Illinois 2025-2026 Regular Session

Illinois House Bill HB3480 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3480 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 35 ILCS 105/3 from Ch. 120, par. 439.335 ILCS 105/3-2735 ILCS 110/3 from Ch. 120, par. 439.3335 ILCS 110/3-2735 ILCS 115/3 from Ch. 120, par. 439.10335 ILCS 115/3-2735 ILCS 120/235 ILCS 120/2-2735 ILCS 630/2 from Ch. 120, par. 2002 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Telecommunications Excise Tax Act. Provides that prepaid telephone calling arrangements shall be subject to the tax imposed under those Acts only if the telephone or telecommunications services and the recharge of such services are obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. Provides that, on and after January 1, 2026, "prepaid telephone calling arrangements" do not include a recharge that is not obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. Provides that "prepaid telephone calling arrangements" include the recharge of a prepaid calling arrangement if and only if, on and after January 1, 2026, the additional telephone or telecommunications services included in the recharge are obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. LRB104 11072 HLH 21154 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3480 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 35 ILCS 105/3 from Ch. 120, par. 439.335 ILCS 105/3-2735 ILCS 110/3 from Ch. 120, par. 439.3335 ILCS 110/3-2735 ILCS 115/3 from Ch. 120, par. 439.10335 ILCS 115/3-2735 ILCS 120/235 ILCS 120/2-2735 ILCS 630/2 from Ch. 120, par. 2002 35 ILCS 105/3 from Ch. 120, par. 439.3 35 ILCS 105/3-27 35 ILCS 110/3 from Ch. 120, par. 439.33 35 ILCS 110/3-27 35 ILCS 115/3 from Ch. 120, par. 439.103 35 ILCS 115/3-27 35 ILCS 120/2 35 ILCS 120/2-27 35 ILCS 630/2 from Ch. 120, par. 2002 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Telecommunications Excise Tax Act. Provides that prepaid telephone calling arrangements shall be subject to the tax imposed under those Acts only if the telephone or telecommunications services and the recharge of such services are obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. Provides that, on and after January 1, 2026, "prepaid telephone calling arrangements" do not include a recharge that is not obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. Provides that "prepaid telephone calling arrangements" include the recharge of a prepaid calling arrangement if and only if, on and after January 1, 2026, the additional telephone or telecommunications services included in the recharge are obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. LRB104 11072 HLH 21154 b LRB104 11072 HLH 21154 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3480 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3 from Ch. 120, par. 439.335 ILCS 105/3-2735 ILCS 110/3 from Ch. 120, par. 439.3335 ILCS 110/3-2735 ILCS 115/3 from Ch. 120, par. 439.10335 ILCS 115/3-2735 ILCS 120/235 ILCS 120/2-2735 ILCS 630/2 from Ch. 120, par. 2002 35 ILCS 105/3 from Ch. 120, par. 439.3 35 ILCS 105/3-27 35 ILCS 110/3 from Ch. 120, par. 439.33 35 ILCS 110/3-27 35 ILCS 115/3 from Ch. 120, par. 439.103 35 ILCS 115/3-27 35 ILCS 120/2 35 ILCS 120/2-27 35 ILCS 630/2 from Ch. 120, par. 2002
4	4	35 ILCS 105/3 from Ch. 120, par. 439.3
5	5	35 ILCS 105/3-27
6	6	35 ILCS 110/3 from Ch. 120, par. 439.33
7	7	35 ILCS 110/3-27
8	8	35 ILCS 115/3 from Ch. 120, par. 439.103
9	9	35 ILCS 115/3-27
10	10	35 ILCS 120/2
11	11	35 ILCS 120/2-27
12	12	35 ILCS 630/2 from Ch. 120, par. 2002
13	13	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Telecommunications Excise Tax Act. Provides that prepaid telephone calling arrangements shall be subject to the tax imposed under those Acts only if the telephone or telecommunications services and the recharge of such services are obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. Provides that, on and after January 1, 2026, "prepaid telephone calling arrangements" do not include a recharge that is not obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. Provides that "prepaid telephone calling arrangements" include the recharge of a prepaid calling arrangement if and only if, on and after January 1, 2026, the additional telephone or telecommunications services included in the recharge are obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property.
14	14	LRB104 11072 HLH 21154 b LRB104 11072 HLH 21154 b
15	15	LRB104 11072 HLH 21154 b
16	16	A BILL FOR
17	17	HB3480LRB104 11072 HLH 21154 b HB3480 LRB104 11072 HLH 21154 b
18	18	HB3480 LRB104 11072 HLH 21154 b
19	19	1 AN ACT concerning revenue.
