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92_HB6012enr
HB6012 Enrolled LRB9214226SMdvA
1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Simplified Municipal Telecommunications
5 Tax Act is amended by adding Section 5-42 as follows:
6 (35 ILCS 636/5-42 new)
7 Sec. 5-42. Procedure for determining proper tax
8 jurisdiction.
9 (a) Tax jurisdiction information provided by a
10 municipality upon written request from a telecommunications
11 retailer. For purposes of this subsection (a),
12 "telecommunications retailer" does not include retailers
13 providing Commercial Mobile Radio Service as the term is used
14 in the Mobile Telecommunications Sourcing Act.
15 (1) A municipality may provide, within 30 days
16 following receipt of a written request from a
17 telecommunications retailer, the following:
18 (A) A list containing each street name, known
19 street name aliases, street address number ranges,
20 applicable directionals, and zip codes associated
21 with each street name, for all street addresses
22 located within the municipality. For a range of
23 street address numbers located within a municipality
24 that consists only of odd or even street numbers,
25 the list must specify whether the street numbers in
26 the range are odd or even. The list shall be
27 alphabetical, except that numbered streets shall be
28 in numerical sequence.
29 (B) A list containing each postal zip code and
30 all the city names associated therewith for all zip
31 codes assigned to geographic areas located entirely
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1 within the municipality, including zip codes
2 assigned to rural route boxes.
3 (C) A sequential list containing all rural
4 route box number ranges and the city names and zip
5 codes associated therewith, for all rural route
6 boxes located within the municipality, except that
7 rural route boxes with postal zip codes entirely
8 within the municipality that are included on the
9 list furnished under paragraph (B) need not be
10 duplicated.
11 (D) The lists shall be printed. If a list is
12 available through another medium, however, the
13 municipality shall, upon request, furnish the list
14 through such medium in addition to or in lieu of the
15 printed lists. The municipality shall be responsible
16 for updating the lists as changes occur and for
17 furnishing this information to all
18 telecommunications retailers affected by the
19 changes. Each update shall specify an effective
20 date, which shall be the next ensuing January 1,
21 April 1, July 1, or October 1; shall be furnished to
22 the telecommunications retailer not less than 60
23 days prior to the effective date; and shall identify
24 the additions, deletions, and other changes to the
25 preceding version of the list. If the information is
26 received less than 60 days prior to the effective
27 date of the change, the telecommunications retailer
28 has until the next ensuing January 1, April 1, July
29 1, or October 1 to make the appropriate changes.
30 Nothing in this subsection (a) shall prevent a
31 municipality from providing a telecommunications retailer
32 with the information set forth in this subdivision (a)(1)
33 in the absence of a written request from the
34 telecommunications retailer.
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1 (2) The telecommunications retailer shall be
2 responsible for charging the tax to the service addresses
3 contained in the lists requested under subdivision (a)(1)
4 that include all of the elements required by this
5 Section. If a service address is not included in the list
6 or if no list is provided, the telecommunications
7 retailer shall be held harmless from situsing errors
8 provided it uses a reasonable methodology to assign the
9 service address or addresses to a local tax jurisdiction.
10 The telecommunications retailer shall be held harmless
11 for any tax overpayments or underpayments (including
12 penalty or interest) resulting from written information
13 provided by the municipality or, in the case of disputes,
14 the Department. If a municipality is aware of a situsing
15 error in a telecommunications retailer's records, the
16 municipality may file a written notification to the
17 telecommunications retailer at an address specified by
18 the telecommunications retailer describing the street
19 address or addresses that are incorrect and, if known,
20 the affected customer name or names and account number or
21 numbers. If another jurisdiction is claiming the same
22 street address or addresses that are the subject of the
23 notification, the telecommunications retailer must notify
24 the Department as specified in subdivision (a)(3) of this
25 Section, otherwise, the telecommunications retailer shall
26 make such correction to its records within 90 days.
27 (3) If it is determined from the lists or updates
28 furnished under subdivision (a)(1) that more than one
29 municipality claims the same address or group of
30 addresses, the telecommunications retailer shall notify
31 the Department within 60 days of discovering the
32 discrepancy. After notification and until resolution, the
33 telecommunications retailer will continue its prior tax
34 treatment and will be held harmless for any tax, penalty,
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1 and interest in the event the prior tax treatment is
2 wrong. Upon resolution, the Department will notify the
3 telecommunications retailer in a written form describing
4 the resolution. Upon receipt of the resolution, the
5 telecommunications retailer has until the next ensuing
6 January 1, April 1, July 1, or October 1 to make the
7 change.
