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[ Senate Amendment 001 ] |
92_SB0088sam002 LRB9202600SMdvam12 1 AMENDMENT TO SENATE BILL 88 2 AMENDMENT NO. . Amend Senate Bill 88, AS AMENDED, by 3 replacing the title with the following: 4 "AN ACT concerning telecommunications."; and 5 by replacing everything after the enacting clause with the 6 following: 7 "ARTICLE 5 8 Section 5-1. Short title. This Act may be cited as the 9 Simplified Municipal Telecommunications Tax Act. 10 Section 5-5. Legislative intent. The General Assembly has 11 authorized the corporate authorities of any municipality to 12 impose various fees and taxes on the privilege of originating 13 or receiving telecommunications, and on retailers engaged in 14 the business of transmitting such telecommunications, all of 15 which are remitted by such retailers directly to the imposing 16 municipality. To simplify the imposition and collection of 17 municipal telecommunications taxes and to reduce complication 18 and burden, the General Assembly is repealing the municipal 19 telecommunications tax, the municipal tax on the occupation 20 or privilege of transmitting messages, and the municipal -2- LRB9202600SMdvam12 1 infrastructure maintenance fee, and is enacting this 2 Simplified Municipal Telecommunications Tax Act which 3 provides for a single municipally imposed telecommunications 4 tax which, for municipalities with populations of less than 5 500,000, will be collected by the Illinois Department of 6 Revenue, but which, for municipalities of 500,000 or more, 7 will continue to be collected by such municipalities. 8 Section 5-7. Definitions. For purposes of the taxes 9 authorized by this Act: 10 "Amount paid" means the amount charged to the taxpayer's 11 service address in such municipality regardless of where such 12 amount is billed or paid. 13 "Department" means the Illinois Department of Revenue. 14 "Gross charge" means the amount paid for the act or 15 privilege of originating or receiving telecommunications in 16 such municipality and for all services and equipment provided 17 in connection therewith by a retailer, valued in money 18 whether paid in money or otherwise, including cash, credits, 19 services and property of every kind or nature, and shall be 20 determined without any deduction on account of the cost of 21 such telecommunications, the cost of the materials used, 22 labor or service costs or any other expense whatsoever. In 23 case credit is extended, the amount thereof shall be included 24 only as and when paid. "Gross charges" for private line 25 service shall include charges imposed at each channel point 26 within this State, charges for the channel mileage between 27 each channel point within this State, and charges for that 28 portion of the interstate inter-office channel provided 29 within Illinois. However, "gross charge" shall not include: 30 (1) any amounts added to a purchaser's bill because 31 of a charge made pursuant to: (i) the tax imposed by this 32 Act, (ii) the tax imposed by the Telecommunications 33 Excise Tax Act, (iii) the tax imposed by Section 4251 of -3- LRB9202600SMdvam12 1 the Internal Revenue Code, (iv) 911 surcharges, or (v) 2 charges added to customers' bills pursuant to the 3 provisions of Section 9-221 or 9-222 of the Public 4 Utilities Act, as amended, or any similar charges added 5 to customers' bills by retailers who are not subject to 6 rate regulation by the Illinois Commerce Commission for 7 the purpose of recovering any of the tax liabilities or 8 other amounts specified in those provisions of the Public 9 Utilities Act; 10 (2) charges for a sent collect telecommunication 11 received outside of such municipality; 12 (3) charges for leased time on equipment or charges 13 for the storage of data or information for subsequent 14 retrieval or the processing of data or information 15 intended to change its form or content. Such equipment 16 includes, but is not limited to, the use of calculators, 17 computers, data processing equipment, tabulating 18 equipment or accounting equipment and also includes the 19 usage of computers under a time-sharing agreement; 20 (4) charges for customer equipment, including such 21 equipment that is leased or rented by the customer from 22 any source, wherein such charges are disaggregated and 23 separately identified from other charges; 24 (5) charges to business enterprises certified as 25 exempt under Section 9-222.1 of the Public Utilities Act 26 to the extent of such exemption and during the period of 27 time specified by the Department of Commerce and 28 Community Affairs; 29 (6) charges for telecommunications and all services 30 and equipment provided in connection therewith between a 31 parent corporation and its wholly owned subsidiaries or 32 between wholly owned subsidiaries when the tax imposed 33 under this Act has already been paid to a retailer and 34 only to the extent that the charges between the parent -4- LRB9202600SMdvam12 1 corporation and wholly owned subsidiaries or between 2 wholly owned subsidiaries represent expense allocation 3 between the corporations and not the generation of profit 4 for the corporation rendering such service; 5 (7) bad debts ("bad debt" means any portion of a 6 debt that is related to a sale at retail for which gross 7 charges are not otherwise deductible or excludable that 8 has become worthless or uncollectible, as determined 9 under applicable federal income tax standards; if the 10 portion of the debt deemed to be bad is subsequently 11 paid, the retailer shall report and pay the tax on that 12 portion during the reporting period in which the payment 13 is made); 14 (8) charges paid by inserting coins in 15 coin-operated telecommunication devices; or 16 (9) amounts paid by telecommunications retailers 17 under the Telecommunications Infrastructure Maintenance 18 Fee Act. 19 "Interstate telecommunications" means all 20 telecommunications that either originate or terminate outside 21 this State. 22 "Intrastate telecommunications" means all 23 telecommunications that originate and terminate within this 24 State. 25 "Person" means any natural individual, firm, trust, 26 estate, partnership, association, joint stock company, joint 27 venture, corporation, limited liability company, or a 28 receiver, trustee, guardian, or other representative 29 appointed by order of any court, the Federal and State 30 governments, including State universities created by statute, 31 or any city, town, county, or other political subdivision of 32 this State. 33 "Purchase at retail" means the acquisition, consumption 34 or use of telecommunications through a sale at retail. -5- LRB9202600SMdvam12 1 "Retailer" means and includes every person engaged in the 2 business of making sales at retail as defined in this 3 Section. The Department may, in its discretion, upon 4 application, authorize the collection of the tax hereby 5 imposed by any retailer not maintaining a place of business 6 within this State, who, to the satisfaction of the 7 Department, furnishes adequate security to insure collection 8 and payment of the tax. Such retailer shall be issued, 9 without charge, a permit to collect such tax. When so 10 authorized, it shall be the duty of such retailer to collect 11 the tax upon all of the gross charges for telecommunications 12 in this State in the same manner and subject to the same 13 requirements as a retailer maintaining a place of business 14 within this State. The permit may be revoked by the 15 Department at its discretion. 16 "Retailer maintaining a place of business in this State", 17 or any like term, means and includes any retailer having or 18 maintaining within this State, directly or by a subsidiary, 19 an office, distribution facilities, transmission facilities, 20 sales office, warehouse or other place of business, or any 21 agent or other representative operating within this State 22 under the authority of the retailer or its subsidiary, 23 irrespective of whether such place of business or agent or 24 other representative is located here permanently or 25 temporarily, or whether such retailer or subsidiary is 26 licensed to do business in this State. 27 "Sale at retail" means the transmitting, supplying or 28 furnishing of telecommunications and all services and 29 equipment provided in connection therewith for a 30 consideration, to persons other than the Federal and State 31 governments, and State universities created by statute and 32 other than between a parent corporation and its wholly owned 33 subsidiaries or between wholly owned subsidiaries for their 34 use or consumption and not for resale. -6- LRB9202600SMdvam12 1 "Service address" means the location of 2 telecommunications equipment from which telecommunications 3 services are originated or at which telecommunications 4 services are received by a taxpayer. In the event this may 5 not be a defined location, as in the case of mobile phones, 6 paging systems, and maritime systems, service address means 7 the customer's place of primary use as defined in the Mobile 8 Telecommunications Sourcing Conformity Act. For 9 air-to-ground systems and the like, "service address" shall 10 mean the location of a taxpayer's primary use of the 11 telecommunications equipment as defined by telephone number, 12 authorization code, or location in Illinois where bills are 13 sent. 14 "Taxpayer" means a person who individually or through his 15 or her agents, employees, or permittees engages in the act or 16 privilege of originating or receiving telecommunications in a 17 municipality and who incurs a tax liability as authorized by 18 this Act. 19 "Telecommunications", in addition to the meaning 20 ordinarily and popularly ascribed to it, includes, without 21 limitation, messages or information transmitted through use 22 of local, toll, and wide area telephone service, private line 23 services, channel services, telegraph services, 24 teletypewriter, computer exchange services, cellular mobile 25 telecommunications service, specialized mobile radio, 26 stationary two-way radio, paging service, or any other form 27 of mobile and portable one-way or two-way communications, or 28 any other transmission of messages or information by 29 electronic or similar means, between or among points by wire, 30 cable, fiber optics, laser, microwave, radio, satellite, or 31 similar facilities. As used in this Act, "private line" 32 means a dedicated non-traffic sensitive service for a single 33 customer, that entitles the customer to exclusive or priority 34 use of a communications channel or group of channels, from -7- LRB9202600SMdvam12 1 one or more specified locations to one or more other 2 specified locations. The definition of "telecommunications" 3 shall not include value added services in which computer 4 processing applications are used to act on the form, content, 5 code, and protocol of the information for purposes other than 6 transmission. "Telecommunications" shall not include 7 purchases of telecommunications by a telecommunications 8 service provider for use as a component part of the service 9 provided by such provider to the ultimate retail consumer who 10 originates or terminates the taxable end-to-end 11 communications. Carrier access charges, right of access 12 charges, charges for use of inter-company facilities, and all 13 telecommunications resold in the subsequent provision of, 14 used as a component of, or integrated into, end-to-end 15 telecommunications service shall be non-taxable as sales for 16 resale. Prepaid telephone calling arrangements shall not be 17 considered "telecommunications" subject to the tax imposed 18 under this Act. For purposes of this Section, "prepaid 19 telephone calling arrangements" means that term as defined in 20 Section 2-27 of the Retailers' Occupations Tax Act. 21 Section 5-10. Authority. The corporate authorities of 22 any municipality in this State may tax any and all of the 23 following acts or privileges: 24 (a) The act or privilege of originating in such 25 municipality or receiving in such municipality intrastate 26 telecommunications by a person. However, such tax is not 27 imposed on such act or privilege to the extent such act or 28 privilege may not, under the Constitution and statutes of the 29 United States, be made the subject of taxation by 30 municipalities in this State. 31 (b) The act or privilege of originating in such 32 municipality or receiving in such municipality interstate 33 telecommunications by a person. To prevent actual multi-state -8- LRB9202600SMdvam12 1 taxation of the act or privilege that is subject to taxation 2 under this subsection, any taxpayer, upon proof that the 3 taxpayer has paid a tax in another state on such event, shall 4 be allowed a credit against any tax enacted pursuant to or 5 authorized by this Section to the extent of the amount of 6 such tax properly due and paid in such other state which was 7 not previously allowed as a credit against any other state or 8 local tax in this State. However, such tax is not imposed on 9 the act or privilege to the extent such act or privilege may 10 not, under the Constitution and statutes of the United 11 States, be made the subject of taxation by municipalities in 12 this State. 13 Section 5-15. Maximum rates. 14 (a) For municipalities with a population of less than 15 500,000, the tax authorized by this Act may be imposed at a 16 rate not to exceed 6% of the gross charge for 17 telecommunications purchased at retail. If imposed, the tax 18 must be in increments of 0.25%. 19 (b) For municipalities with a population of 500,000 or 20 more, the tax authorized by this Act may be imposed at a rate 21 not to exceed 7% of the gross charge for telecommunications 22 purchased at retail. If imposed, the tax must be in 23 increments of 0.25%. 24 Section 5-20. Imposition. 25 (a) On and after January 1, 2003, for municipalities 26 with populations of less than 500,000, the tax authorized by 27 this Act shall be imposed (except as provided in Sections 28 5-25 and 5-30 of this Act), amended, or repealed by an 29 ordinance adopted by the municipality, which ordinance shall 30 be filed by the municipality with the Department pursuant to 31 the rules of the Department. 32 (1) Any ordinance adopted by a municipality with a -9- LRB9202600SMdvam12 1 population of less than 500,000 which attempts to impose, 2 amend or repeal the tax authorized by this Act shall be 3 of no force and effect until properly filed with an 4 appropriate form with the Department. 5 (2) Any certified copy of an ordinance filed with 6 the Department prior to October 1, 2002 shall be 7 effective with respect to gross charges billed by 8 telecommunications retailers on or after January 1, 2003 9 and thereafter any certified copy of an ordinance filed 10 with the Department prior to any April 1 or October 1 11 shall be effective with respect to gross charges billed 12 by telecommunications retailers on or after the following 13 July 1 or January 1, respectively. 14 (b) On and after January 1, 2003, for municipalities 15 with populations of 500,000 or more, the tax authorized by 16 this Act shall be imposed, amended, or repealed, and any 17 authorized exemptions granted, by the adoption of an 18 ordinance. 19 Section 5-25. Existing telecommunications taxes and 20 fees. 21 (a) Between July 1, 2002 and August 1, 2002, the 22 Department shall publish a list of the municipalities with a 23 population of less than 500,000 that have, at any time before 24 the effective date of this Act, enacted ordinances imposing 25 any taxes or fees authorized by subparagraph 1 of Section 26 8-11-2 of the Illinois Municipal Code, Section 8-11-17 of the 27 Illinois Municipal Code, or Section 20 of the 28 Telecommunications Infrastructure Maintenance Fee Act. Such 29 list shall include the name of each such municipality, the 30 rates at which such taxes or fees are imposed as of the 31 effective date of this Act, and the rate of the new 32 Simplified Municipal Telecommunications Tax, as calculated 33 pursuant to Section 5-30 of this Act. -10- LRB9202600SMdvam12 1 (b) In compiling the list described in this Section, the 2 Department shall collect information from retailers, 3 municipalities, the Illinois Commerce Commission, and other 4 sources deemed by the Department to be reliable. 5 (c) Any municipality appearing on the list published 6 pursuant to this Section shall not be required to adopt and 7 file an ordinance implementing the tax authorized by this 8 Act. The list shall be conclusive evidence of the imposition 9 of the tax authorized by this Act at the rate appearing on 10 such list. Any tax imposed in such manner shall take effect 11 with respect to gross charges billed by telecommunications 12 retailers on or after January 1, 2003. A municipality may 13 alter such tax only by filing an ordinance with the 14 Department pursuant to Section 5-20 of this Act. 15 Section 5-30. Calculation of rates for certain 16 municipalities. The rate of the Simplified Municipal 17 Telecommunications Tax for municipalities on the list 18 described in Section 5-25 of this Act shall be measured by 19 the sum of the following rates set forth in ordinances 20 enacted by the municipalities at the rates in effect on the 21 effective date of this Act: 22 (1) The rate equal to 70% of the rate set forth in 23 such ordinance pursuant to subparagraph 1 of Section 24 8-11-2 of the Illinois Municipal Code, rounded to the 25 nearest even 0.25% increment; plus 26 (2) The rate set forth in such ordinance pursuant 27 to Section 8-11-17 of the Illinois Municipal Code, 28 rounded to the nearest even 0.25% increment; plus 29 (3) The rate set forth in such ordinance pursuant 30 to Section 20 of the Telecommunications Infrastructure 31 Maintenance Fee Act. 32 Section 5-35. Rebates and exemptions. Any municipality -11- LRB9202600SMdvam12 1 may implement the following rebates and exemptions: 2 (1) A municipality that imposes the tax authorized 3 by this Act and whose territory includes part of another 4 unit of local government or a school district, may, by 5 separate ordinance, rebate some or all of the amount of 6 such tax paid by the other unit of local government or 7 school district. Any such rebate shall be paid by the 8 municipality directly to the other unit of local 9 government or school district qualifying for the rebate 10 as determined by the municipality's ordinance, which 11 shall not be filed with the Department. 12 (2) A municipality that imposes the tax authorized 13 by this Act may, by separate ordinance, rebate some or 14 all of the amount of such tax to persons 65 years of age 15 or older. Any tax related to such rebate shall be 16 rebated from the municipality directly to persons 17 qualified for the rebate as determined by the 18 municipality's ordinance, which shall not be filed with 19 the Department. 20 (3) A municipality with a population of 500,000 or 21 more that imposes the tax authorized by this Act may, by 22 separate ordinance, exempt from the tax authorized by 23 this Act, charges for inbound toll-free 24 telecommunications service commonly known as "800", 25 "877", or "888" or for a similar service, to the extent 26 such municipality has passed an ordinance providing for 27 this exemption. 28 Section 5-40. Collection. 29 (a) For municipalities with populations of less than 30 500,000, the tax authorized by this Act shall be collected 31 from the taxpayer by a retailer maintaining a place of 32 business in this State and shall be remitted by such retailer 33 to the Department. Any tax required to be collected pursuant -12- LRB9202600SMdvam12 1 to or as authorized by this Act and any such tax collected by 2 such retailer and required to be remitted to the Department 3 shall constitute a debt owed by the retailer to the State. 4 Retailers shall collect the tax from the taxpayer by adding 5 the tax to the gross charge for the act or privilege of 6 originating or receiving telecommunications when sold for 7 use, in the manner prescribed by the Department. The tax 8 authorized by this Act shall constitute a debt of the 9 taxpayer to the retailer until paid, and, if unpaid, is 10 recoverable at law in the same manner as the original charge 11 for such sale at retail. If the retailer fails to collect 12 the tax from the taxpayer, then the taxpayer shall be 13 required to pay the tax directly to the Department in the 14 manner provided by the Department. 15 (b) For municipalities with populations of 500,000 or 16 more, the tax authorized by this Act shall be collected from 17 the taxpayer by a retailer making or effectuating the sale at 18 retail and shall be remitted by such retailer to such 19 municipality. Any tax required to be collected pursuant to 20 an ordinance authorized by this Act and any such tax 21 collected by a retailer shall constitute a debt owed by the 22 retailer to such municipality. Retailers shall collect the 23 tax from the taxpayer by adding the tax to the gross charge 24 for the act or privilege of originating or receiving 25 telecommunications when sold for use, in the manner 26 prescribed by such municipality. The tax authorized by this 27 Act shall constitute a debt of the taxpayer to the retailer 28 who made or effectuated the sale at retail until paid and, if 29 unpaid, is recoverable at law in the same manner as the 30 original charge for the sale at retail. If the retailer 31 fails to collect the tax from the taxpayer, then the taxpayer 32 shall be required to pay the tax directly to such 33 municipality in the manner provided by such municipality. 34 The municipality imposing the tax shall provide for its -13- LRB9202600SMdvam12 1 administration and enforcement. 2 (c) Retailers filing tax returns pursuant to this Act 3 shall, at the time of filing such return, pay to a 4 municipality with a population of 500,000 or more or to the 5 Department for all other municipalities, the amount of the 6 tax collected, less a discount of 1% which is allowed to 7 reimburse the retailer for the expenses incurred in keeping 8 records, billing the customer, preparing and filing returns, 9 remitting the tax and supplying data to a municipality or the 10 Department upon request. No discount may be claimed by a 11 retailer on returns not timely filed and for taxes not timely 12 remitted. 13 (d) Whenever possible, the tax authorized by this Act 14 shall, when collected, be stated as a distinct item separate 15 and apart from the gross charge for telecommunications. 16 Section 5-45. Resellers. 17 (a) If a person who originates or receives 18 telecommunications claims to be a reseller of such 19 telecommunications, such person shall apply to a municipality 20 with a population of 500,000 or more or to the Department for 21 all other municipalities, for a resale number. Such 22 applicant shall state facts which will show a municipality 23 with a population of 500,000 or more or the Department for 24 all other municipalities, why such applicant is not liable 25 for tax authorized by this Act on any of such purchases and 26 shall furnish such additional information as a municipality 27 with a population of 500,000 or more or the Department for 28 all other municipalities, may reasonably require. 29 (b) Upon approval of the application, a municipality 30 with a population of 500,000 or more or the Department for 31 all other municipalities, shall assign a resale number to the 32 applicant and shall certify such number to the applicant. A 33 municipality with a population of 500,000 or more or the -14- LRB9202600SMdvam12 1 Department for all other municipalities, may cancel any 2 number which is obtained through misrepresentation, or which 3 is used to send or receive such telecommunication tax-free 4 when such actions in fact are not for resale, or which no 5 longer applies because of the person's having discontinued 6 the making of resales. 7 (c) Except as provided hereinabove in this Section, the 8 act or privilege of originating or receiving 9 telecommunications in this State shall not be made tax-free 10 on the ground of being a sale for resale unless the person 11 has an active resale number from a municipality with a 12 population of 500,000 or more or the Department for all other 13 municipalities, and furnishes that number to the retailer in 14 connection with certifying to the retailer that any sale to 15 such person is non-taxable because of being a sale for 16 resale. 17 Section 5-50. Returns to the Department. 18 (a) Commencing on February 1, 2003, for the tax imposed 19 under subsection (a) of Section 5-20 of this Act, every 20 retailer maintaining a place of business in this State shall, 21 on or before the last day of each month make a return to the 22 Department for the preceding calendar month, stating: 23 (1) Its name; 24 (2) The address of its principal place of business 25 or the address of the principal place of business (if 26 that is a different address) from which it engages in the 27 business of transmitting telecommunications; 28 (3) Total amount of gross charges billed by it 29 during the preceding calendar month for providing 30 telecommunications during the calendar month; 31 (4) Total amount received by it during the 32 preceding calendar month on credit extended; 33 (5) Deductions allowed by law; -15- LRB9202600SMdvam12 1 (6) Gross charges that were billed by it during the 2 preceding calendar month and upon the basis of which the 3 tax is imposed; 4 (7) Amount of tax (computed upon Item 6); 5 (8) The municipalities to which the Department 6 shall remit the taxes and the amount of such remittances; 7 (9) Such other reasonable information as the 8 Department may require. 9 (b) Any retailer required to make payments under this 10 Section may make the payments by electronic funds transfer. 11 The Department shall adopt rules necessary to effectuate a 12 program of electronic funds transfer. Any retailer who has 13 average monthly tax billings due to the Department under this 14 Act and the Telecommunications Excise Tax Act that exceed 15 $1,000 shall make all payments by electronic funds transfer 16 as required by rules of the Department. 17 (c) If the retailer's average monthly tax billings due 18 to the Department under this Act and the Telecommunications 19 Excise Tax Act do not exceed $1,000, the Department may 20 authorize such retailer's returns to be filed on a 21 quarter-annual basis, with the return for January, February, 22 and March of a given year being due by April 30th of that 23 year; with the return for April, May, and June of a given 24 year being due by July 31st of that year; with the return for 25 July, August, and September of a given year being due by 26 October 31st of that year; and with the return for October, 27 November, and December of a given year being due by January 28 31st of the following year. 29 (d) If the retailer is otherwise required to file a 30 monthly or quarterly return and if the retailer's average 31 monthly tax billings due to the Department under this Act and 32 the Telecommunications Excise Tax Act do not exceed $400, the 33 Department may authorize such retailer's return to be filed 34 on an annual basis, with the return for a given year being -16- LRB9202600SMdvam12 1 due by January 31st of the following year. 2 (e) Each retailer whose average monthly remittance to 3 the Department under this Act and the Telecommunications 4 Excise Tax Act was $25,000 or more during the preceding 5 calendar year, excluding the month of highest remittance and 6 the month of lowest remittance in such calendar year, and who 7 is not operated by a unit of local government, shall make 8 estimated payments to the Department on or before the 7th, 9 15th, 22nd, and last day of the month during which the tax 10 remittance is owed to the Department in an amount not less 11 than the lower of either 22.5% of the retailer's actual tax 12 collections for the month or 25% of the retailer's actual tax 13 collections for the same calendar month of the preceding 14 year. The amount of such quarter-monthly payments shall be 15 credited against the final remittance of the retailer's 16 return for that month. Any outstanding credit, approved by 17 the Department, arising from the retailer's overpayment of 18 its final remittance for any month may be applied to reduce 19 the amount of any subsequent quarter-monthly payment or 20 credited against the final remittance of the retailer's 21 return for any subsequent month. If any quarter-monthly 22 payment is not paid at the time or in the amount required by 23 this Section, the retailer shall be liable for penalty and 24 interest on the difference between the minimum amount due as 25 a payment and the amount of such payment actually and timely 26 paid, except insofar as the retailer has previously made 27 payments for that month to the Department or received credits 28 in excess of the minimum payments previously due. 29 (f) Notwithstanding any other provision of this Section 30 containing the time within which a retailer may file his or 31 her return, in the case of any retailer who ceases to engage 32 in a kind of business that makes him or her responsible for 33 filing returns under this Section, the retailer shall file a 34 final return under this Section with the Department not more -17- LRB9202600SMdvam12 1 than one month after discontinuing such business. 2 (g) In making such return, the retailer shall determine 3 the value of any consideration other than money received by 4 it and such retailer shall include the value in its return. 