20	20	2 Be it enacted by the People of the State of Illinois,
21	21	3 represented in the General Assembly:
22	22	4 Section 5. The Use Tax Act is amended by changing Sections
23	23	5 3 and 3-27 as follows:
24	24	6 (35 ILCS 105/3) (from Ch. 120, par. 439.3)
25	25	7 Sec. 3. Tax imposed. A tax is imposed upon the privilege of
26	26	8 using in this State tangible personal property purchased,
27	27	9 which, on and after January 1, 2025, includes leased, at
28	28	10 retail from a retailer, including computer software, and
29	29	11 including photographs, negatives, and positives that are the
30	30	12 product of photoprocessing, but not including products of
31	31	13 photoprocessing produced for use in motion pictures for
32	32	14 commercial exhibition. Beginning January 1, 2001 and through
33	33	15 December 31, 2025, prepaid telephone calling arrangements
34	34	16 shall be considered tangible personal property subject to the
35	35	17 tax imposed under this Act regardless of the form in which
36	36	18 those arrangements may be embodied, transmitted, or fixed by
37	37	19 any method now known or hereafter developed. On and after
38	38	20 January 1, 2026, prepaid telephone calling arrangements shall
39	39	21 be subject to the tax imposed under this Act only if the
40	40	22 telephone or telecommunications services and the recharge of
41	41	23 such services are obtained through the purchase of a preloaded
42	42
43	43
44	44
45	45	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3480 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
46	46	35 ILCS 105/3 from Ch. 120, par. 439.335 ILCS 105/3-2735 ILCS 110/3 from Ch. 120, par. 439.3335 ILCS 110/3-2735 ILCS 115/3 from Ch. 120, par. 439.10335 ILCS 115/3-2735 ILCS 120/235 ILCS 120/2-2735 ILCS 630/2 from Ch. 120, par. 2002 35 ILCS 105/3 from Ch. 120, par. 439.3 35 ILCS 105/3-27 35 ILCS 110/3 from Ch. 120, par. 439.33 35 ILCS 110/3-27 35 ILCS 115/3 from Ch. 120, par. 439.103 35 ILCS 115/3-27 35 ILCS 120/2 35 ILCS 120/2-27 35 ILCS 630/2 from Ch. 120, par. 2002
47	47	35 ILCS 105/3 from Ch. 120, par. 439.3
48	48	35 ILCS 105/3-27
49	49	35 ILCS 110/3 from Ch. 120, par. 439.33
50	50	35 ILCS 110/3-27
51	51	35 ILCS 115/3 from Ch. 120, par. 439.103
52	52	35 ILCS 115/3-27
53	53	35 ILCS 120/2
54	54	35 ILCS 120/2-27
55	55	35 ILCS 630/2 from Ch. 120, par. 2002
56	56	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Telecommunications Excise Tax Act. Provides that prepaid telephone calling arrangements shall be subject to the tax imposed under those Acts only if the telephone or telecommunications services and the recharge of such services are obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. Provides that, on and after January 1, 2026, "prepaid telephone calling arrangements" do not include a recharge that is not obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property. Provides that "prepaid telephone calling arrangements" include the recharge of a prepaid calling arrangement if and only if, on and after January 1, 2026, the additional telephone or telecommunications services included in the recharge are obtained through the purchase of a preloaded phone, calling card, or other item of tangible personal property.
57	57	LRB104 11072 HLH 21154 b LRB104 11072 HLH 21154 b
58	58	LRB104 11072 HLH 21154 b
59	59	A BILL FOR
60	60
61	61
62	62
63	63
64	64
65	65	35 ILCS 105/3 from Ch. 120, par. 439.3
66	66	35 ILCS 105/3-27
67	67	35 ILCS 110/3 from Ch. 120, par. 439.33
68	68	35 ILCS 110/3-27
69	69	35 ILCS 115/3 from Ch. 120, par. 439.103
70	70	35 ILCS 115/3-27
71	71	35 ILCS 120/2
72	72	35 ILCS 120/2-27
73	73	35 ILCS 630/2 from Ch. 120, par. 2002
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92	92	1 phone, calling card, or other item of tangible personal
93	93	2 property. Purchases of (1) electricity delivered to customers
94	94	3 by wire; (2) natural or artificial gas that is delivered to
95	95	4 customers through pipes, pipelines, or mains; and (3) water
96	96	5 that is delivered to customers through pipes, pipelines, or
97	97	6 mains are not subject to tax under this Act. The provisions of
98	98	7 Public Act 98-583 this amendatory Act of the 98th General
99	99	8 Assembly are declaratory of existing law as to the meaning and
100	100	9 scope of this Act.
