State of Illinois
92nd General Assembly
Legislation

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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 Telecommunications Municipal Infrastructure
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    Telecommunications  Municipal  Infrastructure 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  Telecommunications  Municipal  Infrastructure
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 last 15th day 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        or and the 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 30 15 of such year; with
19    the return for April, May and June of a given year being  due
20    by  July  31st  15  of  such  year; with the return for July,
21    August and September of a given year  being  due  by  October
22    31st  15  of  such  year;  and  with  the  return of October,
23    November and December of a given year being  due  by  January
24    31st 15 of 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 31st 15th of 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 $10,000 or 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.
 4        If  the  Director finds that the information required for
 5    the  making  of  an  accurate  return  cannot  reasonably  be
 6    compiled by a retailer within 15 days after the close of  the
 7    calendar month for which a return is to be made, he may grant
 8    an  extension  of  time  for  the filing of such return for a
 9    period of not to exceed 31 calendar days.   The  granting  of
10    such  an extension may be conditioned upon the deposit by the
11    retailer with the  Department  of  an  amount  of  money  not
12    exceeding the amount estimated by the Director to be due with
13    the  return  so  extended.   All such deposits, including any
14    heretofore  made  with  the  Department,  shall  be  credited
15    against the retailer's liabilities under  this  Article.   If
16    any  such deposit exceeds the retailer's present and probable
17    future liabilities under this Article, the  Department  shall
18    issue  to  the  retailer  a  credit  memorandum, which may be
19    assigned by the retailer to a  similar  retailer  under  this
20    Article,  in accordance with reasonable rules and regulations
21    to 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    Telecommunications Municipal Infrastructure  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 State  or
18    the  municipality  imposing  the  fee  under this Act, as the
19    context 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  State  or
29    the municipality imposing the fee under this Act, charges for
30    the  channel  mileage  between each channel point within this
31    State or the municipality imposing the fee  under  this  Act,
32    and  charges  for that portion of the interstate inter-office
33    channel provided within Illinois or the municipality imposing
 
                            -50-           LRB9202600SMdvam12
 1    the 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 the
 8        Illinois  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  State  or  the  municipality
15        imposing 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 Affairs or by
32        the municipality imposing the fee under the Act,  as  the
33        context 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.; or
21             (9)  charges for telecommunications and all services
22        and  equipment  provided  to  a municipality imposing the
23        infrastructure 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.  The Illinois Department of  Revenue
 4    or  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 Department or 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 this the State or 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 State or
17    the municipality imposing the fee  under  this  Act,  as  the
18    context 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 State or
28    the municipality imposing the fee under this Act, charges for
29    the channel mileage between each channel  point  within  this
30    State  or  the  municipality imposing the fee under this Act,
31    and charges for that portion of the  interstate  inter-office
32    channel provided within Illinois or the municipality imposing
33    the  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 the
 6        Illinois 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  State  or  the  municipality
13        imposing 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 Affairs or by
30        the  municipality  imposing the fee under the Act, as the
31        context 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.; or
19             (9)  charges for telecommunications and all services
20        and equipment provided to  a  municipality  imposing  the
21        infrastructure 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.  The Illinois Department of Revenue
 2    or 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 Department or 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 this the State or 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 fee
28    is hereby created.  A telecommunications retailer  may  elect
29    to  pay  the  optional  infrastructure  maintenance  fee with
30    respect   to   the   gross    charges    charged    by    the
31    telecommunications   retailer   to  service  addresses  in  a
32    particular municipality for  telecommunications,  other  than
33    wireless  telecommunications,  originating or received in the
 