5 Such determination shall be subject to review and revision by 6 the Department in the manner hereinafter provided for the 7 correction of returns. 8 (h) Any retailer who has average monthly tax billings 9 due to the Department under this Act and the 10 Telecommunications Excise Tax Act that exceed $1,000 shall 11 file the return required by this Section by electronic means 12 as required by rules of the Department. 13 (i) The retailer filing the return herein provided for 14 shall, at the time of filing the return, pay to the 15 Department the amounts due pursuant to this Act. The 16 Department shall immediately pay over to the State Treasurer, 17 ex officio, as trustee, 99.5% of all taxes, penalties, and 18 interest collected hereunder for deposit into the Municipal 19 Telecommunications Fund, which is hereby created. The 20 remaining 0.5% received by the Department pursuant to this 21 Act shall be deposited into the Tax Compliance and 22 Administration Fund and shall be used by the Department, 23 subject to appropriation, to cover the costs of the 24 Department. On or before the 25th day of each calendar month, 25 the Department shall prepare and certify to the Comptroller 26 the disbursement of stated sums of money to be paid to named 27 municipalities from the Municipal Telecommunications Fund for 28 amounts collected during the second preceding calendar month. 29 The named municipalities shall be those municipalities 30 identified by a retailer in such retailer's return as having 31 imposed the tax authorized by the Act. The amount of money 32 to be paid to each municipality shall be the amount (not 33 including credit memoranda) collected hereunder during the 34 second preceding calendar month by the Department, plus an -18- LRB9202600SMdvam12 1 amount the Department determines is necessary to offset any 2 amounts that were erronenously paid to a different taxing 3 body, and not including an amount equal to the amount of 4 refunds made during the second preceding calendar month by 5 the Department on behalf of such municipality, and not 6 including any amount that the Department determines is 7 necessary to offset any amount that were payable to a 8 different taxing body but were erroneously paid to the 9 municipality. Within 10 days after receipt by the 10 Comptroller of the disbursement certification from the 11 Department, the Comptroller shall cause the orders to be 12 drawn for the respective amounts in accordance with the 13 directions contained in the certification. When certifying 14 to the Comptroller the amount of a monthly disbursement to a 15 municipality under this Section, the Department shall 16 increase or decrease the amount by an amount necessary to 17 offset any misallocation of previous disbursements. The 18 offset amount shall be the amount erroneously disbursed 19 within the previous 6 months from the time a misallocation is 20 discovered. 21 (j) For municipalities with populations of less than 22 500,000, whenever the Department determines that a refund 23 shall be made under this Section to a claimant instead of 24 issuing a credit memorandum, the Department shall notify the 25 State Comptroller, who shall cause the order to be drawn for 26 the amount specified and to the person named in the 27 notification from the Department. The refund shall be paid 28 by the State Treasurer out of the Municipal 29 Telecommunications Fund. 30 Section 5-55. Pledged revenues. If a municipality has, 31 by contract, pledged or dedicated any or all of the revenues 32 collected under any of its taxes imposed pursuant to 33 subparagraph 1 of Section 8-11-2 of the Illinois Municipal -19- LRB9202600SMdvam12 1 Code, Section 8-11-17 of the Illinois Municipal Code, or 2 Section 20 of the Telecommunications Infrastructure 3 Maintenance Fee Act as shown on the list described in Section 4 5-25 of this Act, then the equivalent portion of revenues 5 collected from the tax authorized by this Act shall be deemed 6 pledged or dedicated in a manner substantially similar to the 7 pledge of the then existing taxes so as to prevent disruption 8 of such contract. 9 Section 5-60. Waiver of franchise fees. 10 (a) Any municipality shall be deemed to have waived its 11 right to receive all fees, charges and other compensation 12 that might accrue to the municipality after the effective 13 date of this Act, under any franchise agreement, license, or 14 similar agreement, executed on or before January 1, 1998 with 15 telecommunications retailers if: 16 (1) the municipality imposes the tax authorized by 17 this Act at a rate exceeding 5%; 18 (2) the municipality affirmatively waives such 19 fees; or 20 (3) the municipality is included in the list 21 described in Section 5-25 of this Act as having an 22 infrastructure maintenance fee in place. 23 (b) This waiver shall be effective only during the time 24 that either the infrastructure maintenance fee or the 25 simplified tax authorized under this Act is subject to being 26 lawfully imposed on the telecommunications retailer, 27 collected by the municipality or the Department, and paid 28 over to the municipality. 29 (c) No portion of this Act shall be construed to have 30 repealed or amended the prohibition on franchise fees or 31 other charges set forth in Section 30 of the 32 Telecommunications Infrastructure Maintenance Fee Act. -20- LRB9202600SMdvam12 1 Section 5-65. Incorporation by reference. On and after 2 January 1, 2003, for municipalities with populations of less 3 than 500,000, all of the provisions of Sections 7, 10, 11, 4 12, 13, 14, 15, 16, 17, 18, and 19 of the Telecommunications 5 Excise Tax Act, Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 6 5i, 5j, 6, 6a, 6b, and 6c of the Retailers' Occupation Tax 7 Act, and all the provisions of the Uniform Penalty and 8 Interest Act, which are not inconsistent with this Act, shall 9 apply, as far as practicable, to the subject matter of this 10 Act to the same extent as if such provisions were included 11 herein. References in such incorporated Sections of the 12 Retailers' Occupation Tax Act to retailers, to sellers, or to 13 persons engaged in the business of selling tangible personal 14 property mean retailers, as defined in this Act, or persons 15 engaged in the act or privilege of originating or receiving 16 telecommunications. References in such incorporated Sections 17 of the Retailers' Occupation Tax Act to purchasers of 18 tangible personal property mean purchasers of 19 telecommunications as defined in this Act. References in 20 such incorporated Sections of the Retailers' Occupation Tax 21 Act to sales of tangible personal property mean the act or 22 privilege of originating or receiving telecommunications as 23 defined in this Act. 24 Section 5-90. Home rule. The authorization to impose 25 municipal telecommunications taxes and fees is an exclusive 26 power and function of the State. A home rule municipality 27 may not impose municipal telecommunications taxes and fees 28 other than as authorized under this Act. This Act is a 29 denial and limitation of municipal home rule powers and 30 functions under subsection (g) of Section 6 of Article VII of 31 the Illinois Constitution. 32 ARTICLE 90 -21- LRB9202600SMdvam12 1 Section 90-5. The State Revenue Sharing Act is amended 2 by changing Section 12 as follows: 3 (30 ILCS 115/12) (from Ch. 85, par. 616) 4 Sec. 12. Personal Property Tax Replacement Fund. There 5 is hereby created the Personal Property Tax Replacement Fund, 6 a special fund in the State Treasury into which shall be paid 7 all revenue realized: 8 (a) all amounts realized from the additional personal 9 property tax replacement income tax imposed by subsections 10 (c) and (d) of Section 201 of the Illinois Income Tax Act, 11 except for those amounts deposited into the Income Tax Refund 12 Fund pursuant to subsection (c) of Section 901 of the 13 Illinois Income Tax Act; and 14 (b) all amounts realized from the additional personal 15 property replacement invested capital taxes imposed by 16 Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas 17 Revenue Tax Act, Section 2a.1 of the Public Utilities 18 Revenue Act, and Section 3 of the Water Company Invested 19 Capital Tax Act, and amounts payable to the Department of 20 Revenue under the TelecommunicationsMunicipalInfrastructure 21 Maintenance Fee Act. 22 As soon as may be after the end of each month, the 23 Department of Revenue shall certify to the Treasurer and the 24 Comptroller the amount of all refunds paid out of the General 25 Revenue Fund through the preceding month on account of 26 overpayment of liability on taxes paid into the Personal 27 Property Tax Replacement Fund. Upon receipt of such 28 certification, the Treasurer and the Comptroller shall 29 transfer the amount so certified from the Personal Property 30 Tax Replacement Fund into the General Revenue Fund. 31 The payments of revenue into the Personal Property Tax 32 Replacement Fund shall be used exclusively for distribution 33 to taxing districts as provided in this Section, payment of -22- LRB9202600SMdvam12 1 the expenses of the Department of Revenue incurred in 2 administering the collection and distribution of monies paid 3 into the Personal Property Tax Replacement Fund and transfers 4 due to refunds to taxpayers for overpayment of liability for 5 taxes paid into the Personal Property Tax Replacement Fund. 6 As soon as may be after the effective date of this 7 amendatory Act of 1980, the Department of Revenue shall 8 certify to the Treasurer the amount of net replacement 9 revenue paid into the General Revenue Fund prior to that 10 effective date from the additional tax imposed by Section 11 2a.1 of the Messages Tax Act; Section 2a.1 of the Gas Revenue 12 Tax Act; Section 2a.1 of the Public Utilities Revenue Act; 13 Section 3 of the Water Company Invested Capital Tax Act; 14 amounts collected by the Department of Revenue under the 15 TelecommunicationsMunicipalInfrastructure Maintenance Fee 16 Act; and the additional personal property tax replacement 17 income tax imposed by the Illinois Income Tax Act, as amended 18 by Public Act 81-1st Special Session-1. Net replacement 19 revenue shall be defined as the total amount paid into and 20 remaining in the General Revenue Fund as a result of those 21 Acts minus the amount outstanding and obligated from the 22 General Revenue Fund in state vouchers or warrants prior to 23 the effective date of this amendatory Act of 1980 as refunds 24 to taxpayers for overpayment of liability under those Acts. 25 All interest earned by monies accumulated in the Personal 26 Property Tax Replacement Fund shall be deposited in such 27 Fund. All amounts allocated pursuant to this Section are 28 appropriated on a continuing basis. 29 Prior to December 31, 1980, as soon as may be after the 30 end of each quarter beginning with the quarter ending 31 December 31, 1979, and on and after December 31, 1980, as 32 soon as may be after January 1, March 1, April 1, May 1, July 33 1, August 1, October 1 and December 1 of each year, the 34 Department of Revenue shall allocate to each taxing district -23- LRB9202600SMdvam12 1 as defined in Section 1-150 of the Property Tax Code, in 2 accordance with the provisions of paragraph (2) of this 3 Section the portion of the funds held in the Personal 4 Property Tax Replacement Fund which is required to be 5 distributed, as provided in paragraph (1), for each quarter. 6 Provided, however, under no circumstances shall any taxing 7 district during each of the first two years of distribution 8 of the taxes imposed by this amendatory Act of 1979 be 9 entitled to an annual allocation which is less than the funds 10 such taxing district collected from the 1978 personal 11 property tax. Provided further that under no circumstances 12 shall any taxing district during the third year of 13 distribution of the taxes imposed by this amendatory Act of 14 1979 receive less than 60% of the funds such taxing district 15 collected from the 1978 personal property tax. In the event 16 that the total of the allocations made as above provided for 17 all taxing districts, during either of such 3 years, exceeds 18 the amount available for distribution the allocation of each 19 taxing district shall be proportionately reduced. Except as 20 provided in Section 13 of this Act, the Department shall then 21 certify, pursuant to appropriation, such allocations to the 22 State Comptroller who shall pay over to the several taxing 23 districts the respective amounts allocated to them. 24 Any township which receives an allocation based in whole 25 or in part upon personal property taxes which it levied 26 pursuant to Section 6-507 or 6-512 of the Illinois Highway 27 Code and which was previously required to be paid over to a 28 municipality shall immediately pay over to that municipality 29 a proportionate share of the personal property replacement 30 funds which such township receives. 31 Any municipality or township, other than a municipality 32 with a population in excess of 500,000, which receives an 33 allocation based in whole or in part on personal property 34 taxes which it levied pursuant to Sections 3-1, 3-4 and 3-6 -24- LRB9202600SMdvam12 1 of the Illinois Local Library Act and which was previously 2 required to be paid over to a public library shall 3 immediately pay over to that library a proportionate share of 4 the personal property tax replacement funds which such 5 municipality or township receives; provided that if such a 6 public library has converted to a library organized under The 7 Illinois Public Library District Act, regardless of whether 8 such conversion has occurred on, after or before January 1, 9 1988, such proportionate share shall be immediately paid over 10 to the library district which maintains and operates the 11 library. However, any library that has converted prior to 12 January 1, 1988, and which hitherto has not received the 13 personal property tax replacement funds, shall receive such 14 funds commencing on January 1, 1988. 15 Any township which receives an allocation based in whole 16 or in part on personal property taxes which it levied 17 pursuant to Section 1c of the Public Graveyards Act and which 18 taxes were previously required to be paid over to or used for 19 such public cemetery or cemeteries shall immediately pay over 20 to or use for such public cemetery or cemeteries a 21 proportionate share of the personal property tax replacement 22 funds which the township receives. 23 Any taxing district which receives an allocation based in 24 whole or in part upon personal property taxes which it levied 25 for another governmental body or school district in Cook 26 County in 1976 or for another governmental body or school 27 district in the remainder of the State in 1977 shall 28 immediately pay over to that governmental body or school 29 district the amount of personal property replacement funds 30 which such governmental body or school district would receive 31 directly under the provisions of paragraph (2) of this 32 Section, had it levied its own taxes. 33 (1) The portion of the Personal Property Tax Replacement 34 Fund required to be distributed as of the time allocation is -25- LRB9202600SMdvam12 1 required to be made shall be the amount available in such 2 Fund as of the time allocation is required to be made. 3 The amount available for distribution shall be the total 4 amount in the fund at such time minus the necessary 5 administrative expenses as limited by the appropriation and 6 the amount determined by: (a) $2.8 million for fiscal year 7 1981; (b) for fiscal year 1982, .54% of the funds distributed 8 from the fund during the preceding fiscal year; (c) for 9 fiscal year 1983 through fiscal year 1988, .54% of the funds 10 distributed from the fund during the preceding fiscal year 11 less .02% of such fund for fiscal year 1983 and less .02% of 12 such funds for each fiscal year thereafter, or (d) for fiscal 13 year 1989 and beyond no more than 105% of the actual 14 administrative expenses of the prior fiscal year. Such 15 portion of the fund shall be determined after the transfer 16 into the General Revenue Fund due to refunds, if any, paid 17 from the General Revenue Fund during the preceding quarter. 18 If at any time, for any reason, there is insufficient amount 19 in the Personal Property Tax Replacement Fund for payment of 20 costs of administration or for transfers due to refunds at 21 the end of any particular month, the amount of such 22 insufficiency shall be carried over for the purposes of 23 transfers into the General Revenue Fund and for purposes of 24 costs of administration to the following month or months. 25 Net replacement revenue held, and defined above, shall be 26 transferred by the Treasurer and Comptroller to the Personal 27 Property Tax Replacement Fund within 10 days of such 28 certification. 29 (2) Each quarterly allocation shall first be apportioned 30 in the following manner: 51.65% for taxing districts in Cook 31 County and 48.35% for taxing districts in the remainder of 32 the State. 33 The Personal Property Replacement Ratio of each taxing 34 district outside Cook County shall be the ratio which the Tax -26- LRB9202600SMdvam12 1 Base of that taxing district bears to the Downstate Tax Base. 2 The Tax Base of each taxing district outside of Cook County 3 is the personal property tax collections for that taxing 4 district for the 1977 tax year. The Downstate Tax Base is 5 the personal property tax collections for all taxing 6 districts in the State outside of Cook County for the 1977 7 tax year. The Department of Revenue shall have authority to 8 review for accuracy and completeness the personal property 9 tax collections for each taxing district outside Cook County 10 for the 1977 tax year. 11 The Personal Property Replacement Ratio of each Cook 12 County taxing district shall be the ratio which the Tax Base 13 of that taxing district bears to the Cook County Tax Base. 14 The Tax Base of each Cook County taxing district is the 15 personal property tax collections for that taxing district 16 for the 1976 tax year. The Cook County Tax Base is the 17 personal property tax collections for all taxing districts in 18 Cook County for the 1976 tax year. The Department of Revenue 19 shall have authority to review for accuracy and completeness 20 the personal property tax collections for each taxing 21 district within Cook County for the 1976 tax year. 22 For all purposes of this Section 12, amounts paid to a 23 taxing district for such tax years as may be applicable by a 24 foreign corporation under the provisions of Section 7-202 of 25 the Public Utilities Act, as amended, shall be deemed to be 26 personal property taxes collected by such taxing district for 27 such tax years as may be applicable. The Director shall 28 determine from the Illinois Commerce Commission, for any tax 29 year as may be applicable, the amounts so paid by any such 30 foreign corporation to any and all taxing districts. The 31 Illinois Commerce Commission shall furnish such information 32 to the Director. For all purposes of this Section 12, the 33 Director shall deem such amounts to be collected personal 34 property taxes of each such taxing district for the -27- LRB9202600SMdvam12 1 applicable tax year or years. 2 Taxing districts located both in Cook County and in one 3 or more other counties shall receive both a Cook County 4 allocation and a Downstate allocation determined in the same 5 way as all other taxing districts. 6 If any taxing district in existence on July 1, 1979 7 ceases to exist, or discontinues its operations, its Tax Base 8 shall thereafter be deemed to be zero. If the powers, duties 9 and obligations of the discontinued taxing district are 10 assumed by another taxing district, the Tax Base of the 11 discontinued taxing district shall be added to the Tax Base 12 of the taxing district assuming such powers, duties and 13 obligations. 14 If two or more taxing districts in existence on July 1, 15 1979, or a successor or successors thereto shall consolidate 16 into one taxing district, the Tax Base of such consolidated 17 taxing district shall be the sum of the Tax Bases of each of 18 the taxing districts which have consolidated. 19 If a single taxing district in existence on July 1, 1979, 20 or a successor or successors thereto shall be divided into 21 two or more separate taxing districts, the tax base of the 22 taxing district so divided shall be allocated to each of the 23 resulting taxing districts in proportion to the then current 24 equalized assessed value of each resulting taxing district. 25 If a portion of the territory of a taxing district is 26 disconnected and annexed to another taxing district of the 27 same type, the Tax Base of the taxing district from which 28 disconnection was made shall be reduced in proportion to the 29 then current equalized assessed value of the disconnected 30 territory as compared with the then current equalized 31 assessed value within the entire territory of the taxing 32 district prior to disconnection, and the amount of such 33 reduction shall be added to the Tax Base of the taxing 34 district to which annexation is made. -28- LRB9202600SMdvam12 1 If a community college district is created after July 1, 2 1979, beginning on the effective date of this amendatory Act 3 of 1995, its Tax Base shall be 3.5% of the sum of the 4 personal property tax collected for the 1977 tax year within 5 the territorial jurisdiction of the district. 6 The amounts allocated and paid to taxing districts 7 pursuant to the provisions of this amendatory Act of 1979 8 shall be deemed to be substitute revenues for the revenues 9 derived from taxes imposed on personal property pursuant to 10 the provisions of the "Revenue Act of 1939" or "An Act for 11 the assessment and taxation of private car line companies", 12 approved July 22, 1943, as amended, or Section 414 of the 13 Illinois Insurance Code, prior to the abolition of such taxes 14 and shall be used for the same purposes as the revenues 15 derived from ad valorem taxes on real estate. 16 Monies received by any taxing districts from the Personal 17 Property Tax Replacement Fund shall be first applied toward 18 payment of the proportionate amount of debt service which was 19 previously levied and collected from extensions against 20 personal property on bonds outstanding as of December 31, 21 1978 and next applied toward payment of the proportionate 22 share of the pension or retirement obligations of the taxing 23 district which were previously levied and collected from 24 extensions against personal property. For each such 25 outstanding bond issue, the County Clerk shall determine the 26 percentage of the debt service which was collected from 27 extensions against real estate in the taxing district for 28 1978 taxes payable in 1979, as related to the total amount of 29 such levies and collections from extensions against both real 30 and personal property. For 1979 and subsequent years' taxes, 31 the County Clerk shall levy and extend taxes against the real 32 estate of each taxing district which will yield the said 33 percentage or percentages of the debt service on such 34 outstanding bonds. The balance of the amount necessary to -29- LRB9202600SMdvam12 1 fully pay such debt service shall constitute a first and 2 prior lien upon the monies received by each such taxing 3 district through the Personal Property Tax Replacement Fund 4 and shall be first applied or set aside for such purpose. In 5 counties having fewer than 3,000,000 inhabitants, the 6 amendments to this paragraph as made by this amendatory Act 7 of 1980 shall be first applicable to 1980 taxes to be 8 collected in 1981. 9 (Source: P.A. 89-327, eff. 1-1-96; 90-154, eff. 1-1-98.) 10 Section 90-10. The Telecommunications Excise Tax Act is 11 amended by changing Sections 2, 6, and 15 as follows: 12 (35 ILCS 630/2) (from Ch. 120, par. 2002) 13 (Text of Section before amendment by P.A. 92-474) 14 Sec. 2. As used in this Article, unless the context 15 clearly requires otherwise: 16 (a) "Gross charge" means the amount paid for the act or 17 privilege of originating or receiving telecommunications in 18 this State and for all services and equipment provided in 19 connection therewith by a retailer, valued in money whether 20 paid in money or otherwise, including cash, credits, services 21 and property of every kind or nature, and shall be determined 22 without any deduction on account of the cost of such 23 telecommunications, the cost of materials used, labor or 24 service costs or any other expense whatsoever. In case 25 credit is extended, the amount thereof shall be included only 26 as and when paid. "Gross charges" for private line service 27 shall include charges imposed at each channel point within 28 this State, charges for the channel mileage between each 29 channel point within this State, and charges for that portion 30 of the interstate inter-office channel provided within 31 Illinois. However, "gross charges" shall not include: 32 (1) any amounts added to a purchaser's bill because -30- LRB9202600SMdvam12 1 of a charge made pursuant to (i) the tax imposed by this 2 Article; (ii) charges added to customers' bills pursuant 3 to the provisions of Sections 9-221 or 9-222 of the 4 Public Utilities Act, as amended, or any similar charges 5 added to customers' bills by retailers who are not 6 subject to rate regulation by the Illinois Commerce 7 Commission for the purpose of recovering any of the tax 8 liabilities or other amounts specified in such provisions 9 of such Act;or(iii) the tax imposed by Section 4251 of 10 the Internal Revenue Code; (iv) 911 surcharges; or (v) 11 the tax imposed by the Simplified Municipal 12 Telecommunications Tax Act; 13 (2) charges for a sent collect telecommunication 14 received outside of the State; 15 (3) charges for leased time on equipment or charges 16 for the storage of data or information for subsequent 17 retrieval or the processing of data or information 18 intended to change its form or content. Such equipment 19 includes, but is not limited to, the use of calculators, 20 computers, data processing equipment, tabulating 21 equipment or accounting equipment and also includes the 22 usage of computers under a time-sharing agreement; 23 (4) charges for customer equipment, including such 24 equipment that is leased or rented by the customer from 25 any source, wherein such charges are disaggregated and 26 separately identified from other charges; 27 (5) charges to business enterprises certified under 28 Section 9-222.1 of the Public Utilities Act, as amended, 29 to the extent of such exemption and during the period of 30 time specified by the Department of Commerce and 31 Community Affairs; 32 (6) charges for telecommunications and all services 33 and equipment provided in connection therewith between a 34 parent corporation and its wholly owned subsidiaries or -31- LRB9202600SMdvam12 1 between wholly owned subsidiaries when the tax imposed 2 under this Article has already been paid to a retailer 3 and only to the extent that the charges between the 4 parent corporation and wholly owned subsidiaries or 5 between wholly owned subsidiaries represent expense 6 allocation between the corporations and not the 7 generation of profit for the corporation rendering such 8 service; 9 (7) bad debts. Bad debt means any portion of a debt 10 that is related to a sale at retail for which gross 11 charges are not otherwise deductible or excludable that 12 has become worthless or uncollectable, as determined 13 under applicable federal income tax standards. If the 14 portion of the debt deemed to be bad is subsequently 15 paid, the retailer shall report and pay the tax on that 16 portion during the reporting period in which the payment 17 is made; 18 (8) charges paid by inserting coins in 19 coin-operated telecommunication devices; 20 (9) amounts paid by telecommunications retailers 21 under the TelecommunicationsMunicipalInfrastructure 22 Maintenance Fee Act. 23 (b) "Amount paid" means the amount charged to the 24 taxpayer's service address in this State regardless of where 25 such amount is billed or paid. 26 (c) "Telecommunications", in addition to the meaning 27 ordinarily and popularly ascribed to it, includes, without 28 limitation, messages or information transmitted through use 29 of local, toll and wide area telephone service; private line 30 services; channel services; telegraph services; 31 teletypewriter; computer exchange services; cellular mobile 32 telecommunications service; specialized mobile radio; 33 stationary two way radio; paging service; or any other form 34 of mobile and portable one-way or two-way communications; or -32- LRB9202600SMdvam12 1 any other transmission of messages or information by 2 electronic or similar means, between or among points by wire, 3 cable, fiber-optics, laser, microwave, radio, satellite or 4 similar facilities. As used in this Act, "private line" means 5 a dedicated non-traffic sensitive service for a single 6 customer, that entitles the customer to exclusive or priority 7 use of a communications channel or group of channels, from 8 one or more specified locations to one or more other 9 specified locations. The definition of "telecommunications" 10 shall not include value added services in which computer 11 processing applications are used to act on the form, content, 12 code and protocol of the information for purposes other than 13 transmission. "Telecommunications" shall not include 14 purchases of telecommunications by a telecommunications 15 service provider for use as a component part of the service 16 provided by him to the ultimate retail consumer who 17 originates or terminates the taxable end-to-end 18 communications. Carrier access charges, right of access 19 charges, charges for use of inter-company facilities, and all 20 telecommunications resold in the subsequent provision of, 21 used as a component of, or integrated into end-to-end 22 telecommunications service shall be non-taxable as sales for 23 resale. 