Bill Text: IL SB0402 | 2011-2012 | 97th General Assembly | Amended
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the tax imposed.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Failed) 2013-01-08 - Session Sine Die [SB0402 Detail]
Download: Illinois-2011-SB0402-Amended.html
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1 | AMENDMENT TO SENATE BILL 402
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2 | AMENDMENT NO. ______. Amend Senate Bill 402, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 1. Short title. This Act may be cited as the | ||||||
6 | Direct Broadcast Satellite Service Providers Fee Act.
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7 | Section 5. Definitions. | ||||||
8 | "Department" means the Department of Revenue of the State | ||||||
9 | of Illinois. | ||||||
10 | "Direct broadcast satellite service" means the | ||||||
11 | distribution or broadcasting of video programming or services | ||||||
12 | by satellite to receiving equipment located at a subscriber's | ||||||
13 | or customer's premises, including, but not limited to, the | ||||||
14 | provision of premium channels, the provision of music or other | ||||||
15 | audio services or channels, and any other service received in | ||||||
16 | connection with the provision of that video programming or |
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1 | those services. However, "direct broadcast satellite service" | ||||||
2 | does not include satellite radio service or subscription radio | ||||||
3 | service whereby a digital radio signal is broadcast without any | ||||||
4 | corresponding or related video programming or services. | ||||||
5 | "Gross revenue" means all consideration of any kind or | ||||||
6 | nature received by a provider, or an affiliate of the provider, | ||||||
7 | in connection with the provision of direct broadcast satellite | ||||||
8 | service to subscribers or customers, including recurring | ||||||
9 | monthly charges for direct broadcast satellite service and | ||||||
10 | pay-per-view, video-on-demand, and other event-based charges | ||||||
11 | for direct broadcast satellite service; provided, however, | ||||||
12 | that gross revenues shall not include: | ||||||
13 | (1) revenue not actually received, regardless of | ||||||
14 | whether it is billed, including, but not limited to, bad | ||||||
15 | debts; | ||||||
16 | (2) revenue received by an affiliate or other person in | ||||||
17 | exchange for supplying goods and services used by a | ||||||
18 | provider; | ||||||
19 | (3) refunds, rebates, or discounts made to subscribers | ||||||
20 | or customers, to advertisers, or to other persons; | ||||||
21 | (4) revenue from any service that is subject to tax | ||||||
22 | under the Service Occupation Tax Act, Retailers' | ||||||
23 | Occupation Tax Act, Service Use Tax Act, or Use Tax Act; | ||||||
24 | (5) the fee imposed by this Act or any tax of general | ||||||
25 | applicability imposed on a provider or a purchaser of | ||||||
26 | direct broadcast satellite service, by a federal, State, or |
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1 | local governmental entity and required to be collected by a | ||||||
2 | person and remitted to the taxing entity; | ||||||
3 | (6) charges, other than those charges specifically | ||||||
4 | described in this Act, that are aggregated or bundled with | ||||||
5 | such specifically-described charges on a subscriber or | ||||||
6 | customer's bill, if the provider can reasonably identify | ||||||
7 | the charges in its books and records kept in the regular | ||||||
8 | course of business; | ||||||
9 | (7) revenue from advertising services; or | ||||||
10 | (8) charges that may not be taxed pursuant to the | ||||||
11 | Internet Tax Freedom Act. | ||||||
12 | "Person" means any natural individual, firm, trust, | ||||||
13 | estate, partnership, association, joint stock company, joint | ||||||
14 | venture, corporation, limited liability company, or a | ||||||
15 | receiver, trustee, guardian, or other representative appointed | ||||||
16 | by order of any court, the federal government and State | ||||||
17 | governments, including State universities created by statute | ||||||
18 | or any city, town, county, or other political subdivision of | ||||||
19 | this State. | ||||||
20 | "Provider" means a person who transmits, broadcasts, | ||||||
21 | sells, or distributes direct broadcast satellite service to | ||||||
22 | subscribers or customers in the State. | ||||||
23 | "Subscriber" or "customer" means a member of the general | ||||||
24 | public who receives direct broadcast satellite service from a | ||||||
25 | provider and does not further distribute such service in the | ||||||
26 | ordinary course of business. |
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1 | "Video programming" means programming provided by, or | ||||||
2 | programming comparable to programming provided by, a | ||||||
3 | television broadcast station or multichannel video service | ||||||
4 | provider, including, but not limited to, video programming | ||||||
5 | provided by local networks, national broadcast networks, and | ||||||
6 | all forms of pay-per-view video entertainment.