101	101	10 The imposition of the tax under this Act on the privilege
102	102	11 of using tangible personal property leased at retail applies
103	103	12 to leases of tangible personal property in effect, entered
104	104	13 into, or renewed on or after January 1, 2025. In the case of
105	105	14 leases, except as otherwise provided in this Act, the lessor,
106	106	15 in collecting the tax, may collect for each tax return period,
107	107	16 only the tax applicable to that part of the selling price
108	108	17 actually received during such tax return period.
109	109	18 The inclusion of leases in the tax imposed under this Act
110	110	19 by this amendatory Act of the 103rd General Assembly does not,
111	111	20 however, extend to motor vehicles, watercraft, aircraft, and
112	112	21 semitrailers, as defined in Section 1-187 of the Illinois
113	113	22 Vehicle Code, that are required to be registered with an
114	114	23 agency of this State. The taxation of these items shall
115	115	24 continue in effect as prior to the effective date of the
116	116	25 changes made to this Section by this amendatory Act of the
117	117	26 103rd General Assembly (i.e. dealers owe retailers' occupation
118	118
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128	128	1 tax, lessors owe use tax, and lessees are not subject to
129	129	2 retailers' occupation or use tax).
130	130	3 (Source: P.A. 103-592, eff. 1-1-25.)
131	131	4 (35 ILCS 105/3-27)
132	132	5 Sec. 3-27. Prepaid telephone calling arrangements.
133	133	6 "Prepaid telephone calling arrangements" mean the right to
134	134	7 exclusively purchase telephone or telecommunications services
135	135	8 that must be paid for in advance and enable the origination of
136	136	9 one or more intrastate, interstate, or international telephone
137	137	10 calls or other telecommunications using an access number, an
138	138	11 authorization code, or both, whether manually or
139	139	12 electronically dialed, for which payment to a retailer must be
140	140	13 made in advance, provided that, unless recharged, no further
141	141	14 service is provided once that prepaid amount of service has
142	142	15 been consumed, and provided further that, on and after
143	143	16 December 31, 2025, the telephone or telecommunications
144	144	17 services included in such arrangement are obtained through the
145	145	18 purchase of a preloaded phone, calling card, or other item of
146	146	19 tangible personal property. Prepaid telephone calling
147	147	20 arrangements include the recharge of a prepaid calling
148	148	21 arrangement if and only if, on and after January 1, 2026, the
149	149	22 telephone or telecommunications services included in such
150	150	23 arrangement are obtained through the purchase of a preloaded
151	151	24 phone, calling card, or other item of tangible personal
152	152	25 property. For purposes of this Section, "recharge" means the
153	153
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163	163	1 purchase of additional prepaid telephone or telecommunications
164	164	2 services whether or not the purchaser acquires a different
165	165	3 access number or authorization code. For purposes of this
166	166	4 Section, "telecommunications" means that term as defined in
167	167	5 Section 2 of the Telecommunications Excise Tax Act. "Prepaid
168	168	6 telephone calling arrangement" does not include an arrangement
169	169	7 whereby the service provider reflects the amount of a purchase
170	170	8 as a credit on an account for a customer under an existing
171	171	9 subscription plan, nor, on and after January 1, 2026, does it
172	172	10 include a recharge that is not obtained through the purchase
173	173	11 of a preloaded phone, calling card, or other item of tangible
174	174	12 personal property.
175	175	13 (Source: P.A. 91-870, eff. 6-22-00.)
176	176	14 Section 10. The Service Use Tax Act is amended by changing
177	177	15 Sections 3 and 3-27 as follows:
178	178	16 (35 ILCS 110/3) (from Ch. 120, par. 439.33)
179	179	17 Sec. 3. Tax imposed. A tax is imposed upon the privilege of
180	180	18 using in this State real or tangible personal property
181	181	19 acquired, which, on and after January 1, 2025, includes
182	182	20 tangible personal property acquired through a lease, as an
183	183	21 incident to the purchase of a service from a serviceman,
184	184	22 including computer software, and including photographs,
185	185	23 negatives, and positives that are the product of
186	186	24 photoprocessing, but not including products of photoprocessing
187	187
188	188
189	189
190	190
191	191
192	192	HB3480 - 4 - LRB104 11072 HLH 21154 b
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196	196	HB3480 - 5 - LRB104 11072 HLH 21154 b
197	197	1 produced for use in motion pictures for public commercial
198	198	2 exhibition. Beginning January 1, 2001 and through December 31,
199	199	3 2025, prepaid telephone calling arrangements shall be
200	200	4 considered tangible personal property subject to the tax
201	201	5 imposed under this Act regardless of the form in which those
202	202	6 arrangements may be embodied, transmitted, or fixed by any
203	203	7 method now known or hereafter developed. On and after January
204	204	8 1, 2026, prepaid telephone calling arrangements shall be
205	205	9 subject to the tax imposed under this Act only if the telephone
206	206	10 or telecommunications services and the recharge of such
207	207	11 services are obtained through the purchase of a preloaded
208	208	12 phone, calling card, or other item of tangible personal
209	209	13 property. Purchases of (1) electricity delivered to customers
210	210	14 by wire; (2) natural or artificial gas that is delivered to
211	211	15 customers through pipes, pipelines, or mains; and (3) water
212	212	16 that is delivered to customers through pipes, pipelines, or
213	213	17 mains are not subject to tax under this Act. The provisions of
214	214	18 Public Act 98-583 this amendatory Act of the 98th General
215	215	19 Assembly are declaratory of existing law as to the meaning and
216	216	20 scope of this Act.