8 (4) Municipalities shall notify any
9 telecommunications retailer that has previously requested
10 a list under subdivision (a)(1) of this Section of any
11 annexations, de-annexations, or other boundary changes at
12 least 60 days after the effective date of such changes.
13 The notification shall contain each street name, known
14 street name aliases, street address number ranges,
15 applicable directionals, and zip codes associated with
16 each street name, for all street addresses for which a
17 change has occurred. The notice shall be mailed to an
18 address designated by the telecommunications retailer.
19 The telecommunications retailer has until the next
20 ensuing January 1, April 1, July 1, or October 1 to make
21 the changes described in such notification.
22 (b) The safe harbor provisions, Sections 40 and 45 of
23 the Mobile Telecommunications Sourcing Conformity Act, shall
24 apply to any telecommunications retailer electing to employ
25 enhanced zip codes (zip+4) to assign each street address,
26 address range, rural route box, or rural route box range in
27 their service area to a specific municipal tax jurisdiction,
28 except as provided under subdivision (c)(5). A
29 telecommunications retailer shall make its election as
30 prescribed by rules adopted by the Department.
31 (c) Persons who believe that they are improperly being
32 charged a tax imposed under this Act because their service
33 address is assigned to the wrong taxing jurisdiction shall
34 file a written complaint with their telecommunications
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1 (mobile or non-mobile) retailer. The written complaint shall
2 include the street address for her or his place of primary
3 use for mobile telecommunications service or the service
4 address for non-mobile telecommunications, the name and
5 address of the telecommunications retailer who is collecting
6 the tax imposed by this Act, the account name and number for
7 which the person seeks a correction of the tax assignment, a
8 description of the error asserted by that person, an
9 estimated amount of tax claimed to have been incorrectly
10 paid, the time period for which that amount of tax applies,
11 and any other information that the telecommunications
12 retailer may reasonably require to process the request. For
13 purposes of this Section, the terms "place of primary use"
14 and "mobile telecommunications service" shall have the same
15 meanings as those terms are defined in the Mobile
16 Telecommunications Sourcing Conformity Act.
17 Within 60 days after receiving the complaint under this
18 subsection (c), the telecommunications retailer shall review
19 its records, the written complaint, any information submitted
20 by the affected municipality or municipalities, and the
21 electronic database, if existing, or enhanced zip code used
22 pursuant to Section 25 or 40 of the Mobile Telecommunications
23 Sourcing Conformity Act to determine the customer's taxing
24 jurisdiction. If this review shows that the amount of tax,
25 assignment of place of primary use or service address, or
26 taxing jurisdiction is in error, the telecommunications
27 retailer shall correct the error and refund or credit the
28 amount of tax erroneously collected from the customer for the
29 period still available for the filing of a claim for credit
30 or refund by the telecommunications retailer under this Act.
31 If this review shows that the amount of tax, assignment of
32 place of primary use or service address, or taxing
33 jurisdiction is correct, the telecommunications retailer
34 shall provide a written explanation to the person from whom
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1 the notice was received.
2 (1) If the person is dissatisfied with the response
3 from the telecommunications retailer, the customer may
4 request a written determination from the Department on a
5 form prescribed by the Department. The request shall
6 contain the same information as was provided to the
7 telecommunications retailer. The Department shall review
8 the request for determination and make all reasonable
9 efforts to determine if such person's place of primary
10 use for mobile telecommunications service or the service
11 address for non-mobile telecommunications is located
12 within the jurisdictional boundaries of the municipality
13 for which the person is being charged tax under this Act.
14 Upon request by the Department, municipalities that have
15 imposed a tax under this Act shall have 30 days to
16 provide information to the Department regarding such
17 requests for determination via certified mail.
18 (2) Within 90 days after receipt of a request for
19 determination under subdivision (c)(1) of this Section,
20 the Department shall issue a letter of determination to
21 the person stating whether that person's place of primary
22 use for mobile telecommunications service or the service
23 address for non-mobile telecommunications is located
24 within the jurisdictional boundaries of the municipality
25 for which the person is being charged tax under this Act
26 or naming the proper municipality, if different. The
27 Department shall also list in the letter of
28 determination, if the municipality has provided that
29 information to the Department, the Department's findings
30 as to the limit of the jurisdictional boundary (street
31 address range) for the municipality in relation to the
32 street address listed in the request for a letter of
33 determination. A copy of such letter of determination
34 shall be provided by the Department to the
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1 telecommunications retailer listed on the request for
2 determination. The copy shall be sent via mail to an
3 address designated by the telecommunications retailer.
