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Public Act 097-0748 | ||||
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Prepaid Wireless 9-1-1 Surcharge Act is | ||||
amended by changing Sections 15 and 20 as follows: | ||||
(50 ILCS 753/15)
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Sec. 15. Prepaid wireless 9-1-1 surcharge. | ||||
(a) There is hereby imposed on consumers a prepaid wireless | ||||
9-1-1 surcharge of 1.5% per retail transaction.
The surcharge | ||||
authorized by this subsection (a) does not apply in a home rule | ||||
municipality having a population in excess of 500,000. The | ||||
amount of the surcharge may be reduced or increased pursuant to | ||||
subsection (e). | ||||
(a-5) A home rule municipality having a population in | ||||
excess of 500,000 on the effective date of this Act may only | ||||
impose a prepaid wireless 9-1-1 surcharge not to exceed 7% per | ||||
retail transaction sourced to that jurisdiction and collected | ||||
and remitted in accordance with the provisions of subsection | ||||
(b-5). | ||||
(b) The prepaid wireless 9-1-1 surcharge shall be collected | ||||
by the seller from the consumer with respect to each retail | ||||
transaction occurring in this State and shall be remitted to | ||||
the Department by the seller as provided in this Act. The |
amount of the prepaid wireless 9-1-1 surcharge shall be | ||
separately stated as a distinct item apart from the charge for | ||
the prepaid wireless telecommunications service on an invoice, | ||
receipt, or other similar document that is provided to the | ||
consumer by the seller or shall be otherwise disclosed to the | ||
consumer.
If the seller does not separately state the surcharge | ||
as a distinct item to the consumer as provided in this Section, | ||
then the seller shall maintain books and records as required by | ||
this Act which clearly identify the amount of the 9-1-1 | ||
surcharge for retail transactions. | ||
For purposes of this subsection (b), a retail transaction | ||
occurs in this State if (i) the retail transaction is made in | ||
person by a consumer at the seller's business location and the | ||
business is located within the State; (ii) the seller is a | ||
provider and sells prepaid wireless telecommunications service | ||
to a consumer located in Illinois; (iii) the retail transaction | ||
is treated as occurring in this State for purposes of the | ||
Retailers' Occupation Tax Act; or (iv) a seller that is | ||
included within the definition of a "retailer maintaining a | ||
place of business in this State" under Section 2 of the Use Tax | ||
Act makes a sale of prepaid wireless telecommunications service | ||
to a consumer located in Illinois. In the case of a retail | ||
transaction which does not occur in person at a seller's | ||
business location, if a consumer uses a credit card to purchase | ||
prepaid wireless telecommunications service on-line or over | ||
the telephone, and no product is shipped to the consumer, the |
transaction occurs in this State if the billing address for the | ||
consumer's credit card is in this State. | ||
(b-5) The prepaid wireless 9-1-1 surcharge imposed under | ||
subsection (a-5) of this Section shall be collected by the | ||
seller from the consumer with respect to each retail | ||
transaction occurring in the municipality imposing the | ||
surcharge. The amount of the prepaid wireless 9-1-1 surcharge | ||
shall be separately stated on an invoice, receipt, or other | ||
similar document that is provided to the consumer by the seller | ||
or shall be otherwise disclosed to the consumer. If the seller | ||
does not separately state the surcharge as a distinct item to | ||
the consumer as provided in this Section, then the seller shall | ||
maintain books and records as required by this Act which | ||
clearly identify the amount of the 9-1-1 surcharge for retail | ||
transactions. | ||
For purposes of this subsection (b-5), a retail transaction | ||
occurs in the municipality if (i) the retail transaction is | ||
made in person by a consumer at the seller's business location | ||
and the business is located within the municipality; (ii) the | ||
seller is a provider and sells prepaid wireless | ||
telecommunications service to a consumer located in the | ||
municipality; (iii) the retail transaction is treated as | ||
occurring in the municipality for purposes of the Retailers' | ||
Occupation Tax Act; or (iv) a seller that is included within | ||
the definition of a "retailer maintaining a place of business | ||
in this State" under Section 2 of the Use Tax Act makes a sale |
of prepaid wireless telecommunications service to a consumer | ||
located in the municipality. In the case of a retail | ||
transaction which does not occur in person at a seller's | ||
business location, if a consumer uses a credit card to purchase | ||
prepaid wireless telecommunications service on-line or over | ||
the telephone, and no product is shipped to the consumer, the | ||
transaction occurs in the municipality if the billing address | ||
for the consumer's credit card is in the municipality. | ||
(c) The prepaid wireless 9-1-1 surcharge is imposed on the | ||
consumer and not on any provider. The seller shall be liable to | ||
remit all prepaid wireless 9-1-1 surcharges that the seller | ||
collects from consumers as provided in Section 20, including | ||
all such surcharges that the seller is deemed to collect where | ||
the amount of the surcharge has not been separately stated on | ||
an invoice, receipt, or other similar document provided to the | ||
consumer by the seller.