24 (d) "Interstate telecommunications" means all 25 telecommunications that either originate or terminate outside 26 this State. 27 (e) "Intrastate telecommunications" means all 28 telecommunications that originate and terminate within this 29 State. 30 (f) "Department" means the Department of Revenue of the 31 State of Illinois. 32 (g) "Director" means the Director of Revenue for the 33 Department of Revenue of the State of Illinois. 34 (h) "Taxpayer" means a person who individually or -33- LRB9202600SMdvam12 1 through his agents, employees or permittees engages in the 2 act or privilege of originating or receiving 3 telecommunications in this State and who incurs a tax 4 liability under this Article. 5 (i) "Person" means any natural individual, firm, trust, 6 estate, partnership, association, joint stock company, joint 7 venture, corporation, limited liability company, or a 8 receiver, trustee, guardian or other representative appointed 9 by order of any court, the Federal and State governments, 10 including State universities created by statute or any city, 11 town, county or other political subdivision of this State. 12 (j) "Purchase at retail" means the acquisition, 13 consumption or use of telecommunication through a sale at 14 retail. 15 (k) "Sale at retail" means the transmitting, supplying 16 or furnishing of telecommunications and all services and 17 equipment provided in connection therewith for a 18 consideration to persons other than the Federal and State 19 governments, and State universities created by statute and 20 other than between a parent corporation and its wholly owned 21 subsidiaries or between wholly owned subsidiaries for their 22 use or consumption and not for resale. 23 (l) "Retailer" means and includes every person engaged 24 in the business of making sales at retail as defined in this 25 Article. The Department may, in its discretion, upon 26 application, authorize the collection of the tax hereby 27 imposed by any retailer not maintaining a place of business 28 within this State, who, to the satisfaction of the 29 Department, furnishes adequate security to insure collection 30 and payment of the tax. Such retailer shall be issued, 31 without charge, a permit to collect such tax. When so 32 authorized, it shall be the duty of such retailer to collect 33 the tax upon all of the gross charges for telecommunications 34 in this State in the same manner and subject to the same -34- LRB9202600SMdvam12 1 requirements as a retailer maintaining a place of business 2 within this State. The permit may be revoked by the 3 Department at its discretion. 4 (m) "Retailer maintaining a place of business in this 5 State", or any like term, means and includes any retailer 6 having or maintaining within this State, directly or by a 7 subsidiary, an office, distribution facilities, transmission 8 facilities, sales office, warehouse or other place of 9 business, or any agent or other representative operating 10 within this State under the authority of the retailer or its 11 subsidiary, irrespective of whether such place of business or 12 agent or other representative is located here permanently or 13 temporarily, or whether such retailer or subsidiary is 14 licensed to do business in this State. 15 (n) "Service address" means the location of 16 telecommunications equipment from which the 17 telecommunications services are originated or at which 18 telecommunications services are received by a taxpayer. In 19 the event this may not be a defined location, as in the case 20 of mobile phones, paging systems, maritime systems, 21 air-to-ground systems and the like, service address shall 22 mean the location of a taxpayer's primary use of the 23 telecommunications equipment as defined by telephone number, 24 authorization code, or location in Illinois where bills are 25 sent. 26 (o) "Prepaid telephone calling arrangements" mean the 27 right to exclusively purchase telephone or telecommunications 28 services that must be paid for in advance and enable the 29 origination of one or more intrastate, interstate, or 30 international telephone calls or other telecommunications 31 using an access number, an authorization code, or both, 32 whether manually or electronically dialed, for which payment 33 to a retailer must be made in advance, provided that, unless 34 recharged, no further service is provided once that prepaid -35- LRB9202600SMdvam12 1 amount of service has been consumed. Prepaid telephone 2 calling arrangements include the recharge of a prepaid 3 calling arrangement. For purposes of this subsection, 4 "recharge" means the purchase of additional prepaid telephone 5 or telecommunications services whether or not the purchaser 6 acquires a different access number or authorization code. 7 "Prepaid telephone calling arrangement" does not include an 8 arrangement whereby a customer purchases a payment card and 9 pursuant to which the service provider reflects the amount of 10 such purchase as a credit on an invoice issued to that 11 customer under an existing subscription plan. 12 (Source: P.A. 90-562, eff. 12-16-97; 91-870, eff. 6-22-00.) 13 (Text of Section after amendment by P.A. 92-474) 14 Sec. 2. As used in this Article, unless the context 15 clearly requires otherwise: 16 (a) "Gross charge" means the amount paid for the act or 17 privilege of originating or receiving telecommunications in 18 this State and for all services and equipment provided in 19 connection therewith by a retailer, valued in money whether 20 paid in money or otherwise, including cash, credits, services 21 and property of every kind or nature, and shall be determined 22 without any deduction on account of the cost of such 23 telecommunications, the cost of materials used, labor or 24 service costs or any other expense whatsoever. In case 25 credit is extended, the amount thereof shall be included only 26 as and when paid. "Gross charges" for private line service 27 shall include charges imposed at each channel point within 28 this State, charges for the channel mileage between each 29 channel point within this State, and charges for that portion 30 of the interstate inter-office channel provided within 31 Illinois. However, "gross charges" shall not include: 32 (1) any amounts added to a purchaser's bill because 33 of a charge made pursuant to (i) the tax imposed by this 34 Article; (ii) charges added to customers' bills pursuant -36- LRB9202600SMdvam12 1 to the provisions of Sections 9-221 or 9-222 of the 2 Public Utilities Act, as amended, or any similar charges 3 added to customers' bills by retailers who are not 4 subject to rate regulation by the Illinois Commerce 5 Commission for the purpose of recovering any of the tax 6 liabilities or other amounts specified in such provisions 7 of such Act;or(iii) the tax imposed by Section 4251 of 8 the Internal Revenue Code; (iv) 911 surcharges; or (v) 9 the tax imposed by the Simplified Municipal 10 Telecommunications Tax Act; 11 (2) charges for a sent collect telecommunication 12 received outside of the State; 13 (3) charges for leased time on equipment or charges 14 for the storage of data or information for subsequent 15 retrieval or the processing of data or information 16 intended to change its form or content. Such equipment 17 includes, but is not limited to, the use of calculators, 18 computers, data processing equipment, tabulating 19 equipment or accounting equipment and also includes the 20 usage of computers under a time-sharing agreement; 21 (4) charges for customer equipment, including such 22 equipment that is leased or rented by the customer from 23 any source, wherein such charges are disaggregated and 24 separately identified from other charges; 25 (5) charges to business enterprises certified under 26 Section 9-222.1 of the Public Utilities Act, as amended, 27 to the extent of such exemption and during the period of 28 time specified by the Department of Commerce and 29 Community Affairs; 30 (6) charges for telecommunications and all services 31 and equipment provided in connection therewith between a 32 parent corporation and its wholly owned subsidiaries or 33 between wholly owned subsidiaries when the tax imposed 34 under this Article has already been paid to a retailer -37- LRB9202600SMdvam12 1 and only to the extent that the charges between the 2 parent corporation and wholly owned subsidiaries or 3 between wholly owned subsidiaries represent expense 4 allocation between the corporations and not the 5 generation of profit for the corporation rendering such 6 service; 7 (7) bad debts. Bad debt means any portion of a debt 8 that is related to a sale at retail for which gross 9 charges are not otherwise deductible or excludable that 10 has become worthless or uncollectable, as determined 11 under applicable federal income tax standards. If the 12 portion of the debt deemed to be bad is subsequently 13 paid, the retailer shall report and pay the tax on that 14 portion during the reporting period in which the payment 15 is made; 16 (8) charges paid by inserting coins in 17 coin-operated telecommunication devices; 18 (9) amounts paid by telecommunications retailers 19 under the Telecommunications Municipal Infrastructure 20 Maintenance Fee Act. 21 (b) "Amount paid" means the amount charged to the 22 taxpayer's service address in this State regardless of where 23 such amount is billed or paid. 24 (c) "Telecommunications", in addition to the meaning 25 ordinarily and popularly ascribed to it, includes, without 26 limitation, messages or information transmitted through use 27 of local, toll and wide area telephone service; private line 28 services; channel services; telegraph services; 29 teletypewriter; computer exchange services; cellular mobile 30 telecommunications service; specialized mobile radio; 31 stationary two way radio; paging service; or any other form 32 of mobile and portable one-way or two-way communications; or 33 any other transmission of messages or information by 34 electronic or similar means, between or among points by wire, -38- LRB9202600SMdvam12 1 cable, fiber-optics, laser, microwave, radio, satellite or 2 similar facilities. As used in this Act, "private line" means 3 a dedicated non-traffic sensitive service for a single 4 customer, that entitles the customer to exclusive or priority 5 use of a communications channel or group of channels, from 6 one or more specified locations to one or more other 7 specified locations. The definition of "telecommunications" 8 shall not include value added services in which computer 9 processing applications are used to act on the form, content, 10 code and protocol of the information for purposes other than 11 transmission. "Telecommunications" shall not include 12 purchases of telecommunications by a telecommunications 13 service provider for use as a component part of the service 14 provided by him to the ultimate retail consumer who 15 originates or terminates the taxable end-to-end 16 communications. Carrier access charges, right of access 17 charges, charges for use of inter-company facilities, and all 18 telecommunications resold in the subsequent provision of, 19 used as a component of, or integrated into end-to-end 20 telecommunications service shall be non-taxable as sales for 21 resale. 22 (d) "Interstate telecommunications" means all 23 telecommunications that either originate or terminate outside 24 this State. 25 (e) "Intrastate telecommunications" means all 26 telecommunications that originate and terminate within this 27 State. 28 (f) "Department" means the Department of Revenue of the 29 State of Illinois. 30 (g) "Director" means the Director of Revenue for the 31 Department of Revenue of the State of Illinois. 32 (h) "Taxpayer" means a person who individually or 33 through his agents, employees or permittees engages in the 34 act or privilege of originating or receiving -39- LRB9202600SMdvam12 1 telecommunications in this State and who incurs a tax 2 liability under this Article. 3 (i) "Person" means any natural individual, firm, trust, 4 estate, partnership, association, joint stock company, joint 5 venture, corporation, limited liability company, or a 6 receiver, trustee, guardian or other representative appointed 7 by order of any court, the Federal and State governments, 8 including State universities created by statute or any city, 9 town, county or other political subdivision of this State. 10 (j) "Purchase at retail" means the acquisition, 11 consumption or use of telecommunication through a sale at 12 retail. 13 (k) "Sale at retail" means the transmitting, supplying 14 or furnishing of telecommunications and all services and 15 equipment provided in connection therewith for a 16 consideration to persons other than the Federal and State 17 governments, and State universities created by statute and 18 other than between a parent corporation and its wholly owned 19 subsidiaries or between wholly owned subsidiaries for their 20 use or consumption and not for resale. 21 (l) "Retailer" means and includes every person engaged 22 in the business of making sales at retail as defined in this 23 Article. The Department may, in its discretion, upon 24 application, authorize the collection of the tax hereby 25 imposed by any retailer not maintaining a place of business 26 within this State, who, to the satisfaction of the 27 Department, furnishes adequate security to insure collection 28 and payment of the tax. Such retailer shall be issued, 29 without charge, a permit to collect such tax. When so 30 authorized, it shall be the duty of such retailer to collect 31 the tax upon all of the gross charges for telecommunications 32 in this State in the same manner and subject to the same 33 requirements as a retailer maintaining a place of business 34 within this State. The permit may be revoked by the -40- LRB9202600SMdvam12 1 Department at its discretion. 2 (m) "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 (n) "Service address" means the location of 14 telecommunications equipment from which the 15 telecommunications services are originated or at which 16 telecommunications services are received by a taxpayer. In 17 the event this may not be a defined location, as in the case 18 of mobile phones, paging systems, maritime systems, service 19 address means the customer's place of primary use as defined 20 in the Mobile Telecommunications Sourcing Conformity Act. 21 For air-to-ground systems and the like, service address shall 22 mean the location of a taxpayer's primary use of the 23 telecommunications equipment as defined by telephone number, 24 authorization code, or location in Illinois where bills are 25 sent. 26 (o) "Prepaid telephone calling arrangements" mean the 27 right to exclusively purchase telephone or telecommunications 28 services that must be paid for in advance and enable the 29 origination of one or more intrastate, interstate, or 30 international telephone calls or other telecommunications 31 using an access number, an authorization code, or both, 32 whether manually or electronically dialed, for which payment 33 to a retailer must be made in advance, provided that, unless 34 recharged, no further service is provided once that prepaid -41- LRB9202600SMdvam12 1 amount of service has been consumed. Prepaid telephone 2 calling arrangements include the recharge of a prepaid 3 calling arrangement. For purposes of this subsection, 4 "recharge" means the purchase of additional prepaid telephone 5 or telecommunications services whether or not the purchaser 6 acquires a different access number or authorization code. 7 "Prepaid telephone calling arrangement" does not include an 8 arrangement whereby a customer purchases a payment card and 9 pursuant to which the service provider reflects the amount of 10 such purchase as a credit on an invoice issued to that 11 customer under an existing subscription plan. 12 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02.) 13 (35 ILCS 630/6) (from Ch. 120, par. 2006) 14 Sec. 6. Except as provided hereinafter in this Section, 15 on or before the last15thday of each month, each retailer 16 maintaining a place of business in this State shall make a 17 return to the Department for the preceding calendar month, 18 stating: 19 1. His name; 20 2. The address of his principal place of business, 21 orandthe address of the principal place of business (if 22 that is a different address) from which he engages in the 23 business of transmitting telecommunications; 24 3. Total amount of gross charges billed by him 25 during the preceding calendar month for providing 26 telecommunications during such calendar month; 27 4. Total amount received by him during the 28 preceding calendar month on credit extended; 29 5. Deductions allowed by law; 30 6. Gross charges which were billed by him during 31 the preceding calendar month and upon the basis of which 32 the tax is imposed; 33 7. Amount of tax (computed upon Item 6); -42- LRB9202600SMdvam12 1 8. Such other reasonable information as the 2 Department may require. 3 Any taxpayer required to make payments under this Section 4 may make the payments by electronic funds transfer. The 5 Department shall adopt rules necessary to effectuate a 6 program of electronic funds transfer. Any taxpayer who has 7 average monthly tax billings due to the Department under this 8 Act and the Simplified Municipal Telecommunications Tax Act 9 that exceed $1,000 shall make all payments by electronic 10 funds transfer as required by rules of the Department and 11 shall file the return required by this Section by electronic 12 means as required by rules of the Department. 13 If the retailer's average monthly tax billings due to the 14 Department under this Act and the Simplified Municipal 15 Telecommunications Tax Act do not exceed $1,000$200, the 16 Department may authorize his returns to be filed on a quarter 17 annual basis, with the return for January, February and March 18 of a given year being due by April 3015of such year; with 19 the return for April, May and June of a given year being due 20 by July 31st15of such year; with the return for July, 21 August and September of a given year being due by October 22 31st15of such year; and with the return of October, 23 November and December of a given year being due by January 24 31st15of the following year. 25 If the retailer is otherwise required to file a monthly 26 or quarterly return and if the retailer's average monthly tax 27 billings due to the Department under this Act and the 28 Simplified Municipal Telecommunications Tax Act do not exceed 29 $400$50, the Department may authorize his or her return to 30 be filed on an annual basis, with the return for a given year 31 being due by January 31st15thof the following year. 32 Notwithstanding any other provision of this Article 33 containing the time within which a retailer may file his 34 return, in the case of any retailer who ceases to engage in a -43- LRB9202600SMdvam12 1 kind of business which makes him responsible for filing 2 returns under this Article, such retailer shall file a final 3 return under this Article with the Department not more than 4 one month after discontinuing such business. 5 In making such return, the retailer shall determine the 6 value of any consideration other than money received by him 7 and he shall include such value in his return. Such 8 determination shall be subject to review and revision by the 9 Department in the manner hereinafter provided for the 10 correction of returns. 11 Each retailer whose average monthly liability to the 12 Department under this Article and the Simplified Municipal 13 Telecommunications Tax Act was $25,000$10,000or more during 14 the preceding calendar year, excluding the month of highest 15 liability and the month of lowest liability in such calendar 16 year, and who is not operated by a unit of local government, 17 shall make estimated payments to the Department on or before 18 the 7th, 15th, 22nd and last day of the month during which 19 tax collection liability to the Department is incurred in an 20 amount not less than the lower of either 22.5% of the 21 retailer's actual tax collections for the month or 25% of the 22 retailer's actual tax collections for the same calendar month 23 of the preceding year. The amount of such quarter monthly 24 payments shall be credited against the final liability of the 25 retailer's return for that month. Any outstanding credit, 26 approved by the Department, arising from the retailer's 27 overpayment of its final liability for any month may be 28 applied to reduce the amount of any subsequent quarter 29 monthly payment or credited against the final liability of 30 the retailer's return for any subsequent month. If any 31 quarter monthly payment is not paid at the time or in the 32 amount required by this Section, the retailer shall be liable 33 for penalty and interest on the difference between the 34 minimum amount due as a payment and the amount of such -44- LRB9202600SMdvam12 1 payment actually and timely paid, except insofar as the 2 retailer has previously made payments for that month to the 3 Department in excess of the minimum payments previously due. 4If the Director finds that the information required for5the making of an accurate return cannot reasonably be6compiled by a retailer within 15 days after the close of the7calendar month for which a return is to be made, he may grant8an extension of time for the filing of such return for a9period of not to exceed 31 calendar days. The granting of10such an extension may be conditioned upon the deposit by the11retailer with the Department of an amount of money not12exceeding the amount estimated by the Director to be due with13the return so extended. All such deposits, including any14heretofore made with the Department, shall be credited15against the retailer's liabilities under this Article. If16any such deposit exceeds the retailer's present and probable17future liabilities under this Article, the Department shall18issue to the retailer a credit memorandum, which may be19assigned by the retailer to a similar retailer under this20Article, in accordance with reasonable rules and regulations21to be prescribed by the Department.22 The retailer making the return herein provided for shall, 23 at the time of making such return, pay to the Department the 24 amount of tax herein imposed, less a discount of 1% which is 25 allowed to reimburse the retailer for the expenses incurred 26 in keeping records, billing the customer, preparing and 27 filing returns, remitting the tax, and supplying data to the 28 Department upon request. No discount may be claimed by a 29 retailer on returns not timely filed and for taxes not timely 30 remitted. On and after the effective date of this Article of 31 1985, $1,000,000 of the moneys received by the Department of 32 Revenue pursuant to this Article shall be paid each month 33 into the Common School Fund and the remainder into the 34 General Revenue Fund. On and after February 1, 1998, however, -45- LRB9202600SMdvam12 1 of the moneys received by the Department of Revenue pursuant 2 to the additional taxes imposed by this amendatory Act of 3 1997 one-half shall be deposited into the School 4 Infrastructure Fund and one-half shall be deposited into the 5 Common School Fund. On and after the effective date of this 6 amendatory Act of the 91st General Assembly, if in any fiscal 7 year the total of the moneys deposited into the School 8 Infrastructure Fund under this Act is less than the total of 9 the moneys deposited into that Fund from the additional taxes 10 imposed by Public Act 90-548 during fiscal year 1999, then, 11 as soon as possible after the close of the fiscal year, the 12 Comptroller shall order transferred and the Treasurer shall 13 transfer from the General Revenue Fund to the School 14 Infrastructure Fund an amount equal to the difference between 15 the fiscal year total deposits and the total amount deposited 16 into the Fund in fiscal year 1999. 17 (Source: P.A. 90-16, eff. 6-16-97; 90-548, eff. 12-4-97; 18 91-541, eff. 8-13-99; 91-870, 6-22-00.) 19 (35 ILCS 630/15) (from Ch. 120, par. 2015) 20 Sec. 15. Confidential information. All information 21 received by the Department from returns filed under this 22 Article, or from any investigations conducted under this 23 Article, shall be confidential, except for official purposes, 24 and any person who divulges any such information in any 25 manner, except in accordance with a proper judicial order or 26 as otherwise provided by law, shall be guilty of a Class B 27 misdemeanor. 28 Provided, that nothing contained in this Article shall 29 prevent the Director from publishing or making available to 30 the public the names and addresses of retailers or taxpayers 31 filing returns under this Article, or from publishing or 32 making available reasonable statistics concerning the 33 operation of the tax wherein the contents of returns are -46- LRB9202600SMdvam12 1 grouped into aggregates in such a way that the information 2 contained in any individual return shall not be disclosed. 3 And provided, that nothing contained in this Article 4 shall prevent the Director from making available to the 5 United States Government or the government of any other 6 state, or any officer or agency thereof, for exclusively 7 official purposes, information received by the Department in 8 the administration of this Article, if such other 9 governmental agency agrees to divulge requested tax 10 information to the Department. 11 The furnishing upon request of the Auditor General, or 12 his authorized agents, for official use, of returns filed and 13 information related thereto under this Article is deemed to 14 be an official purpose within the meaning of this Section. 15 The furnishing of financial information to a municipality 16 that has imposed a tax under the Simplified Municipal 17 Telecommunications Tax Act, upon request of the chief 18 executive thereof, is an official purpose within the meaning 19 of this Section, provided that the municipality agrees in 20 writing to the requirements of this Section. Information so 21 provided shall be subject to all confidentiality provisions 22 of this Section. The written agreement shall provide for 23 reciprocity, limitations on access, disclosure, and 24 procedures for requesting information. 25 The Director shall make available for public inspection 26 in the Department's principal office and for publication, at 27 cost, administrative decisions issued on or after January 1, 28 1995. These decisions are to be made available in a manner so 29 that the following taxpayer information is not disclosed: 30 (1) The names, addresses, and identification 31 numbers of the taxpayer, related entities, and employees. 32 (2) At the sole discretion of the Director, trade 33 secrets or other confidential information identified as 34 such by the taxpayer, no later than 30 days after receipt -47- LRB9202600SMdvam12 1 of an administrative decision, by such means as the 2 Department shall provide by rule. 3 The Director shall determine the appropriate extent of 4 the deletions allowed in paragraph (2). In the event the 5 taxpayer does not submit deletions, the Director shall make 6 only the deletions specified in paragraph (1). 7 The Director shall make available for public inspection 8 and publication an administrative decision within 180 days 9 after the issuance of the administrative decision. The term 10 "administrative decision" has the same meaning as defined in 11 Section 3-101 of Article III of the Code of Civil Procedure. 12 Costs collected under this Section shall be paid into the Tax 13 Compliance and Administration Fund. 14 Nothing contained in this Act shall prevent the Director 15 from divulging information to any person pursuant to a 16 request or authorization made by the taxpayer or by an 17 authorized representative of the taxpayer. 18 (Source: P.A. 90-491, eff. 1-1-98.) 19 Section 90-15. The Telecommunications Municipal 20 Infrastructure Maintenance Fee Act is amended by changing 21 Sections 1, 5, 10, 15, 20, 25, 27, 27.35, 30, and 35 as 22 follows: 23 (35 ILCS 635/1) 24 Sec. 1. Short title. This Act may be cited as the 25 TelecommunicationsMunicipalInfrastructure Maintenance Fee 26 Act. 27 (Source: P.A. 90-154, eff. 1-1-98.) 28 (35 ILCS 635/5) 29 Sec. 5. Legislative intent. 30 (a) The General Assembly imposed a tax on invested 31 capital of utilities to partially replace the personal -48- LRB9202600SMdvam12 1 property tax that was abolished by the Illinois Constitution 2 of 1970. Since that tax was imposed, telecommunications 3 retailers have evolved from utility status into an 4 increasingly competitive industry serving the public. 5 (b) This Act is intended to abolish the invested capital 6 tax on telecommunications retailers (that is, persons engaged 7 in the business of transmitting messages and acting as a 8 retailer of telecommunications as defined in Section 2 of the 9 Telecommunications Excise Tax Act). Cellular 10 telecommunications retailers have already been excluded from 11 application of the invested capital tax by earlier 12 legislative action. 