92nd General Assembly
Summary of HB6012
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House Sponsors:
CURRY,JULIE-JOHNSON-MITCHELL,BILL.

Senate Sponsors:
DONAHUE-NOLAND-BRADY,B

Short description: 
MUNICIPAL TELECOM TAX-SITUS                                                

Synopsis of Bill as introduced:
        Amends  Senate  Bill  88  of  the  92nd  General  Assembly   (the      
   Simplified  Municipal  Telecommunications  Tax Act)  if and only if it      
   becomes law. Provides that a retailer of  telecommunications  services      
   who  is  obligated  to collect and remit the tax imposed under the Act      
   shall be held harmless from any liability as a result of an assignment      
   of a service address to an incorrect local taxing jurisdiction  if the      
   retailer exercises due diligence  in  applying  one  or  more  of  the      
   methods  authorized  in  these  provisions  for  determining the local      
   taxing jurisdiction in which a service address  is  located.  Provides      
   that  a municipality has the authority to impose the tax authorized by      
   the Act only if the telecommunications customer is located  inside the      
   corporate boundaries of the municipality, regardless of the customer's      
   service  address.  Requires  the  Department of Revenue to establish a      
   binding arbitration mechanism for customers who  claim  they  are  not      
   subject  to  the  tax  with provision for refunds to those erroneously      
   taxed and for appeal  of  adverse  decisions  to  the  circuit  court.      
   Effective July 1, 2002.                                                     
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          S.B. 88, 92nd G.A., Sec. 5-5                                         
          S.B. 88, 92nd G.A., Sec. 5-7                                         
          S.B. 88, 92nd G.A., Sec. 5-10                                        
          S.B. 88, 92nd G.A., Sec. 5-42 new                                    
          S.B. 88, 92nd G.A., Sec. 5-52 new                                    
          Adds reference to:                                                   
          35 ILCS 636/5-5                                                      
        Deletes  everything  after  the  enacting  clause.   Amends   the      
   Simplified  Municipal  Telecommunications  Tax  Act. Makes a technical      
   change in a Section concerning legislative intent.                          
          FISCAL NOTE, H-AM 1 (Department of Revenue)                          
          HB 6012, as amended by H-am 1, does not create a fiscal              
          impact on the Department of Revenue or the State.                    
        HOUSE AMENDMENT NO. 2.                                                 
          Deletes reference to:                                                
          35 ILCS 636/5-5                                                      
          Adds reference to:                                                   
          35 ILCS 636/5-42 new                                                 
        Deletes  everything  after  the  enacting  clause.   Amends   the      
   Simplified  Municipal  Telecommunications  Tax  Act.  Provides  that a      
   person who believes that he or she is improperly being charged  a  tax      
   imposed  under the Act may make a written request to the Department of      
   Revenue for a determination of whether the person's place  of  primary      
   use  for  mobile telecommunications service or the service address for      
   non-mobile telecommunications is  located  within  the  jurisdictional      
   boundaries  of  the  municipality for which he or she is being charged      
   tax under the Act. Within 90 days  after  receipt  of  a  request  for      
   determination, the Department shall issue a letter of determination to      
   the  person  stating  whether  that  person's place of primary use for      
   mobile  telecommunications  service  or  the   service   address   for      
   non-mobile  telecommunications  is  located  within the jurisdictional      
   boundaries of the municipality for which the person is  being  charged      
   tax under this Act. If the Department determines that the person lives      
   outside  of  the  taxing jurisdiction, the telecommunications retailer      
   shall correct the error and refund or credit the appropriate amount of      
   tax paid in error by the person in any period still available for  the      
   filing  of  a  claim  for  credit  or refund by the telecommunications      
   retailer under the Act. Effective July 1, 2002.                             
          FISCAL NOTE, H-AM 2 (Department of Revenue)                          
          HB 6012, as amended by H-am 2, would create minimal additional       
          administrative responsibilities for the Department. However,         
          the Department's FY 2003 budget request includes additional          
          resources for the implementation and administration of the           
          Simplified Municipal Telecommunications Tax Act. The Department      
          will be able to satisfy the mandates of this legislation with        
          the additional resources requested.                                  
        SENATE AMENDMENT NO. 1. (Senate recedes June 1, 2002)                  
          Adds reference to:                                                   
          35 ILCS 638/80                                                       
        Deletes  everything  after  the  enacting  clause.   Amends   the      
   Simplified   Municipal   Telecommunications   Tax   Act.   Establishes      
