Bill Text: IL SB1227 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Illinois Highway Code. Provides that a tax imposed by a road district for the purpose of constructing or maintaining gravel, rock, macadam or other hard roads, or for improving, maintaining or repairing earth roads by draining, grading, oil treating or dragging may be certified at any time after the election at which the referendum is approved. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2014-02-05 - Public Act . . . . . . . . . 98-0626 [SB1227 Detail]

Download: Illinois-2013-SB1227-Amended.html

---

Rep. Michael J. Zalewski

Filed: 12/2/2013

09800SB1227ham003 LRB098 07937 JWD 50214 a
AMENDMENT TO SENATE BILL 1227
AMENDMENT NO. ______. Amend Senate Bill 1227, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 1. Short title. This Act may be cited as the
Direct Broadcast Satellite Service Providers Fee Act.
Section 5. Definitions.
"Department" means the Department of Revenue of the State
of Illinois.
"Direct broadcast satellite service" means the
distribution or broadcasting of video programming or services
by satellite to receiving equipment located at a subscriber's
or customer's premises, including, but not limited to, the
provision of premium channels, the provision of music or other
audio services or channels, and any other service received in
connection with the provision of that video programming or

09800SB1227ham003 - 2 - LRB098 07937 JWD 50214 a
those services. However, "direct broadcast satellite service"
does not include satellite radio service or subscription radio
service whereby a digital radio signal is broadcast without any
corresponding or related video programming or services.
"Gross revenue" means all consideration of any kind or
nature received by a provider, or an affiliate of the provider,
in connection with the provision of direct broadcast satellite
service to subscribers or customers, including recurring
monthly charges for direct broadcast satellite service and
pay-per-view, video-on-demand, and other event-based charges
for direct broadcast satellite service; provided, however,
that gross revenues shall not include:
(1) revenue not actually received, regardless of
whether it is billed, including, but not limited to, bad
debts;
(2) revenue received by an affiliate or other person in
exchange for supplying goods and services used by a
provider;
(3) refunds, rebates, or discounts made to subscribers
or customers, to advertisers, or to other persons;
(4) revenue from any service that is subject to tax
under the Service Occupation Tax Act, Retailers'
Occupation Tax Act, Service Use Tax Act, or Use Tax Act;
(5) the fee imposed by this Act or any tax of general
applicability imposed on a provider or a purchaser of
direct broadcast satellite service, by a federal, State, or

09800SB1227ham003 - 3 - LRB098 07937 JWD 50214 a
local governmental entity and required to be collected by a
person and remitted to the taxing entity;
(6) charges, other than those charges specifically
described in this Act, that are aggregated or bundled with
such specifically-described charges on a subscriber or
customer's bill, if the provider can reasonably identify
the charges in its books and records kept in the regular
course of business;
(7) revenue from advertising services; or
(8) charges that may not be taxed pursuant to the
Internet Tax Freedom Act.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court, the federal government and State
governments, including State universities created by statute
or any city, town, county, or other political subdivision of
this State.
"Provider" means a person who transmits, broadcasts,
sells, or distributes direct broadcast satellite service to
subscribers or customers in the State.
"Subscriber" or "customer" means a member of the general
public who receives direct broadcast satellite service from a
provider and does not further distribute such service in the
ordinary course of business.

09800SB1227ham003 - 4 - LRB098 07937 JWD 50214 a
"Video programming" means programming provided by, or
programming comparable to programming provided by, a
television broadcast station or multichannel video service
provider, including, but not limited to, video programming
provided by local networks, national broadcast networks, and
all forms of pay-per-view video entertainment.
Section 10. Imposition of a service provider fee.
(a) A fee is imposed upon the act or privilege of providing
direct broadcast satellite service to a subscriber or customer
in this State by any provider at the rate of 5% of the
provider's gross revenues derived from or attributable to that
customer or subscriber.
(b) The fee imposed by subsection (a) may be passed through
to, and collected from, the provider's customers in Illinois.
To the extent allowed under federal or State law, a provider
may identify as a separate line item on each regular bill
issued to a subscriber or customer the amount of the total bill
assessed as a fee under this Act.
Section 15. Remittances.
(a) On or before the twentieth day of each calendar month,
every provider of direct broadcast satellite service to a
subscriber or customer in this State during the preceding
calendar month shall file a return with the Department, in a
form prescribed by the Department, stating:

