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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 |
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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 |
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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 |
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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. |
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(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.)
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(50 ILCS 753/20)
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Sec. 20. Administration of prepaid wireless 9-1-1 |
surcharge. |
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(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 |
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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 |
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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 |
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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 |
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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.)
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Section 10. The State Finance Act is amended by adding |
Section 5.811 as follows:
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(30 ILCS 105/5.811 new) |
Sec. 5.811. The Municipal Wireless Service Emergency Fund.
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