217	217	21 The imposition of the tax under this Act on leases applies
218	218	22 to leases of tangible personal property in effect, entered
219	219	23 into, or renewed on or after January 1, 2025. In the case of
220	220	24 leases, except as otherwise provided in this Act, the
221	221	25 serviceman who is a lessor, in collecting the tax, may collect
222	222	26 for each tax return period only the tax applicable to that part
223	223
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225	225
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233	233	1 of the selling price actually received during such tax return
234	234	2 period.
235	235	3 (Source: P.A. 103-592, eff. 1-1-25.)
236	236	4 (35 ILCS 110/3-27)
237	237	5 Sec. 3-27. Prepaid telephone calling arrangements.
238	238	6 "Prepaid telephone calling arrangements" mean the right to
239	239	7 exclusively purchase telephone or telecommunications services
240	240	8 that must be paid for in advance and enable the origination of
241	241	9 one or more intrastate, interstate, or international telephone
242	242	10 calls or other telecommunications using an access number, an
243	243	11 authorization code, or both, whether manually or
244	244	12 electronically dialed, for which payment to a retailer must be
245	245	13 made in advance, provided that, unless recharged, no further
246	246	14 service is provided once that prepaid amount of service has
247	247	15 been consumed, nor, on and after January 1, 2026, does it
248	248	16 include a recharge that is not obtained through the purchase
249	249	17 of a preloaded phone, calling card, or other item of tangible
250	250	18 personal property. Prepaid telephone calling arrangements
251	251	19 include the recharge of a prepaid calling arrangement if and
252	252	20 only if, on and after January 1, 2026, the additional
253	253	21 telephone or telecommunications services included in the
254	254	22 recharge are obtained through the purchase of a preloaded
255	255	23 phone, calling card, or other item of tangible personal
256	256	24 property. For purposes of this Section, "recharge" means the
257	257	25 purchase of additional prepaid telephone or telecommunications
258	258
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268	268	1 services whether or not the purchaser acquires a different
269	269	2 access number or authorization code. For purposes of this
270	270	3 Section, "telecommunications" means that term as defined in
271	271	4 Section 2 of the Telecommunications Excise Tax Act. "Prepaid
272	272	5 telephone calling arrangement" does not include an arrangement
273	273	6 whereby the service provider reflects the amount of the
274	274	7 purchase as a credit on an account for a customer under an
275	275	8 existing subscription plan, nor, on and after January 1, 2026,
276	276	9 does it include a recharge that is not obtained through the
277	277	10 purchase of a preloaded phone, calling card, or other item of
278	278	11 tangible personal property.
279	279	12 (Source: P.A. 91-870, eff. 6-22-00.)
280	280	13 Section 15. The Service Occupation Tax Act is amended by
281	281	14 changing Sections 3 and 3-27 as follows:
282	282	15 (35 ILCS 115/3) (from Ch. 120, par. 439.103)
283	283	16 Sec. 3. Tax imposed. A tax is imposed upon all persons
284	284	17 engaged in the business of making sales of service (referred
285	285	18 to as "servicemen") on all tangible personal property
286	286	19 transferred, including, on and after January 1, 2025,
287	287	20 transferred by lease, as an incident of a sale of service,
288	288	21 including computer software, and including photographs,
289	289	22 negatives, and positives that are the product of
290	290	23 photoprocessing, but not including products of photoprocessing
291	291	24 produced for use in motion pictures for public commercial
292	292
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302	302	1 exhibition. Beginning January 1, 2001 and through December 31,
303	303	2 2025, prepaid telephone calling arrangements shall be
304	304	3 considered tangible personal property subject to the tax
305	305	4 imposed under this Act regardless of the form in which those
306	306	5 arrangements may be embodied, transmitted, or fixed by any
307	307	6 method now known or hereafter developed. On and after January
308	308	7 1, 2026, prepaid telephone calling arrangements shall be
309	309	8 subject to the tax imposed under this Act only if the telephone
310	310	9 or telecommunications services and the recharge of such
311	311	10 services are obtained through the purchase of a preloaded
312	312	11 phone, calling card, or other item of tangible personal
313	313	12 property. Sales of (1) electricity delivered to customers by
314	314	13 wire; (2) natural or artificial gas that is delivered to
315	315	14 customers through pipes, pipelines, or mains; and (3) water
316	316	15 that is delivered to customers through pipes, pipelines, or
317	317	16 mains are not subject to tax under this Act. The provisions of
318	318	17 Public Act 98-583 this amendatory Act of the 98th General
319	319	18 Assembly are declaratory of existing law as to the meaning and
320	320	19 scope of this Act.