09800SB1227ham003 - 5 - LRB098 07937 JWD 50214 a
(1) the name of the provider;
(2) the address of the provider's principal place of
business;
(3) total amount of gross revenues received by the
provider during the preceding calendar month, quarter, or
year, as the case may be, from the provision of direct
broadcast satellite service during that preceding calendar
month, quarter, or year and upon the basis of which the fee
is imposed;
(4) the amount of fee due;
(5) the signature of the provider; and
(6) such other reasonable information as the
Department may require.
(b) If a provider fails to sign a return within 30 days
after the proper notice and demand for signature by the
Department is received by the provider, the return shall be
considered valid and any amount shown to be due on the return
shall be deemed assessed.
(c) If the provider is otherwise required to file a monthly
return, and if the provider's average monthly fee liability to
the Department under this Act does not exceed $200, the
Department may authorize the provider's returns to be filed on
a quarter annual basis, with the return for January, February,
and March of a given year being due by April 20 of that year;
with the return for April, May, and June of a given year being
due by July 20 of that year; with the return for July, August,

09800SB1227ham003 - 6 - LRB098 07937 JWD 50214 a
and September of a given year being due by October 20 of that
year; and with the return for October, November, and December
of a given year being due by January 20 of the following year.
(d) If the provider is otherwise required to file a monthly
or quarterly return, and if the provider's average monthly fee
liability with the Department under this Act does not exceed
$50, the Department may authorize the provider's returns to be
filed on an annual basis, with the return for a given year
being due by January 20 of the following year.
(e) Those quarterly and annual returns shall be subject to
the same requirements as to form and substance as monthly
returns.
(f) A provider who has a fee liability that exceeds the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law for tax liabilities shall make all
payments required by rules of the Department by electronic
funds transfer.
(g) Any provider not required to make payments by
electronic funds transfer may make payments by electronic funds
transfer with the permission of the Department.
(h) All providers required to make payment by electronic
funds transfer and any providers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
Section 20. Records.

09800SB1227ham003 - 7 - LRB098 07937 JWD 50214 a
(a) A provider on whom a fee is imposed by this Act shall
maintain the necessary records, and any other information
required by the Department, to determine the amount of the fee
that the provider is required to remit and any credit that the
provider is entitled to claim under this Act.
(b) The records shall be open at all times to inspection by
the Department.
Section 25. Distribution of proceeds. The proceeds of the
fee collected shall be deposited into the Education Assistance
Fund.
Section 30. Department's authority to adopt rules. The
Department is authorized to make, promulgate, and enforce such
reasonable rules, and to prescribe such forms relating to the
administration and enforcement of this Act, as it may deem
appropriate.
Section 35. Applicability. This Act becomes operative on
July 1, 2014, and applies to the provision of direct broadcast
satellite service on or after that date.
Section 50. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Section 5-15 as follows:
(35 ILCS 10/5-15)

09800SB1227ham003 - 8 - LRB098 07937 JWD 50214 a
Sec. 5-15. Tax Credit Awards. Subject to the conditions set
forth in this Act, a Taxpayer is entitled to a Credit against
or, as described in subsection (g) of this Section, a payment
towards taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act that may be imposed
on the Taxpayer for a taxable year beginning on or after
January 1, 1999, if the Taxpayer is awarded a Credit by the
Department under this Act for that taxable year.
(a) The Department shall make Credit awards under this Act
to foster job creation and retention in Illinois.
(b) A person that proposes a project to create new jobs in
Illinois must enter into an Agreement with the Department for
the Credit under this Act.
(c) The Credit shall be claimed for the taxable years
specified in the Agreement.
(d) The Credit shall not exceed the Incremental Income Tax
attributable to the project that is the subject of the
Agreement.
(e) Nothing herein shall prohibit a Tax Credit Award to an
Applicant that uses a PEO if all other award criteria are
satisfied.
(f) In lieu of the Credit allowed under this Act against
the taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act for any taxable year
ending on or after December 31, 2009, the Taxpayer may elect to
claim the Credit against its obligation to pay over withholding