   provisions  for  determining  the  proper tax jurisdiction (instead of      
   procedures for correcting tax jurisdiction errors). Delineates the tax      
   jurisdiction information to  be  provided  by  municipalities  or  the      
   Illinois  Department of Revenue. Provides for the charging of taxes to      
   a service  address.  Provides  that  the  safe  harbor  provisions  of      
   Sections   40   and  45  of  the  Mobile  Telecommunications  Sourcing      
   Conformity  Act  shall  apply  to  any  telecommunications   retailers      
   employing  enhanced  zip  codes to assign each street address, address      
   range, post office box, or post office box range in their service area      
   to a specific municipal tax jurisdiction. Provides that a  person  who      
   believes  that  he  or  she  is improperly being charged a tax imposed      
   under the Act may make a written  request  to  the  telecommunications      
   retailer (instead of the Department of Revenue) for a determination of      
   whether    the    person's   place   of   primary   use   for   mobile      
   telecommunications service  or  the  service  address  for  non-mobile      
   telecommunications  is located within the jurisdictional boundaries of      
   the municipality for which he or she is being charged  tax  under  the      
   Act.  Within  60 days after receiving a notice, the telecommunications      
   retailer shall review its records  and    determine  the  customer's        
   taxing  jurisdiction.  Provides that all errors shall be corrected and      
   that the amount of tax erroneously collected from the customer  for  a      
   period  of  up  to 3 years shall be refunded. Provides that a customer      
   may appeal the retailer's  decision  to  the  Illinois  Department  of      
   Revenue.  The Department has 90 days to make its determination. Amends      
   the Mobile Telecommunications Sourcing  Conformity  Act.  Changes  the      
   term   "home   service  provider"  to  "telecommunications  retailer".      
   Provides that the telecommunications retailer shall correct errors and      
   refund or credit the amount of tax erroneously collected for a  period      
   of up to 3 years (instead of 2 years). Effective July 1, 2002.              
        CONFERENCE COMMITTEE REPORT NO. 1.                                     
        Recommends that the Senate recede from Senate Amendment No. 1          
        Recommends that the bill be amended as follows:                        
          Adds reference to:                                                   
          35 ILCS 638/80                                                       
          35 ILCS 805/8.26 new                                                 
        Deletes everything  after  the  enacting  clause.  Reinserts  the      
   provisions  of Senate Amendment No. 1 with changes as follows. Exempts      
   Commercial Mobile Radio Service from coverage by the  new  provisions.      
   Provides   that  a  municipality  may  (now,  shall)  provide  certain      
   information within 30 days following receipt of a written request from      
   a  telecommunications  retailer.  Provides  that   the   safe   harbor      
   provisions of the Mobile Telecommunications Sourcing Conformity Act do      
   not  apply  if  the  telecommunications  retailer receives a copy of a      
   letter of determination from the Department of Revenue stating that  a      
   person's place of primary use or service address is not located in the      
   municipality  for  which  that  person  is  being  charged  tax by the      
   retailer and the retailer fails to correct the  error  and  refund  or      
   credit  the  tax within certain time periods. Requires the filing of a      
   written complaint (now, notification in writing) by those who  believe      
   they  are  not  in  the  taxing  jurisdiction for which they are being      
   taxed. Provides that any refund required to be paid  shall  cover  the      
   period  still  available  for  the  filing of a claim or refund by the      
   telecommunications retailer (now, a period of up to 3 years). Provides      
   that if a municipality fails to respond to  a  Department  of  Revenue      
   request  for  information concerning a request for determination filed      
   with the Department, the complaining person will no longer be  subject      
   to  the  tax  imposed under the Act. Excludes the City of Chicago from      
   coverage by the provisions. Makes other  changes.  Amends  the  Mobile      
   Telecommunications   Sourcing  Conformity  Act.  Provides  that  if  a      
   customer believes that he or she is being charged an  improper  amount      
   of  tax  or  is  not  subject  to  a  tax imposed under the Simplified      
   Municipal Telecommunications Tax Act for a telecommunications  service      
   covered  by  the  term "mobile telecommunications", the customer, home      
   service  provider,  and  municipality  shall  follow  the   procedures      
   outlined  in  the  Simplified  Municipal  Telecommunications  Tax Act.      
   Provides for procedures and remedies for  correcting  taxes  and  fees      
   that apply only to the City of Chicago.  Amends the State Mandates Act      
   to  require  implementation  without  reimbursement  from  the  State.      
   Effective July 1, 2002.                                                     
 
Last action on Bill: PUBLIC ACT.............................. 92-0602

   Last action date: JUN-28-2002

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   1


   END OF INQUIRY 
                                                                               



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