321	321	20 The imposition of the tax under this Act on tangible
322	322	21 personal property transferred by lease by persons engaged in
323	323	22 the business of making sales of service applies to leases in
324	324	23 effect, entered into, or renewed on or after January 1, 2025.
325	325	24 In the case of leases, except as otherwise provided in this
326	326	25 Act, the serviceman who is a lessor must remit for each tax
327	327	26 return period only the tax applicable to that part of the
328	328
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338	338	1 selling price actually received during such tax return period.
339	339	2 (Source: P.A. 103-592, eff. 1-1-25.)
340	340	3 (35 ILCS 115/3-27)
341	341	4 Sec. 3-27. Prepaid telephone calling arrangements.
342	342	5 "Prepaid telephone calling arrangements" mean the right to
343	343	6 exclusively purchase telephone or telecommunications services
344	344	7 that must be paid for in advance and enable the origination of
345	345	8 one or more intrastate, interstate, or international telephone
346	346	9 calls or other telecommunications using an access number, an
347	347	10 authorization code, or both, whether manually or
348	348	11 electronically dialed, for which payment to a retailer must be
349	349	12 made in advance, provided that, unless recharged, no further
350	350	13 service is provided once that prepaid amount of service has
351	351	14 been consumed, nor, on and after January 1, 2026, does it
352	352	15 include a recharge that is not obtained through the purchase
353	353	16 of a preloaded phone, calling card, or other item of tangible
354	354	17 personal property. Prepaid telephone calling arrangements
355	355	18 include the recharge of a prepaid calling arrangement if and
356	356	19 only if, on and after January 1, 2026, the additional
357	357	20 telephone or telecommunications services included in the
358	358	21 recharge are obtained through the purchase of a preloaded
359	359	22 phone, calling card, or other item of tangible personal
360	360	23 property. For purposes of this Section, "recharge" means the
361	361	24 purchase of additional prepaid telephone or telecommunications
362	362	25 services whether or not the purchaser acquires a different
363	363
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373	373	1 access number or authorization code. For purposes of this
374	374	2 Section, "telecommunications" means that term as defined in
375	375	3 Section 2 of the Telecommunications Excise Tax Act. "Prepaid
376	376	4 telephone calling arrangement" does not include an arrangement
377	377	5 whereby the service provider reflects the amount of the
378	378	6 purchase as a credit on an account for a customer under an
379	379	7 existing subscription plan, nor, on and after January 1, 2026,
380	380	8 does it include a recharge that is not obtained through the
381	381	9 purchase of a preloaded phone, calling card, or other item of
382	382	10 tangible personal property.
383	383	11 (Source: P.A. 91-870, eff. 6-22-00.)
384	384	12 Section 20. The Retailers' Occupation Tax Act is amended
385	385	13 by changing Sections 2 and 2-27 as follows:
386	386	14 (35 ILCS 120/2)
387	387	15 Sec. 2. Tax imposed.
388	388	16 (a) A tax is imposed upon persons engaged in the business
389	389	17 of selling at retail, which, on and after January 1, 2025,
390	390	18 includes leasing, tangible personal property, including
391	391	19 computer software, and including photographs, negatives, and
392	392	20 positives that are the product of photoprocessing, but not
393	393	21 including products of photoprocessing produced for use in
394	394	22 motion pictures for public commercial exhibition. Beginning
395	395	23 January 1, 2001 and through December 31, 2025, prepaid
396	396	24 telephone calling arrangements shall be considered tangible
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407	407	1 personal property subject to the tax imposed under this Act
408	408	2 regardless of the form in which those arrangements may be
409	409	3 embodied, transmitted, or fixed by any method now known or
410	410	4 hereafter developed. On and after January 1, 2026, prepaid
411	411	5 telephone calling arrangements shall be subject to the tax
412	412	6 imposed under this Act only if the telephone or
413	413	7 telecommunications services and the recharge of such services
414	414	8 are obtained through the purchase of a preloaded phone,
415	415	9 calling card, or other item of tangible personal property.