13 (c) For the period prior to the effective date of this 14 amendatory Act of the 92nd General Assembly, this Act is also 15 intended to abolish municipal franchise fees with respect to 16 telecommunications retailers, create a uniform system for the 17 collection and distribution of fees associated with the 18 privilege of use of the public right of way for 19 telecommunications activity, and provide municipalities with 20 a comprehensive method of compensation for telecommunications 21 activity including the recovery of reasonable costs of 22 regulating the use of the public rights-of-way for 23 telecommunications activity. 24 (d) For the period from the effective date of this 25 amendatory Act of the 92nd General Assembly through December 26 31, 2002, it is the intent of the General Assembly that the 27 municipal infrastructure maintenance fee and its rate are 28 subject only to the limits prescribed in Section 20, and that 29 the fee and the rate of the fee do not relate to use of the 30 public rights-of-way or the costs associated with maintaining 31 and regulating the use of the public rights-of-way. It is 32 also the intent of the General Assembly that proceeds of the 33 municipal infrastructure maintenance fee may be used for any 34 lawful corporate purpose. It is not the intent of the -49- LRB9202600SMdvam12 1 General Assembly that the municipal infrastructure 2 maintenance fee is in any way compensation for use of the 3 public rights-of-way. It is the intent of the General 4 Assembly that the fee be paid by all telecommunications 5 retailers, regardless of whether they have equipment in the 6 public rights-of-way. 7 (e) This amendatory Act of the 92nd General Assembly is 8 intended to repeal the municipal infrastructure maintenance 9 fee and the optional infrastructure maintenance fee effective 10 January 1, 2003. 11 (Source: P.A. 90-154, eff. 1-1-98; 91-533, eff. 8-13-99.) 12 (35 ILCS 635/10) 13 (Text of Section before amendment by P.A. 92-474) 14 Sec. 10. Definitions. 15 (a) "Gross charges" means the amount paid to a 16 telecommunications retailer for the act or privilege of 17 originating or receiving telecommunications in this Stateor18the municipality imposing the fee under this Act, as the19context requires,and for all services rendered in connection 20 therewith, valued in money whether paid in money or 21 otherwise, including cash, credits, services, and property of 22 every kind or nature, and shall be determined without any 23 deduction on account of the cost of such telecommunications, 24 the cost of the materials used, labor or service costs, or 25 any other expense whatsoever. In case credit is extended, 26 the amount thereof shall be included only as and when paid. 27 "Gross charges" for private line service shall include 28 charges imposed at each channel point within this Stateor29the municipality imposing the fee under this Act, charges for 30 the channel mileage between each channel point within this 31 Stateor the municipality imposing the fee under this Act, 32 and charges for that portion of the interstate inter-office 33 channel provided within Illinoisor the municipality imposing-50- LRB9202600SMdvam12 1the fee under this Act. However, "gross charges" shall not 2 include: 3 (1) any amounts added to a purchaser's bill because 4 of a charge made under: (i) the fee imposed by this 5 Section, (ii) additional charges added to a purchaser's 6 bill under Section 9-221 or 9-222 of the Public Utilities 7 Act, (iii)amounts collected under Section 8-11-17 of the8Illinois Municipal Code, (iv)the tax imposed by the 9 Telecommunications Excise Tax Act, (iv)(v)911 10 surcharges, (v)or (vi)the tax imposed by Section 4251 11 of the Internal Revenue Code, or (vi) the tax imposed by 12 the simplified Municipal Telecommunications Tax Act; 13 (2) charges for a sent collect telecommunication 14 received outside of this Stateor the municipality15imposing the fee, as the context requires; 16 (3) charges for leased time on equipment or charges 17 for the storage of data or information or subsequent 18 retrieval or the processing of data or information 19 intended to change its form or content. Such equipment 20 includes, but is not limited to, the use of calculators, 21 computers, data processing equipment, tabulating 22 equipment, or accounting equipment and also includes the 23 usage of computers under a time-sharing agreement. 24 (4) charges for customer equipment, including such 25 equipment that is leased or rented by the customer from 26 any source, wherein such charges are disaggregated and 27 separately identified from other charges; 28 (5) charges to business enterprises certified under 29 Section 9-222.1 of the Public Utilities Act to the extent 30 of such exemption and during the period of time specified 31 by the Department of Commerce and Community Affairsor by32the municipality imposing the fee under the Act, as the33context requires; 34 (6) charges for telecommunications and all services -51- LRB9202600SMdvam12 1 and equipment provided in connection therewith between a 2 parent corporation and its wholly owned subsidiaries or 3 between wholly owned subsidiaries, and only to the extent 4 that the charges between the parent corporation and 5 wholly owned subsidiaries or between wholly owned 6 subsidiaries represent expense allocation between the 7 corporations and not the generation of profit other than 8 a regulatory required profit for the corporation 9 rendering such services; 10 (7) bad debts ("bad debt" means any portion of a 11 debt that is related to a sale at retail for which gross 12 charges are not otherwise deductible or excludable that 13 has become worthless or uncollectible, as determined 14 under applicable federal income tax standards; if the 15 portion of the debt deemed to be bad is subsequently 16 paid, the retailer shall report and pay the tax on that 17 portion during the reporting period in which the payment 18 is made); or 19 (8) charges paid by inserting coins in 20 coin-operated telecommunication devices.; or21(9) charges for telecommunications and all services22and equipment provided to a municipality imposing the23infrastructure maintenance fee.24 (a-5) "Department" means the Illinois Department of 25 Revenue. 26 (b) "Telecommunications" includes, but is not limited 27 to, messages or information transmitted through use of local, 28 toll, and wide area telephone service, channel services, 29 telegraph services, teletypewriter service, computer exchange 30 services, private line services, specialized mobile radio 31 services, or any other transmission of messages or 32 information by electronic or similar means, between or among 33 points by wire, cable, fiber optics, laser, microwave, radio, 34 satellite, or similar facilities. Unless the context clearly -52- LRB9202600SMdvam12 1 requires otherwise, "telecommunications" shall also include 2 wireless telecommunications as hereinafter defined. 3 "Telecommunications" shall not include value added services 4 in which computer processing applications are used to act on 5 the form, content, code, and protocol of the information for 6 purposes other than transmission. "Telecommunications" shall 7 not include purchase of telecommunications by a 8 telecommunications service provider for use as a component 9 part of the service provided by him or her to the ultimate 10 retail consumer who originates or terminates the end-to-end 11 communications. Retailer access charges, right of access 12 charges, charges for use of intercompany facilities, and all 13 telecommunications resold in the subsequent provision and 14 used as a component of, or integrated into, end-to-end 15 telecommunications service shall not be included in gross 16 charges as sales for resale. "Telecommunications" shall not 17 include the provision of cable services through a cable 18 system as defined in the Cable Communications Act of 1984 (47 19 U.S.C. Sections 521 and following) as now or hereafter 20 amended or through an open video system as defined in the 21 Rules of the Federal Communications Commission (47 C.D.F. 22 76.1550 and following) as now or hereafter amended. Beginning 23 January 1, 2001, prepaid telephone calling arrangements shall 24 not be considered "telecommunications" subject to the tax 25 imposed under this Act. For purposes of this Section, 26 "prepaid telephone calling arrangements" means that term as 27 defined in Section 2-27 of the Retailers' Occupation Tax Act. 28 (c) "Wireless telecommunications" includes cellular 29 mobile telephone services, personal wireless services as 30 defined in Section 704(C) of the Telecommunications Act of 31 1996 (Public Law No. 104-104) as now or hereafter amended, 32 including all commercial mobile radio services, and paging 33 services. 34 (d) "Telecommunications retailer" or "retailer" or -53- LRB9202600SMdvam12 1 "carrier" means and includes every person engaged in the 2 business of making sales of telecommunications at retail as 3 defined in this Section. TheIllinoisDepartmentof Revenue4or the municipality imposing the fee, as the case may be,5 may, in its discretion, upon applications, authorize the 6 collection of the fee hereby imposed by any retailer not 7 maintaining a place of business within this State, who, to 8 the satisfaction of the Departmentor municipality, furnishes 9 adequate security to insure collection and payment of the 10 fee. When so authorized, it shall be the duty of such 11 retailer to pay the fee upon all of the gross charges for 12 telecommunications in the same manner and subject to the same 13 requirements as a retailer maintaining a place of business 14 within thistheStateor municipality imposing the fee. 15 (e) "Retailer maintaining a place of business in this 16 State", or any like term, means and includes any retailer 17 having or maintaining within this State, directly or by a 18 subsidiary, an office, distribution facilities, transmission 19 facilities, sales office, warehouse, or other place of 20 business, or any agent or other representative operating 21 within this State under the authority of the retailer or its 22 subsidiary, irrespective of whether such place of business or 23 agent or other representative is located here permanently or 24 temporarily, or whether such retailer or subsidiary is 25 licensed to do business in this State. 26 (f) "Sale of telecommunications at retail" means the 27 transmitting, supplying, or furnishing of telecommunications 28 and all services rendered in connection therewith for a 29 consideration, other than between a parent corporation and 30 its wholly owned subsidiaries or between wholly owned 31 subsidiaries, when the gross charge made by one such 32 corporation to another such corporation is not greater than 33 the gross charge paid to the retailer for their use or 34 consumption and not for sale. -54- LRB9202600SMdvam12 1 (g) "Service address" means the location of 2 telecommunications equipment from which telecommunications 3 services are originated or at which telecommunications 4 services are received. If this is not a defined location, as 5 in the case of wireless telecommunications, paging systems, 6 maritime systems, air-to-ground systems, and the like, 7 "service address" shall mean the location of the customer's 8 primary use of the telecommunications equipment as defined by 9 the location in Illinois where bills are sent. 10 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97; 11 91-870, eff. 6-22-00.) 12 (Text of Section after amendment by P.A. 92-474) 13 Sec. 10. Definitions. 14 (a) "Gross charges" means the amount paid to a 15 telecommunications retailer for the act or privilege of 16 originating or receiving telecommunications in this Stateor17the municipality imposing the fee under this Act, as the18context requires,and for all services rendered in connection 19 therewith, valued in money whether paid in money or 20 otherwise, including cash, credits, services, and property of 21 every kind or nature, and shall be determined without any 22 deduction on account of the cost of such telecommunications, 23 the cost of the materials used, labor or service costs, or 24 any other expense whatsoever. In case credit is extended, 25 the amount thereof shall be included only as and when paid. 26 "Gross charges" for private line service shall include 27 charges imposed at each channel point within this Stateor28the municipality imposing the fee under this Act, charges for 29 the channel mileage between each channel point within this 30 Stateor the municipality imposing the fee under this Act, 31 and charges for that portion of the interstate inter-office 32 channel provided within Illinoisor the municipality imposing33the fee under this Act. However, "gross charges" shall not 34 include: -55- LRB9202600SMdvam12 1 (1) any amounts added to a purchaser's bill because 2 of a charge made under: (i) the fee imposed by this 3 Section, (ii) additional charges added to a purchaser's 4 bill under Section 9-221 or 9-222 of the Public Utilities 5 Act, (iii)amounts collected under Section 8-11-17 of the6Illinois Municipal Code, (iv)the tax imposed by the 7 Telecommunications Excise Tax Act, (iv)(v)911 8 surcharges, (v)or (vi)the tax imposed by Section 4251 9 of the Internal Revenue Code, or (vi) the tax imposed by 10 the Simplified Municipal Telecommunications Tax Act; 11 (2) charges for a sent collect telecommunication 12 received outside of this Stateor the municipality13imposing the fee, as the context requires; 14 (3) charges for leased time on equipment or charges 15 for the storage of data or information or subsequent 16 retrieval or the processing of data or information 17 intended to change its form or content. Such equipment 18 includes, but is not limited to, the use of calculators, 19 computers, data processing equipment, tabulating 20 equipment, or accounting equipment and also includes the 21 usage of computers under a time-sharing agreement; 22 (4) charges for customer equipment, including such 23 equipment that is leased or rented by the customer from 24 any source, wherein such charges are disaggregated and 25 separately identified from other charges; 26 (5) charges to business enterprises certified under 27 Section 9-222.1 of the Public Utilities Act to the extent 28 of such exemption and during the period of time specified 29 by the Department of Commerce and Community Affairsor by30the municipality imposing the fee under the Act, as the31context requires; 32 (6) charges for telecommunications and all services 33 and equipment provided in connection therewith between a 34 parent corporation and its wholly owned subsidiaries or -56- LRB9202600SMdvam12 1 between wholly owned subsidiaries, and only to the extent 2 that the charges between the parent corporation and 3 wholly owned subsidiaries or between wholly owned 4 subsidiaries represent expense allocation between the 5 corporations and not the generation of profit other than 6 a regulatory required profit for the corporation 7 rendering such services; 8 (7) bad debts ("bad debt" means any portion of a 9 debt that is related to a sale at retail for which gross 10 charges are not otherwise deductible or excludable that 11 has become worthless or uncollectible, as determined 12 under applicable federal income tax standards; if the 13 portion of the debt deemed to be bad is subsequently 14 paid, the retailer shall report and pay the tax on that 15 portion during the reporting period in which the payment 16 is made); or 17 (8) charges paid by inserting coins in 18 coin-operated telecommunication devices.; or19(9) charges for telecommunications and all services20and equipment provided to a municipality imposing the21infrastructure maintenance fee.22 (a-5) "Department" means the Illinois Department of 23 Revenue. 24 (b) "Telecommunications" includes, but is not limited 25 to, messages or information transmitted through use of local, 26 toll, and wide area telephone service, channel services, 27 telegraph services, teletypewriter service, computer exchange 28 services, private line services, specialized mobile radio 29 services, or any other transmission of messages or 30 information by electronic or similar means, between or among 31 points by wire, cable, fiber optics, laser, microwave, radio, 32 satellite, or similar facilities. Unless the context clearly 33 requires otherwise, "telecommunications" shall also include 34 wireless telecommunications as hereinafter defined. -57- LRB9202600SMdvam12 1 "Telecommunications" shall not include value added services 2 in which computer processing applications are used to act on 3 the form, content, code, and protocol of the information for 4 purposes other than transmission. "Telecommunications" shall 5 not include purchase of telecommunications by a 6 telecommunications service provider for use as a component 7 part of the service provided by him or her to the ultimate 8 retail consumer who originates or terminates the end-to-end 9 communications. Retailer access charges, right of access 10 charges, charges for use of intercompany facilities, and all 11 telecommunications resold in the subsequent provision and 12 used as a component of, or integrated into, end-to-end 13 telecommunications service shall not be included in gross 14 charges as sales for resale. "Telecommunications" shall not 15 include the provision of cable services through a cable 16 system as defined in the Cable Communications Act of 1984 (47 17 U.S.C. Sections 521 and following) as now or hereafter 18 amended or through an open video system as defined in the 19 Rules of the Federal Communications Commission (47 C.D.F. 20 76.1550 and following) as now or hereafter amended. Beginning 21 January 1, 2001, prepaid telephone calling arrangements shall 22 not be considered "telecommunications" subject to the tax 23 imposed under this Act. For purposes of this Section, 24 "prepaid telephone calling arrangements" means that term as 25 defined in Section 2-27 of the Retailers' Occupation Tax Act. 26 (c) "Wireless telecommunications" includes cellular 27 mobile telephone services, personal wireless services as 28 defined in Section 704(C) of the Telecommunications Act of 29 1996 (Public Law No. 104-104) as now or hereafter amended, 30 including all commercial mobile radio services, and paging 31 services. 32 (d) "Telecommunications retailer" or "retailer" or 33 "carrier" means and includes every person engaged in the 34 business of making sales of telecommunications at retail as -58- LRB9202600SMdvam12 1 defined in this Section. TheIllinoisDepartmentof Revenue2or the municipality imposing the fee, as the case may be,3 may, in its discretion, upon applications, authorize the 4 collection of the fee hereby imposed by any retailer not 5 maintaining a place of business within this State, who, to 6 the satisfaction of the Departmentor municipality, furnishes 7 adequate security to insure collection and payment of the 8 fee. When so authorized, it shall be the duty of such 9 retailer to pay the fee upon all of the gross charges for 10 telecommunications in the same manner and subject to the same 11 requirements as a retailer maintaining a place of business 12 within thistheStateor municipality imposing the fee. 13 (e) "Retailer maintaining a place of business in this 14 State", or any like term, means and includes any retailer 15 having or maintaining within this State, directly or by a 16 subsidiary, an office, distribution facilities, transmission 17 facilities, sales office, warehouse, or other place of 18 business, or any agent or other representative operating 19 within this State under the authority of the retailer or its 20 subsidiary, irrespective of whether such place of business or 21 agent or other representative is located here permanently or 22 temporarily, or whether such retailer or subsidiary is 23 licensed to do business in this State. 24 (f) "Sale of telecommunications at retail" means the 25 transmitting, supplying, or furnishing of telecommunications 26 and all services rendered in connection therewith for a 27 consideration, other than between a parent corporation and 28 its wholly owned subsidiaries or between wholly owned 29 subsidiaries, when the gross charge made by one such 30 corporation to another such corporation is not greater than 31 the gross charge paid to the retailer for their use or 32 consumption and not for sale. 33 (g) "Service address" means the location of 34 telecommunications equipment from which telecommunications -59- LRB9202600SMdvam12 1 services are originated or at which telecommunications 2 services are received. If this is not a defined location, as 3 in the case of wireless telecommunications, paging systems, 4 maritime systems, service address means the customer's place 5 of primary use as defined in the Mobile Telecommunications 6 Sourcing Conformity Act. For air-to-ground systems, and the 7 like, "service address" shall mean the location of the 8 customer's primary use of the telecommunications equipment as 9 defined by the location in Illinois where bills are sent. 10 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02.) 11 (35 ILCS 635/15) 12 Sec. 15. State telecommunications infrastructure 13 maintenance fees. 14 (a) A State infrastructure maintenance fee is hereby 15 imposed upon telecommunications retailers as a replacement 16 for the personal property tax in an amount specified in 17 subsection (b). 18 (b) The amount of the State infrastructure maintenance 19 fee imposed upon a telecommunications retailer under this 20 Section shall be equal to 0.5% of all gross charges charged 21 by the telecommunications retailer to service addresses in 22 this State for telecommunications, other than wireless 23 telecommunications, originating or received in this State. 24 However, the State infrastructure maintenance fee is not 25 imposed in any case in which the imposition of the fee would 26 violate the Constitution or statutes of the United States. 27 (c) (Blank).An optional infrastructure maintenance fee28is hereby created. A telecommunications retailer may elect29to pay the optional infrastructure maintenance fee with30respect to the gross charges charged by the31telecommunications retailer to service addresses in a32particular municipality for telecommunications, other than33wireless telecommunications, originating or received in the-60- LRB9202600SMdvam12 1municipality if (1) the telecommunications retailer is not2required to pay any compensation to the municipality under an3existing franchise agreement and (2) the municipality has not4imposed a municipal infrastructure maintenance fee as5authorized in Section 20 of this Act. A telecommunications6retailer electing to pay the optional infrastructure7maintenance fee shall notify the Department of such election8on the application for certificate of registration. If a9telecommunications retailer elects to pay this fee with10respect to the gross charges charged by the11telecommunications retailer to service addresses in a12particular municipality, such election shall remain in full13force and effect until such time as the municipality imposes14a municipal infrastructure maintenance fee.15 (d) (Blank).The amount of the optional infrastructure16maintenance fee which a telecommunications retailer may elect17to pay with respect to a particular municipality shall be18equal to 25% of the maximum amount of the municipal19infrastructure maintenance fee which the municipality could20impose under Section 20 of this Act.21 (e) The State infrastructure maintenance feeand the22optional infrastructure maintenance feeauthorized by this 23 Section shall be collected, enforced, and administered as set 24 forth in subsection (b) of Section 25 of this Act. 25 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97.) 26 (35 ILCS 635/20) 27 Sec. 20. Municipal telecommunications infrastructure 28 maintenance fee. 29 (a) A municipality may impose a municipal infrastructure 30 maintenance fee upon telecommunications retailers in an 31 amount specified in subsection (b). On and after the 32 effective date of this amendatory Act of 1997, a certified 33 copy of an ordinance or resolution imposing a fee under this -61- LRB9202600SMdvam12 1 Section shall be filed with the Department within 30 days 2 after the effective date of this amendatory Act or the 3 effective date of the ordinance or resolution imposing such 4 fee, whichever is later. Failure to file a certified copy of 5 the ordinance or resolution imposing a fee under this Section 6 shall have no effect on the validity of the ordinance or 7 resolution. The Department shall create and maintain a list 8 of all ordinances and resolutions filed pursuant to this 9 Section and make that list, as well as copies of the 10 ordinances and resolutions, available to the public for a 11 reasonable fee. 12 (b) The amount of the municipal infrastructure 13 maintenance fee imposed upon a telecommunications retailer 14 under this Section shall not exceed: (i) in a municipality 15 with a population of more than 500,000, 2.0% of all gross 16 charges charged by the telecommunications retailer to service 17 addresses in the municipality for telecommunications 18 originating or received in the municipality; and (ii) in a 19 municipality with a population of 500,000 or less, 1.0% of 20 all gross charges charged by the telecommunications retailer 21 to service addresses in the municipality for 22 telecommunications originating or received in the 23 municipality which fee, for the period commencing on the 24 effective date of this amendatory Act of the 92nd General 25 Assembly through December 31, 2002, may be imposed at the 26 rates set forth herein without regard to the provisions of 27 Sections 8-11-2 and 8-11-17 of the Illinois Municipal Code. 28 If imposed, the municipal telecommunications infrastructure 29 fee must be in 1/4% increments. However, the fee shall not be 30 imposed in any case in which the imposition of the fee would 31 violate the Constitution or statutes of the United States. 32 (c) The municipal telecommunications infrastructure fee 33 authorized by this Section shall be collected, enforced, and 34 administered as set forth in subsection (c) of Section 25 of -62- LRB9202600SMdvam12 1 this Act. 2 (d) A municipality with a population of more than 3 500,000 that imposes a municipal infrastructure maintenance 4 fee under this Section may, by ordinance, exempt from the fee 5 all charges for the inbound toll-free telecommunications 6 service commonly known as "800", "877", or "888" or for a 7 similar service. 8 (e) For the period from the effective date of this 9 amendatory Act of the 92nd General Assembly through December 10 31, 2002, any ordinance previously enacted for the purpose of 11 imposing a municipal infrastructure maintenance fee shall be 12 valid and effective for the purpose of imposing the municipal 13 infrastructure maintenance fee described in subsection (d) of 14 Section 5 of this Act. 15 (f) This Section is repealed on January 1, 2003. 16 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97; 17 91-870, eff. 6-22-00.) 18 (35 ILCS 635/25) 19 Sec. 25. Collection, enforcement, and administration of 20 State telecommunications infrastructure maintenance fees. 21 (a) A telecommunications retailer shall charge each 22 customer an additional charge equal tothe sum of (1) an23amount equal tothe State infrastructure maintenance fee 24 attributable to that customer's service addressand (2) an25amount equal to the optional infrastructure maintenance fee,26if any, attributable to that customer's service address and27(3) an amount equal to the municipal infrastructure28maintenance fee, if any, attributable to that customer's29service address. Such additional charge shall be shown 30 separately on the bill to each customer. 31 (b) The State infrastructure maintenance feeand the32optional infrastructure maintenance feeshall be designated 33 as a replacement for the personal property tax and shall be -63- LRB9202600SMdvam12 1 remitted by the telecommunications retailer to theIllinois2 Departmentof Revenue; provided, however, that the 3 telecommunications retailer may retain an amount not to 4 exceed 2% of the State infrastructure maintenance feeand the5optional infrastructure maintenance fee, if any,paid to the 6 Department, with a timely paid and timely filed return to 7 reimburse itself for expenses incurred in collecting, 8 accounting for, and remitting the fee. All amounts herein 9 remitted to the Department shall be transferred to the 10 Personal Property Tax Replacement Fund in the State Treasury. 