The surcharge collected or deemed | ||
collected by a seller shall constitute a debt owed by the | ||
seller to this State, and any such surcharge actually collected | ||
shall be held in trust for the benefit of the Department. | ||
For purposes of this subsection (c), the surcharge shall | ||
not be imposed or collected from entities that have an active | ||
tax exemption identification number issued by the Department | ||
are tax exempt under Section 1g of the Retailers' Occupation | ||
Tax Act. | ||
(d) The amount of the prepaid wireless 9-1-1 surcharge that | ||
is collected by a seller from a consumer, if such amount is |
separately stated on an invoice, receipt, or other similar | ||
document provided to the consumer by the seller, shall not be | ||
included in the base for measuring any tax, fee, surcharge, or | ||
other charge that is imposed by this State, any political | ||
subdivision of this State, or any intergovernmental agency.
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(e) The prepaid wireless 9-1-1 charge imposed under | ||
subsection (a) of this Section shall be proportionately | ||
increased or reduced, as applicable, upon any change to the | ||
surcharge imposed under Section 17 of the Wireless Emergency | ||
Telephone Safety Act. The adjusted rate shall be determined by | ||
dividing the amount of the surcharge imposed under Section 17 | ||
of the Wireless Emergency Telephone Safety Act by $50. Such | ||
increase or reduction shall be effective on the first day of | ||
the first calendar month to occur at least 60 days after the | ||
enactment of the change to the surcharge imposed under Section | ||
17 of the Wireless Emergency Telephone Safety Act. The | ||
Department shall provide not less than 30 days' notice of an | ||
increase or reduction in the amount of the surcharge on the | ||
Department's website.
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(e-5) Any changes in the rate of the surcharge imposed by a | ||
municipality under the authority granted in subsection (a-5) of | ||
this Section shall be effective on the first day of the first | ||
calendar month to occur at least 60 days after the enactment of | ||
the change. The Department shall provide not less than 30 days' | ||
notice of the increase or reduction in the rate of such | ||
surcharge on the Department's website. |
(f) When prepaid wireless telecommunications service is | ||
sold with one or more other products or services for a single, | ||
non-itemized price, then the percentage specified in | ||
subsection (a) or (a-5) of this Section 15 shall be applied to | ||
the entire non-itemized price unless the seller elects to apply | ||
the percentage to (i) the dollar amount of the prepaid wireless | ||
telecommunications service if that dollar amount is disclosed | ||
to the consumer or (ii) the portion of the price that is | ||
attributable to the prepaid wireless telecommunications | ||
service if the retailer can identify that portion by reasonable | ||
and verifiable standards from its books and records that are | ||
kept in the regular course of business for other purposes, | ||
including, but not limited to, books and records that are kept | ||
for non-tax purposes. However, if a minimal amount of prepaid | ||
wireless telecommunications service is sold with a prepaid | ||
wireless device for a single, non-itemized price, then the | ||
seller may elect not to apply the percentage specified in | ||
subsection (a) or (a-5) of this Section 15 to such transaction. | ||
For purposes of this subsection, an amount of service | ||
denominated as 10 minutes or less or $5 or less is considered | ||
minimal.
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(Source: P.A. 97-463, eff. 1-1-12.) | ||
(50 ILCS 753/20)
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Sec. 20. Administration of prepaid wireless 9-1-1 | ||
surcharge. |
(a) In the administration and enforcement of this Act, the | ||
provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, | ||
5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the | ||
Retailers' Occupation Tax Act that are not inconsistent with | ||
this Act, and Section 3-7 of the Uniform Penalty and Interest | ||
Act shall apply, as far as practicable, to the subject matter | ||
of this Act to the same extent as if those provisions were | ||
included in this Act. References to "taxes" in these | ||
incorporated Sections shall be construed to apply to the | ||
administration, payment, and remittance of all surcharges | ||
under this Act. The Department shall establish registration and | ||
payment procedures that substantially coincide with the | ||
registration and payment procedures that apply to the | ||
Retailers' Occupation Tax Act.
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(b) For the first 12 months after the effective date of | ||
this Act, a seller shall be permitted to deduct and retain 5% | ||
of prepaid wireless 9-1-1 surcharges that are collected by the | ||
seller from consumers and that are remitted and timely filed | ||
with the Department.