09800SB1227ham003 - 9 - LRB098 07937 JWD 50214 a
under Section 704A of the Illinois Income Tax Act.
(1) The election under this subsection (f) may be made
only by a Taxpayer that (i) is primarily engaged in one of
the following business activities: water purification and
treatment, motor vehicle metal stamping, automobile
manufacturing, automobile and light duty motor vehicle
manufacturing, motor vehicle manufacturing, light truck
and utility vehicle manufacturing, heavy duty truck
manufacturing, motor vehicle body manufacturing, cable
television infrastructure design or manufacturing, or
wireless telecommunication or computing terminal device
design or manufacturing for use on public networks and (ii)
meets the following criteria:
(A) the Taxpayer (i) had an Illinois net loss or an
Illinois net loss deduction under Section 207 of the
Illinois Income Tax Act for the taxable year in which
the Credit is awarded, (ii) employed a minimum of 1,000
full-time employees in this State during the taxable
year in which the Credit is awarded, (iii) has an
Agreement under this Act on December 14, 2009 (the
effective date of Public Act 96-834), and (iv) is in
compliance with all provisions of that Agreement;
(B) the Taxpayer (i) had an Illinois net loss or an
Illinois net loss deduction under Section 207 of the
Illinois Income Tax Act for the taxable year in which
the Credit is awarded, (ii) employed a minimum of 1,000

09800SB1227ham003 - 10 - LRB098 07937 JWD 50214 a
full-time employees in this State during the taxable
year in which the Credit is awarded, and (iii) has
applied for an Agreement within 365 days after December
14, 2009 (the effective date of Public Act 96-834);
(C) the Taxpayer (i) had an Illinois net operating
loss carryforward under Section 207 of the Illinois
Income Tax Act in a taxable year ending during calendar
year 2008, (ii) has applied for an Agreement within 150
days after the effective date of this amendatory Act of
the 96th General Assembly, (iii) creates at least 400
new jobs in Illinois, (iv) retains at least 2,000 jobs
in Illinois that would have been at risk of relocation
out of Illinois over a 10-year period, and (v) makes a
capital investment of at least $75,000,000;
(D) the Taxpayer (i) had an Illinois net operating
loss carryforward under Section 207 of the Illinois
Income Tax Act in a taxable year ending during calendar
year 2009, (ii) has applied for an Agreement within 150
days after the effective date of this amendatory Act of
the 96th General Assembly, (iii) creates at least 150
new jobs, (iv) retains at least 1,000 jobs in Illinois
that would have been at risk of relocation out of
Illinois over a 10-year period, and (v) makes a capital
investment of at least $57,000,000; or
(E) the Taxpayer (i) employed at least 2,500
full-time employees in the State during the year in

09800SB1227ham003 - 11 - LRB098 07937 JWD 50214 a
which the Credit is awarded, (ii) commits to make at
least $500,000,000 in combined capital improvements
and project costs under the Agreement, (iii) applies
for an Agreement between January 1, 2011 and June 30,
2011, (iv) executes an Agreement for the Credit during
calendar year 2011, and (v) was incorporated no more
than 5 years before the filing of an application for an
Agreement.
(1.5) The election under this subsection (f) may also
be made by a Taxpayer for any Credit awarded pursuant to an
agreement that was executed between January 1, 2011 and
June 30, 2011, if the Taxpayer (i) is primarily engaged in
the manufacture of inner tubes or tires, or both, from
natural and synthetic rubber, (ii) employs a minimum of
2,400 full-time employees in Illinois at the time of
application, (iii) creates at least 350 full-time jobs and
retains at least 250 full-time jobs in Illinois that would
have been at risk of being created or retained outside of
Illinois, and (iv) makes a capital investment of at least
$200,000,000 at the project location.
(1.6) The election under this subsection (f) may also
be made by a Taxpayer for any Credit awarded pursuant to an
agreement that was executed within 150 days after the
effective date of this amendatory Act of the 97th General
Assembly, if the Taxpayer (i) is primarily engaged in the
operation of a discount department store, (ii) maintains

