the purposes of this Section, but is 26 intended to remove possible ambiguities, thereby confirming 27 the existing meaning of "gross receipts" prior to the 28 effective date of this amendatory Act of 1995. 29The words "transmitting messages", in addition to the30usual and popular meaning of person to person communication,31shall include the furnishing, for a consideration, of32services or facilities (whether owned or leased), or both, to33persons in connection with the transmission of messages where34those persons do not, in turn, receive any consideration inSB88 Enrolled -101- LRB9202600SMdv 1connection therewith, but shall not include such furnishing2of services or facilities to persons for the transmission of3messages to the extent that any such services or facilities4for the transmission of messages are furnished for a5consideration, by those persons to other persons, for the6transmission of messages.7 "Person" as used in this Section means any natural 8 individual, firm, trust, estate, partnership, association, 9 joint stock company, joint adventure, corporation, limited 10 liability company, municipal corporation, the State or any of 11 its political subdivisions, any State university created by 12 statute, or a receiver, trustee, guardian or other 13 representative appointed by order of any court. 14 "Person maintaining a place of business in this State" 15 shall mean any person having or maintaining within this 16 State, directly or by a subsidiary or other affiliate, an 17 office, generation facility, distribution facility, 18 transmission facility, sales office or other place of 19 business, or any employee, agent, or other representative 20 operating within this State under the authority of the person 21 or its subsidiary or other affiliate, irrespective of whether 22 such place of business or agent or other representative is 23 located in this State permanently or temporarily, or whether 24 such person, subsidiary or other affiliate is licensed or 25 qualified to do business in this State. 26 "Public utility" shall have the meaning ascribed to it in 27 Section 3-105 of the Public Utilities Act and shall include 28telecommunications carriers as defined in Section 13-202 of29that Act andalternative retail electric suppliers as defined 30 in Section 16-102 of that Act. 31 "Purchase at retail" shall mean any acquisition of 32 electricity by a purchaser for purposes of use or 33 consumption, and not for resale, but shall not include the 34 use of electricity by a public utility directly in the SB88 Enrolled -102- LRB9202600SMdv 1 generation, production, transmission, delivery or sale of 2 electricity. 3 "Purchaser" shall mean any person who uses or consumes, 4 within the corporate limits of the municipality, electricity 5 acquired in a purchase at retail. 6In the case of persons engaged in the business of7transmitting messages through the use of mobile equipment,8such as cellular phones and paging systems, the gross9receipts from the business shall be deemed to originate10within the corporate limits of a municipality only if the11customer's place of primary use as defined in the Mobile12Telecommunications Sourcing Conformity Act is within those13corporate limits.14 (e) Any municipality that imposes taxes upon public 15 utilities or upon the privilege of using or consuming 16 electricity pursuant to this Section whose territory includes 17 any part of an enterprise zone or federally designated 18 Foreign Trade Zone or Sub-Zone may, by a majority vote of its 19 corporate authorities, exempt from those taxes for a period 20 not exceeding 20 years any specified percentage of gross 21 receipts of public utilities received from, or electricity 22 used or consumed by, business enterprises that: 23 (1) either (i) make investments that cause the 24 creation of a minimum of 200 full-time equivalent jobs in 25 Illinois, (ii) make investments of at least $175,000,000 26 that cause the creation of a minimum of 150 full-time 27 equivalent jobs in Illinois, or (iii) make investments 28 that cause the retention of a minimum of 1,000 full-time 29 jobs in Illinois; and 30 (2) are either (i) located in an Enterprise Zone 31 established pursuant to the Illinois Enterprise Zone Act 32 or (ii) Department of Commerce and Community Affairs 33 designated High Impact Businesses located in a federally 34 designated Foreign Trade Zone or Sub-Zone; and SB88 Enrolled -103- LRB9202600SMdv 1 (3) are certified by the Department of Commerce and 2 Community Affairs as complying with the requirements 3 specified in clauses (1) and (2) of this paragraph (e). 4 Upon adoption of the ordinance authorizing the exemption, 5 the municipal clerk shall transmit a copy of that ordinance 6 to the Department of Commerce and Community Affairs. The 7 Department of Commerce and Community Affairs shall determine 8 whether the business enterprises located in the municipality 9 meet the criteria prescribed in this paragraph. If the 10 Department of Commerce and Community Affairs determines that 11 the business enterprises meet the criteria, it shall grant 12 certification. The Department of Commerce and Community 13 Affairs shall act upon certification requests within 30 days 14 after receipt of the ordinance. 15 Upon certification of the business enterprise by the 16 Department of Commerce and Community Affairs, the Department 17 of Commerce and Community Affairs shall notify the Department 18 of Revenue of the certification. The Department of Revenue 19 shall notify the public utilities of the exemption status of 20 the gross receipts received from, and the electricity used or 21 consumed by, the certified business enterprises. Such 22 exemption status shall be effective within 3 months after 23 certification. 