416	416	10 The imposition of the tax under this Act on persons
417	417	11 engaged in the business of leasing tangible personal property
418	418	12 applies to leases in effect, entered into, or renewed on or
419	419	13 after January 1, 2025. In the case of leases, except as
420	420	14 otherwise provided in this Act, the lessor must remit, for
421	421	15 each tax return period, only the tax applicable to that part of
422	422	16 the selling price actually received during such tax return
423	423	17 period.
424	424	18 The inclusion of leases in the tax imposed under this Act
425	425	19 by Public Act 103-592 this amendatory Act of the 103rd General
426	426	20 Assembly does not, however, extend to motor vehicles,
427	427	21 watercraft, aircraft, and semitrailers, as defined in Section
428	428	22 1-187 of the Illinois Vehicle Code, that are required to be
429	429	23 registered with an agency of this State. The taxation of these
430	430	24 items shall continue in effect as prior to the effective date
431	431	25 of the changes made to this Section by Public Act 103-592 this
432	432	26 amendatory Act of the 103rd General Assembly (i.e., dealers
433	433
434	434
435	435
436	436
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443	443	1 owe retailers' occupation tax, lessors owe use tax, and
444	444	2 lessees are not subject to retailers' occupation or use tax).
445	445	3 Sales of (1) electricity delivered to customers by wire;
446	446	4 (2) natural or artificial gas that is delivered to customers
447	447	5 through pipes, pipelines, or mains; and (3) water that is
448	448	6 delivered to customers through pipes, pipelines, or mains are
449	449	7 not subject to tax under this Act. The provisions of Public Act
450	450	8 98-583 this amendatory Act of the 98th General Assembly are
451	451	9 declaratory of existing law as to the meaning and scope of this
452	452	10 Act.
453	453	11 (b) Beginning on January 1, 2021, a remote retailer is
454	454	12 engaged in the occupation of selling at retail in Illinois for
455	455	13 purposes of this Act, if:
456	456	14 (1) the cumulative gross receipts from sales of
457	457	15 tangible personal property to purchasers in Illinois are
458	458	16 $100,000 or more; or
459	459	17 (2) the retailer enters into 200 or more separate
460	460	18 transactions for the sale of tangible personal property to
461	461	19 purchasers in Illinois.
462	462	20 Remote retailers that meet or exceed the threshold in
463	463	21 either paragraph (1) or (2) above shall be liable for all
464	464	22 applicable State retailers' and locally imposed retailers'
465	465	23 occupation taxes administered by the Department on all retail
466	466	24 sales to Illinois purchasers.
467	467	25 The remote retailer shall determine on a quarterly basis,
468	468	26 ending on the last day of March, June, September, and
469	469
470	470
471	471
472	472
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479	479	1 December, whether he or she meets the criteria of either
480	480	2 paragraph (1) or (2) of this subsection for the preceding
481	481	3 12-month period. If the retailer meets the criteria of either
482	482	4 paragraph (1) or (2) for a 12-month period, he or she is
483	483	5 considered a retailer maintaining a place of business in this
484	484	6 State and is required to collect and remit the tax imposed
485	485	7 under this Act and all retailers' occupation tax imposed by
486	486	8 local taxing jurisdictions in Illinois, provided such local
487	487	9 taxes are administered by the Department, and to file all
488	488	10 applicable returns for one year. At the end of that one-year
489	489	11 period, the retailer shall determine whether the retailer met
490	490	12 the criteria of either paragraph (1) or (2) for the preceding
491	491	13 12-month period. If the retailer met the criteria in either
492	492	14 paragraph (1) or (2) for the preceding 12-month period, he or
493	493	15 she is considered a retailer maintaining a place of business
494	494	16 in this State and is required to collect and remit all
495	495	17 applicable State and local retailers' occupation taxes and
496	496	18 file returns for the subsequent year. If, at the end of a
497	497	19 one-year period, a retailer that was required to collect and
498	498	20 remit the tax imposed under this Act determines that he or she
499	499	21 did not meet the criteria in either paragraph (1) or (2) during
500	500	22 the preceding 12-month period, then the retailer shall
501	501	23 subsequently determine on a quarterly basis, ending on the
502	502	24 last day of March, June, September, and December, whether he
503	503	25 or she meets the criteria of either paragraph (1) or (2) for
504	504	26 the preceding 12-month period.
505	505
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507	507
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515	515	1 (b-2) Beginning on January 1, 2025, a retailer maintaining
516	516	2 a place of business in this State that makes retail sales of
517	517	3 tangible personal property to Illinois customers from a
518	518	4 location or locations outside of Illinois is engaged in the
519	519	5 occupation of selling at retail in Illinois for the purposes
520	520	6 of this Act. Those retailers are liable for all applicable
521	521	7 State and locally imposed retailers' occupation taxes
522	522	8 administered by the Department on retail sales made by those
523	523	9 retailers to Illinois customers from locations outside of
524	524	10 Illinois.