09800SB1227ham003 - 12 - LRB098 07937 JWD 50214 a
its corporate headquarters in Illinois, (iii) employs a
minimum of 4,250 full-time employees at its corporate
headquarters in Illinois at the time of application, (iv)
retains at least 4,250 full-time jobs in Illinois that
would have been at risk of being relocated outside of
Illinois, (v) had a minimum of $40,000,000,000 in total
revenue in 2010, and (vi) makes a capital investment of at
least $300,000,000 at the project location.
(1.7) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by a
Taxpayer for any Credit awarded pursuant to an agreement
that was executed or applied for on or after July 1, 2011
and on or before March 31, 2012, if the Taxpayer is
primarily engaged in the manufacture of original and
aftermarket filtration parts and products for automobiles,
motor vehicles, light duty motor vehicles, light trucks and
utility vehicles, and heavy duty trucks, (ii) employs a
minimum of 1,000 full-time employees in Illinois at the
time of application, (iii) creates at least 250 full-time
jobs in Illinois, (iv) relocates its corporate
headquarters to Illinois from another state, and (v) makes
a capital investment of at least $4,000,000 at the project
location.
(1.8) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by a
Taxpayer for any Credit awarded pursuant to an agreement

09800SB1227ham003 - 13 - LRB098 07937 JWD 50214 a
that was executed within 150 days after the effective date
of this amendatory Act of the 98th General Assembly if the
Taxpayer (i) is primarily engaged in agricultural
processing, (ii) maintains its corporate headquarters in
Illinois, and (iii) exported at least $1,000,000,000 of
goods produced in Illinois in 2012, and the agreement
requires the Taxpayer:
(A) to employ and maintain from among its
employment base in Illinois a minimum of 200 full-time
employees at a global corporate headquarters
established in Illinois by the Taxpayer after the
effective date of this amendatory Act of the 98th
General Assembly; at least 100 of those employees shall
be new hires in full-time equivalent jobs; the
remainder of those employees shall be employed by the
Taxpayer in jobs which would have been at risk of being
relocated outside of Illinois;
(B) to relocate, within 5 years after the effective
date of this amendatory Act of the 98th General
Assembly, at least 100 full-time equivalent positions
from a location outside of Illinois to a location in
the municipality where the Taxpayer's global corporate
headquarters were located on the effective date of this
amendatory Act of the 98th General Assembly and which
will remain the Taxpayer's North American
headquarters; those positions may be filled by new

09800SB1227ham003 - 14 - LRB098 07937 JWD 50214 a
hires or by current employees of the Taxpayer;
(C) in addition to the positions specified in
paragraph (D), to hire at least 100 full-time
equivalent employees annually for a period of 5 years
after the effective date of this amendatory Act of the
98th General Assembly, in positions that are new, open,
or vacated, in order to support employment levels in
the municipality where the Taxpayer's global corporate
headquarters were located on the effective date of this
amendatory Act of the 98th General Assembly and which
will remain the Taxpayer's North American
headquarters;
(D) to establish and maintain an internal
committee for a period of 5 years after the effective
date of this amendatory Act of the 98th General
Assembly to facilitate and promote the creation of
positions for new employees and new employment in the
municipality where its global corporate headquarters
were located on the effective date of this amendatory
Act of the 98th General Assembly and which will remain
the Taxpayer's North American headquarters; and
(E) to incur at least $20,000,000 in a combination
of capital and relocation expenses in connection with
the relocation of its global corporate headquarters.
(2) An election under this subsection shall allow the
credit to be taken against payments otherwise due under

09800SB1227ham003 - 15 - LRB098 07937 JWD 50214 a
Section 704A of the Illinois Income Tax Act during the
first calendar year beginning after the end of the taxable
year in which the credit is awarded under this Act.
(3) The election shall be made in the form and manner
required by the Illinois Department of Revenue and, once
made, shall be irrevocable.
(4) If a Taxpayer who meets the requirements of
subparagraph (A) of paragraph (1) of this subsection (f)
elects to claim the Credit against its withholdings as
provided in this subsection (f), then, on and after the
date of the election, the terms of the Agreement between
the Taxpayer and the Department may not be further amended
during the term of the Agreement.
(g) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat
some or all of the credit awarded pursuant to this Act as a tax
payment for purposes of the Illinois Income Tax Act. The term
"tax payment" means a payment as described in Article 6 or
Article 8 of the Illinois Income Tax Act or a composite payment
made by a pass-through entity on behalf of any of its
shareholders or partners to satisfy such shareholders' or
partners' taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act. In no event shall
the amount of the award credited pursuant to this Act exceed
the Illinois income tax liability of the pass-through entity or
its shareholders or partners for the taxable year.

09800SB1227ham003 - 16 - LRB098 07937 JWD 50214 a
(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.".