24 (f) A municipality that imposes taxes upon public 25 utilities or upon the privilege of using or consuming 26 electricity under this Section and whose territory includes 27 part of another unit of local government or a school district 28 may by ordinance exempt the other unit of local government or 29 school district from those taxes. 30 (g) The amendment of this Section by Public Act 84-127 31 shall take precedence over any other amendment of this 32 Section by any other amendatory Act passed by the 84th 33 General Assembly before the effective date of Public Act 34 84-127. SB88 Enrolled -104- LRB9202600SMdv 1 (h) In any case in which, before July 1, 1992, a person 2 engaged in the business of transmitting messages through the 3 use of mobile equipment, such as cellular phones and paging 4 systems, has determined the municipality within which the 5 gross receipts from the business originated by reference to 6 the location of its transmitting or switching equipment, then 7 (i) neither the municipality to which tax was paid on that 8 basis nor the taxpayer that paid tax on that basis shall be 9 required to rebate, refund, or issue credits for any such tax 10 or charge collected from customers to reimburse the taxpayer 11 for the tax and (ii) no municipality to which tax would have 12 been paid with respect to those gross receipts if the 13 provisions of this amendatory Act of 1991 had been in effect 14 before July 1, 1992, shall have any claim against the 15 taxpayer for any amount of the tax. 16 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02.) 17 Section 90-30. The Illinois Municipal Code is amended by 18 changing Section 8-11-17 as follows: 19 (65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17) 20 Sec. 8-11-17. Municipal telecommunications tax. 21 (a) Beginning on the effective date of this amendatory 22 Act of 1991, the corporate authorities of any municipality in 23 this State may tax any or all of the following acts or 24 privileges: 25 (1) The act or privilege of originating in such 26 municipality or receiving in such municipality intrastate 27 telecommunications by a person at a rate not to exceed 5% 28 of the gross charge for such telecommunications purchased 29 at retail from a retailer by such person. However, such 30 tax is not imposed on such act or privilege to the extent 31 such act or privilege may not, under the Constitution and 32 statutes of the United States, be made the subject of SB88 Enrolled -105- LRB9202600SMdv 1 taxation by municipalities in this State. 2 (2) The act or privilege of originating in such 3 municipality or receiving in such municipality interstate 4 telecommunications by a person at a rate not to exceed 5% 5 of the gross charge for such telecommunications purchased 6 at retail from a retailer by such person. To prevent 7 actual multi-state taxation of the act or privilege that 8 is subject to taxation under this paragraph, any 9 taxpayer, upon proof that the taxpayer has paid a tax in 10 another state on such event, shall be allowed a credit 11 against any tax enacted pursuant to an ordinance 12 authorized by this paragraph to the extent of the amount 13 of such tax properly due and paid in such other state 14 which was not previously allowed as a credit against any 15 other state or local tax in this State. However, such 16 tax is not imposed on the act or privilege to the extent 17 such act or privilege may not, under the Constitution and 18 statutes of the United States, be made the subject of 19 taxation by municipalities in this State. 20 (3) The taxes authorized by paragraphs (1) and (2) 21 of subsection (a) of this Section may only be levied if 22 such municipality does not then have in effect an 23 occupation tax imposed on persons engaged in the business 24 of transmitting messages by means of electricity as 25 authorized by Section 8-11-2 of the Illinois Municipal 26 Code. 27 (b) The tax authorized by this Section shall be 28 collected from the taxpayer by a retailer maintaining a place 29 of business in this State and making or effectuating the sale 30 at retail and shall be remitted by such retailer to the 31 municipality. Any tax required to be collected pursuant to 32 an ordinance authorized by this Section and any such tax 33 collected by such retailer shall constitute a debt owed by 34 the retailer to such municipality. Retailers shall collect SB88 Enrolled -106- LRB9202600SMdv 1 the tax from the taxpayer by adding the tax to the gross 2 charge for the act or privilege of originating or receiving 3 telecommunications when sold for use, in the manner 4 prescribed by the municipality. The tax authorized by this 5 Section shall constitute a debt of the purchaser to the 6 retailer who provides such taxable services until paid and, 7 if unpaid, is recoverable at law in the same manner as the 8 original charge for such taxable services. If the retailer 9 fails to collect the tax from the taxpayer, then the taxpayer 10 shall be required to pay the tax directly to the municipality 11 in the manner provided by the municipality. The municipality 12 imposing the tax shall provide for its administration and 13 enforcement. 14 Beginning January 1, 1994, retailers filing tax returns 15 pursuant to this Section shall, at the time of filing such 16 return, pay to the municipality the amount of the tax imposed 17 by this Section, less a commission of 1.75% which is allowed 18 to reimburse the retailer for the expenses incurred in 19 keeping records, billing the customer, preparing and filing 20 returns, remitting the tax and supplying data to the 21 municipality upon request. No commission may be claimed by a 22 retailer for tax not timely remitted to the municipality. 23 Whenever possible, the tax authorized by this Section 24 shall, when collected, be stated as a distinct item separate 25 and apart from the gross charge for telecommunications. 