                            -60-           LRB9202600SMdvam12
 1    municipality if (1) the telecommunications  retailer  is  not
 2    required to pay any compensation to the municipality under an
 3    existing franchise agreement and (2) the municipality has not
 4    imposed   a   municipal  infrastructure  maintenance  fee  as
 5    authorized in Section 20 of this  Act.  A  telecommunications
 6    retailer   electing   to   pay  the  optional  infrastructure
 7    maintenance fee shall notify the Department of such  election
 8    on  the  application  for  certificate  of registration. If a
 9    telecommunications retailer  elects  to  pay  this  fee  with
10    respect    to    the    gross    charges   charged   by   the
11    telecommunications  retailer  to  service  addresses   in   a
12    particular  municipality,  such election shall remain in full
13    force and effect until such time as the municipality  imposes
14    a municipal infrastructure maintenance fee.
15        (d)  (Blank).  The  amount of the optional infrastructure
16    maintenance fee which a telecommunications retailer may elect
17    to pay with respect to a  particular  municipality  shall  be
18    equal   to  25%  of  the  maximum  amount  of  the  municipal
19    infrastructure maintenance fee which the  municipality  could
20    impose under Section 20 of this Act.
21        (e)  The  State  infrastructure  maintenance  fee and the
22    optional infrastructure maintenance fee  authorized  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 to  the  sum  of  (1)  an
23    amount  equal  to  the  State  infrastructure maintenance fee
24    attributable to that customer's service address  and  (2)  an
25    amount  equal to the optional infrastructure maintenance fee,
26    if any, attributable to that customer's service  address  and
27    (3)   an   amount   equal  to  the  municipal  infrastructure
28    maintenance fee, if  any,  attributable  to  that  customer's
29    service  address.   Such  additional  charge  shall  be shown
30    separately on the bill to each customer.
31        (b)  The State infrastructure  maintenance  fee  and  the
32    optional  infrastructure  maintenance fee shall be designated
33    as a replacement for the personal property tax and  shall  be
 
                            -63-           LRB9202600SMdvam12
 1    remitted  by  the telecommunications retailer to the Illinois
 2    Department  of   Revenue;   provided,   however,   that   the
 3    telecommunications  retailer  may  retain  an  amount  not to
 4    exceed 2% of the State infrastructure maintenance fee and the
 5    optional 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 shall
12    be  remitted  by  the  telecommunications  retailer  to   the
13    municipality    imposing    the    municipal   infrastructure
14    maintenance    fee;    provided,    however,     that     the
15    telecommunications  retailer  may  retain  an  amount  not to
16    exceed 2% of the  municipal  infrastructure  maintenance  fee
17    collected  by it to reimburse itself for expenses incurred in
18    accounting for  and  remitting  the  fee.   The  municipality
19    imposing  the  municipal infrastructure maintenance fee shall
20    collect, enforce, and administer the fee.
21        (d)  Except as provided in  subsection  (e),  During  any
22    period  of time when a municipality receives any compensation
23    other than the municipal infrastructure maintenance  fee  set
24    forth  in Section 20, for a telecommunications retailer's use
25    of  the  public  right-of-way,  no  municipal  infrastructure
26    maintenance fee may be imposed by such municipality  pursuant
27    to this Act.
28        (e)  A   municipality   that,  pursuant  to  a  franchise
29    agreement in existence on the effective  date  of  this  Act,
30    receives  compensation from a telecommunications retailer for
31    the use of the public right of way, may  impose  a  municipal
32    infrastructure  maintenance  fee pursuant to this Act only on
33    the condition that such municipality (1) waives its right  to
34    receive  all  fees,  charges and other compensation under all
 
                            -64-           LRB9202600SMdvam12
 1    existing   franchise   agreements   or    the    like    with
 2    telecommunications   retailers   during  the  time  that  the
 3    municipality imposes a municipal  infrastructure  maintenance
 4    fee  and  (2)  imposes by ordinance (or other proper means) a
 5    municipal  infrastructure  maintenance  fee   which   becomes
 6    effective  no sooner than 90 days after such municipality has
 7    provided  written  notice   by   certified   mail   to   each
 8    telecommunications retailer with whom the municipality has an
 9    existing  franchise  agreement,  that the municipality waives
10    all 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,  or  and  the 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  him
 7        or  her  during the preceding calendar month and upon the
 8        basis of which the  optional  infrastructure  maintenance
 9        fee, 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.
18        If the Director finds that the information  required  for
19    the  making  of  an  accurate  return  cannot  reasonably  be
20    compiled  by  a  telecommunications  retailer  within 15 days
21    after the close of the calendar month for which a  return  is
22    to  be made, he or she may grant an extension of time for the
23    filing of such return for  a  period  of  not  to  exceed  31
24    calendar  days.  The  granting  of  such  an extension may be
25    conditioned  upon  the  deposit  by  the   telecommunications
26    retailer  with  the  Department  of  an  amount  of money not
27    exceeding the amount estimated by the Director to be due with
28    the return so extended.  All  such  deposits,  including  any
29    heretofore  made  with  the  Department,  shall  be  credited
30    against  the  telecommunications retailer's liabilities under
31    this Act. If any such deposit exceeds the  telecommunications
32    retailer's present and probable future liabilities under this
33    Act,  the  Department  shall  issue to the telecommunications
34    retailer a credit memorandum, which may be  assigned  by  the
 
