State of Illinois
92nd General Assembly
Legislation

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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 Telecommunications Municipal Infrastructure
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    Telecommunications Municipal Infrastructure  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  Telecommunications  Municipal  Infrastructure
 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 last 15th day 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        or and the 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 30 15 of such  year;  with
 6    the  return for April, May and June of a given year being due
 7    by July 31st 15 of such  year;  with  the  return  for  July,
 8    August  and  September  of  a given year being due by October
 9    31st 15 of  such  year;  and  with  the  return  of  October,
10    November  and  December  of a given year being due by January
11    31st 15 of 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 31st 15th of 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 $10,000 or 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.
25        If the Director finds that the information  required  for
26    the  making  of  an  accurate  return  cannot  reasonably  be
27    compiled  by a retailer within 15 days after the close of the
28    calendar month for which a return is to be made, he may grant
29    an extension of time for the filing  of  such  return  for  a
30    period  of  not  to exceed 31 calendar days.  The granting of
31    such an extension may be conditioned upon the deposit by  the
32    retailer  with  the  Department  of  an  amount  of money not
33    exceeding the amount estimated by the Director to be due with
34    the return so extended.  All  such  deposits,  including  any
 
SB88 Enrolled               -44-               LRB9202600SMdv
 1    heretofore  made  with  the  Department,  shall  be  credited
 2    against  the  retailer's  liabilities under this Article.  If
 3    any such deposit exceeds the retailer's present and  probable
 4    future  liabilities  under this Article, the Department shall
 5    issue to the retailer  a  credit  memorandum,  which  may  be
 6    assigned  by  the  retailer  to a similar retailer under this
 7    Article, in accordance with reasonable rules and  regulations
 8    to 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    Telecommunications  Municipal  Infrastructure 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 State or
 6    the municipality imposing the fee  under  this  Act,  as  the
 7    context 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 State or
17    the municipality imposing the fee under this Act, charges for
18    the channel mileage between each channel  point  within  this
19    State  or  the  municipality imposing the fee under this Act,
20    and charges for that portion of the  interstate  inter-office
21    channel provided within Illinois or the municipality imposing
22    the  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 the
29        Illinois 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  State  or  the  municipality
 2        imposing 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 Affairs or by
19        the  municipality  imposing the fee under the Act, as the
20        context 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.; or
 8             (9)  charges for telecommunications and all services
 9        and equipment provided to  a  municipality  imposing  the
10        infrastructure 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.  The Illinois Department of Revenue
25    or 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 Department or 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 this the State or 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 State  or
 4    the  municipality  imposing  the  fee  under this Act, as the
 5    context 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  State  or
15    the municipality imposing the fee under this Act, charges for
16    the  channel  mileage  between each channel point within this
17    State or the municipality imposing the fee  under  this  Act,
18    and  charges  for that portion of the interstate inter-office
19    channel provided within Illinois or the municipality imposing
20    the 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 the
27        Illinois  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  State  or  the  municipality
34        imposing 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 Affairs or by
17        the municipality imposing the fee under the Act,  as  the
18        context 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.; or
 6             (9)  charges for telecommunications and all services
 7        and  equipment  provided  to  a municipality imposing the
 8        infrastructure 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.  The Illinois Department of  Revenue
23    or  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 Department or 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 this the State or 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  fee
16    is  hereby  created.  A telecommunications retailer may elect
17    to pay  the  optional  infrastructure  maintenance  fee  with
18    respect    to    the    gross    charges   charged   by   the
19    telecommunications  retailer  to  service  addresses   in   a
20    particular  municipality  for  telecommunications, other than
21    wireless telecommunications, originating or received  in  the
22    municipality  if  (1)  the telecommunications retailer is not
23    required to pay any compensation to the municipality under an
24    existing franchise agreement and (2) the municipality has not
25    imposed  a  municipal  infrastructure  maintenance   fee   as
26    authorized  in  Section  20 of this Act. A telecommunications
27    retailer  electing  to  pay   the   optional   infrastructure
28    maintenance  fee shall notify the Department of such election
29    on the application for  certificate  of  registration.  If  a
30    telecommunications  retailer  elects  to  pay  this  fee with
31    respect   to   the   gross    charges    charged    by    the
32    telecommunications   retailer   to  service  addresses  in  a
33    particular municipality, such election shall remain  in  full
34    force  and effect until such time as the municipality imposes
 