26 (c) For the purpose of the taxes authorized by this 27 Section: 28 (1) "Amount paid" means the amount charged to the 29 taxpayer's service address in such municipality 30 regardless of where such amount is billed or paid. 31 (2) "Gross charge" means the amount paid for the 32 act or privilege of originating or receiving 33 telecommunications in such municipality and for all 34 services rendered in connection therewith, valued in SB88 Enrolled -107- LRB9202600SMdv 1 money whether paid in money or otherwise, including cash, 2 credits, services and property of every kind or nature, 3 and shall be determined without any deduction on account 4 of the cost of such telecommunications, the cost of the 5 materials used, labor or service costs or any other 6 expense whatsoever. In case credit is extended, the 7 amount thereof shall be included only as and when paid. 8 However, "gross charge" shall not include: 9 (A) any amounts added to a purchaser's bill 10 because of a charge made pursuant to: (i) the tax 11 imposed by this Section, (ii) additional charges 12 added to a purchaser's bill pursuant to Section 13 9-222 of the Public Utilities Act, (iii) the tax 14 imposed by the Telecommunications Excise Tax Act, or 15 (iv) the tax imposed by Section 4251 of the Internal 16 Revenue Code; 17 (B) charges for a sent collect 18 telecommunication received outside of such 19 municipality; 20 (C) charges for leased time on equipment or 21 charges for the storage of data or information or 22 subsequent retrieval or the processing of data or 23 information intended to change its form or content. 24 Such equipment includes, but is not limited to, the 25 use of calculators, computers, data processing 26 equipment, tabulating equipment or accounting 27 equipment and also includes the usage of computers 28 under a time-sharing agreement; 29 (D) charges for customer equipment, including 30 such equipment that is leased or rented by the 31 customer from any source, wherein such charges are 32 disaggregated and separately identified from other 33 charges; 34 (E) charges to business enterprises certified SB88 Enrolled -108- LRB9202600SMdv 1 under Section 9-222.1 of the Public Utilities Act to 2 the extent of such exemption and during the period 3 of time specified by the Department of Commerce and 4 Community Affairs; 5 (F) charges for telecommunications and all 6 services and equipment provided in connection 7 therewith between a parent corporation and its 8 wholly owned subsidiaries or between wholly owned 9 subsidiaries when the tax imposed under this Section 10 has already been paid to a retailer and only to the 11 extent that the charges between the parent 12 corporation and wholly owned subsidiaries or between 13 wholly owned subsidiaries represent expense 14 allocation between the corporations and not the 15 generation of profit for the corporation rendering 16 such service; 17 (G) bad debts ("bad debt" means any portion of 18 a debt that is related to a sale at retail for which 19 gross charges are not otherwise deductible or 20 excludable that has become worthless or 21 uncollectable, as determined under applicable 22 federal income tax standards; if the portion of the 23 debt deemed to be bad is subsequently paid, the 24 retailer shall report and pay the tax on that 25 portion during the reporting period in which the 26 payment is made); 27 (H) charges paid by inserting coins in 28 coin-operated telecommunication devices; or 29 (I) amounts paid by telecommunications 30 retailers under the Telecommunications Municipal 31 Infrastructure Maintenance Fee Act. 32 (3) "Interstate telecommunications" means all 33 telecommunications that either originate or terminate 34 outside this State. SB88 Enrolled -109- LRB9202600SMdv 1 (4) "Intrastate telecommunications" means all 2 telecommunications that originate and terminate within 3 this State. 4 (5) "Person" means any natural individual, firm, 5 trust, estate, partnership, association, joint stock 6 company, joint venture, corporation, limited liability 7 company, or a receiver, trustee, guardian or other 8 representative appointed by order of any court, the 9 Federal and State governments, including State 10 universities created by statute, or any city, town, 11 county, or other political subdivision of this State. 12 (6) "Purchase at retail" means the acquisition, 13 consumption or use of telecommunications through a sale 14 at retail. 15 (7) "Retailer" means and includes every person 16 engaged in the business of making sales at retail as 17 defined in this Section. A municipality may, in its 18 discretion, upon application, authorize the collection of 19 the tax hereby imposed by any retailer not maintaining a 20 place of business within this State, who to the 21 satisfaction of the municipality, furnishes adequate 22 security to insure collection and payment of the tax. 23 Such retailer shall be issued, without charge, a permit 24 to collect such tax. When so authorized, it shall be the 25 duty of such retailer to collect the tax upon all of the 26 gross charges for telecommunications in such municipality 27 in the same manner and subject to the same requirements 28 as a retailer maintaining a place of business within such 29 municipality. 30 (8) "Retailer maintaining a place of business in 31 this State", or any like term, means and includes any 32 retailer having or maintaining within this State, 33 directly or by a subsidiary, an office, distribution 34 facilities, transmission facilities, sales office, SB88 Enrolled -110- LRB9202600SMdv 1 warehouse or other place of business, or any agent or 2 other representative operating within this State under 3 the authority of the retailer or its subsidiary, 4 irrespective of whether such place of business or agent 5 or other representative is located here permanently or 6 temporarily, or whether such retailer or subsidiary is 7 licensed to do business in this State. 