11(c) The municipal infrastructure maintenance fee shall12be remitted by the telecommunications retailer to the13municipality imposing the municipal infrastructure14maintenance fee; provided, however, that the15telecommunications retailer may retain an amount not to16exceed 2% of the municipal infrastructure maintenance fee17collected by it to reimburse itself for expenses incurred in18accounting for and remitting the fee. The municipality19imposing the municipal infrastructure maintenance fee shall20collect, enforce, and administer the fee.21(d) Except as provided in subsection (e), During any22period of time when a municipality receives any compensation23other than the municipal infrastructure maintenance fee set24forth in Section 20, for a telecommunications retailer's use25of the public right-of-way, no municipal infrastructure26maintenance fee may be imposed by such municipality pursuant27to this Act.28(e) A municipality that, pursuant to a franchise29agreement in existence on the effective date of this Act,30receives compensation from a telecommunications retailer for31the use of the public right of way, may impose a municipal32infrastructure maintenance fee pursuant to this Act only on33the condition that such municipality (1) waives its right to34receive all fees, charges and other compensation under all-64- LRB9202600SMdvam12 1existing franchise agreements or the like with2telecommunications retailers during the time that the3municipality imposes a municipal infrastructure maintenance4fee and (2) imposes by ordinance (or other proper means) a5municipal infrastructure maintenance fee which becomes6effective no sooner than 90 days after such municipality has7provided written notice by certified mail to each8telecommunications retailer with whom the municipality has an9existing franchise agreement, that the municipality waives10all compensation under such existing franchise agreement.11 (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97; 12 90-655, eff. 7-30-98.) 13 (35 ILCS 635/27) 14 Sec. 27. Returns by telecommunications retailer; 15 extensions. Except as provided hereinafter in this Section, 16 on or before the 30th day of each month each 17 telecommunications retailer maintaining a place of business 18 in this State shall make a return and payment of fees to the 19 Department for the preceding calendar month on a form 20 prescribed and furnished by the Department. The return shall 21 be signed by the telecommunications retailer under penalties 22 of perjury and shall contain the following information: 23 1. His or her name; 24 2. The address of his or her principal place of 25 business, orandthe address of the principal place of 26 business (if that is a different address) from which he 27 or she engages in the business of transmitting 28 telecommunications; 29 3. The total amount of gross charges charged by him 30 or her during the preceding calendar month for providing 31 telecommunications during such calendar month; 32 4. The total amount received by him or her during 33 the preceding calendar month on credit extended; -65- LRB9202600SMdvam12 1 5. Deductions allowed by law; 2 6. Gross charges that were charged by him or her 3 during the preceding calendar month and upon the basis of 4 which the State infrastructure maintenance fee is 5 imposed; 6 7. (Blank)Gross charges that were charged by him7or her during the preceding calendar month and upon the8basis of which the optional infrastructure maintenance9fee, if any, is imposed for each particular municipality; 10 8. Amounts of fees due; 11 9. Such other reasonable information as the 12 Department may require. 13 If the telecommunications retailer's average monthly 14 liability to the Department does not exceed $100, the 15 Department may authorize his or her returns to be filed on a 16 quarter annual basis, with the return for January, February, 17 and March of a given year being due by April 15 of such year; 18 with the return for April, May, and June of a given year 19 being due by July 15 of such year; with the return for July, 20 August, and September of a given year being due by October 15 21 of such year; and with the return of October, November, and 22 December of a given year being due by January 15 of the 23 following year. 24 Notwithstanding any other provision of this Act 25 concerning the time within which a telecommunications 26 retailer may file his or her return, in the case of any 27 telecommunications retailer who ceases to engage in a kind of 28 business which makes him or her responsible for filing 29 returns under this Act, such telecommunications retailer 30 shall file a final return under this Act with the Department 31 not more than one month after discontinuing such business. 32 In making such return, the telecommunications retailer 33 shall determine the value of any consideration other than 34 money received by him or her and he or she shall include such -66- LRB9202600SMdvam12 1 value in his or her return. Such determination shall be 2 subject to review and revision by the Department in the 3 manner hereinafter provided for the correction of returns. 4 If any payment provided for in this Section exceeds the 5 telecommunications retailer's liabilities under this Act, as 6 shown on an original monthly return, the Department may 7 authorize the telecommunications retailer to credit such 8 excess payment against liability subsequently to be remitted 9 to the Department under this Act, in accordance with 10 reasonable rules and regulations prescribed by the 11 Department. If the Department subsequently determines that 12 all or any part of the credit taken was not actually due to 13 the telecommunications retailer, the telecommunications 14 retailer's 2% discount shall be reduced by 2% of the 15 difference between the credit taken and that actually due, 16 and that telecommunications retailer shall be liable for 17 penalties and interest on such difference. 18If the Director finds that the information required for19the making of an accurate return cannot reasonably be20compiled by a telecommunications retailer within 15 days21after the close of the calendar month for which a return is22to be made, he or she may grant an extension of time for the23filing of such return for a period of not to exceed 3124calendar days. The granting of such an extension may be25conditioned upon the deposit by the telecommunications26retailer with the Department of an amount of money not27exceeding the amount estimated by the Director to be due with28the return so extended. All such deposits, including any29heretofore made with the Department, shall be credited30against the telecommunications retailer's liabilities under31this Act. If any such deposit exceeds the telecommunications32retailer's present and probable future liabilities under this33Act, the Department shall issue to the telecommunications34retailer a credit memorandum, which may be assigned by the-67- LRB9202600SMdvam12 1telecommunications retailer to a similar telecommunications2retailer under this Act, in accordance with reasonable rules3and regulations to be prescribed by the Department.4 Any telecommunications retailer required to make payments 5 under this Section may make the payments by electronic funds 6 transfer. The Department shall adopt rules necessary to 7 effectuate a program of electronic funds transfer. 8 (Source: P.A. 90-562, eff. 12-16-97.) 9 (35 ILCS 635/27.35) 10 Sec. 27.35. Rules and regulations; notice to 11 telecommunications retailer; hearings. The Department may 12 make, promulgate, and enforce such reasonable rules and 13 regulations relating to the administration and enforcement of 14 only the State infrastructure maintenance feeand the15optional infrastructure maintenance feeauthorized by this 16 Act.Such rules and regulations shall not apply to the17administration and enforcement of the municipal18infrastructure maintenance fee authorized by this Act.19 Whenever notice to a telecommunications retailer is 20 required by this Act, such notice may be given by United 21 States certified or registered mail, addressed to the 22 telecommunications retailer concerned at his or her last 23 known address, and proof of such mailing shall be sufficient 24 for the purposes of this Act. In the case of a notice of 25 hearing, such notice shall be mailed not less than 7 days 26 prior to the day fixed for the hearing. 27 All hearings provided for in this Act with respect to a 28 telecommunications retailer having his or her principal place 29 of business other than in Cook County shall be held at the 30 Department's office nearest to the location of the 31 telecommunications retailer's principal place of business: 32 Provided that if the telecommunications retailer has his or 33 her principal place of business in Cook County, such hearing -68- LRB9202600SMdvam12 1 shall be held in Cook County; and provided further that if 2 the telecommunications retailer does not have his principal 3 place of business in this State, such hearings shall be held 4 in Sangamon County. 5 Whenever any proceeding provided by this Act has been 6 begun by the Department or by a person subject thereto and 7 such person thereafter dies or becomes a person under legal 8 disability before the proceeding has been concluded, the 9 legal representative of the deceased person or a person under 10 legal disability shall notify the Department of such death or 11 legal disability. The legal representative, as such, shall 12 then be substituted by the Department in place of and for the 13 person. Within 20 days after notice to the legal 14 representative of the time fixed for that purpose, the 15 proceeding may proceed in all respects and with like effect 16 as though the person had not died or become a person under 17 legal disability. 18 (Source: P.A. 90-562, eff. 12-16-97.) 19 (35 ILCS 635/30) 20 Sec. 30. Validity of existing franchise fees and 21 agreements. 22 (a)Upon the effective date of this Act, the municipal23infrastructure maintenance fee authorized by this Act shall24be the only fee or compensation for recovering the reasonable25costs of regulating the use of the public rights-of-way and26for the use of public rights-of-way that may be levied by or27otherwise required by ordinance, resolution, or contract to28be paid to a municipality for the use of its public way by29telecommunications retailers.No new franchise fees or other 30 charges for the use of the public rights-of-way, including 31 charges for the recovery of reasonable costs of regulating 32 the use of the public rights-of-way, shall be imposed upon, 33 levied on, or otherwise required of telecommunications -69- LRB9202600SMdvam12 1 retailers by ordinance, resolution, or contract, nor shall 2 anyorother new charges be required from telecommunications 3 retailers by municipalities from and after the effective date 4 of this Act.No telecommunications retailer paying either5the applicable municipal infrastructure maintenance fee or6the optional infrastructure maintenance fee authorized by7this Act may be denied the use, directly or indirectly, of8the public way of the municipality either imposing the9municipal infrastructure maintenance fee or to which the10optional infrastructure maintenance fee relates, as the case11may be, as authorized under the Telephone Company Act.12 Nothing in this Act shall excuse any person or entity from 13 obligations imposed under any law concerning generally 14 applicable taxes or standards for construction on, over, 15 under, or within, use of or repair of the public 16 rights-of-way, including standards relating to free standing 17 towers and other structures upon the public way, nor shall 18 any person or entity be excused from any liability imposed by 19 any such law for the failure to comply with such generally 20 applicable taxes or standards governing construction on, 21 over, under, or within, use of or repair of the public 22 rights-of-way. 23 (b) Agreements between telecommunications retailers and 24 municipalities entered into before the effective date of this 25 Act regarding use of the public ways shall remain valid 26 according to and for their stated terms, except as to fees or 27 charges waived under Section 5-60 of the Simplified Municipal 28 Telecommunications Tax Act.If, following the effective date29of this Act, such an agreement is renewed automatically or by30agreement of the parties, the compensation or fee under the31agreement shall be equal to the maximum amount of the32municipal infrastructure maintenance fee which the33municipality could impose under Section 20 of this Act.34 (c) The regulation of the terms and conditions upon -70- LRB9202600SMdvam12 1 which poles, conduits, and other facilities located in the 2 public way may be shared by or between telecommunications 3 retailers shall be committed exclusively to the jurisdiction 4 of the Illinois Commerce Commission and the Federal 5 Communications Commission, and such regulation shall not be 6 among the home rule powers and functions described in 7 subsection (h) of Section 6 of Article VII of the Illinois 8 Constitution. Moreover, no municipality may enter into any 9 contract or agreement with a telecommunications retailer with 10 respect to the terms and conditions upon which poles, 11 conduits, and other facilities located in the public way may 12 be shared by or between telecommunications retailers. 13 (Source: P.A. 90-154, eff. 1-1-98.) 14 (35 ILCS 635/35) 15 Sec. 35. Home rule. The authorization of infrastructure 16 maintenance feesand other fees relating to the use of the17public right-of-way for telecommunications activity imposed18upon telecommunications retailersis an exclusive power and 19 function of the State. A home rule municipality may not 20 impose franchise or other fees upon or require other 21 compensation from telecommunications retailers for use of the 22 public way, other than the municipal infrastructure23maintenance fee authorized by this Act. This Act is a denial 24 and limitation of municipal home rule powers and functions 25 under subsection (g)(h)of Section 6 of Article VII of the 26 Illinois Constitution. 27 (Source: P.A. 90-154, eff. 1-1-98.) 28 Section 90-20. The Emergency Telephone System Act is 29 amended by changing Section 15.3 as follows: 30 (50 ILCS 750/15.3) (from Ch. 134, par. 45.3) 31 (Text of Section before amendment by P.A. 92-474) -71- LRB9202600SMdvam12 1 Sec. 15.3. (a) The corporate authorities of any 2 municipality or any county may, subject to the limitations of 3 subsections (c), (d), and (h), and in addition to any tax 4 levied pursuant to the Simplified Municipal 5 Telecommunications Tax ActSection 8-11-2 of the Illinois6Municipal Code, impose a monthly surcharge on billed 7 subscribers of network connection provided by 8 telecommunication carriers engaged in the business of 9 transmitting messages by means of electricity originating 10 within the corporate limits of the municipality or county 11 imposing the surcharge at a rate per network connection 12 determined in accordance with subsection (c). A municipality 13 may enter into an intergovernmental agreement with any county 14 in which it is partially located, when the county has adopted 15 an ordinance to impose a surcharge as provided in subsection 16 (c), to include that portion of the municipality lying 17 outside the county in that county's surcharge referendum. If 18 the county's surcharge referendum is approved, the portion of 19 the municipality identified in the intergovernmental 20 agreement shall automatically be disconnected from the county 21 in which it lies and connected to the county which approved 22 the referendum for purposes of a surcharge on 23 telecommunications carriers. 24 (b) For purposes of computing the surcharge imposed by 25 subsection (a), the network connections to which the 26 surcharge shall apply shall be those in-service network 27 connections, other than those network connections assigned to 28 the municipality or county, where the service address for 29 each such network connection or connections is located within 30 the corporate limits of the municipality or county levying 31 the surcharge. The "service address" shall mean the location 32 of the primary use of the network connection or connections. 33 With respect to network connections provided for use with pay 34 telephone services for which there is no billed subscriber, -72- LRB9202600SMdvam12 1 the telecommunications carrier providing the network 2 connection shall be deemed to be its own billed subscriber 3 for purposes of applying the surcharge. 4 (c) Upon the passage of an ordinance to impose a 5 surcharge under this Section the clerk of the municipality or 6 county shall certify the question of whether the surcharge 7 may be imposed to the proper election authority who shall 8 submit the public question to the electors of the 9 municipality or county in accordance with the general 10 election law; provided that such question shall not be 11 submitted at a consolidated primary election. The public 12 question shall be in substantially the following form: 13 ------------------------------------------------------------- 14 Shall the county (or city, village 15 or incorporated town) of.....impose YES 16 a surcharge of up to...¢ per month per 17 network connection, which surcharge will 18 be added to the monthly bill you receive ------------------ 19 for telephone or telecommunications 20 charges, for the purpose of installing 21 (or improving) a 9-1-1 Emergency NO 22 Telephone System? 23 ------------------------------------------------------------- 24 If a majority of the votes cast upon the public question 25 are in favor thereof, the surcharge shall be imposed. 26 However, if a Joint Emergency Telephone System Board is 27 to be created pursuant to an intergovernmental agreement 28 under Section 15.4, the ordinance to impose the surcharge 29 shall be subject to the approval of a majority of the total 30 number of votes cast upon the public question by the electors 31 of all of the municipalities or counties, or combination 32 thereof, that are parties to the intergovernmental agreement. 33 The referendum requirement of this subsection (c) shall 34 not apply to any municipality with a population over 500,000 -73- LRB9202600SMdvam12 1 or to any county in which a proposition as to whether a 2 sophisticated 9-1-1 Emergency Telephone System should be 3 installed in the county, at a cost not to exceed a specified 4 monthly amount per network connection, has previously been 5 approved by a majority of the electors of the county voting 6 on the proposition at an election conducted before the 7 effective date of this amendatory Act of 1987. 8 (d) A county may not impose a surcharge, unless 9 requested by a municipality, in any incorporated area which 10 has previously approved a surcharge as provided in subsection 11 (c) or in any incorporated area where the corporate 12 authorities of the municipality have previously entered into 13 a binding contract or letter of intent with a 14 telecommunications carrier to provide sophisticated 9-1-1 15 service through municipal funds. 16 (e) A municipality or county may at any time by 17 ordinance change the rate of the surcharge imposed under this 18 Section if the new rate does not exceed the rate specified in 19 the referendum held pursuant to subsection (c). 20 (f) The surcharge authorized by this Section shall be 21 collected from the subscriber by the telecommunications 22 carrier providing the subscriber the network connection as a 23 separately stated item on the subscriber's bill. 24 (g) The amount of surcharge collected by the 25 telecommunications carrier shall be paid to the particular 26 municipality or county or Joint Emergency Telephone System 27 Board not later than 30 days after the surcharge is 28 collected, net of any network or other 9-1-1 or sophisticated 29 9-1-1 system charges then due the particular 30 telecommunications carrier, as shown on an itemized bill. 31 The telecommunications carrier collecting the surcharge shall 32 also be entitled to deduct 3% of the gross amount of 33 surcharge collected to reimburse the telecommunications 34 carrier for the expense of accounting and collecting the -74- LRB9202600SMdvam12 1 surcharge. 2 (h) A municipality with a population over 500,000 may 3 not impose a monthly surcharge in excess of $1.25 per network 4 connection. 5 (i) Any municipality or county or joint emergency 6 telephone system board that has imposed a surcharge pursuant 7 to this Section prior to the effective date of this 8 amendatory Act of 1990 shall hereafter impose the surcharge 9 in accordance with subsection (b) of this Section. 10 (j) The corporate authorities of any municipality or 11 county may issue, in accordance with Illinois law, bonds, 12 notes or other obligations secured in whole or in part by the 13 proceeds of the surcharge described in this Section. 14 Notwithstanding any change in law subsequent to the issuance 15 of any bonds, notes or other obligations secured by the 16 surcharge, every municipality or county issuing such bonds, 17 notes or other obligations shall be authorized to impose the 18 surcharge as though the laws relating to the imposition of 19 the surcharge in effect at the time of issuance of the bonds, 20 notes or other obligations were in full force and effect 21 until the bonds, notes or other obligations are paid in full. 22 The State of Illinois pledges and agrees that it will not 23 limit or alter the rights and powers vested in municipalities 24 and counties by this Section to impose the surcharge so as to 25 impair the terms of or affect the security for bonds, notes 26 or other obligations secured in whole or in part with the 27 proceeds of the surcharge described in this Section. 28 (k) Any surcharge collected by or imposed on a 29 telecommunications carrier pursuant to this Section shall be 30 held to be a special fund in trust for the municipality, 31 county or Joint Emergency Telephone Board imposing the 32 surcharge. Except for the 3% deduction provided in 33 subsection (g) above, the special fund shall not be subject 34 to the claims of creditors of the telecommunication carrier. -75- LRB9202600SMdvam12 1 (Source: P.A. 86-101; 86-1344.) 2 (Text of Section after amendment by P.A. 92-474) 3 Sec. 15.3. (a) The corporate authorities of any 4 municipality or any county may, subject to the limitations of 5 subsections (c), (d), and (h), and in addition to any tax 6 levied pursuant to the Simplified Municipal 7 Telecommunications Tax ActSection 8-11-2 of the Illinois8Municipal Code, impose a monthly surcharge on billed 9 subscribers of network connection provided by 10 telecommunication carriers engaged in the business of 11 transmitting messages by means of electricity originating 12 within the corporate limits of the municipality or county 13 imposing the surcharge at a rate per network connection 14 determined in accordance with subsection (c). For mobile 15 telecommunications services, if a surcharge is imposed it 16 shall be imposed based upon the municipality or county that 17 encompasses the customer's place of primary use as defined in 18 the Mobile Telecommunications Sourcing Conformity Act. A 19 municipality may enter into an intergovernmental agreement 20 with any county in which it is partially located, when the 21 county has adopted an ordinance to impose a surcharge as 22 provided in subsection (c), to include that portion of the 23 municipality lying outside the county in that county's 24 surcharge referendum. If the county's surcharge referendum 25 is approved, the portion of the municipality identified in 26 the intergovernmental agreement shall automatically be 27 disconnected from the county in which it lies and connected 28 to the county which approved the referendum for purposes of a 29 surcharge on telecommunications carriers. 30 (b) For purposes of computing the surcharge imposed by 31 subsection (a), the network connections to which the 32 surcharge shall apply shall be those in-service network 33 connections, other than those network connections assigned to 34 the municipality or county, where the service address for -76- LRB9202600SMdvam12 1 each such network connection or connections is located within 2 the corporate limits of the municipality or county levying 3 the surcharge. Except for mobile telecommunication services, 4 the "service address" shall mean the location of the primary 5 use of the network connection or connections. For mobile 6 telecommunication services, "service address" means the 7 customer's place of primary use as defined in the Mobile 8 Telecommunications Sourcing Conformity Act. With respect to 9 network connections provided for use with pay telephone 10 services for which there is no billed subscriber, the 11 telecommunications carrier providing the network connection 12 shall be deemed to be its own billed subscriber for purposes 13 of applying the surcharge. 14 (c) Upon the passage of an ordinance to impose a 15 surcharge under this Section the clerk of the municipality or 16 county shall certify the question of whether the surcharge 17 may be imposed to the proper election authority who shall 18 submit the public question to the electors of the 19 municipality or county in accordance with the general 20 election law; provided that such question shall not be 21 submitted at a consolidated primary election. The public 22 question shall be in substantially the following form: 23 ------------------------------------------------------------- 24 Shall the county (or city, village 25 or incorporated town) of.....impose YES 26 a surcharge of up to...¢ per month per 27 network connection, which surcharge will 28 be added to the monthly bill you receive ------------------ 29 for telephone or telecommunications 30 charges, for the purpose of installing 31 (or improving) a 9-1-1 Emergency NO 32 Telephone System? 33 ------------------------------------------------------------- 34 If a majority of the votes cast upon the public question -77- LRB9202600SMdvam12 1 are in favor thereof, the surcharge shall be imposed. 2 However, if a Joint Emergency Telephone System Board is 3 to be created pursuant to an intergovernmental agreement 4 under Section 15.4, the ordinance to impose the surcharge 5 shall be subject to the approval of a majority of the total 6 number of votes cast upon the public question by the electors 7 of all of the municipalities or counties, or combination 8 thereof, that are parties to the intergovernmental agreement. 9 The referendum requirement of this subsection (c) shall 10 not apply to any municipality with a population over 500,000 11 or to any county in which a proposition as to whether a 12 sophisticated 9-1-1 Emergency Telephone System should be 13 installed in the county, at a cost not to exceed a specified 14 monthly amount per network connection, has previously been 15 approved by a majority of the electors of the county voting 16 on the proposition at an election conducted before the 17 effective date of this amendatory Act of 1987. 18 (d) A county may not impose a surcharge, unless 19 requested by a municipality, in any incorporated area which 20 has previously approved a surcharge as provided in subsection 21 (c) or in any incorporated area where the corporate 22 authorities of the municipality have previously entered into 23 a binding contract or letter of intent with a 24 telecommunications carrier to provide sophisticated 9-1-1 25 service through municipal funds. 26 (e) A municipality or county may at any time by 27 ordinance change the rate of the surcharge imposed under this 28 Section if the new rate does not exceed the rate specified in 29 the referendum held pursuant to subsection (c). 30 (f) The surcharge authorized by this Section shall be 31 collected from the subscriber by the telecommunications 32 carrier providing the subscriber the network connection as a 33 separately stated item on the subscriber's bill. 34 (g) The amount of surcharge collected by the -78- LRB9202600SMdvam12 1 telecommunications carrier shall be paid to the particular 2 municipality or county or Joint Emergency Telephone System 3 Board not later than 30 days after the surcharge is 4 collected, net of any network or other 9-1-1 or sophisticated 5 9-1-1 system charges then due the particular 6 telecommunications carrier, as shown on an itemized bill. 7 The telecommunications carrier collecting the surcharge shall 8 also be entitled to deduct 3% of the gross amount of 9 surcharge collected to reimburse the telecommunications 10 carrier for the expense of accounting and collecting the 11 surcharge. 12 (h) A municipality with a population over 500,000 may 13 not impose a monthly surcharge in excess of $1.25 per network 14 connection. 15 (i) Any municipality or county or joint emergency 16 telephone system board that has imposed a surcharge pursuant 17 to this Section prior to the effective date of this 18 amendatory Act of 1990 shall hereafter impose the surcharge 19 in accordance with subsection (b) of this Section. 20 (j) The corporate authorities of any municipality or 21 county may issue, in accordance with Illinois law, bonds, 22 notes or other obligations secured in whole or in part by the 23 proceeds of the surcharge described in this Section. 24 Notwithstanding any change in law subsequent to the issuance 25 of any bonds, notes or other obligations secured by the 26 surcharge, every municipality or county issuing such bonds, 27 notes or other obligations shall be authorized to impose the 28 surcharge as though the laws relating to the imposition of 29 the surcharge in effect at the time of issuance of the bonds, 30 notes or other obligations were in full force and effect 31 until the bonds, notes or other obligations are paid in full. 32 The State of Illinois pledges and agrees that it will not 33 limit or alter the rights and powers vested in municipalities 34 and counties by this Section to impose the surcharge so as to -79- LRB9202600SMdvam12 1 impair the terms of or affect the security for bonds, notes 2 or other obligations secured in whole or in part with the 3 proceeds of the surcharge described in this Section. 