SB88 Enrolled               -60-               LRB9202600SMdv
 1    a municipal infrastructure maintenance fee.
 2        (d)  (Blank). The amount of the  optional  infrastructure
 3    maintenance fee which a telecommunications retailer may elect
 4    to  pay  with  respect  to a particular municipality shall be
 5    equal  to  25%  of  the  maximum  amount  of  the   municipal
 6    infrastructure  maintenance  fee which the municipality could
 7    impose under Section 20 of this Act.
 8        (e)  The State infrastructure  maintenance  fee  and  the
 9    optional  infrastructure  maintenance  fee authorized 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  to the sum of (1) an
10    amount equal to  the  State  infrastructure  maintenance  fee
11    attributable  to  that  customer's service address and (2) an
12    amount equal to the optional infrastructure maintenance  fee,
13    if  any,  attributable to that customer's service address and
14    (3)  an  amount  equal  to   the   municipal   infrastructure
15    maintenance  fee,  if  any,  attributable  to that customer's
16    service address.   Such  additional  charge  shall  be  shown
17    separately on the bill to each customer.
18        (b)  The  State  infrastructure  maintenance  fee and the
19    optional infrastructure maintenance fee shall  be  designated
20    as  a  replacement for the personal property tax and shall be
21    remitted by the telecommunications retailer to  the  Illinois
22    Department   of   Revenue;   provided,   however,   that  the
23    telecommunications retailer  may  retain  an  amount  not  to
24    exceed 2% of the State infrastructure maintenance fee and the
25    optional  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  shall
32    be   remitted  by  the  telecommunications  retailer  to  the
33    municipality   imposing    the    municipal    infrastructure
 