8 (9) "Sale at retail" means the transmitting, 9 supplying or furnishing of telecommunications and all 10 services rendered in connection therewith for a 11 consideration, to persons other than the Federal and 12 State governments, and State universities created by 13 statute and other than between a parent corporation and 14 its wholly owned subsidiaries or between wholly owned 15 subsidiaries, when the tax has already been paid to a 16 retailer and the gross charge made by one such 17 corporation to another such corporation is not greater 18 than the gross charge paid to the retailer for their use 19 or consumption and not for resale. 20 (10) "Service address" means the location of 21 telecommunications equipment from which 22 telecommunications services are originated or at which 23 telecommunications services are received by a taxpayer. 24 For periods prior to August 1, 2002, if this is not a 25 defined location, as in the case of mobile phones, paging 26 systems, maritime systems, air-to-ground systems and the 27 like, "service address" shall mean the location of a 28 taxpayer's primary use of the telecommunication equipment 29 as defined by telephone number, authorization code, or 30 location in Illinois where bills are sent. For periods on 31 and after August 1, 2002, if this is not a defined 32 location, as in the case of mobile phones, paging 33 systems, and maritime systems, service address means the 34 customer's place of primary use as defined in the Mobile SB88 Enrolled -111- LRB9202600SMdv 1 Telecommunications Sourcing Conformity Act, and for 2 air-to-ground systems and the like, "service address" 3 shall mean the location of a taxpayer's primary use of 4 the telecommunications equipment as defined by telephone 5 number, authorization code, or location in Illinois where 6 bills are sent. 7 (11) "Taxpayer" means a person who individually or 8 through his agents, employees, or permittees engages in 9 the act or privilege of originating in such municipality 10 or receiving in such municipality telecommunications and 11 who incurs a tax liability under any ordinance authorized 12 by this Section. 13 (12) "Telecommunications", in addition to the usual 14 and popular meaning, includes, but is not limited to, 15 messages or information transmitted through use of local, 16 toll and wide area telephone service, channel services, 17 telegraph services, teletypewriter service, computer 18 exchange services; cellular mobile telecommunications 19 service, specialized mobile radio services, paging 20 service, or any other form of mobile and portable one-way 21 or two-way communications, or any other transmission of 22 messages or information by electronic or similar means, 23 between or among points by wire, cable, fiber optics, 24 laser, microwave, radio, satellite or similar facilities. 25 The definition of "telecommunications" shall not include 26 value added services in which computer processing 27 applications are used to act on the form, content, code 28 and protocol of the information for purposes other than 29 transmission. "Telecommunications" shall not include 30 purchase of telecommunications by a telecommunications 31 service provider for use as a component part of the 32 service provided by him to the ultimate retail consumer 33 who originates or terminates the taxable end-to-end 34 communications. Carrier access charges, right of access SB88 Enrolled -112- LRB9202600SMdv 1 charges, charges for use of inter-company facilities, and 2 all telecommunications resold in the subsequent provision 3 used as a component of, or integrated into, end-to-end 4 telecommunications service shall be non-taxable as sales 5 for resale. Beginning January 1, 2001, prepaid telephone 6 calling arrangements shall not be considered 7 "telecommunications" subject to the tax imposed under 8 this Act. For purposes of this Section, "prepaid 9 telephone calling arrangements" means that term as 10 defined in Section 2-27 of the Retailers' Occupation Tax 11 Act. 12 (d) If a person, who originates or receives 13 telecommunications in such municipality claims to be a 14 reseller of such telecommunications, such person shall apply 15 to the municipality for a resale number. Such applicant 16 shall state facts which will show the municipality why such 17 applicant is not liable for tax under any ordinance 18 authorized by this Section on any of such purchases and shall 19 furnish such additional information as the municipality may 20 reasonably require. 21 Upon approval of the application, the municipality shall 22 assign a resale number to the applicant and shall certify 23 such number to the applicant. The municipality may cancel 24 any number which is obtained through misrepresentation, or 25 which is used to send or receive such telecommunication 26 tax-free when such actions in fact are not for resale, or 27 which no longer applies because of the person's having 28 discontinued the making of resales. 29 Except as provided hereinabove in this Section, the act 30 or privilege of sending or receiving telecommunications in 31 this State shall not be made tax-free on the ground of being 32 a sale for resale unless the person has an active resale 33 number from the municipality and furnishes that number to the 34 retailer in connection with certifying to the retailer that SB88 Enrolled -113- LRB9202600SMdv 1 any sale to such person is non-taxable because of being a 2 sale for resale. 3 (e) A municipality that imposes taxes upon 4 telecommunications under this Section and whose territory 5 includes part of another unit of local government or a school 6 district may, by ordinance, exempt the other unit of local 7 government or school district from those taxes. 