4 (k) Any surcharge collected by or imposed on a 5 telecommunications carrier pursuant to this Section shall be 6 held to be a special fund in trust for the municipality, 7 county or Joint Emergency Telephone Board imposing the 8 surcharge. Except for the 3% deduction provided in 9 subsection (g) above, the special fund shall not be subject 10 to the claims of creditors of the telecommunication carrier. 11 (Source: P.A. 92-474, eff. 8-1-02.) 12 Section 90-22. The Wireless Emergency Telephone Safety 13 Act is amended by changing Sections 17 and 45 as follows: 14 (50 ILCS 751/17) 15 (Section scheduled to be repealed on April 1, 2005) 16 Sec. 17. Wireless carrier surcharge. 17 (a) Except as provided in Section 45, each wireless 18 carrier shall impose a monthly wireless carrier surcharge per 19 CMRS connection that either has a telephone number within an 20 area code assigned to Illinois by the North American 21 Numbering Plan Administrator or has a billing address in this 22 State. No wireless carrier shall impose the surcharge 23 authorized by this Section upon any subscriber who is subject 24 to the surcharge imposed by a unit of local government 25 pursuant to Section 45. The wireless carrier that provides 26 wireless service to the subscriber shall collect the 27 surcharge set by the Wireless Enhanced 9-1-1 Board from the 28 subscriber. For mobile telecommunications services provided 29 on and after August 1, 2002, any surcharge imposed under this 30 Act shall be imposed based upon the municipality or county 31 that encompasses the customer's place of primary use as 32 defined in the Mobile Telecommunications Sourcing Conformity -80- LRB9202600SMdvam12 1 Act. The surcharge shall be stated as a separate item on 2 the subscriber's monthly bill. The wireless carrier shall 3 begin collecting the surcharge on bills issued within 90 days 4 after the Wireless Enhanced 9-1-1 Board sets the monthly 5 wireless surcharge. State and local taxes shall not apply to 6 the wireless carrier surcharge. 7 (b) Except as provided in Section 45, a wireless carrier 8 shall, within 45 days of collection, remit, either by check 9 or by electronic funds transfer, to the State Treasurer the 10 amount of the wireless carrier surcharge collected from each 11 subscriber. Of the amounts remitted under this subsection, 12 the State Treasurer shall deposit one-third into the Wireless 13 Carrier Reimbursement Fund and two-thirds into the Wireless 14 Service Emergency Fund. 15 (c) The first such remittance by wireless carriers shall 16 include the number of customers by zip code, and the 9-digit 17 zip code if currently being used or later implemented by the 18 carrier, that shall be the means by which the Department of 19 Central Management Services shall determine distributions 20 from the Wireless Service Emergency Fund. This information 21 shall be updated no less often than every year. Wireless 22 carriers are not required to remit surcharge moneys that are 23 billed to subscribers but not yet collected. 24 (Source: P.A. 91-660, eff. 12-22-99.) 25 (50 ILCS 751/45) 26 (Section scheduled to be repealed on April 1, 2005) 27 Sec. 45. Continuation of current practices. 28 Notwithstanding any other provision of this Act, a unit of 29 local government or emergency telephone system board 30 providing wireless 9-1-1 service and imposing and collecting 31 a wireless carrier surcharge prior to July 1, 1998 may 32 continue its practices of imposing and collecting its 33 wireless carrier surcharge, but in no event shall that -81- LRB9202600SMdvam12 1 monthly surcharge exceed $1.25 per commercial mobile radio 2 service (CMRS) connection or in-service telephone number 3 billed on a monthly basis. For mobile telecommunications 4 services provided on and after August 1, 2002, any surcharge 5 imposed shall be imposed based upon the municipality or 6 county that encompasses the customer's place of primary use 7 as defined in the Mobile Telecommunications Sourcing 8 Conformity Act. 9 (Source: P.A. 91-660, eff. 12-22-99.) 10 Section 90-25. The Illinois Municipal Code is amended by 11 changing Section 8-11-2 as follows: 12 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2) 13 (Text of Section before amendment by P.A. 92-474) 14 Sec. 8-11-2. The corporate authorities of any 15 municipality may tax any or all of the following occupations 16 or privileges: 17 1. (Blank).Persons engaged in the business of18transmitting messages by means of electricity or radio19magnetic waves, or fiber optics, at a rate not to exceed205% of the gross receipts from that business originating21within the corporate limits of the municipality.22Beginning January 1, 2001, prepaid telephone calling23arrangements shall not be subject to the tax imposed24under this Section. For purposes of this Section,25"prepaid telephone calling arrangements" means that term26as defined in Section 2-27 of the Retailers' Occupation27Tax Act.28 2. Persons engaged in the business of distributing, 29 supplying, furnishing, or selling gas for use or 30 consumption within the corporate limits of a municipality 31 of 500,000 or fewer population, and not for resale, at a 32 rate not to exceed 5% of the gross receipts therefrom. -82- LRB9202600SMdvam12 1 2a. Persons engaged in the business of 2 distributing, supplying, furnishing, or selling gas for 3 use or consumption within the corporate limits of a 4 municipality of over 500,000 population, and not for 5 resale, at a rate not to exceed 8% of the gross receipts 6 therefrom. If imposed, this tax shall be paid in monthly 7 payments. 8 3. The privilege of using or consuming electricity 9 acquired in a purchase at retail and used or consumed 10 within the corporate limits of the municipality at rates 11 not to exceed the following maximum rates, calculated on 12 a monthly basis for each purchaser: 13 (i) For the first 2,000 kilowatt-hours used or 14 consumed in a month; 0.61 cents per kilowatt-hour; 15 (ii) For the next 48,000 kilowatt-hours used or 16 consumed in a month; 0.40 cents per kilowatt-hour; 17 (iii) For the next 50,000 kilowatt-hours used or 18 consumed in a month; 0.36 cents per kilowatt-hour; 19 (iv) For the next 400,000 kilowatt-hours used or 20 consumed in a month; 0.35 cents per kilowatt-hour; 21 (v) For the next 500,000 kilowatt-hours used or 22 consumed in a month; 0.34 cents per kilowatt-hour; 23 (vi) For the next 2,000,000 kilowatt-hours used or 24 consumed in a month; 0.32 cents per kilowatt-hour; 25 (vii) For the next 2,000,000 kilowatt-hours used or 26 consumed in a month; 0.315 cents per kilowatt-hour; 27 (viii) For the next 5,000,000 kilowatt-hours used 28 or consumed in a month; 0.31 cents per kilowatt-hour; 29 (ix) For the next 10,000,000 kilowatt-hours used or 30 consumed in a month; 0.305 cents per kilowatt-hour; and 31 (x) For all electricity used or consumed in excess 32 of 20,000,000 kilowatt-hours in a month, 0.30 cents per 33 kilowatt-hour. 34 If a municipality imposes a tax at rates lower than -83- LRB9202600SMdvam12 1 either the maximum rates specified in this Section or the 2 alternative maximum rates promulgated by the Illinois 3 Commerce Commission, as provided below, the tax rates 4 shall be imposed upon the kilowatt hour categories set 5 forth above with the same proportional relationship as 6 that which exists among such maximum rates. 7 Notwithstanding the foregoing, until December 31, 2008, 8 no municipality shall establish rates that are in excess 9 of rates reasonably calculated to produce revenues that 10 equal the maximum total revenues such municipality could 11 have received under the tax authorized by this 12 subparagraph in the last full calendar year prior to the 13 effective date of Section 65 of this amendatory Act of 14 1997; provided that this shall not be a limitation on the 15 amount of tax revenues actually collected by such 16 municipality. 17 Upon the request of the corporate authorities of a 18 municipality, the Illinois Commerce Commission shall, 19 within 90 days after receipt of such request, promulgate 20 alternative rates for each of these kilowatt-hour 21 categories that will reflect, as closely as reasonably 22 practical for that municipality, the distribution of the 23 tax among classes of purchasers as if the tax were based 24 on a uniform percentage of the purchase price of 25 electricity. A municipality that has adopted an 26 ordinance imposing a tax pursuant to subparagraph 3 as it 27 existed prior to the effective date of Section 65 of this 28 amendatory Act of 1997 may, rather than imposing the tax 29 permitted by this amendatory Act of 1997, continue to 30 impose the tax pursuant to that ordinance with respect to 31 gross receipts received from residential customers 32 through July 31, 1999, and with respect to gross receipts 33 from any non-residential customer until the first bill 34 issued to such customer for delivery services in -84- LRB9202600SMdvam12 1 accordance with Section 16-104 of the Public Utilities 2 Act but in no case later than the last bill issued to 3 such customer before December 31, 2000. No ordinance 4 imposing the tax permitted by this amendatory Act of 1997 5 shall be applicable to any non-residential customer until 6 the first bill issued to such customer for delivery 7 services in accordance with Section 16-104 of the Public 8 Utilities Act but in no case later than the last bill 9 issued to such non-residential customer before December 10 31, 2000. 11 4. Persons engaged in the business of distributing, 12 supplying, furnishing, or selling water for use or 13 consumption within the corporate limits of the 14 municipality, and not for resale, at a rate not to exceed 15 5% of the gross receipts therefrom. 16 None of the taxes authorized by this Section may be 17 imposed with respect to any transaction in interstate 18 commerce or otherwise to the extent to which the business or 19 privilege may not, under the constitution and statutes of the 20 United States, be made the subject of taxation by this State 21 or any political sub-division thereof; nor shall any persons 22 engaged in the business of distributing, supplying, 23 furnishing, selling or transmitting gas, water, or 24 electricity,or engaged in the business of transmitting25messages,or using or consuming electricity acquired in a 26 purchase at retail, be subject to taxation under the 27 provisions of this Section for those transactions that are or 28 may become subject to taxation under the provisions of the 29 "Municipal Retailers' Occupation Tax Act" authorized by 30 Section 8-11-1; nor shall any tax authorized by this Section 31 be imposed upon any person engaged in a business or on any 32 privilege unless the tax is imposed in like manner and at the 33 same rate upon all persons engaged in businesses of the same 34 class in the municipality, whether privately or municipally -85- LRB9202600SMdvam12 1 owned or operated, or exercising the same privilege within 2 the municipality. 3 Any of the taxes enumerated in this Section may be in 4 addition to the payment of money, or value of products or 5 services furnished to the municipality by the taxpayer as 6 compensation for the use of its streets, alleys, or other 7 public places, or installation and maintenance therein, 8 thereon or thereunder of poles, wires, pipes or other 9 equipment used in the operation of the taxpayer's business. 10 (a) If the corporate authorities of any home rule 11 municipality have adopted an ordinance that imposed a tax on 12 public utility customers, between July 1, 1971, and October 13 1, 1981, on the good faith belief that they were exercising 14 authority pursuant to Section 6 of Article VII of the 1970 15 Illinois Constitution, that action of the corporate 16 authorities shall be declared legal and valid, 17 notwithstanding a later decision of a judicial tribunal 18 declaring the ordinance invalid. No municipality shall be 19 required to rebate, refund, or issue credits for any taxes 20 described in this paragraph, and those taxes shall be deemed 21 to have been levied and collected in accordance with the 22 Constitution and laws of this State. 23 (b) In any case in which (i) prior to October 19, 1979, 24 the corporate authorities of any municipality have adopted an 25 ordinance imposing a tax authorized by this Section (or by 26 the predecessor provision of the "Revised Cities and Villages 27 Act") and have explicitly or in practice interpreted gross 28 receipts to include either charges added to customers' bills 29 pursuant to the provision of paragraph (a) of Section 36 of 30 the Public Utilities Act or charges added to customers' bills 31 by taxpayers who are not subject to rate regulation by the 32 Illinois Commerce Commission for the purpose of recovering 33 any of the tax liabilities or other amounts specified in such 34 paragraph (a) of Section 36 of that Act, and (ii) on or after -86- LRB9202600SMdvam12 1 October 19, 1979, a judicial tribunal has construed gross 2 receipts to exclude all or part of those charges, then 3 neither those municipality nor any taxpayer who paid the tax 4 shall be required to rebate, refund, or issue credits for any 5 tax imposed or charge collected from customers pursuant to 6 the municipality's interpretation prior to October 19, 1979. 7 This paragraph reflects a legislative finding that it would 8 be contrary to the public interest to require a municipality 9 or its taxpayers to refund taxes or charges attributable to 10 the municipality's more inclusive interpretation of gross 11 receipts prior to October 19, 1979, and is not intended to 12 prescribe or limit judicial construction of this Section. The 13 legislative finding set forth in this subsection does not 14 apply to taxes imposed after the effective date of this 15 amendatory Act of 1995. 16 (c) The tax authorized by subparagraph 3 shall be 17 collected from the purchaser by the person maintaining a 18 place of business in this State who delivers the electricity 19 to the purchaser. This tax shall constitute a debt of the 20 purchaser to the person who delivers the electricity to the 21 purchaser and if unpaid, is recoverable in the same manner as 22 the original charge for delivering the electricity. Any tax 23 required to be collected pursuant to an ordinance authorized 24 by subparagraph 3 and any such tax collected by a person 25 delivering electricity shall constitute a debt owed to the 26 municipality by such person delivering the electricity, 27 provided, that the person delivering electricity shall be 28 allowed credit for such tax related to deliveries of 29 electricity the charges for which are written off as 30 uncollectible, and provided further, that if such charges are 31 thereafter collected, the delivering supplier shall be 32 obligated to remit such tax. For purposes of this subsection 33 (c), any partial payment not specifically identified by the 34 purchaser shall be deemed to be for the delivery of -87- LRB9202600SMdvam12 1 electricity. Persons delivering electricity shall collect the 2 tax from the purchaser by adding such tax to the gross charge 3 for delivering the electricity, in the manner prescribed by 4 the municipality. Persons delivering electricity shall also 5 be authorized to add to such gross charge an amount equal to 6 3% of the tax to reimburse the person delivering electricity 7 for the expenses incurred in keeping records, billing 8 customers, preparing and filing returns, remitting the tax 9 and supplying data to the municipality upon request. If the 10 person delivering electricity fails to collect the tax from 11 the purchaser, then the purchaser shall be required to pay 12 the tax directly to the municipality in the manner prescribed 13 by the municipality. Persons delivering electricity who file 14 returns pursuant to this paragraph (c) shall, at the time of 15 filing such return, pay the municipality the amount of the 16 tax collected pursuant to subparagraph 3. 17 (d) For the purpose of the taxes enumerated in this 18 Section: 19 "Gross receipts" means the consideration received forthe20transmission of messages, the consideration received for21 distributing, supplying, furnishing or selling gas for use or 22 consumption and not for resale, and the consideration 23 received for distributing, supplying, furnishing or selling 24 water for use or consumption and not for resale, and for all 25 services rendered in connection therewith valued in money, 26 whether received in money or otherwise, including cash, 27 credit, services and property of every kind and material and 28 for all services rendered therewith, and shall be determined 29without any deduction on account of the cost of transmitting30such messages,without any deduction on account of the cost 31 of the service, product or commodity supplied, the cost of 32 materials used, labor or service cost, or any other expenses 33 whatsoever. "Gross receipts" shall not include that portion 34 of the consideration received for distributing, supplying, -88- LRB9202600SMdvam12 1 furnishing, or selling gas or water to, or for the2transmission of messages for,business enterprises described 3 in paragraph (e) of this Section to the extent and during the 4 period in which the exemption authorized by paragraph (e) is 5 in effect or for school districts or units of local 6 government described in paragraph (f) during the period in 7 which the exemption authorized in paragraph (f) is in effect. 8"Gross receipts" shall not include amounts paid by9telecommunications retailers under the Telecommunications10Municipal Infrastructure Maintenance Fee Act.11 For utility bills issued on or after May 1, 1996, but 12 before May 1, 1997, and for receipts from those utility 13 bills, "gross receipts" does not include one-third of (i) 14 amounts added to customers' bills under Section 9-222 of the 15 Public Utilities Act, or (ii) amounts added to customers' 16 bills by taxpayers who are not subject to rate regulation by 17 the Illinois Commerce Commission for the purpose of 18 recovering any of the tax liabilities described in Section 19 9-222 of the Public Utilities Act. For utility bills issued 20 on or after May 1, 1997, but before May 1, 1998, and for 21 receipts from those utility bills, "gross receipts" does not 22 include two-thirds of (i) amounts added to customers' bills 23 under Section 9-222 of the Public Utilities Act, or (ii) 24 amount added to customers' bills by taxpayers 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 described in Section 9-222 of the Public 28 Utilities Act. For utility bills issued on or after May 1, 29 1998, and for receipts from those utility bills, "gross 30 receipts" does not include (i) amounts added to customers' 31 bills under Section 9-222 of the Public Utilities Act, or 32 (ii) amounts added to customers' bills by taxpayers who are 33 not subject to rate regulation by the Illinois Commerce 34 Commission for the purpose of recovering any of the tax -89- LRB9202600SMdvam12 1 liabilities described in Section 9-222 of the Public 2 Utilities Act. 3 For purposes of this Section "gross receipts" shall not 4 include(i)amounts added to customers' bills under Section 5 9-221 of the Public Utilities Act, or (ii) charges added to6customers' bills to recover the surcharge imposed under the7Emergency Telephone System Act. This paragraph is not 8 intended to nor does it make any change in the meaning of 9 "gross receipts" for the purposes of this Section, but is 10 intended to remove possible ambiguities, thereby confirming 11 the existing meaning of "gross receipts" prior to the 12 effective date of this amendatory Act of 1995. 13The words "transmitting messages", in addition to the14usual and popular meaning of person to person communication,15shall include the furnishing, for a consideration, of16services or facilities (whether owned or leased), or both, to17persons in connection with the transmission of messages where18those persons do not, in turn, receive any consideration in19connection therewith, but shall not include such furnishing20of services or facilities to persons for the transmission of21messages to the extent that any such services or facilities22for the transmission of messages are furnished for a23consideration, by those persons to other persons, for the24transmission of messages.25 "Person" as used in this Section means any natural 26 individual, firm, trust, estate, partnership, association, 27 joint stock company, joint adventure, corporation, limited 28 liability company, municipal corporation, the State or any of 29 its political subdivisions, any State university created by 30 statute, or a receiver, trustee, guardian or other 31 representative appointed by order of any court. 32 "Person maintaining a place of business in this State" 33 shall mean any person having or maintaining within this 34 State, directly or by a subsidiary or other affiliate, an -90- LRB9202600SMdvam12 1 office, generation facility, distribution facility, 2 transmission facility, sales office or other place of 3 business, or any employee, agent, or other representative 4 operating within this State under the authority of the person 5 or its subsidiary or other affiliate, irrespective of whether 6 such place of business or agent or other representative is 7 located in this State permanently or temporarily, or whether 8 such person, subsidiary or other affiliate is licensed or 9 qualified to do business in this State. 10 "Public utility" shall have the meaning ascribed to it in 11 Section 3-105 of the Public Utilities Act and shall include 12telecommunications carriers as defined in Section 13-202 of13that Act andalternative retail electric suppliers as defined 14 in Section 16-102 of that Act. 15 "Purchase at retail" shall mean any acquisition of 16 electricity by a purchaser for purposes of use or 17 consumption, and not for resale, but shall not include the 18 use of electricity by a public utility directly in the 19 generation, production, transmission, delivery or sale of 20 electricity. 21 "Purchaser" shall mean any person who uses or consumes, 22 within the corporate limits of the municipality, electricity 23 acquired in a purchase at retail. 24In the case of persons engaged in the business of25transmitting messages through the use of mobile equipment,26such as cellular phones and paging systems, the gross27receipts from the business shall be deemed to originate28within the corporate limits of a municipality only if the29address to which the bills for the service are sent is within30those corporate limits. If, however, that address is not31located within a municipality that imposes a tax under this32Section, then (i) if the party responsible for the bill is33not an individual, the gross receipts from the business shall34be deemed to originate within the corporate limits of the-91- LRB9202600SMdvam12 1municipality where that party's principal place of business2in Illinois is located, and (ii) if the party responsible for3the bill is an individual, the gross receipts from the4business shall be deemed to originate within the corporate5limits of the municipality where that party's principal6residence in Illinois is located.7 (e) Any municipality that imposes taxes upon public 8 utilities or upon the privilege of using or consuming 9 electricity pursuant to this Section whose territory includes 10 any part of an enterprise zone or federally designated 11 Foreign Trade Zone or Sub-Zone may, by a majority vote of its 12 corporate authorities, exempt from those taxes for a period 13 not exceeding 20 years any specified percentage of gross 14 receipts of public utilities received from, or electricity 15 used or consumed by, business enterprises that: 16 (1) either (i) make investments that cause the 17 creation of a minimum of 200 full-time equivalent jobs in 18 Illinois, (ii) make investments of at least $175,000,000 19 that cause the creation of a minimum of 150 full-time 20 equivalent jobs in Illinois, or (iii) make investments 21 that cause the retention of a minimum of 1,000 full-time 22 jobs in Illinois; and 23 (2) are either (i) located in an Enterprise Zone 24 established pursuant to the Illinois Enterprise Zone Act 25 or (ii) Department of Commerce and Community Affairs 26 designated High Impact Businesses located in a federally 27 designated Foreign Trade Zone or Sub-Zone; and 28 (3) are certified by the Department of Commerce and 29 Community Affairs as complying with the requirements 30 specified in clauses (1) and (2) of this paragraph (e). 31 Upon adoption of the ordinance authorizing the exemption, 32 the municipal clerk shall transmit a copy of that ordinance 33 to the Department of Commerce and Community Affairs. The 34 Department of Commerce and Community Affairs shall determine -92- LRB9202600SMdvam12 1 whether the business enterprises located in the municipality 2 meet the criteria prescribed in this paragraph. If the 3 Department of Commerce and Community Affairs determines that 4 the business enterprises meet the criteria, it shall grant 5 certification. The Department of Commerce and Community 6 Affairs shall act upon certification requests within 30 days 7 after receipt of the ordinance. 8 Upon certification of the business enterprise by the 9 Department of Commerce and Community Affairs, the Department 10 of Commerce and Community Affairs shall notify the Department 11 of Revenue of the certification. The Department of Revenue 12 shall notify the public utilities of the exemption status of 13 the gross receipts received from, and the electricity used or 14 consumed by, the certified business enterprises. Such 15 exemption status shall be effective within 3 months after 16 certification. 17 (f) A municipality that imposes taxes upon public 18 utilities or upon the privilege of using or consuming 19 electricity under this Section and whose territory includes 20 part of another unit of local government or a school district 21 may by ordinance exempt the other unit of local government or 22 school district from those taxes. 23 (g) The amendment of this Section by Public Act 84-127 24 shall take precedence over any other amendment of this 25 Section by any other amendatory Act passed by the 84th 26 General Assembly before the effective date of Public Act 27 84-127. 28 (h) In any case in which, before July 1, 1992, a person 29 engaged in the business of transmitting messages through the 30 use of mobile equipment, such as cellular phones and paging 31 systems, has determined the municipality within which the 32 gross receipts from the business originated by reference to 33 the location of its transmitting or switching equipment, then 34 (i) neither the municipality to which tax was paid on that -93- LRB9202600SMdvam12 1 basis nor the taxpayer that paid tax on that basis shall be 2 required to rebate, refund, or issue credits for any such tax 3 or charge collected from customers to reimburse the taxpayer 4 for the tax and (ii) no municipality to which tax would have 5 been paid with respect to those gross receipts if the 6 provisions of this amendatory Act of 1991 had been in effect 7 before July 1, 1992, shall have any claim against the 8 taxpayer for any amount of the tax. 9 (Source: P.A. 90-16, eff. 6-16-97; 90-561, eff. 8-1-98; 10 90-562, eff. 12-16-97; 90-655, eff. 7-30-98; 91-870, eff. 11 6-22-00.) 12 (Text of Section after amendment by P.A. 92-474) 13 Sec. 8-11-2. The corporate authorities of any 14 municipality may tax any or all of the following occupations 15 or privileges: 16 1. (Blank).Persons engaged in the business of17transmitting messages by means of electricity or radio18magnetic waves, or fiber optics, at a rate not to exceed195% of the gross receipts from that business originating20within the corporate limits of the municipality.21Beginning January 1, 2001, prepaid telephone calling22arrangements shall not be subject to the tax imposed23under this Section. For purposes of this Section,24"prepaid telephone calling arrangements" means that term25as defined in Section 2-27 of the Retailers' Occupation26Tax Act.27 2. Persons engaged in the business of distributing, 28 supplying, furnishing, or selling gas for use or 29 consumption within the corporate limits of a municipality 30 of 500,000 or fewer population, and not for resale, at a 31 rate not to exceed 5% of the gross receipts therefrom. 32 2a. Persons engaged in the business of 33 distributing, supplying, furnishing, or selling gas for 34 use or consumption within the corporate limits of a -94- LRB9202600SMdvam12 1 municipality of over 500,000 population, and not for 2 resale, at a rate not to exceed 8% of the gross receipts 3 therefrom. If imposed, this tax shall be paid in monthly 4 payments. 5 3. The privilege of using or consuming electricity 6 acquired in a purchase at retail and used or consumed 7 within the corporate limits of the municipality at rates 8 not to exceed the following maximum rates, calculated on 9 a monthly basis for each purchaser: 10 (i) For the first 2,000 kilowatt-hours used or 11 consumed in a month; 0.61 cents per kilowatt-hour; 12 (ii) For the next 48,000 kilowatt-hours used or 13 consumed in a month; 0.40 cents per kilowatt-hour; 14 (iii) For the next 50,000 kilowatt-hours used or 15 consumed in a month; 0.36 cents per kilowatt-hour; 16 (iv) For the next 400,000 kilowatt-hours used or 17 consumed in a month; 0.35 cents per kilowatt-hour; 18 (v) For the next 500,000 kilowatt-hours used or 19 consumed in a month; 0.34 cents per kilowatt-hour; 20 (vi) For the next 2,000,000 kilowatt-hours used or 21 consumed in a month; 0.32 cents per kilowatt-hour; 22 (vii) For the next 2,000,000 kilowatt-hours used or 23 consumed in a month; 0.315 cents per kilowatt-hour; 24 (viii) For the next 5,000,000 kilowatt-hours used 25 or consumed in a month; 0.31 cents per kilowatt-hour; 26 (ix) For the next 10,000,000 kilowatt-hours used or 27 consumed in a month; 0.305 cents per kilowatt-hour; and 28 (x) For all electricity used or consumed in excess 29 of 20,000,000 kilowatt-hours in a month, 0.30 cents per 30 kilowatt-hour. 31 If a municipality imposes a tax at rates lower than 32 either the maximum rates specified in this Section or the 33 alternative maximum rates promulgated by the Illinois 34 Commerce Commission, as provided below, the tax rates -95- LRB9202600SMdvam12 1 shall be imposed upon the kilowatt hour categories set 2 forth above with the same proportional relationship as 3 that which exists among such maximum rates. 