4 (3) If the municipality or municipalities fail to
5 respond as set forth in subdivision (c)(1), then the
6 complaining person will no longer be subject to the tax
7 imposed under this Act. The Department shall notify the
8 relevant telecommunications retailer in writing of the
9 automatic determination and also list its findings as to
10 the street address listed in the request for a letter of
11 determination. Upon receipt of the notice of automatic
12 determination, the telecommunications retailer shall
13 correct its records and refund or credit the amount of
14 tax determined to have been paid by such person for the
15 period still available for the filing of a claim for
16 credit or refund by the telecommunications retailer under
17 this Act. A copy of the letter of determination shall be
18 provided by the Department to the telecommunications
19 retailer listed on the request for determination at an
20 address designated by the telecommunications retailer.
21 (4) If the telecommunications retailer receives a
22 copy of the letter of determination from the Department
23 described in subdivision (c)(2) of this Section that
24 states that such person's place of primary use for mobile
25 telecommunications service or the service address for
26 non-mobile telecommunications is not located within the
27 jurisdictional boundaries of the municipality for which
28 that person is being charged tax under this Act and that
29 provides the correct tax jurisdiction for the particular
30 street address, the telecommunications retailer shall
31 correct the error and refund or credit the amount of tax
32 determined to have been paid in error by such person up
33 to the period still available for the filing of a claim
34 for credit or refund by the telecommunications retailer
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1 under this Act. The telecommunications retailer shall
2 retain such copy of the letter of determination in its
3 books and records and shall be held harmless for any tax,
4 penalty, or interest due as a result of its reliance on
5 such determination. If the Department subsequently
6 receives information that discloses that such service
7 addresses or places of primary use on that street are
8 within the jurisdictional boundaries of a municipality
9 other than the one specified in the previous letter, the
10 Department shall notify the telecommunications retailer
11 and the telecommunications customer in writing that the
12 telecommunications retailer is to begin collecting tax
13 for a specified municipality on the accounts associated
14 with those service addresses or places of primary use.
15 Notification to begin collecting tax on such accounts
16 sent by the Department to the telecommunications
17 retailers on or after October 1 and prior to January 1
18 shall be effective the following April 1. Notification to
19 begin collecting tax on such accounts sent by the
20 Department to the telecommunications retailers on or
21 after January 1 and prior to April 1 shall be effective
22 the following July 1. Notification to begin collecting
23 tax on such accounts sent by the Department to the
24 telecommunications retailers on or after April 1 and
25 prior to July 1 shall be effective the following October
26 1. Notification to begin collecting tax on such accounts
27 sent by the Department to the telecommunications
28 retailers on or after July 1 and prior to October 1 shall
29 be effective the following January 1.
30 (5) If the telecommunications retailer receives a
31 copy of the letter of determination from the Department
32 described in subdivisions (c)(2), (c)(3), or (c)(4) of
33 this Section that states that such person's place of
34 primary use for mobile telecommunications service or the
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1 service address for non-mobile telecommunications is not
2 located within the jurisdictional boundaries of the
3 municipality for which that person is being charged tax
4 under this Act and the telecommunications retailer fails
5 to correct the error and refund or credit the appropriate
6 amount of tax paid in error within the time period
7 prescribed in subdivisions (c)(3) and (c)(4), the
8 telecommunications retailer shall not be held harmless
9 for any tax, penalty, or interest due the Department as a
10 result of the error.
11 (6) The procedures in this subsection (c) shall be
12 the first course of remedy available to customers seeking
13 correction of assignment of service address, place of
14 primary use, taxing jurisdiction, an amount of tax paid
15 erroneously, or other compensation for taxes, charges, or
16 fees erroneously collected by a telecommunications
17 retailer. No cause of action based upon a dispute arising
18 from these taxes, charges, or fees shall accrue until a
19 customer has reasonably exercised the rights and
20 procedures set forth in this subsection (c). If a
21 customer is not satisfied after exercising the rights and
22 following the procedures set forth in this subsection
23 (c), the customer shall have the normal cause of action
24 available under the law to recover any tax, penalty, or
25 interest from the telecommunications retailer.
26 (d) The provisions of this Section shall not apply to a
27 municipality that directly receives collected tax revenue
28 from a retailer pursuant to subsection (b) of Section 5-40. A
29 municipality that receives tax revenue pursuant to subsection
30 (b) of Section 5-40 for telecommunications other than mobile
31 telecommunications service, as that term is defined in the
32 Mobile Telecommunications Sourcing Conformity Act, shall
33 establish a procedure to remedy the complaints of persons who
34 believe they are being improperly taxed, which should
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1 consider the requirements set forth in subsection (c) of this
2 Section.
3 Section 10. The Mobile Telecommunications Sourcing
4 Conformity Act is amended by changing Section 80 as follows:
5 (35 ILCS 638/80)
6 (This Section may contain text from a Public Act with a
7 delayed effective date)
8 Sec. 80. Customers' procedures and remedies for
9 correcting taxes and fees.
