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 Full Text Bill Status