525	525	11 (b-5) For the purposes of this Section, neither the gross
526	526	12 receipts from nor the number of separate transactions for
527	527	13 sales of tangible personal property to purchasers in Illinois
528	528	14 that a remote retailer makes through a marketplace facilitator
529	529	15 shall be included for the purposes of determining whether he
530	530	16 or she has met the thresholds of subsection (b) of this Section
531	531	17 so long as the remote retailer has received certification from
532	532	18 the marketplace facilitator that the marketplace facilitator
533	533	19 is legally responsible for payment of tax on such sales.
534	534	20 (b-10) A remote retailer that is required to collect taxes
535	535	21 imposed under the Use Tax Act on retail sales made to Illinois
536	536	22 purchasers or a retailer maintaining a place of business in
537	537	23 this State that is required to collect taxes imposed under the
538	538	24 Use Tax Act on retail sales made to Illinois purchasers shall
539	539	25 be liable to the Department for such taxes, except when the
540	540	26 remote retailer or retailer maintaining a place of business in
541	541
542	542
543	543
544	544
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551	551	1 this State is relieved of the duty to remit such taxes by
552	552	2 virtue of having paid to the Department taxes imposed by this
553	553	3 Act in accordance with this Section upon his or her gross
554	554	4 receipts from such sales.
555	555	5 (c) Marketplace facilitators engaged in the business of
556	556	6 selling at retail tangible personal property in Illinois.
557	557	7 Beginning January 1, 2021, a marketplace facilitator is
558	558	8 engaged in the occupation of selling at retail tangible
559	559	9 personal property in Illinois for purposes of this Act if,
560	560	10 during the previous 12-month period:
561	561	11 (1) the cumulative gross receipts from sales of
562	562	12 tangible personal property on its own behalf or on behalf
563	563	13 of marketplace sellers to purchasers in Illinois equals
564	564	14 $100,000 or more; or
565	565	15 (2) the marketplace facilitator enters into 200 or
566	566	16 more separate transactions on its own behalf or on behalf
567	567	17 of marketplace sellers for the sale of tangible personal
568	568	18 property to purchasers in Illinois, regardless of whether
569	569	19 the marketplace facilitator or marketplace sellers for
570	570	20 whom such sales are facilitated are registered as
571	571	21 retailers in this State.
572	572	22 A marketplace facilitator who meets either paragraph (1)
573	573	23 or (2) of this subsection is required to remit the applicable
574	574	24 State retailers' occupation taxes under this Act and local
575	575	25 retailers' occupation taxes administered by the Department on
576	576	26 all taxable sales of tangible personal property made by the
577	577
578	578
579	579
580	580
581	581
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583	583
584	584
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587	587	1 marketplace facilitator or facilitated for marketplace sellers
588	588	2 to customers in this State. A marketplace facilitator selling
589	589	3 or facilitating the sale of tangible personal property to
590	590	4 customers in this State is subject to all applicable
591	591	5 procedures and requirements of this Act.
592	592	6 The marketplace facilitator shall determine on a quarterly
593	593	7 basis, ending on the last day of March, June, September, and
594	594	8 December, whether he or she meets the criteria of either
595	595	9 paragraph (1) or (2) of this subsection for the preceding
596	596	10 12-month period. If the marketplace facilitator meets the
597	597	11 criteria of either paragraph (1) or (2) for a 12-month period,
598	598	12 he or she is considered a retailer maintaining a place of
599	599	13 business in this State and is required to remit the tax imposed
600	600	14 under this Act and all retailers' occupation tax imposed by
601	601	15 local taxing jurisdictions in Illinois, provided such local
602	602	16 taxes are administered by the Department, and to file all
603	603	17 applicable returns for one year. At the end of that one-year
604	604	18 period, the marketplace facilitator shall determine whether it
605	605	19 met the criteria of either paragraph (1) or (2) for the
606	606	20 preceding 12-month period. If the marketplace facilitator met
607	607	21 the criteria in either paragraph (1) or (2) for the preceding
608	608	22 12-month period, it is considered a retailer maintaining a
609	609	23 place of business in this State and is required to collect and
610	610	24 remit all applicable State and local retailers' occupation
611	611	25 taxes and file returns for the subsequent year. If at the end
612	612	26 of a one-year period a marketplace facilitator that was
613	613
614	614
615	615
616	616
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623	623	1 required to collect and remit the tax imposed under this Act
624	624	2 determines that he or she did not meet the criteria in either
625	625	3 paragraph (1) or (2) during the preceding 12-month period, the
626	626	4 marketplace facilitator shall subsequently determine on a
627	627	5 quarterly basis, ending on the last day of March, June,
628	628	6 September, and December, whether he or she meets the criteria
629	629	7 of either paragraph (1) or (2) for the preceding 12-month
630	630	8 period.