10 (a) If a customer believes that he or she is being
11 charged an improper amount of tax or is not subject to a tax
12 imposed under the Simplified Municipal Telecommunications Tax
13 Act for a telecommunications service covered by the term
14 "mobile telecommunications" under this Act, he or she shall
15 follow the procedures outlined in subsection (c) of Section
16 5-42 of the Simplified Municipal Telecommunications Tax Act.
17 The procedures outlined in subsection (c) of Section 5-42 of
18 the Simplified Municipal Telecommunications Tax Act shall
19 also apply to the home service provider, the Department, and
20 municipalities.
21 (b) Nothing in subsection (a) shall apply to a
22 municipality that directly receives collected tax revenue
23 from a retailer under subsection (b) of Section 5-40 of the
24 Simplified Municipal Telecommunications Tax Act for a
25 telecommunications service covered by the term "mobile
26 telecommunications service" under this Act. In lieu of
27 subsection (a), a customer may seek relief under subsection
28 (c) only if a municipality directly receives collected tax
29 revenue from a retailer under subsection (b) of Section 5-40
30 of the Simplified Municipal Telecommunications Tax Act for a
31 telecommunications service covered by the term "mobile
32 telecommunications service" under this Act.
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1 (c) For municipalities covered under subsection (b) of
2 Section 5-40 of the Simplified Municipal Telecommunications
3 Tax Act, if a customer believes that an amount of tax or
4 assignment of place of primary use or taxing jurisdiction
5 included on a billing is erroneous, the customer shall notify
6 the home service provider in writing. The customer shall
7 include in this written notification the street address for
8 her or his place of primary use, the account name and number
9 for which the customer seeks a correction of the tax
10 assignment, a description of the error asserted by the
11 customer, and any other information that the home service
12 provider reasonably requires to process the request. Within
13 60 days after receiving a notice under this subsection (c)
14 (a), the home service provider shall review its records and
15 the electronic database or enhanced zip code used pursuant to
16 Section 25 or 40 to determine the customer's taxing
17 jurisdiction. If this review shows that the amount of tax,
18 assignment of place of primary use, or taxing jurisdiction is
19 in error, the home service provider shall correct the error
20 and refund or credit the amount of tax erroneously collected
21 from the customer for a period of up to 2 years. If this
22 review shows that the amount of tax, assignment of place of
23 primary use, or taxing jurisdiction is correct, the home
24 service provider shall provide a written explanation to the
25 customer. (b) If the customer is dissatisfied with the
26 response of the home service provider under this Section, the
27 customer may seek a correction or refund or both from the
28 municipality that directly receives collected tax revenue
29 from a retailer pursuant to subsection (b) of Section 5-40 of
30 the Simplified Municipal Telecommunications Tax Act for a
31 telecommunications service covered by the term "mobile
32 telecommunications service" under this Act taxing
33 jurisdiction affected.
34 (d) (c) The procedures set forth in subsections (b) and
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1 (c) in this Section shall be the first course of remedy
2 available to customers seeking correction of assignment of
3 place of primary use or taxing jurisdiction or a refund of or
4 other compensation for taxes, charges, and fees erroneously
5 collected by the home service provider, and no cause of
6 action based upon a dispute arising from these taxes,
7 charges, or fees shall accrue until a customer has reasonably
8 exercised the rights and procedures set forth in this
9 Section.
10 (Source: P.A. 92-474, eff. 8-1-02.)
11 Section 90. The State Mandates Act is amended by adding
12 Section 8.26 as follows:
13 (30 ILCS 805/8.26 new)
14 Sec. 8.26. Exempt mandate. Notwithstanding Sections 6
15 and 8 of this Act, no reimbursement by the State is required
16 for the implementation of any mandate created by this
17 amendatory Act of the 92nd General Assembly.
18 Section 95. No acceleration or delay. Where this Act
19 makes changes in a statute that is represented in this Act by
20 text that is not yet or no longer in effect (for example, a
21 Section represented by multiple versions), the use of that
22 text does not accelerate or delay the taking effect of (i)
23 the changes made by this Act or (ii) provisions derived from
24 any other Public Act.
25 Section 99. Effective date. This Act takes effect on
26 July 1, 2002.
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