8 (f) A municipality that imposes taxes upon 9 telecommunications under this Section may, by ordinance, (i) 10 reduce the rate of the tax for persons 65 years of age or 11 older or (ii) exempt persons 65 years of age or older from 12 those taxes. Taxes related to such rate reductions or 13 exemptions shall be rebated from the municipality directly to 14 persons qualified for the rate reduction or exemption as 15 determined by the municipality's ordinance. 16 (g) A municipality with a population of more than 17 500,000 that imposes a tax under this Section may, by 18 ordinance, exempt from the tax all charges for the inbound 19 toll-free telecommunications service commonly known as "800", 20 "877", or "888" or for a similar service. 21 (h) This Section is repealed on January 1, 2003. 22 (Source: P.A. 90-357, eff. 1-1-98; 90-562, eff. 12-16-97; 23 91-870, eff. 6-22-00.) 24 Section 90-35. The Public Utilities Act is amended by 25 changing Sections 2-202 and 13-511 as follows: 26 (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202) 27 Sec. 2-202. Policy; Public Utility Fund; tax. 28 (a) It is declared to be the public policy of this State 29 that in order to maintain and foster the effective regulation 30 of public utilities under this Act in the interests of the 31 People of the State of Illinois and the public utilities as 32 well, the public utilities subject to regulation under this SB88 Enrolled -114- LRB9202600SMdv 1 Act and which enjoy the privilege of operating as public 2 utilities in this State, shall bear the expense of 3 administering this Act by means of a tax on such privilege 4 measured by the annual gross revenue of such public utilities 5 in the manner provided in this Section. For purposes of this 6 Section, "expense of administering this Act" includes any 7 costs incident to studies, whether made by the Commission or 8 under contract entered into by the Commission, concerning 9 environmental pollution problems caused or contributed to by 10 public utilities and the means for eliminating or abating 11 those problems. Such proceeds shall be deposited in the 12 Public Utility Fund in the State treasury. 13 (b) All of the ordinary and contingent expenses of the 14 Commission incident to the administration of this Act shall 15 be paid out of the Public Utility Fund except the 16 compensation of the members of the Commission which shall be 17 paid from the General Revenue Fund. Notwithstanding other 18 provisions of this Act to the contrary, the ordinary and 19 contingent expenses of the Commission incident to the 20 administration of the Illinois Commercial Transportation Law 21 may be paid from appropriations from the Public Utility Fund 22 through the end of fiscal year 1986. 23 (c) A tax is imposed upon each public utility subject to 24 the provisions of this Act equal to .08% of its gross revenue 25 for each calendar year commencing with the calendar year 26 beginning January 1, 1982, except that the Commission may, by 27 rule, establish a different rate no greater than 0.1%. For 28 purposes of this Section, "gross revenue" shall not include 29 revenue from the production, transmission, distribution, 30 sale, delivery, or furnishing of electricity. "Gross revenue" 31 shall not include amounts paid by telecommunications 32 retailers under the TelecommunicationsMunicipal33 Infrastructure Maintenance Fee Act. 34 (d) Annual gross revenue returns shall be filed in SB88 Enrolled -115- LRB9202600SMdv 1 accordance with paragraph (1) or (2) of this subsection (d). 2 (1) Except as provided in paragraph (2) of this 3 subsection (d), on or before January 10 of each year each 4 public utility subject to the provisions of this Act 5 shall file with the Commission an estimated annual gross 6 revenue return containing an estimate of the amount of 7 its gross revenue for the calendar year commencing 8 January 1 of said year and a statement of the amount of 9 tax due for said calendar year on the basis of that 10 estimate. Public utilities may also file revised returns 11 containing updated estimates and updated amounts of tax 12 due during the calendar year. These revised returns, if 13 filed, shall form the basis for quarterly payments due 14 during the remainder of the calendar year. In addition, 15 on or before March 31 of each year, each public utility 16 shall file an amended return showing the actual amount of 17 gross revenues shown by the company's books and records 18 as of December 31 of the previous year. Forms and 19 instructions for such estimated, revised, and amended 20 returns shall be devised and supplied by the Commission. 21 (2) Beginning with returns due after January 1, 22 2002, the requirements of paragraph (1) of this 23 subsection (d) shall not apply to any public utility in 24 any calendar year for which the total tax the public 25 utility owes under this Section is less than $10,000. 26 For such public utilities with respect to such years, the 27 public utility shall file with the Commission, on or 28 before March 31 of the following year, an annual gross 29 revenue return for the year and a statement of the amount 30 of tax due for that year on the basis of such a return. 31 Forms and instructions for such returns and corrected 32 returns shall be devised and supplied by the Commission. 33 (e) All returns submitted to the Commission by a public 34 utility as provided in this subsection (e) or subsection (d) SB88 Enrolled -116- LRB9202600SMdv 1 of this Section shall contain or be verified by a written 2 declaration by an appropriate officer of the public utility 3 that the return is made under the penalties of perjury. The 4 Commission may audit each such return submitted and may, 5 under the provisions of Section 5-101 of this Act, take such 6 measures as are necessary to ascertain the correctness of the 7 returns submitted. The Commission has the power to direct the 8 filing of a corrected return by any utility which has filed 9 an incorrect return and to direct the filing of a return by 10 any utility which has failed to submit a return. A 11 taxpayer's signing a fraudulent return under this Section is 12 perjury, as defined in Section 32-2 of the Criminal Code of 13 1961. 