4 Notwithstanding the foregoing, until December 31, 2008, 5 no municipality shall establish rates that are in excess 6 of rates reasonably calculated to produce revenues that 7 equal the maximum total revenues such municipality could 8 have received under the tax authorized by this 9 subparagraph in the last full calendar year prior to the 10 effective date of Section 65 of this amendatory Act of 11 1997; provided that this shall not be a limitation on the 12 amount of tax revenues actually collected by such 13 municipality. 14 Upon the request of the corporate authorities of a 15 municipality, the Illinois Commerce Commission shall, 16 within 90 days after receipt of such request, promulgate 17 alternative rates for each of these kilowatt-hour 18 categories that will reflect, as closely as reasonably 19 practical for that municipality, the distribution of the 20 tax among classes of purchasers as if the tax were based 21 on a uniform percentage of the purchase price of 22 electricity. A municipality that has adopted an 23 ordinance imposing a tax pursuant to subparagraph 3 as it 24 existed prior to the effective date of Section 65 of this 25 amendatory Act of 1997 may, rather than imposing the tax 26 permitted by this amendatory Act of 1997, continue to 27 impose the tax pursuant to that ordinance with respect to 28 gross receipts received from residential customers 29 through July 31, 1999, and with respect to gross receipts 30 from any non-residential customer until the first bill 31 issued to such customer for delivery services in 32 accordance with Section 16-104 of the Public Utilities 33 Act but in no case later than the last bill issued to 34 such customer before December 31, 2000. No ordinance -96- LRB9202600SMdvam12 1 imposing the tax permitted by this amendatory Act of 1997 2 shall be applicable to any non-residential customer until 3 the first bill issued to such customer for delivery 4 services in accordance with Section 16-104 of the Public 5 Utilities Act but in no case later than the last bill 6 issued to such non-residential customer before December 7 31, 2000. 8 4. Persons engaged in the business of distributing, 9 supplying, furnishing, or selling water for use or 10 consumption within the corporate limits of the 11 municipality, and not for resale, at a rate not to exceed 12 5% of the gross receipts therefrom. 13 None of the taxes authorized by this Section may be 14 imposed with respect to any transaction in interstate 15 commerce or otherwise to the extent to which the business or 16 privilege may not, under the constitution and statutes of the 17 United States, be made the subject of taxation by this State 18 or any political sub-division thereof; nor shall any persons 19 engaged in the business of distributing, supplying, 20 furnishing, selling or transmitting gas, water, or 21 electricity,or engaged in the business of transmitting22messages,or using or consuming electricity acquired in a 23 purchase at retail, be subject to taxation under the 24 provisions of this Section for those transactions that are or 25 may become subject to taxation under the provisions of the 26 "Municipal Retailers' Occupation Tax Act" authorized by 27 Section 8-11-1; nor shall any tax authorized by this Section 28 be imposed upon any person engaged in a business or on any 29 privilege unless the tax is imposed in like manner and at the 30 same rate upon all persons engaged in businesses of the same 31 class in the municipality, whether privately or municipally 32 owned or operated, or exercising the same privilege within 33 the municipality. 34 Any of the taxes enumerated in this Section may be in -97- LRB9202600SMdvam12 1 addition to the payment of money, or value of products or 2 services furnished to the municipality by the taxpayer as 3 compensation for the use of its streets, alleys, or other 4 public places, or installation and maintenance therein, 5 thereon or thereunder of poles, wires, pipes or other 6 equipment used in the operation of the taxpayer's business. 7 (a) If the corporate authorities of any home rule 8 municipality have adopted an ordinance that imposed a tax on 9 public utility customers, between July 1, 1971, and October 10 1, 1981, on the good faith belief that they were exercising 11 authority pursuant to Section 6 of Article VII of the 1970 12 Illinois Constitution, that action of the corporate 13 authorities shall be declared legal and valid, 14 notwithstanding a later decision of a judicial tribunal 15 declaring the ordinance invalid. No municipality shall be 16 required to rebate, refund, or issue credits for any taxes 17 described in this paragraph, and those taxes shall be deemed 18 to have been levied and collected in accordance with the 19 Constitution and laws of this State. 20 (b) In any case in which (i) prior to October 19, 1979, 21 the corporate authorities of any municipality have adopted an 22 ordinance imposing a tax authorized by this Section (or by 23 the predecessor provision of the "Revised Cities and Villages 24 Act") and have explicitly or in practice interpreted gross 25 receipts to include either charges added to customers' bills 26 pursuant to the provision of paragraph (a) of Section 36 of 27 the Public Utilities Act or charges added to customers' bills 28 by taxpayers who are not subject to rate regulation by the 29 Illinois Commerce Commission for the purpose of recovering 30 any of the tax liabilities or other amounts specified in such 31 paragraph (a) of Section 36 of that Act, and (ii) on or after 32 October 19, 1979, a judicial tribunal has construed gross 33 receipts to exclude all or part of those charges, then 34 neither those municipality nor any taxpayer who paid the tax -98- LRB9202600SMdvam12 1 shall be required to rebate, refund, or issue credits for any 2 tax imposed or charge collected from customers pursuant to 3 the municipality's interpretation prior to October 19, 1979. 4 This paragraph reflects a legislative finding that it would 5 be contrary to the public interest to require a municipality 6 or its taxpayers to refund taxes or charges attributable to 7 the municipality's more inclusive interpretation of gross 8 receipts prior to October 19, 1979, and is not intended to 9 prescribe or limit judicial construction of this Section. The 10 legislative finding set forth in this subsection does not 11 apply to taxes imposed after the effective date of this 12 amendatory Act of 1995. 13 (c) The tax authorized by subparagraph 3 shall be 14 collected from the purchaser by the person maintaining a 15 place of business in this State who delivers the electricity 16 to the purchaser. This tax shall constitute a debt of the 17 purchaser to the person who delivers the electricity to the 18 purchaser and if unpaid, is recoverable in the same manner as 19 the original charge for delivering the electricity. Any tax 20 required to be collected pursuant to an ordinance authorized 21 by subparagraph 3 and any such tax collected by a person 22 delivering electricity shall constitute a debt owed to the 23 municipality by such person delivering the electricity, 24 provided, that the person delivering electricity shall be 25 allowed credit for such tax related to deliveries of 26 electricity the charges for which are written off as 27 uncollectible, and provided further, that if such charges are 28 thereafter collected, the delivering supplier shall be 29 obligated to remit such tax. For purposes of this subsection 30 (c), any partial payment not specifically identified by the 31 purchaser shall be deemed to be for the delivery of 32 electricity. Persons delivering electricity shall collect the 33 tax from the purchaser by adding such tax to the gross charge 34 for delivering the electricity, in the manner prescribed by -99- LRB9202600SMdvam12 1 the municipality. Persons delivering electricity shall also 2 be authorized to add to such gross charge an amount equal to 3 3% of the tax to reimburse the person delivering electricity 4 for the expenses incurred in keeping records, billing 5 customers, preparing and filing returns, remitting the tax 6 and supplying data to the municipality upon request. If the 7 person delivering electricity fails to collect the tax from 8 the purchaser, then the purchaser shall be required to pay 9 the tax directly to the municipality in the manner prescribed 10 by the municipality. Persons delivering electricity who file 11 returns pursuant to this paragraph (c) shall, at the time of 12 filing such return, pay the municipality the amount of the 13 tax collected pursuant to subparagraph 3. 14 (d) For the purpose of the taxes enumerated in this 15 Section: 16 "Gross receipts" means the consideration received forthe17transmission of messages, the consideration received for18 distributing, supplying, furnishing or selling gas for use or 19 consumption and not for resale, and the consideration 20 received for distributing, supplying, furnishing or selling 21 water for use or consumption and not for resale, and for all 22 services rendered in connection therewith valued in money, 23 whether received in money or otherwise, including cash, 24 credit, services and property of every kind and material and 25 for all services rendered therewith, and shall be determined 26without any deduction on account of the cost of transmitting27such messages,without any deduction on account of the cost 28 of the service, product or commodity supplied, the cost of 29 materials used, labor or service cost, or any other expenses 30 whatsoever. "Gross receipts" shall not include that portion 31 of the consideration received for distributing, supplying, 32 furnishing, or selling gas or water to, or for the33transmission of messages for,business enterprises described 34 in paragraph (e) of this Section to the extent and during the -100- LRB9202600SMdvam12 1 period in which the exemption authorized by paragraph (e) is 2 in effect or for school districts or units of local 3 government described in paragraph (f) during the period in 4 which the exemption authorized in paragraph (f) is in effect. 5"Gross receipts" shall not include amounts paid by6telecommunications retailers under the Telecommunications7Municipal Infrastructure Maintenance Fee Act.8 For utility bills issued on or after May 1, 1996, but 9 before May 1, 1997, and for receipts from those utility 10 bills, "gross receipts" does not include one-third of (i) 11 amounts added to customers' bills under Section 9-222 of the 12 Public Utilities Act, or (ii) amounts added to customers' 13 bills by taxpayers who are not subject to rate regulation by 14 the Illinois Commerce Commission for the purpose of 15 recovering any of the tax liabilities described in Section 16 9-222 of the Public Utilities Act. For utility bills issued 17 on or after May 1, 1997, but before May 1, 1998, and for 18 receipts from those utility bills, "gross receipts" does not 19 include two-thirds of (i) amounts added to customers' bills 20 under Section 9-222 of the Public Utilities Act, or (ii) 21 amount added to customers' bills by taxpayers who are not 22 subject to rate regulation by the Illinois Commerce 23 Commission for the purpose of recovering any of the tax 24 liabilities described in Section 9-222 of the Public 25 Utilities Act. For utility bills issued on or after May 1, 26 1998, and for receipts from those utility bills, "gross 27 receipts" does not include (i) amounts added to customers' 28 bills under Section 9-222 of the Public Utilities Act, or 29 (ii) amounts added to customers' bills by taxpayers who are 30 not subject to rate regulation by the Illinois Commerce 31 Commission for the purpose of recovering any of the tax 32 liabilities described in Section 9-222 of the Public 33 Utilities Act. 34 For purposes of this Section "gross receipts" shall not -101- LRB9202600SMdvam12 1 include(i)amounts added to customers' bills under Section 2 9-221 of the Public Utilities Act, or (ii) charges added to3customers' bills to recover the surcharge imposed under the4Emergency Telephone System Act. This paragraph is not 5 intended to nor does it make any change in the meaning of 6 "gross receipts" for the purposes of this Section, but is 7 intended to remove possible ambiguities, thereby confirming 8 the existing meaning of "gross receipts" prior to the 9 effective date of this amendatory Act of 1995. 10The words "transmitting messages", in addition to the11usual and popular meaning of person to person communication,12shall include the furnishing, for a consideration, of13services or facilities (whether owned or leased), or both, to14persons in connection with the transmission of messages where15those persons do not, in turn, receive any consideration in16connection therewith, but shall not include such furnishing17of services or facilities to persons for the transmission of18messages to the extent that any such services or facilities19for the transmission of messages are furnished for a20consideration, by those persons to other persons, for the21transmission of messages.22 "Person" as used in this Section means any natural 23 individual, firm, trust, estate, partnership, association, 24 joint stock company, joint adventure, corporation, limited 25 liability company, municipal corporation, the State or any of 26 its political subdivisions, any State university created by 27 statute, or a receiver, trustee, guardian or other 28 representative appointed by order of any court. 29 "Person maintaining a place of business in this State" 30 shall mean any person having or maintaining within this 31 State, directly or by a subsidiary or other affiliate, an 32 office, generation facility, distribution facility, 33 transmission facility, sales office or other place of 34 business, or any employee, agent, or other representative -102- LRB9202600SMdvam12 1 operating within this State under the authority of the person 2 or its subsidiary or other affiliate, irrespective of whether 3 such place of business or agent or other representative is 4 located in this State permanently or temporarily, or whether 5 such person, subsidiary or other affiliate is licensed or 6 qualified to do business in this State. 7 "Public utility" shall have the meaning ascribed to it in 8 Section 3-105 of the Public Utilities Act and shall include 9telecommunications carriers as defined in Section 13-202 of10that Act andalternative retail electric suppliers as defined 11 in Section 16-102 of that Act. 12 "Purchase at retail" shall mean any acquisition of 13 electricity by a purchaser for purposes of use or 14 consumption, and not for resale, but shall not include the 15 use of electricity by a public utility directly in the 16 generation, production, transmission, delivery or sale of 17 electricity. 18 "Purchaser" shall mean any person who uses or consumes, 19 within the corporate limits of the municipality, electricity 20 acquired in a purchase at retail. 21In the case of persons engaged in the business of22transmitting messages through the use of mobile equipment,23such as cellular phones and paging systems, the gross24receipts from the business shall be deemed to originate25within the corporate limits of a municipality only if the26customer's place of primary use as defined in the Mobile27Telecommunications Sourcing Conformity Act is within those28corporate limits.29 (e) Any municipality that imposes taxes upon public 30 utilities or upon the privilege of using or consuming 31 electricity pursuant to this Section whose territory includes 32 any part of an enterprise zone or federally designated 33 Foreign Trade Zone or Sub-Zone may, by a majority vote of its 34 corporate authorities, exempt from those taxes for a period -103- LRB9202600SMdvam12 1 not exceeding 20 years any specified percentage of gross 2 receipts of public utilities received from, or electricity 3 used or consumed by, business enterprises that: 4 (1) either (i) make investments that cause the 5 creation of a minimum of 200 full-time equivalent jobs in 6 Illinois, (ii) make investments of at least $175,000,000 7 that cause the creation of a minimum of 150 full-time 8 equivalent jobs in Illinois, or (iii) make investments 9 that cause the retention of a minimum of 1,000 full-time 10 jobs in Illinois; and 11 (2) are either (i) located in an Enterprise Zone 12 established pursuant to the Illinois Enterprise Zone Act 13 or (ii) Department of Commerce and Community Affairs 14 designated High Impact Businesses located in a federally 15 designated Foreign Trade Zone or Sub-Zone; and 16 (3) are certified by the Department of Commerce and 17 Community Affairs as complying with the requirements 18 specified in clauses (1) and (2) of this paragraph (e). 19 Upon adoption of the ordinance authorizing the exemption, 20 the municipal clerk shall transmit a copy of that ordinance 21 to the Department of Commerce and Community Affairs. The 22 Department of Commerce and Community Affairs shall determine 23 whether the business enterprises located in the municipality 24 meet the criteria prescribed in this paragraph. If the 25 Department of Commerce and Community Affairs determines that 26 the business enterprises meet the criteria, it shall grant 27 certification. The Department of Commerce and Community 28 Affairs shall act upon certification requests within 30 days 29 after receipt of the ordinance. 30 Upon certification of the business enterprise by the 31 Department of Commerce and Community Affairs, the Department 32 of Commerce and Community Affairs shall notify the Department 33 of Revenue of the certification. The Department of Revenue 34 shall notify the public utilities of the exemption status of -104- LRB9202600SMdvam12 1 the gross receipts received from, and the electricity used or 2 consumed by, the certified business enterprises. Such 3 exemption status shall be effective within 3 months after 4 certification. 5 (f) A municipality that imposes taxes upon public 6 utilities or upon the privilege of using or consuming 7 electricity under this Section and whose territory includes 8 part of another unit of local government or a school district 9 may by ordinance exempt the other unit of local government or 10 school district from those taxes. 11 (g) The amendment of this Section by Public Act 84-127 12 shall take precedence over any other amendment of this 13 Section by any other amendatory Act passed by the 84th 14 General Assembly before the effective date of Public Act 15 84-127. 16 (h) In any case in which, before July 1, 1992, a person 17 engaged in the business of transmitting messages through the 18 use of mobile equipment, such as cellular phones and paging 19 systems, has determined the municipality within which the 20 gross receipts from the business originated by reference to 21 the location of its transmitting or switching equipment, then 22 (i) neither the municipality to which tax was paid on that 23 basis nor the taxpayer that paid tax on that basis shall be 24 required to rebate, refund, or issue credits for any such tax 25 or charge collected from customers to reimburse the taxpayer 26 for the tax and (ii) no municipality to which tax would have 27 been paid with respect to those gross receipts if the 28 provisions of this amendatory Act of 1991 had been in effect 29 before July 1, 1992, shall have any claim against the 30 taxpayer for any amount of the tax. 31 (Source: P.A. 91-870, eff. 6-22-00; 92-474, eff. 8-1-02.) 32 Section 90-30. The Illinois Municipal Code is amended by 33 changing Section 8-11-17 as follows: -105- LRB9202600SMdvam12 1 (65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17) 2 Sec. 8-11-17. Municipal telecommunications tax. 3 (a) Beginning on the effective date of this amendatory 4 Act of 1991, the corporate authorities of any municipality in 5 this State may tax any or all of the following acts or 6 privileges: 7 (1) The act or privilege of originating in such 8 municipality or receiving in such municipality intrastate 9 telecommunications by a person at a rate not to exceed 5% 10 of the gross charge for such telecommunications purchased 11 at retail from a retailer by such person. However, such 12 tax is not imposed on such act or privilege to the extent 13 such act or privilege may not, under the Constitution and 14 statutes of the United States, be made the subject of 15 taxation by municipalities in this State. 16 (2) The act or privilege of originating in such 17 municipality or receiving in such municipality interstate 18 telecommunications by a person at a rate not to exceed 5% 19 of the gross charge for such telecommunications purchased 20 at retail from a retailer by such person. To prevent 21 actual multi-state taxation of the act or privilege that 22 is subject to taxation under this paragraph, any 23 taxpayer, upon proof that the taxpayer has paid a tax in 24 another state on such event, shall be allowed a credit 25 against any tax enacted pursuant to an ordinance 26 authorized by this paragraph to the extent of the amount 27 of such tax properly due and paid in such other state 28 which was not previously allowed as a credit against any 29 other state or local tax in this State. However, such 30 tax is not imposed on the 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 33 taxation by municipalities in this State. 34 (3) The taxes authorized by paragraphs (1) and (2) -106- LRB9202600SMdvam12 1 of subsection (a) of this Section may only be levied if 2 such municipality does not then have in effect an 3 occupation tax imposed on persons engaged in the business 4 of transmitting messages by means of electricity as 5 authorized by Section 8-11-2 of the Illinois Municipal 6 Code. 7 (b) The tax authorized by this Section shall be 8 collected from the taxpayer by a retailer maintaining a place 9 of business in this State and making or effectuating the sale 10 at retail and shall be remitted by such retailer to the 11 municipality. Any tax required to be collected pursuant to 12 an ordinance authorized by this Section and any such tax 13 collected by such retailer shall constitute a debt owed by 14 the retailer to such municipality. Retailers shall collect 15 the tax from the taxpayer by adding the tax to the gross 16 charge for the act or privilege of originating or receiving 17 telecommunications when sold for use, in the manner 18 prescribed by the municipality. The tax authorized by this 19 Section shall constitute a debt of the purchaser to the 20 retailer who provides such taxable services until paid and, 21 if unpaid, is recoverable at law in the same manner as the 22 original charge for such taxable services. If the retailer 23 fails to collect the tax from the taxpayer, then the taxpayer 24 shall be required to pay the tax directly to the municipality 25 in the manner provided by the municipality. The municipality 26 imposing the tax shall provide for its administration and 27 enforcement. 28 Beginning January 1, 1994, retailers filing tax returns 29 pursuant to this Section shall, at the time of filing such 30 return, pay to the municipality the amount of the tax imposed 31 by this Section, less a commission of 1.75% which is allowed 32 to reimburse the retailer for the expenses incurred in 33 keeping records, billing the customer, preparing and filing 34 returns, remitting the tax and supplying data to the -107- LRB9202600SMdvam12 1 municipality upon request. No commission may be claimed by a 2 retailer for tax not timely remitted to the municipality. 3 Whenever possible, the tax authorized by this Section 4 shall, when collected, be stated as a distinct item separate 5 and apart from the gross charge for telecommunications. 6 (c) For the purpose of the taxes authorized by this 7 Section: 8 (1) "Amount paid" means the amount charged to the 9 taxpayer's service address in such municipality 10 regardless of where such amount is billed or paid. 11 (2) "Gross charge" means the amount paid for the 12 act or privilege of originating or receiving 13 telecommunications in such municipality and for all 14 services rendered in connection therewith, valued in 15 money whether paid in money or otherwise, including cash, 16 credits, services and property of every kind or nature, 17 and shall be determined without any deduction on account 18 of the cost of such telecommunications, the cost of the 19 materials used, labor or service costs or any other 20 expense whatsoever. In case credit is extended, the 21 amount thereof shall be included only as and when paid. 22 However, "gross charge" shall not include: 23 (A) any amounts added to a purchaser's bill 24 because of a charge made pursuant to: (i) the tax 25 imposed by this Section, (ii) additional charges 26 added to a purchaser's bill pursuant to Section 27 9-222 of the Public Utilities Act, (iii) the tax 28 imposed by the Telecommunications Excise Tax Act, or 29 (iv) the tax imposed by Section 4251 of the Internal 30 Revenue Code; 31 (B) charges for a sent collect 32 telecommunication received outside of such 33 municipality; 34 (C) charges for leased time on equipment or -108- LRB9202600SMdvam12 1 charges for the storage of data or information or 2 subsequent retrieval or the processing of data or 3 information intended to change its form or content. 4 Such equipment includes, but is not limited to, the 5 use of calculators, computers, data processing 6 equipment, tabulating equipment or accounting 7 equipment and also includes the usage of computers 8 under a time-sharing agreement; 9 (D) charges for customer equipment, including 10 such equipment that is leased or rented by the 11 customer from any source, wherein such charges are 12 disaggregated and separately identified from other 13 charges; 14 (E) charges to business enterprises certified 15 under Section 9-222.1 of the Public Utilities Act to 16 the extent of such exemption and during the period 17 of time specified by the Department of Commerce and 18 Community Affairs; 19 (F) charges for telecommunications and all 20 services and equipment provided in connection 21 therewith between a parent corporation and its 22 wholly owned subsidiaries or between wholly owned 23 subsidiaries when the tax imposed under this Section 24 has already been paid to a retailer and only to the 25 extent that the charges between the parent 26 corporation and wholly owned subsidiaries or between 27 wholly owned subsidiaries represent expense 28 allocation between the corporations and not the 29 generation of profit for the corporation rendering 30 such service; 31 (G) bad debts ("bad debt" means any portion of 32 a debt that is related to a sale at retail for which 33 gross charges are not otherwise deductible or 34 excludable that has become worthless or -109- LRB9202600SMdvam12 1 uncollectable, as determined under applicable 2 federal income tax standards; if the portion of the 3 debt deemed to be bad is subsequently paid, the 4 retailer shall report and pay the tax on that 5 portion during the reporting period in which the 6 payment is made); 7 (H) charges paid by inserting coins in 8 coin-operated telecommunication devices; or 9 (I) amounts paid by telecommunications 10 retailers under the Telecommunications Municipal 11 Infrastructure Maintenance Fee Act. 12 (3) "Interstate telecommunications" means all 13 telecommunications that either originate or terminate 14 outside this State. 15 (4) "Intrastate telecommunications" means all 16 telecommunications that originate and terminate within 17 this State. 18 (5) "Person" means any natural individual, firm, 19 trust, estate, partnership, association, joint stock 20 company, joint venture, corporation, limited liability 21 company, or a receiver, trustee, guardian or other 22 representative appointed by order of any court, the 23 Federal and State governments, including State 24 universities created by statute, or any city, town, 25 county, or other political subdivision of this State. 26 (6) "Purchase at retail" means the acquisition, 27 consumption or use of telecommunications through a sale 28 at retail. 29 (7) "Retailer" means and includes every person 30 engaged in the business of making sales at retail as 31 defined in this Section. A municipality may, in its 32 discretion, upon application, authorize the collection of 33 the tax hereby imposed by any retailer not maintaining a 34 place of business within this State, who to the -110- LRB9202600SMdvam12 1 satisfaction of the municipality, furnishes adequate 2 security to insure collection and payment of the tax. 3 Such retailer shall be issued, without charge, a permit 4 to collect such tax. When so authorized, it shall be the 5 duty of such retailer to collect the tax upon all of the 6 gross charges for telecommunications in such municipality 7 in the same manner and subject to the same requirements 8 as a retailer maintaining a place of business within such 9 municipality. 