                            -67-           LRB9202600SMdvam12
 1    telecommunications  retailer  to a similar telecommunications
 2    retailer under this Act, in accordance with reasonable  rules
 3    and 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  fee  and   the
15    optional  infrastructure  maintenance  fee authorized by this
16    Act.  Such rules and  regulations  shall  not  apply  to  the
17    administration    and    enforcement    of    the   municipal
18    infrastructure 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 municipal
23    infrastructure maintenance fee authorized by this  Act  shall
24    be the only fee or compensation for recovering the reasonable
25    costs  of  regulating the use of the public rights-of-way and
26    for the use of public rights-of-way that may be levied by  or
27    otherwise  required  by ordinance, resolution, or contract to
28    be paid to a municipality for the use of its  public  way  by
29    telecommunications 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    any or other new charges be required from  telecommunications
 3    retailers by municipalities from and after the effective date
 4    of  this  Act.   No telecommunications retailer paying either
 5    the applicable municipal infrastructure  maintenance  fee  or
 6    the  optional  infrastructure  maintenance  fee authorized by
 7    this Act may be denied the use, directly  or  indirectly,  of
 8    the  public  way  of  the  municipality  either  imposing the
 9    municipal infrastructure maintenance  fee  or  to  which  the
10    optional  infrastructure maintenance fee relates, as the case
11    may 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  date
29    of this Act, such an agreement is renewed automatically or by
30    agreement  of  the parties, the compensation or fee under the
31    agreement shall  be  equal  to  the  maximum  amount  of  the
32    municipal    infrastructure   maintenance   fee   which   the
33    municipality 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  fees  and  other fees relating to the use of the
17    public right-of-way for telecommunications  activity  imposed
18    upon  telecommunications  retailers is 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   infrastructure
23    maintenance 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  Act  Section  8-11-2 of the Illinois
 6    Municipal  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 Act Section  8-11-2  of  the  Illinois
 8    Municipal   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  of
18        transmitting  messages  by  means of electricity or radio
19        magnetic waves, or fiber optics, at a rate not to  exceed
20        5%  of  the gross receipts from that business originating
21        within  the  corporate  limits   of   the   municipality.
22        Beginning  January  1,  2001,  prepaid  telephone calling
23        arrangements shall not be  subject  to  the  tax  imposed
24        under  this  Section.   For  purposes  of  this  Section,
25        "prepaid  telephone calling arrangements" means that term
26        as defined in Section 2-27 of the  Retailers'  Occupation
27        Tax 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  transmitting
25    messages,  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 for the
20    transmission  of  messages,  the  consideration  received for
21    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
29    without  any deduction on account of the cost of transmitting
30    such 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  the
 2    transmission 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   by
 9    telecommunications  retailers  under  the  Telecommunications
10    Municipal 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  to
 6    customers'  bills  to recover the surcharge imposed under the
 7    Emergency  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.
13        The words "transmitting messages",  in  addition  to  the
14    usual  and popular meaning of person to person communication,
15    shall  include  the  furnishing,  for  a  consideration,   of
16    services or facilities (whether owned or leased), or both, to
17    persons in connection with the transmission of messages where
18    those  persons  do not, in turn, receive any consideration in
19    connection therewith, but shall not include  such  furnishing
20    of  services or facilities to persons for the transmission of
21    messages to the extent that any such services  or  facilities
22    for   the  transmission  of  messages  are  furnished  for  a
23    consideration, by those persons to  other  persons,  for  the
24    transmission 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
12    telecommunications carriers as defined in Section  13-202  of
13    that Act and alternative 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.
24        In  the  case  of  persons  engaged  in  the  business of
25    transmitting messages through the use  of  mobile  equipment,
26    such   as  cellular  phones  and  paging  systems,  the gross
27    receipts from the  business  shall  be  deemed  to  originate
28    within  the  corporate  limits  of a municipality only if the
29    address to which the bills for the service are sent is within
30    those corporate limits. If,  however,  that  address  is  not
31    located  within  a municipality that imposes a tax under this
32    Section, then (i) if the party responsible for  the  bill  is
33    not an individual, the gross receipts from the business shall
34    be  deemed  to  originate  within the corporate limits of the
 