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7 | Section 10. Imposition of a service provider fee. | ||||||
8 | (a) A fee is imposed upon the act or privilege of providing | ||||||
9 | direct broadcast satellite service to a subscriber or customer | ||||||
10 | in this State by any provider at the rate of 5% of the | ||||||
11 | provider's gross revenues derived from or attributable to that | ||||||
12 | customer or subscriber. | ||||||
13 | (b) The fee imposed by subsection (a) may be passed through | ||||||
14 | to, and collected from, the provider's customers in Illinois. | ||||||
15 | To the extent allowed under federal or State law, a provider | ||||||
16 | may identify as a separate line item on each regular bill | ||||||
17 | issued to a subscriber or customer the amount of the total bill | ||||||
18 | assessed as a fee under this Act.
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19 | Section 15. Remittances. | ||||||
20 | (a) On or before the twentieth day of each calendar month, | ||||||
21 | every provider of direct broadcast satellite service to a | ||||||
22 | subscriber or customer in this State during the preceding | ||||||
23 | calendar month shall file a return with the Department, in a | ||||||
24 | form prescribed by the Department, stating: |
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1 | (1) the name of the provider; | ||||||
2 | (2) the address of the provider's principal place of | ||||||
3 | business; | ||||||
4 | (3) total amount of gross revenues received by the | ||||||
5 | provider during the preceding calendar month, quarter, or | ||||||
6 | year, as the case may be, from the provision of direct | ||||||
7 | broadcast satellite service during that preceding calendar | ||||||
8 | month, quarter, or year and upon the basis of which the fee | ||||||
9 | is imposed; | ||||||
10 | (4) the amount of fee due; | ||||||
11 | (5) the signature of the provider; and | ||||||
12 | (6) such other reasonable information as the | ||||||
13 | Department may require. | ||||||
14 | (b) If a provider fails to sign a return within 30 days | ||||||
15 | after the proper notice and demand for signature by the | ||||||
16 | Department is received by the provider, the return shall be | ||||||
17 | considered valid and any amount shown to be due on the return | ||||||
18 | shall be deemed assessed. | ||||||
19 | (c) If the provider is otherwise required to file a monthly | ||||||
20 | return, and if the provider's average monthly fee liability to | ||||||
21 | the Department under this Act does not exceed $200, the | ||||||
22 | Department may authorize the provider's returns to be filed on | ||||||
23 | a quarter annual basis, with the return for January, February, | ||||||
24 | and March of a given year being due by April 20 of that year; | ||||||
25 | with the return for April, May, and June of a given year being | ||||||
26 | due by July 20 of that year; with the return for July, August, |
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1 | and September of a given year being due by October 20 of that | ||||||
2 | year; and with the return for October, November, and December | ||||||
3 | of a given year being due by January 20 of the following year. | ||||||
4 | (d) If the provider is otherwise required to file a monthly | ||||||
5 | or quarterly return, and if the provider's average monthly fee | ||||||
6 | liability with the Department under this Act does not exceed | ||||||
7 | $50, the Department may authorize the provider's returns to be | ||||||
8 | filed on an annual basis, with the return for a given year | ||||||
9 | being due by January 20 of the following year. | ||||||
10 | (e) Those quarterly and annual returns shall be subject to | ||||||
11 | the same requirements as to form and substance as monthly | ||||||
12 | returns. | ||||||
13 | (f) A provider who has a fee liability that exceeds the | ||||||
14 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
15 | Department of Revenue Law for tax liabilities shall make all | ||||||
16 | payments required by rules of the Department by electronic | ||||||
17 | funds transfer. | ||||||
18 | (g) Any provider not required to make payments by | ||||||
19 | electronic funds transfer may make payments by electronic funds | ||||||
20 | transfer with the permission of the Department. | ||||||
21 | (h) All providers required to make payment by electronic | ||||||
22 | funds transfer and any providers authorized to voluntarily make | ||||||
23 | payments by electronic funds transfer shall make those payments | ||||||
24 | in the manner authorized by the Department.
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25 | Section 20. Records. |
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1 | (a) A provider on whom a fee is imposed by this Act shall | ||||||
2 | maintain the necessary records, and any other information | ||||||
3 | required by the Department, to determine the amount of the fee | ||||||
4 | that the provider is required to remit and any credit that the | ||||||
5 | provider is entitled to claim under this Act. | ||||||
6 | (b) The records shall be open at all times to inspection by | ||||||
7 | the Department.
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8 | Section 25. Distribution of proceeds. The proceeds of the | ||||||
9 | fee collected shall be deposited in to the following funds as | ||||||
10 | follows: 50% into the Education Assistance Fund and 50% into | ||||||
11 | the Capital Projects Fund, both in the State treasury.
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12 | Section 30. Department's authority to adopt rules. The | ||||||
13 | Department is authorized to make, promulgate, and enforce such | ||||||
14 | reasonable rules, and to prescribe such forms relating to the | ||||||
15 | administration and enforcement of this Act, as it may deem | ||||||
16 | appropriate.
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17 | Section 35. Applicability. This Act becomes operative on | ||||||
18 | July 1, 2013, and applies to the provision of direct broadcast | ||||||
19 | satellite service on or after that date.
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20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.".
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