10 (8) "Retailer maintaining a place of business in 11 this State", or any like term, means and includes any 12 retailer having or maintaining within this State, 13 directly or by a subsidiary, an office, distribution 14 facilities, transmission facilities, sales office, 15 warehouse or other place of business, or any agent or 16 other representative operating within this State under 17 the authority of the retailer or its subsidiary, 18 irrespective of whether such place of business or agent 19 or other representative is located here permanently or 20 temporarily, or whether such retailer or subsidiary is 21 licensed to do business in this State. 22 (9) "Sale at retail" means the transmitting, 23 supplying or furnishing of telecommunications and all 24 services rendered in connection therewith for a 25 consideration, to persons other than the Federal and 26 State governments, and State universities created by 27 statute and other than between a parent corporation and 28 its wholly owned subsidiaries or between wholly owned 29 subsidiaries, when the tax has already been paid to a 30 retailer and the gross charge made by one such 31 corporation to another such corporation is not greater 32 than the gross charge paid to the retailer for their use 33 or consumption and not for resale. 34 (10) "Service address" means the location of -111- LRB9202600SMdvam12 1 telecommunications equipment from which 2 telecommunications services are originated or at which 3 telecommunications services are received by a taxpayer. 4 For periods prior to August 1, 2002, if this is not a 5 defined location, as in the case of mobile phones, paging 6 systems, maritime systems, air-to-ground systems and the 7 like, "service address" shall mean the location of a 8 taxpayer's primary use of the telecommunication equipment 9 as defined by telephone number, authorization code, or 10 location in Illinois where bills are sent. For periods on 11 and after August 1, 2002, if this is not a defined 12 location, as in the case of mobile phones, paging 13 systems, and maritime systems, service address means the 14 customer's place of primary use as defined in the Mobile 15 Telecommunications Sourcing Conformity Act, and for 16 air-to-ground systems and the like, "service address" 17 shall mean the location of a taxpayer's primary use of 18 the telecommunications equipment as defined by telephone 19 number, authorization code, or location in Illinois where 20 bills are sent. 21 (11) "Taxpayer" means a person who individually or 22 through his agents, employees, or permittees engages in 23 the act or privilege of originating in such municipality 24 or receiving in such municipality telecommunications and 25 who incurs a tax liability under any ordinance authorized 26 by this Section. 27 (12) "Telecommunications", in addition to the usual 28 and popular meaning, includes, but is not limited to, 29 messages or information transmitted through use of local, 30 toll and wide area telephone service, channel services, 31 telegraph services, teletypewriter service, computer 32 exchange services; cellular mobile telecommunications 33 service, specialized mobile radio services, paging 34 service, or any other form of mobile and portable one-way -112- LRB9202600SMdvam12 1 or two-way communications, or any other transmission of 2 messages or information by electronic or similar means, 3 between or among points by wire, cable, fiber optics, 4 laser, microwave, radio, satellite or similar facilities. 5 The definition of "telecommunications" shall not include 6 value added services in which computer processing 7 applications are used to act on the form, content, code 8 and protocol of the information for purposes other than 9 transmission. "Telecommunications" shall not include 10 purchase of telecommunications by a telecommunications 11 service provider for use as a component part of the 12 service provided by him to the ultimate retail consumer 13 who originates or terminates the taxable end-to-end 14 communications. Carrier access charges, right of access 15 charges, charges for use of inter-company facilities, and 16 all telecommunications resold in the subsequent provision 17 used as a component of, or integrated into, end-to-end 18 telecommunications service shall be non-taxable as sales 19 for resale. Beginning January 1, 2001, prepaid telephone 20 calling arrangements shall not be considered 21 "telecommunications" subject to the tax imposed under 22 this Act. For purposes of this Section, "prepaid 23 telephone calling arrangements" means that term as 24 defined in Section 2-27 of the Retailers' Occupation Tax 25 Act. 26 (d) If a person, who originates or receives 27 telecommunications in such municipality claims to be a 28 reseller of such telecommunications, such person shall apply 29 to the municipality for a resale number. Such applicant 30 shall state facts which will show the municipality why such 31 applicant is not liable for tax under any ordinance 32 authorized by this Section on any of such purchases and shall 33 furnish such additional information as the municipality may 34 reasonably require. -113- LRB9202600SMdvam12 1 Upon approval of the application, the municipality shall 2 assign a resale number to the applicant and shall certify 3 such number to the applicant. The municipality may cancel 4 any number which is obtained through misrepresentation, or 5 which is used to send or receive such telecommunication 6 tax-free when such actions in fact are not for resale, or 7 which no longer applies because of the person's having 8 discontinued the making of resales. 9 Except as provided hereinabove in this Section, the act 10 or privilege of sending or receiving telecommunications in 11 this State shall not be made tax-free on the ground of being 12 a sale for resale unless the person has an active resale 13 number from the municipality and furnishes that number to the 14 retailer in connection with certifying to the retailer that 15 any sale to such person is non-taxable because of being a 16 sale for resale. 17 (e) A municipality that imposes taxes upon 18 telecommunications under this Section and whose territory 19 includes part of another unit of local government or a school 20 district may, by ordinance, exempt the other unit of local 21 government or school district from those taxes. 22 (f) A municipality that imposes taxes upon 23 telecommunications under this Section may, by ordinance, (i) 24 reduce the rate of the tax for persons 65 years of age or 25 older or (ii) exempt persons 65 years of age or older from 26 those taxes. Taxes related to such rate reductions or 27 exemptions shall be rebated from the municipality directly to 28 persons qualified for the rate reduction or exemption as 29 determined by the municipality's ordinance. 30 (g) A municipality with a population of more than 31 500,000 that imposes a tax under this Section may, by 32 ordinance, exempt from the tax all charges for the inbound 33 toll-free telecommunications service commonly known as "800", 34 "877", or "888" or for a similar service. -114- LRB9202600SMdvam12 1 (h) This Section is repealed on January 1, 2003. 2 (Source: P.A. 90-357, eff. 1-1-98; 90-562, eff. 12-16-97; 3 91-870, eff. 6-22-00.) 4 Section 90-35. The Public Utilities Act is amended by 5 changing Sections 2-202 and 13-511 as follows: 6 (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202) 7 Sec. 2-202. Policy; Public Utility Fund; tax. 8 (a) It is declared to be the public policy of this State 9 that in order to maintain and foster the effective regulation 10 of public utilities under this Act in the interests of the 11 People of the State of Illinois and the public utilities as 12 well, the public utilities subject to regulation under this 13 Act and which enjoy the privilege of operating as public 14 utilities in this State, shall bear the expense of 15 administering this Act by means of a tax on such privilege 16 measured by the annual gross revenue of such public utilities 17 in the manner provided in this Section. For purposes of this 18 Section, "expense of administering this Act" includes any 19 costs incident to studies, whether made by the Commission or 20 under contract entered into by the Commission, concerning 21 environmental pollution problems caused or contributed to by 22 public utilities and the means for eliminating or abating 23 those problems. Such proceeds shall be deposited in the 24 Public Utility Fund in the State treasury. 25 (b) All of the ordinary and contingent expenses of the 26 Commission incident to the administration of this Act shall 27 be paid out of the Public Utility Fund except the 28 compensation of the members of the Commission which shall be 29 paid from the General Revenue Fund. Notwithstanding other 30 provisions of this Act to the contrary, the ordinary and 31 contingent expenses of the Commission incident to the 32 administration of the Illinois Commercial Transportation Law -115- LRB9202600SMdvam12 1 may be paid from appropriations from the Public Utility Fund 2 through the end of fiscal year 1986. 3 (c) A tax is imposed upon each public utility subject to 4 the provisions of this Act equal to .08% of its gross revenue 5 for each calendar year commencing with the calendar year 6 beginning January 1, 1982, except that the Commission may, by 7 rule, establish a different rate no greater than 0.1%. For 8 purposes of this Section, "gross revenue" shall not include 9 revenue from the production, transmission, distribution, 10 sale, delivery, or furnishing of electricity. "Gross revenue" 11 shall not include amounts paid by telecommunications 12 retailers under the TelecommunicationsMunicipal13 Infrastructure Maintenance Fee Act. 14 (d) Annual gross revenue returns shall be filed in 15 accordance with paragraph (1) or (2) of this subsection (d). 16 (1) Except as provided in paragraph (2) of this 17 subsection (d), on or before January 10 of each year each 18 public utility subject to the provisions of this Act 19 shall file with the Commission an estimated annual gross 20 revenue return containing an estimate of the amount of 21 its gross revenue for the calendar year commencing 22 January 1 of said year and a statement of the amount of 23 tax due for said calendar year on the basis of that 24 estimate. Public utilities may also file revised returns 25 containing updated estimates and updated amounts of tax 26 due during the calendar year. These revised returns, if 27 filed, shall form the basis for quarterly payments due 28 during the remainder of the calendar year. In addition, 29 on or before March 31 of each year, each public utility 30 shall file an amended return showing the actual amount of 31 gross revenues shown by the company's books and records 32 as of December 31 of the previous year. Forms and 33 instructions for such estimated, revised, and amended 34 returns shall be devised and supplied by the Commission. -116- LRB9202600SMdvam12 1 (2) Beginning with returns due after January 1, 2 2002, the requirements of paragraph (1) of this 3 subsection (d) shall not apply to any public utility in 4 any calendar year for which the total tax the public 5 utility owes under this Section is less than $10,000. 6 For such public utilities with respect to such years, the 7 public utility shall file with the Commission, on or 8 before March 31 of the following year, an annual gross 9 revenue return for the year and a statement of the amount 10 of tax due for that year on the basis of such a return. 11 Forms and instructions for such returns and corrected 12 returns shall be devised and supplied by the Commission. 13 (e) All returns submitted to the Commission by a public 14 utility as provided in this subsection (e) or subsection (d) 15 of this Section shall contain or be verified by a written 16 declaration by an appropriate officer of the public utility 17 that the return is made under the penalties of perjury. The 18 Commission may audit each such return submitted and may, 19 under the provisions of Section 5-101 of this Act, take such 20 measures as are necessary to ascertain the correctness of the 21 returns submitted. The Commission has the power to direct the 22 filing of a corrected return by any utility which has filed 23 an incorrect return and to direct the filing of a return by 24 any utility which has failed to submit a return. A 25 taxpayer's signing a fraudulent return under this Section is 26 perjury, as defined in Section 32-2 of the Criminal Code of 27 1961. 28 (f) (1) For all public utilities subject to paragraph 29 (1) of subsection (d), at least one quarter of the annual 30 amount of tax due under subsection (c) shall be paid to the 31 Commission on or before the tenth day of January, April, 32 July, and October of the calendar year subject to tax. In 33 the event that an adjustment in the amount of tax due should 34 be necessary as a result of the filing of an amended or -117- LRB9202600SMdvam12 1 corrected return under subsection (d) or subsection (e) of 2 this Section, the amount of any deficiency shall be paid by 3 the public utility together with the amended or corrected 4 return and the amount of any excess shall, after the filing 5 of a claim for credit by the public utility, be returned to 6 the public utility in the form of a credit memorandum in the 7 amount of such excess or be refunded to the public utility in 8 accordance with the provisions of subsection (k) of this 9 Section. However, if such deficiency or excess is less than 10 $1, then the public utility need not pay the deficiency and 11 may not claim a credit. 12 (2) Any public utility subject to paragraph (2) of 13 subsection (d) shall pay the amount of tax due under 14 subsection (c) on or before March 31 next following the end 15 of the calendar year subject to tax. In the event that an 16 adjustment in the amount of tax due should be necessary as a 17 result of the filing of a corrected return under subsection 18 (e), the amount of any deficiency shall be paid by the public 19 utility at the time the corrected return is filed. Any excess 20 tax payment by the public utility shall be returned to it 21 after the filing of a claim for credit, in the form of a 22 credit memorandum in the amount of the excess. However, if 23 such deficiency or excess is less than $1, the public utility 24 need not pay the deficiency and may not claim a credit. 25 (g) Each installment or required payment of the tax 26 imposed by subsection (c) becomes delinquent at midnight of 27 the date that it is due. Failure to make a payment as 28 required by this Section shall result in the imposition of a 29 late payment penalty, an underestimation penalty, or both, as 30 provided by this subsection. The late payment penalty shall 31 be the greater of: 32 (1) $25 for each month or portion of a month that 33 the installment or required payment is unpaid or 34 (2) an amount equal to the difference between what -118- LRB9202600SMdvam12 1 should have been paid on the due date, based upon the 2 most recently filed estimated, annual, or amended return, 3 and what was actually paid, times 1%, for each month or 4 portion of a month that the installment or required 5 payment goes unpaid. This penalty may be assessed as 6 soon as the installment or required payment becomes 7 delinquent. 8 The underestimation penalty shall apply to those public 9 utilities subject to paragraph (1) of subsection (d) and 10 shall be calculated after the filing of the amended return. 11 It shall be imposed if the amount actually paid on any of the 12 dates specified in subsection (f) is not equal to at least 13 one-fourth of the amount actually due for the year, and shall 14 equal the greater of: 15 (1) $25 for each month or portion of a month that 16 the amount due is unpaid or 17 (2) an amount equal to the difference between what 18 should have been paid, based on the amended return, and 19 what was actually paid as of the date specified in 20 subsection (f), times a percentage equal to 1/12 of the 21 sum of 10% and the percentage most recently established 22 by the Commission for interest to be paid on customer 23 deposits under 83 Ill. Adm. Code 280.70(e)(1), for each 24 month or portion of a month that the amount due goes 25 unpaid, except that no underestimation penalty shall be 26 assessed if the amount actually paid on or before each of 27 the dates specified in subsection (f) was based on an 28 estimate of gross revenues at least equal to the actual 29 gross revenues for the previous year. The Commission may 30 enforce the collection of any delinquent installment or 31 payment, or portion thereof by legal action or in any 32 other manner by which the collection of debts due the 33 State of Illinois may be enforced under the laws of this 34 State. The executive director or his designee may excuse -119- LRB9202600SMdvam12 1 the payment of an assessed penalty or a portion of an 2 assessed penalty if he determines that enforced 3 collection of the penalty as assessed would be unjust. 4 (h) All sums collected by the Commission under the 5 provisions of this Section shall be paid promptly after the 6 receipt of the same, accompanied by a detailed statement 7 thereof, into the Public Utility Fund in the State treasury. 8 (i) During the month of October of each odd-numbered 9 year the Commission shall: 10 (1) determine the amount of all moneys deposited in 11 the Public Utility Fund during the preceding fiscal 12 biennium plus the balance, if any, in that fund at the 13 beginning of that biennium; 14 (2) determine the sum total of the following items: 15 (A) all moneys expended or obligated against 16 appropriations made from the Public Utility Fund during 17 the preceding fiscal biennium, plus (B) the sum of the 18 credit memoranda then outstanding against the Public 19 Utility Fund, if any; and 20 (3) determine the amount, if any, by which the sum 21 determined as provided in item (1) exceeds the amount 22 determined as provided in item (2). 23 If the amount determined as provided in item (3) of this 24 subsection exceeds $5,000,000, the Commission shall then 25 compute the proportionate amount, if any, which (x) the tax 26 paid hereunder by each utility during the preceding biennium, 27 and (y) the amount paid into the Public Utility Fund during 28 the preceding biennium by the Department of Revenue pursuant 29 to Sections 2-9 and 2-11 of the Electricity Excise Tax Law, 30 bears to the difference between the amount determined as 31 provided in item (3) of this subsection (i) and $5,000,000. 32 The Commission shall cause the proportionate amount 33 determined with respect to payments made under the 34 Electricity Excise Tax Law to be transferred into the General -120- LRB9202600SMdvam12 1 Revenue Fund in the State Treasury, and notify each public 2 utility that it may file during the 3 month period after the 3 date of notification a claim for credit for the proportionate 4 amount determined with respect to payments made hereunder by 5 the public utility. If the proportionate amount is less than 6 $10, no notification will be sent by the Commission, and no 7 right to a claim exists as to that amount. Upon the filing of 8 a claim for credit within the period provided, the Commission 9 shall issue a credit memorandum in such amount to such public 10 utility. Any claim for credit filed after the period provided 11 for in this Section is void. 12 (j) Credit memoranda issued pursuant to subsection (f) 13 and credit memoranda issued after notification and filing 14 pursuant to subsection (i) may be applied for the 2 year 15 period from the date of issuance, against the payment of any 16 amount due during that period under the tax imposed by 17 subsection (c), or, subject to reasonable rule of the 18 Commission including requirement of notification, may be 19 assigned to any other public utility subject to regulation 20 under this Act. Any application of credit memoranda after the 21 period provided for in this Section is void. 22 (k) The chairman or executive director may make refund 23 of fees, taxes or other charges whenever he shall determine 24 that the person or public utility will not be liable for 25 payment of such fees, taxes or charges during the next 24 26 months and he determines that the issuance of a credit 27 memorandum would be unjust. 28 (Source: P.A. 92-11, eff. 6-11-01; 92-22, eff. 6-30-01.) 29 (220 ILCS 5/13-511) 30 (Section scheduled to be repealed on July 1, 2005) 31 Sec. 13-511. TelecommunicationsMunicipalInfrastructure 32 Maintenance Fee Act; rate adjustments. With respect to any 33 telecommunications retailer that is regulated by the Illinois -121- LRB9202600SMdvam12 1 Commerce Commission, the Commission shall order such rate 2 adjustments as shall be necessary to assure that the 3 implementation of the TelecommunicationsMunicipal4 Infrastructure Maintenance Fee Act,including the payment of5the State infrastructure maintenance fee, optional6infrastructure maintenance fee, and municipal infrastructure7maintenance fee, if any,net of (1) the termination of any 8 fee, license fee, rent, or lease payment subject to the 9 TelecommunicationsMunicipalInfrastructure Maintenance Fee 10 Act, and (2) the repeal of any invested capital tax subject 11 to the TelecommunicationsMunicipalInfrastructure 12 Maintenance Fee Act, shall have no significant impact on the 13 net income of each such telecommunications retailer. 14 Beginning with the effective date of the Telecommunications 15MunicipalInfrastructure Maintenance Fee Act, each such 16 telecommunications retailer shall maintain such records and 17 accounts as will enable the Commission to make such findings 18 and determinations as are necessary to such order. 19 (Source: P.A. 90-154, eff. 1-1-98.) 20 Section 90-40. The Telephone Company Act is amended by 21 changing Section 4 as follows: 22 (220 ILCS 65/4) (from Ch. 134, par. 20) 23 Sec. 4. Right of condemnation. Every telecommunications 24telecommunciationscarrier as defined in the 25 TelecommunicationsMunicipalInfrastructure Maintenance Fee 26 Act may, when it shall be necessary for the construction, 27 maintenance, alteration or extension of its 28 telecommunications system, or any part thereof, enter upon, 29 take or damage private property in the manner provided for 30 in, and the compensation therefor shall be ascertained and 31 made in conformity to the provisions of the Telegraph Act and 32 every telecommunications carrier is authorized to construct, -122- LRB9202600SMdvam12 1 maintain, alter and extend its poles, wires, and other 2 appliances as a proper use of highways, along, upon, under 3 and across any highway, street, alley, public right-of-way 4 dedicated or commonly used for utility purposes, or water in 5 this State, but so as not to incommode the public in the use 6 thereof: Provided, that nothing in this act shall interfere 7 with the control now vested in cities, incorporated towns and 8 villages in relation to the regulation of the poles, wires, 9 cables and other appliances, and provided, that before any 10 such lines shall be constructed along any such highway, 11 street, alley, public right-of-way dedicated or commonly used 12 for utility purposes, or water it shall be the duty of the 13 telecommunications carrier proposing to construct any such 14 line, to give (in the case of cities, villages, and 15 incorporated towns) to the corporate authorities of the 16 municipality or their designees (hereinafter, municipal 17 corporate authorities) or (in other cases) to the highway 18 commissioners having jurisdiction and control over the road 19 or part thereof along and over which such line is proposed to 20 be constructed, notice in writing in the form of plans, 21 specifications, and documentation of the purpose and 22 intention of the company to construct such line over and 23 along the highway, street, alley, public right-of-way 24 dedicated or commonly used for utility purposes, or water, 25 which notice shall be served at least 10 days before the line 26 shall be placed or constructed over and along the highway, 27 street, alley, public right-of-way dedicated or commonly used 28 for utility purposes, or water (30 days in the case of any 29 notice providing for excavation relating to new construction 30 in a public highway, street, alley, public right-of-way 31 dedicated or commonly used for utility purposes, or water); 32 and upon the giving of the notice it shall be the duty of the 33 municipal corporate authorities or the highway commissioners 34 to specify the portion of such highway, street, alley, public -123- LRB9202600SMdvam12 1 right-of-way dedicated or commonly used for utility purposes, 2 or water upon which the line may be placed, used, and 3 constructed, and it shall thereupon be the duty of the 4 telecommunications retailer to provide the municipal 5 authorities or highway commissioners with any and all plans, 6 specifications, and documentation available and to construct 7 its line in accordance with such specifications; but in the 8 event that the municipal corporate authorities or the highway 9 commissioners fail to provide such specification within 10 10 days after the service of such notice, (25 days in the case 11 of excavation relating to new construction) then the 12 telecommunications retailer, without such specification 13 having been made, may proceed to place and erect its line 14 along the highway, street, alley, public right-of-way 15 dedicated or commonly used for utility purposes, or water by 16 placing its posts, poles and abutments so as not to interfere 17 with other proper uses of the highway, street, alley, public 18 right-of-way dedicated or commonly used for utility purposes, 19 or water. The telecommunications carrier proposing to 20 construct any such line shall comply with the provisions of 21 Section 9-113 of the Illinois Highway Code. Provided, that 22 the telecommunications carrier shall not have the right to 23 condemn any portion of the right-of-way of any railroad 24 company except as much thereof as is necessary to cross the 25 same. 26 The Illinois Commerce Commission may adopt reasonable 27 rules governing the negotiation procedures that are used by a 28 telecommunications carrier during precondemnation 29 negotiations for the purchase of land rights-of-way and 30 easements, including procedures for providing information to 31 the public and affected landowners concerning the project and 32 the right-of-way easements sought in connection therewith. 33 Such rules may be made applicable to interstate, 34 competitive intrastate and noncompetitive intrastate -124- LRB9202600SMdvam12 1 facilities, without regard to whether such facilities or the 2 telecommunications carrier proposing to construct and operate 3 them would otherwise be subject to the Illinois Commerce 4 Commission's jurisdiction under The Public Utilities Act, as 5 now or hereafter amended. However, as to facilities used to 6 provide exclusively interstate services or competitive 7 intrastate services or both, nothing in this Section confers 8 any power upon the Commission (i) to require the disclosure 9 of proprietary, competitively sensitive, or cost information 10 or information not known to the telecommunications carrier, 11 (ii) to determine whether, or conduct hearings regarding 12 whether, any proposed fiber optic or other facilities should 13 or should not be constructed and operated, or (iii) to 14 determine or specify, or conduct hearings concerning, the 15 price or other terms or conditions of the purchase of the 16 right-of-way easements sought. With respect to facilities 17 used to provide any intrastate services classified in the 18 condemnor's tariff as noncompetitive under Section 13-502 of 19 The Public Utilities Act, the rulemaking powers conferred 20 upon the Commission under this Section are in addition to any 21 rulemaking powers arising under The Public Utilities Act. 22 No telecommunications carrier shall exercise the power to 23 condemn private property until it has first substantially 24 complied with such rules with respect to the property sought 25 to be condemned. If such rules call for providing notice or 26 information before or during negotiations, a failure to 27 provide such notice or information shall not constitute a 28 waiver of the rights granted in this Section, but the 29 telecommunications carrier shall be liable for all reasonable 30 attorney's fees of that landowner resulting from such 31 failure. 32 (Source: P.A. 90-154, eff. 1-1-98.) 33 ARTICLE 95 -125- LRB9202600SMdvam12 1 Section 95-95. No acceleration or delay. Where this Act 2 makes changes in a statute that is represented in this Act by 3 text that is not yet or no longer in effect (for example, a 4 Section represented by multiple versions), the use of that 5 text does not accelerate or delay the taking effect of (i) 6 the changes made by this Act or (ii) provisions derived from 7 any other Public Act. 8 ARTICLE 99 9 Section 99-99. Effective date. Article 99 of this Act, 10 Article 95 of this Act, and the changes made in this Act to 11 Sections 5 and 20 of the Telecommunications Municipal 12 Infrastructure Maintenance Fee Act take effect upon becoming 13 law. Article 5 and Sections 90-22 and 90-30 of this Act take 14 effect on July 1, 2002. Sections 90-5, 90-10, 90-20, 90-25, 15 90-35, and 90-40 of this Act and the changes made in this Act 16 to Sections 1, 10, 15, 25, 27, 27.35, 30 and 35 of the 17 Telecommunications Municipal Infrastructure Maintenance Fee 18 Act take effect on January 1, 2003.".