14 (f) (1) For all public utilities subject to paragraph 15 (1) of subsection (d), at least one quarter of the annual 16 amount of tax due under subsection (c) shall be paid to the 17 Commission on or before the tenth day of January, April, 18 July, and October of the calendar year subject to tax. In 19 the event that an adjustment in the amount of tax due should 20 be necessary as a result of the filing of an amended or 21 corrected return under subsection (d) or subsection (e) of 22 this Section, the amount of any deficiency shall be paid by 23 the public utility together with the amended or corrected 24 return and the amount of any excess shall, after the filing 25 of a claim for credit by the public utility, be returned to 26 the public utility in the form of a credit memorandum in the 27 amount of such excess or be refunded to the public utility in 28 accordance with the provisions of subsection (k) of this 29 Section. However, if such deficiency or excess is less than 30 $1, then the public utility need not pay the deficiency and 31 may not claim a credit. 32 (2) Any public utility subject to paragraph (2) of 33 subsection (d) shall pay the amount of tax due under 34 subsection (c) on or before March 31 next following the end SB88 Enrolled -117- LRB9202600SMdv 1 of the calendar year subject to tax. In the event that an 2 adjustment in the amount of tax due should be necessary as a 3 result of the filing of a corrected return under subsection 4 (e), the amount of any deficiency shall be paid by the public 5 utility at the time the corrected return is filed. Any excess 6 tax payment by the public utility shall be returned to it 7 after the filing of a claim for credit, in the form of a 8 credit memorandum in the amount of the excess. However, if 9 such deficiency or excess is less than $1, the public utility 10 need not pay the deficiency and may not claim a credit. 11 (g) Each installment or required payment of the tax 12 imposed by subsection (c) becomes delinquent at midnight of 13 the date that it is due. Failure to make a payment as 14 required by this Section shall result in the imposition of a 15 late payment penalty, an underestimation penalty, or both, as 16 provided by this subsection. The late payment penalty shall 17 be the greater of: 18 (1) $25 for each month or portion of a month that 19 the installment or required payment is unpaid or 20 (2) an amount equal to the difference between what 21 should have been paid on the due date, based upon the 22 most recently filed estimated, annual, or amended return, 23 and what was actually paid, times 1%, for each month or 24 portion of a month that the installment or required 25 payment goes unpaid. This penalty may be assessed as 26 soon as the installment or required payment becomes 27 delinquent. 28 The underestimation penalty shall apply to those public 29 utilities subject to paragraph (1) of subsection (d) and 30 shall be calculated after the filing of the amended return. 31 It shall be imposed if the amount actually paid on any of the 32 dates specified in subsection (f) is not equal to at least 33 one-fourth of the amount actually due for the year, and shall 34 equal the greater of: SB88 Enrolled -118- LRB9202600SMdv 1 (1) $25 for each month or portion of a month that 2 the amount due is unpaid or 3 (2) an amount equal to the difference between what 4 should have been paid, based on the amended return, and 5 what was actually paid as of the date specified in 6 subsection (f), times a percentage equal to 1/12 of the 7 sum of 10% and the percentage most recently established 8 by the Commission for interest to be paid on customer 9 deposits under 83 Ill. Adm. Code 280.70(e)(1), for each 10 month or portion of a month that the amount due goes 11 unpaid, except that no underestimation penalty shall be 12 assessed if the amount actually paid on or before each of 13 the dates specified in subsection (f) was based on an 14 estimate of gross revenues at least equal to the actual 15 gross revenues for the previous year. The Commission may 16 enforce the collection of any delinquent installment or 17 payment, or portion thereof by legal action or in any 18 other manner by which the collection of debts due the 19 State of Illinois may be enforced under the laws of this 20 State. The executive director or his designee may excuse 21 the payment of an assessed penalty or a portion of an 22 assessed penalty if he determines that enforced 23 collection of the penalty as assessed would be unjust. 24 (h) All sums collected by the Commission under the 25 provisions of this Section shall be paid promptly after the 26 receipt of the same, accompanied by a detailed statement 27 thereof, into the Public Utility Fund in the State treasury. 28 (i) During the month of October of each odd-numbered 29 year the Commission shall: 30 (1) determine the amount of all moneys deposited in 31 the Public Utility Fund during the preceding fiscal 32 biennium plus the balance, if any, in that fund at the 33 beginning of that biennium; 34 (2) determine the sum total of the following items: SB88 Enrolled -119- LRB9202600SMdv 1 (A) all moneys expended or obligated against 2 appropriations made from the Public Utility Fund during 3 the preceding fiscal biennium, plus (B) the sum of the 4 credit memoranda then outstanding against the Public 5 Utility Fund, if any; and 6 (3) determine the amount, if any, by which the sum 7 determined as provided in item (1) exceeds the amount 8 determined as provided in item (2). 