                            -91-           LRB9202600SMdvam12
 1    municipality where that party's principal place  of  business
 2    in Illinois is located, and (ii) if the party responsible for
 3    the  bill  is  an  individual,  the  gross  receipts from the
 4    business shall be deemed to originate  within  the  corporate
 5    limits  of  the  municipality  where  that  party's principal
 6    residence 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 of
17        transmitting messages by means of  electricity  or  radio
18        magnetic  waves, or fiber optics, at a rate not to exceed
19        5% of the gross receipts from that  business  originating
20        within   the   corporate   limits  of  the  municipality.
21        Beginning January  1,  2001,  prepaid  telephone  calling
22        arrangements  shall  not  be  subject  to the tax imposed
23        under  this  Section.   For  purposes  of  this  Section,
24        "prepaid telephone calling arrangements" means that  term
25        as  defined  in Section 2-27 of the Retailers' Occupation
26        Tax 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 transmitting
22    messages, 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 for the
17    transmission of  messages,  the  consideration  received  for
18    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
26    without any deduction on account of the cost of  transmitting
27    such  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   the
33    transmission  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  by
 6    telecommunications  retailers  under  the  Telecommunications
 7    Municipal 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 to
 3    customers' bills to recover the surcharge imposed  under  the
 4    Emergency   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.
10        The  words  "transmitting  messages",  in addition to the
11    usual and popular meaning of person to person  communication,
12    shall   include  the  furnishing,  for  a  consideration,  of
13    services or facilities (whether owned or leased), or both, to
14    persons in connection with the transmission of messages where
15    those persons do not, in turn, receive any  consideration  in
16    connection  therewith,  but shall not include such furnishing
17    of services or facilities to persons for the transmission  of
18    messages  to  the extent that any such services or facilities
19    for  the  transmission  of  messages  are  furnished  for   a
20    consideration,  by  those  persons  to other persons, for the
21    transmission 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
 9    telecommunications  carriers  as defined in Section 13-202 of
10    that Act and alternative 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.
21        In the  case  of  persons  engaged  in  the  business  of
22    transmitting  messages  through  the use of mobile equipment,
23    such  as  cellular  phones  and  paging  systems,  the  gross
24    receipts  from  the  business  shall  be  deemed to originate
25    within the corporate limits of a  municipality  only  if  the
26    customer's  place  of  primary  use  as defined in the Mobile
27    Telecommunications Sourcing Conformity Act  is  within  those
28    corporate 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    Telecommunications     Municipal
13    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.  Telecommunications Municipal Infrastructure
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    Telecommunications   Municipal
 4    Infrastructure Maintenance Fee Act, including the payment  of
 5    the    State   infrastructure   maintenance   fee,   optional
 6    infrastructure maintenance fee, and municipal  infrastructure
 7    maintenance  fee,  if  any, net of (1) the termination of any
 8    fee, license fee, rent,  or  lease  payment  subject  to  the
 9    Telecommunications  Municipal  Infrastructure Maintenance Fee
10    Act, and (2) the repeal of any invested capital  tax  subject
11    to    the    Telecommunications    Municipal   Infrastructure
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
15    Municipal  Infrastructure  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
24    telecommunciations     carrier     as    defined    in    the
25    Telecommunications Municipal Infrastructure  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.".

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