SB88 Enrolled               -63-               LRB9202600SMdv
 1    maintenance     fee;     provided,    however,    that    the
 2    telecommunications retailer  may  retain  an  amount  not  to
 3    exceed  2%  of  the  municipal infrastructure maintenance fee
 4    collected by it to reimburse itself for expenses incurred  in
 5    accounting  for  and  remitting  the  fee.   The municipality
 6    imposing the municipal infrastructure maintenance  fee  shall
 7    collect, enforce, and administer the fee.
 8        (d)  Except  as  provided  in  subsection (e), During any
 9    period of time when a municipality receives any  compensation
10    other  than  the municipal infrastructure maintenance fee set
11    forth in Section 20, for a telecommunications retailer's  use
12    of  the  public  right-of-way,  no  municipal  infrastructure
13    maintenance  fee may be imposed by such municipality pursuant
14    to this Act.
15        (e)  A  municipality  that,  pursuant  to   a   franchise
16    agreement  in  existence  on  the effective date of this Act,
17    receives compensation from a telecommunications retailer  for
18    the  use  of  the public right of way, may impose a municipal
19    infrastructure maintenance fee pursuant to this Act  only  on
20    the  condition that such municipality (1) waives its right to
21    receive all fees, charges and other  compensation  under  all
22    existing    franchise    agreements    or   the   like   with
23    telecommunications  retailers  during  the  time   that   the
24    municipality  imposes  a municipal infrastructure maintenance
25    fee and (2) imposes by ordinance (or other  proper  means)  a
26    municipal   infrastructure   maintenance  fee  which  becomes
27    effective no sooner than 90 days after such municipality  has
28    provided   written   notice   by   certified   mail  to  each
29    telecommunications retailer with whom the municipality has an
30    existing franchise agreement, that  the  municipality  waives
31    all 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, or and the 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 him
28        or her during the preceding calendar month and  upon  the
29        basis  of  which  the optional infrastructure maintenance
30        fee, 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.
 5        If  the  Director finds that the information required for
 6    the  making  of  an  accurate  return  cannot  reasonably  be
 7    compiled by a  telecommunications  retailer  within  15  days
 8    after  the  close of the calendar month for which a return is
 9    to be made, he or she may grant an extension of time for  the
10    filing  of  such  return  for  a  period  of not to exceed 31
11    calendar days. The granting  of  such  an  extension  may  be
12    conditioned   upon  the  deposit  by  the  telecommunications
13    retailer with the  Department  of  an  amount  of  money  not
14    exceeding the amount estimated by the Director to be due with
15    the  return  so  extended.  All  such deposits, including any
16    heretofore  made  with  the  Department,  shall  be  credited
17    against the telecommunications retailer's  liabilities  under
18    this  Act. If any such deposit exceeds the telecommunications
19    retailer's present and probable future liabilities under this
20    Act, the Department shall  issue  to  the  telecommunications
21    retailer  a  credit  memorandum, which may be assigned by the
22    telecommunications retailer to a  similar  telecommunications
23    retailer  under this Act, in accordance with reasonable rules
24    and 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  fee  and  the
 3    optional infrastructure maintenance fee  authorized  by  this
 4    Act.   Such  rules  and  regulations  shall  not apply to the
 5    administration   and    enforcement    of    the    municipal
 6    infrastructure 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  municipal
10    infrastructure  maintenance  fee authorized by this Act shall
11    be the only fee or compensation for recovering the reasonable
12    costs of regulating the use of the public  rights-of-way  and
13    for  the use of public rights-of-way that may be levied by or
14    otherwise required by ordinance, resolution, or  contract  to
15    be  paid  to  a municipality for the use of its public way by
16    telecommunications 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    any  or other new charges be required from telecommunications
23    retailers by municipalities from and after the effective date
24    of this Act.  No telecommunications  retailer  paying  either
25    the  applicable  municipal  infrastructure maintenance fee or
26    the optional infrastructure  maintenance  fee  authorized  by
27    this  Act  may  be denied the use, directly or indirectly, of
28    the public  way  of  the  municipality  either  imposing  the
29    municipal  infrastructure  maintenance  fee  or  to which the
30    optional infrastructure maintenance fee relates, as the  case
31    may  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 date
16    of this Act, such an agreement is renewed automatically or by
17    agreement of the parties, the compensation or fee  under  the
18    agreement  shall  be  equal  to  the  maximum  amount  of the
19    municipal   infrastructure   maintenance   fee   which    the
20    municipality 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 fees and other fees relating to the  use  of  the
 4    public  right-of-way  for telecommunications activity imposed
 5    upon telecommunications retailers is 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  infrastructure
10    maintenance 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 Act Section  8-11-2  of  the  Illinois
24    Municipal   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  Act  Section  8-11-2 of the Illinois
28    Municipal  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 of
 5        transmitting messages by means of  electricity  or  radio
 6        magnetic  waves, or fiber optics, at a rate not to exceed
 7        5% of the gross receipts from that  business  originating
 8        within   the   corporate   limits  of  the  municipality.
 9        Beginning January  1,  2001,  prepaid  telephone  calling
10        arrangements  shall  not  be  subject  to the tax imposed
11        under  this  Section.   For  purposes  of  this  Section,
12        "prepaid telephone calling arrangements" means that  term
13        as  defined  in Section 2-27 of the Retailers' Occupation
14        Tax 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 transmitting
10    messages, 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 for the
 5    transmission of  messages,  the  consideration  received  for
 6    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
14    without any deduction on account of the cost of  transmitting
15    such  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   the
21    transmission  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  by
28    telecommunications  retailers  under  the  Telecommunications
29    Municipal 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 to
25    customers' bills to recover the surcharge imposed  under  the
26    Emergency   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.
32        The  words  "transmitting  messages",  in addition to the
33    usual and popular meaning of person to person  communication,
34    shall   include  the  furnishing,  for  a  consideration,  of
 