9 If the amount determined as provided in item (3) of this 10 subsection exceeds $5,000,000, the Commission shall then 11 compute the proportionate amount, if any, which (x) the tax 12 paid hereunder by each utility during the preceding biennium, 13 and (y) the amount paid into the Public Utility Fund during 14 the preceding biennium by the Department of Revenue pursuant 15 to Sections 2-9 and 2-11 of the Electricity Excise Tax Law, 16 bears to the difference between the amount determined as 17 provided in item (3) of this subsection (i) and $5,000,000. 18 The Commission shall cause the proportionate amount 19 determined with respect to payments made under the 20 Electricity Excise Tax Law to be transferred into the General 21 Revenue Fund in the State Treasury, and notify each public 22 utility that it may file during the 3 month period after the 23 date of notification a claim for credit for the proportionate 24 amount determined with respect to payments made hereunder by 25 the public utility. If the proportionate amount is less than 26 $10, no notification will be sent by the Commission, and no 27 right to a claim exists as to that amount. Upon the filing of 28 a claim for credit within the period provided, the Commission 29 shall issue a credit memorandum in such amount to such public 30 utility. Any claim for credit filed after the period provided 31 for in this Section is void. 32 (j) Credit memoranda issued pursuant to subsection (f) 33 and credit memoranda issued after notification and filing 34 pursuant to subsection (i) may be applied for the 2 year SB88 Enrolled -120- LRB9202600SMdv 1 period from the date of issuance, against the payment of any 2 amount due during that period under the tax imposed by 3 subsection (c), or, subject to reasonable rule of the 4 Commission including requirement of notification, may be 5 assigned to any other public utility subject to regulation 6 under this Act. Any application of credit memoranda after the 7 period provided for in this Section is void. 8 (k) The chairman or executive director may make refund 9 of fees, taxes or other charges whenever he shall determine 10 that the person or public utility will not be liable for 11 payment of such fees, taxes or charges during the next 24 12 months and he determines that the issuance of a credit 13 memorandum would be unjust. 14 (Source: P.A. 92-11, eff. 6-11-01; 92-22, eff. 6-30-01.) 15 (220 ILCS 5/13-511) 16 (Section scheduled to be repealed on July 1, 2005) 17 Sec. 13-511. TelecommunicationsMunicipalInfrastructure 18 Maintenance Fee Act; rate adjustments. With respect to any 19 telecommunications retailer that is regulated by the Illinois 20 Commerce Commission, the Commission shall order such rate 21 adjustments as shall be necessary to assure that the 22 implementation of the TelecommunicationsMunicipal23 Infrastructure Maintenance Fee Act,including the payment of24the State infrastructure maintenance fee, optional25infrastructure maintenance fee, and municipal infrastructure26maintenance fee, if any,net of (1) the termination of any 27 fee, license fee, rent, or lease payment subject to the 28 TelecommunicationsMunicipalInfrastructure Maintenance Fee 29 Act, and (2) the repeal of any invested capital tax subject 30 to the TelecommunicationsMunicipalInfrastructure 31 Maintenance Fee Act, shall have no significant impact on the 32 net income of each such telecommunications retailer. 33 Beginning with the effective date of the Telecommunications SB88 Enrolled -121- LRB9202600SMdv 1MunicipalInfrastructure Maintenance Fee Act, each such 2 telecommunications retailer shall maintain such records and 3 accounts as will enable the Commission to make such findings 4 and determinations as are necessary to such order. 5 (Source: P.A. 90-154, eff. 1-1-98.) 6 Section 90-40. The Telephone Company Act is amended by 7 changing Section 4 as follows: 8 (220 ILCS 65/4) (from Ch. 134, par. 20) 9 Sec. 4. Right of condemnation. Every telecommunications 10telecommunciationscarrier as defined in the 11 TelecommunicationsMunicipalInfrastructure Maintenance Fee 12 Act may, when it shall be necessary for the construction, 13 maintenance, alteration or extension of its 14 telecommunications system, or any part thereof, enter upon, 15 take or damage private property in the manner provided for 16 in, and the compensation therefor shall be ascertained and 17 made in conformity to the provisions of the Telegraph Act and 18 every telecommunications carrier is authorized to construct, 19 maintain, alter and extend its poles, wires, and other 20 appliances as a proper use of highways, along, upon, under 21 and across any highway, street, alley, public right-of-way 22 dedicated or commonly used for utility purposes, or water in 23 this State, but so as not to incommode the public in the use 24 thereof: Provided, that nothing in this act shall interfere 25 with the control now vested in cities, incorporated towns and 26 villages in relation to the regulation of the poles, wires, 27 cables and other appliances, and provided, that before any 28 such lines shall be constructed along any such highway, 29 street, alley, public right-of-way dedicated or commonly used 30 for utility purposes, or water it shall be the duty of the 31 telecommunications carrier proposing to construct any such 32 line, to give (in the case of cities, villages, and SB88 Enrolled -122- LRB9202600SMdv 1 incorporated towns) to the corporate authorities of the 2 municipality or their designees (hereinafter, municipal 3 corporate authorities) or (in other cases) to the highway 4 commissioners having jurisdiction and control over the road 5 or part thereof along and over which such line is proposed to 6 be constructed, notice in writing in the form of plans, 7 specifications, and documentation