After the first 12 months, a seller shall | ||
be permitted to deduct and retain 3% of prepaid wireless 9-1-1 | ||
surcharges that are collected by the seller from consumers and | ||
that are remitted and timely filed with the Department. | ||
(c) Other than the amounts for deposit into the Municipal | ||
Wireless Service Emergency Fund, the Department shall pay to | ||
the State Treasurer all prepaid wireless E911 charges and | ||
penalties collected under this Act for deposit into the |
Wireless Service Emergency Fund. On or before the 25th day of | ||
each calendar month, the Department shall prepare and certify | ||
to the Comptroller the amount available to the Illinois | ||
Commerce Commission for distribution out of the Wireless | ||
Service Emergency Fund. The amount certified shall be the | ||
amount (not including credit memoranda) collected during the | ||
second preceding calendar month by the Department plus an | ||
amount the Department determines is necessary to offset any | ||
amounts which were erroneously paid to a different taxing body. | ||
The amount paid to the Wireless Service Emergency Fund shall | ||
not include any amount equal to the amount of refunds made | ||
during the second preceding calendar month by the Department to | ||
retailers under this Act or any amount that the Department | ||
determines is necessary to offset any amounts which were | ||
payable to a different taxing body but were erroneously paid to | ||
the Wireless Service Emergency Fund. The Illinois Commerce | ||
Commission shall distribute the funds in the same proportion as | ||
they are distributed under the Wireless Emergency Telephone | ||
Safety Act and the funds may only be used in accordance with | ||
the provisions of the Wireless Emergency Telephone Safety Act. | ||
The Department shall pay all remitted prepaid wireless E911 | ||
charges over to the State Treasurer for deposit into the | ||
Wireless Service Emergency Fund within 30 days after receipt. | ||
The Illinois Commerce Commission shall distribute such funds in | ||
the same proportion as they are distributed under the Wireless | ||
Emergency Telephone Safety Act and such funds may only be used |
in accordance with the provisions of the Wireless Emergency | ||
Telephone Safety Act. The Department may deduct an amount, not | ||
to exceed 3% during the first year following the effective date | ||
of this Act and not to exceed 2% during every year thereafter | ||
of remitted charges, to be transferred into retained by the Tax | ||
Compliance and Administration Fund Department to reimburse the | ||
Department for its direct costs of administering the collection | ||
and remittance of prepaid wireless 9-1-1 surcharges.
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(d) The Department shall administer the collection of all | ||
9-1-1 surcharges and may adopt and enforce reasonable rules | ||
relating to the administration and enforcement of the | ||
provisions of this Act as may be deemed expedient. The | ||
Department shall require all surcharges collected under this | ||
Act to be reported on existing forms or combined forms, | ||
including, but not limited to, Form ST-1. Any overpayments | ||
received by the Department for liabilities reported on existing | ||
or combined returns shall be applied as an overpayment of | ||
retailers' occupation tax, use tax, service occupation tax, or | ||
service use tax liability.
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(e) If a home rule municipality having a population in | ||
excess of 500,000 as of the effective date of this amendatory | ||
Act of the 97th General Assembly imposes an E911 surcharge | ||
under subsection (a-5) of Section 15 of this Act, then the | ||
Department shall pay to the State Treasurer all prepaid | ||
wireless E911 charges, penalties, and interest collected for | ||
deposit into the Municipal Wireless Service Emergency Fund. All |
deposits into the Municipal Wireless Service Emergency Fund | ||
shall be held by the State Treasurer as ex officio custodian | ||
apart from all public moneys or funds of this State. Any | ||
interest attributable to moneys in the Fund must be deposited | ||
into the Fund. Moneys in the Municipal Wireless Service | ||
Emergency Fund are not subject to appropriation. On or before | ||
the 25th day of each calendar month, the Department shall | ||
prepare and certify to the Comptroller the amount available for | ||
disbursement to the home rule municipality out of the Municipal | ||
Wireless Service Emergency Fund. The amount to be paid to the | ||
Municipal Wireless Service Emergency Fund shall be the amount | ||
(not including credit memoranda) collected during the second | ||
preceding calendar month by the Department plus an amount the | ||
Department determines is necessary to offset any amounts which | ||
were erroneously paid to a different taxing body. The amount | ||
paid to the Municipal Wireless Service Emergency Fund shall not | ||
include any amount equal to the amount of refunds made during | ||
the second preceding calendar month by the Department to | ||
retailers under this Act or any amount that the Department | ||
determines is necessary to offset any amounts which were | ||
payable to a different taxing body but were erroneously paid to | ||
the Municipal Wireless Service Emergency Fund. Within 10 days | ||
after receipt by the Comptroller of the certification provided | ||
for in this subsection, the Comptroller shall cause the orders | ||
to be drawn for the respective amounts in accordance with the | ||
directions in the certification. The Department may deduct an |
amount, not to exceed 3% during the first year following the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly and not to exceed 2% during every year thereafter of | ||
remitted charges, to be transferred into the Tax Compliance and | ||
Administration Fund to reimburse the Department for its direct | ||
costs of administering the collection and remittance of prepaid | ||
wireless 9-1-1 surcharges. | ||
(Source: P.A. 97-463, eff. 1-1-12.) | ||
Section 10. The State Finance Act is amended by adding | ||
Section 5.811 as follows: | ||
(30 ILCS 105/5.811 new) | ||
Sec. 5.811. The Municipal Wireless Service Emergency Fund.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law. |