SB88 Enrolled               -89-               LRB9202600SMdv
 1    services or facilities (whether owned or leased), or both, to
 2    persons in connection with the transmission of messages where
 3    those persons do not, in turn, receive any  consideration  in
 4    connection  therewith,  but shall not include such furnishing
 5    of services or facilities to persons for the transmission  of
 6    messages  to  the extent that any such services or facilities
 7    for  the  transmission  of  messages  are  furnished  for   a
 8    consideration,  by  those  persons  to other persons, for the
 9    transmission 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
31    telecommunications  carriers  as defined in Section 13-202 of
32    that Act and alternative 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.
 9        In the  case  of  persons  engaged  in  the  business  of
10    transmitting  messages  through  the use of mobile equipment,
11    such  as  cellular  phones  and  paging  systems,  the  gross
12    receipts  from  the  business  shall  be  deemed to originate
13    within the corporate limits of a  municipality  only  if  the
14    address to which the bills for the service are sent is within
15    those  corporate  limits.  If,  however,  that address is not
16    located within a municipality that imposes a tax  under  this
17    Section,  then  (i)  if the party responsible for the bill is
18    not an individual, the gross receipts from the business shall
19    be deemed to originate within the  corporate  limits  of  the
20    municipality  where  that party's principal place of business
21    in Illinois is located, and (ii) if the party responsible for
22    the bill is  an  individual,  the  gross  receipts  from  the
23    business  shall  be  deemed to originate within the corporate
24    limits of  the  municipality  where  that  party's  principal
25    residence 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  of
 2        transmitting  messages  by  means of electricity or radio
 3        magnetic waves, or fiber optics, at a rate not to  exceed
 4        5%  of  the gross receipts from that business originating
 5        within  the  corporate  limits   of   the   municipality.
 6        Beginning  January  1,  2001,  prepaid  telephone calling
 7        arrangements shall not be  subject  to  the  tax  imposed
 8        under  this  Section.   For  purposes  of  this  Section,
 9        "prepaid  telephone calling arrangements" means that term
10        as defined in Section 2-27 of the  Retailers'  Occupation
11        Tax 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  transmitting
 7    messages,  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 for the
 2    transmission  of  messages,  the  consideration  received for
 3    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
11    without  any deduction on account of the cost of transmitting
12    such 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  the
18    transmission 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   by
25    telecommunications  retailers  under  the  Telecommunications
26    Municipal 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  to
22    customers'  bills  to recover the surcharge imposed under the
23    Emergency  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.
29        The words "transmitting messages",  in  addition  to  the
30    usual  and popular meaning of person to person communication,
31    shall  include  the  furnishing,  for  a  consideration,   of
32    services or facilities (whether owned or leased), or both, to
33    persons in connection with the transmission of messages where
34    those  persons  do not, in turn, receive any consideration in
 
SB88 Enrolled               -101-              LRB9202600SMdv
 1    connection therewith, but shall not include  such  furnishing
 2    of  services or facilities to persons for the transmission of
 3    messages to the extent that any such services  or  facilities
 4    for   the  transmission  of  messages  are  furnished  for  a
 5    consideration, by those persons to  other  persons,  for  the
 6    transmission 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
28    telecommunications carriers as defined in Section  13-202  of
29    that Act and alternative 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.
 6        In  the  case  of  persons  engaged  in  the  business of
 7    transmitting messages through the use  of  mobile  equipment,
 8    such   as  cellular  phones  and  paging  systems,  the gross
 9    receipts from the  business  shall  be  deemed  to  originate
10    within  the  corporate  limits  of a municipality only if the
11    customer's place of primary use  as  defined  in  the  Mobile
12    Telecommunications  Sourcing  Conformity  Act is within those
13    corporate 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    Telecommunications    Municipal
33    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.  Telecommunications Municipal Infrastructure
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    Telecommunications    Municipal
23    Infrastructure  Maintenance Fee Act, including the payment of
24    the   State   infrastructure   maintenance   fee,    optional
25    infrastructure  maintenance fee, and municipal infrastructure
26    maintenance fee, if any, net of (1) the  termination  of  any
27    fee,  license  fee,  rent,  or  lease  payment subject to the
28    Telecommunications Municipal Infrastructure  Maintenance  Fee
29    Act,  and  (2) the repeal of any invested capital tax subject
30    to   the    Telecommunications    Municipal    Infrastructure
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
 1    Municipal  Infrastructure  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
10    telecommunciations    carrier    as    defined     in     the
11    Telecommunications  Municipal  Infrastructure 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.

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