of the purpose and 8 intention of the company to construct such line over and 9 along the highway, street, alley, public right-of-way 10 dedicated or commonly used for utility purposes, or water, 11 which notice shall be served at least 10 days before the line 12 shall be placed or constructed over and along the highway, 13 street, alley, public right-of-way dedicated or commonly used 14 for utility purposes, or water (30 days in the case of any 15 notice providing for excavation relating to new construction 16 in a public highway, street, alley, public right-of-way 17 dedicated or commonly used for utility purposes, or water); 18 and upon the giving of the notice it shall be the duty of the 19 municipal corporate authorities or the highway commissioners 20 to specify the portion of such highway, street, alley, public 21 right-of-way dedicated or commonly used for utility purposes, 22 or water upon which the line may be placed, used, and 23 constructed, and it shall thereupon be the duty of the 24 telecommunications retailer to provide the municipal 25 authorities or highway commissioners with any and all plans, 26 specifications, and documentation available and to construct 27 its line in accordance with such specifications; but in the 28 event that the municipal corporate authorities or the highway 29 commissioners fail to provide such specification within 10 30 days after the service of such notice, (25 days in the case 31 of excavation relating to new construction) then the 32 telecommunications retailer, without such specification 33 having been made, may proceed to place and erect its line 34 along the highway, street, alley, public right-of-way SB88 Enrolled -123- LRB9202600SMdv 1 dedicated or commonly used for utility purposes, or water by 2 placing its posts, poles and abutments so as not to interfere 3 with other proper uses of the highway, street, alley, public 4 right-of-way dedicated or commonly used for utility purposes, 5 or water. The telecommunications carrier proposing to 6 construct any such line shall comply with the provisions of 7 Section 9-113 of the Illinois Highway Code. Provided, that 8 the telecommunications carrier shall not have the right to 9 condemn any portion of the right-of-way of any railroad 10 company except as much thereof as is necessary to cross the 11 same. 12 The Illinois Commerce Commission may adopt reasonable 13 rules governing the negotiation procedures that are used by a 14 telecommunications carrier during precondemnation 15 negotiations for the purchase of land rights-of-way and 16 easements, including procedures for providing information to 17 the public and affected landowners concerning the project and 18 the right-of-way easements sought in connection therewith. 19 Such rules may be made applicable to interstate, 20 competitive intrastate and noncompetitive intrastate 21 facilities, without regard to whether such facilities or the 22 telecommunications carrier proposing to construct and operate 23 them would otherwise be subject to the Illinois Commerce 24 Commission's jurisdiction under The Public Utilities Act, as 25 now or hereafter amended. However, as to facilities used to 26 provide exclusively interstate services or competitive 27 intrastate services or both, nothing in this Section confers 28 any power upon the Commission (i) to require the disclosure 29 of proprietary, competitively sensitive, or cost information 30 or information not known to the telecommunications carrier, 31 (ii) to determine whether, or conduct hearings regarding 32 whether, any proposed fiber optic or other facilities should 33 or should not be constructed and operated, or (iii) to 34 determine or specify, or conduct hearings concerning, the SB88 Enrolled -124- LRB9202600SMdv 1 price or other terms or conditions of the purchase of the 2 right-of-way easements sought. With respect to facilities 3 used to provide any intrastate services classified in the 4 condemnor's tariff as noncompetitive under Section 13-502 of 5 The Public Utilities Act, the rulemaking powers conferred 6 upon the Commission under this Section are in addition to any 7 rulemaking powers arising under The Public Utilities Act. 8 No telecommunications carrier shall exercise the power to 9 condemn private property until it has first substantially 10 complied with such rules with respect to the property sought 11 to be condemned. If such rules call for providing notice or 12 information before or during negotiations, a failure to 13 provide such notice or information shall not constitute a 14 waiver of the rights granted in this Section, but the 15 telecommunications carrier shall be liable for all reasonable 16 attorney's fees of that landowner resulting from such 17 failure. 18 (Source: P.A. 90-154, eff. 1-1-98.) 19 ARTICLE 95 20 Section 95-95. No acceleration or delay. Where this Act 21 makes changes in a statute that is represented in this Act by 22 text that is not yet or no longer in effect (for example, a 23 Section represented by multiple versions), the use of that 24 text does not accelerate or delay the taking effect of (i) 25 the changes made by this Act or (ii) provisions derived from 26 any other Public Act. 27 ARTICLE 99 28 Section 99-99. Effective date. Article 99 of this Act, 29 Article 95 of this Act, and the changes made in this Act to 30 Sections 5 and 20 of the Telecommunications Municipal SB88 Enrolled -125- LRB9202600SMdv 1 Infrastructure Maintenance Fee Act take effect upon becoming 2 law. Article 5 and Sections 90-22 and 90-30 of this Act take 3 effect on July 1, 2002. Sections 90-5, 90-10, 90-20, 90-25, 4 90-35, and 90-40 of this Act and the changes made in this Act 5 to Sections 1, 10, 15, 25, 27, 27.35, 30 and 35 of the 6 Telecommunications Municipal Infrastructure Maintenance Fee 7 Act take effect on January 1, 2003.