631	631	9 A marketplace facilitator shall be entitled to any
632	632	10 credits, deductions, or adjustments to the sales price
633	633	11 otherwise provided to the marketplace seller, in addition to
634	634	12 any such adjustments provided directly to the marketplace
635	635	13 facilitator. This Section pertains to, but is not limited to,
636	636	14 adjustments such as discounts, coupons, and rebates. In
637	637	15 addition, a marketplace facilitator shall be entitled to the
638	638	16 retailers' discount provided in Section 3 of the Retailers'
639	639	17 Occupation Tax Act on all marketplace sales, and the
640	640	18 marketplace seller shall not include sales made through a
641	641	19 marketplace facilitator when computing any retailers' discount
642	642	20 on remaining sales. Marketplace facilitators shall report and
643	643	21 remit the applicable State and local retailers' occupation
644	644	22 taxes on sales facilitated for marketplace sellers separately
645	645	23 from any sales or use tax collected on taxable retail sales
646	646	24 made directly by the marketplace facilitator or its
647	647	25 affiliates.
648	648	26 The marketplace facilitator is liable for the remittance
649	649
650	650
651	651
652	652
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659	659	1 of all applicable State retailers' occupation taxes under this
660	660	2 Act and local retailers' occupation taxes administered by the
661	661	3 Department on sales through the marketplace and is subject to
662	662	4 audit on all such sales. The Department shall not audit
663	663	5 marketplace sellers for their marketplace sales where a
664	664	6 marketplace facilitator remitted the applicable State and
665	665	7 local retailers' occupation taxes unless the marketplace
666	666	8 facilitator seeks relief as a result of incorrect information
667	667	9 provided to the marketplace facilitator by a marketplace
668	668	10 seller as set forth in this Section. The marketplace
669	669	11 facilitator shall not be held liable for tax on any sales made
670	670	12 by a marketplace seller that take place outside of the
671	671	13 marketplace and which are not a part of any agreement between a
672	672	14 marketplace facilitator and a marketplace seller. In addition,
673	673	15 marketplace facilitators shall not be held liable to State and
674	674	16 local governments of Illinois for having charged and remitted
675	675	17 an incorrect amount of State and local retailers' occupation
676	676	18 tax if, at the time of the sale, the tax is computed based on
677	677	19 erroneous data provided by the State in database files on tax
678	678	20 rates, boundaries, or taxing jurisdictions or incorrect
679	679	21 information provided to the marketplace facilitator by the
680	680	22 marketplace seller.
681	681	23 (d) A marketplace facilitator shall:
682	682	24 (1) certify to each marketplace seller that the
683	683	25 marketplace facilitator assumes the rights and duties of a
684	684	26 retailer under this Act with respect to sales made by the
685	685
686	686
687	687
688	688
689	689
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691	691
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695	695	1 marketplace seller through the marketplace; and
696	696	2 (2) remit taxes imposed by this Act as required by
697	697	3 this Act for sales made through the marketplace.
698	698	4 (e) A marketplace seller shall retain books and records
699	699	5 for all sales made through a marketplace in accordance with
700	700	6 the requirements of this Act.
701	701	7 (f) A marketplace facilitator is subject to audit on all
702	702	8 marketplace sales for which it is considered to be the
703	703	9 retailer, but shall not be liable for tax or subject to audit
704	704	10 on sales made by marketplace sellers outside of the
705	705	11 marketplace.
706	706	12 (g) A marketplace facilitator required to collect taxes
707	707	13 imposed under the Use Tax Act on marketplace sales made to
708	708	14 Illinois purchasers shall be liable to the Department for such
709	709	15 taxes, except when the marketplace facilitator is relieved of
710	710	16 the duty to remit such taxes by virtue of having paid to the
711	711	17 Department taxes imposed by this Act in accordance with this
712	712	18 Section upon his or her gross receipts from such sales.
713	713	19 (h) Nothing in this Section shall allow the Department to
714	714	20 collect retailers' occupation taxes from both the marketplace
715	715	21 facilitator and marketplace seller on the same transaction.
716	716	22 (i) If, for any reason, the Department is prohibited from
717	717	23 enforcing the marketplace facilitator's duty under this Act to
718	718	24 remit taxes pursuant to this Section, the duty to remit such
719	719	25 taxes remains with the marketplace seller.
720	720	26 (j) Nothing in this Section affects the obligation of any
721	721
722	722
723	723
724	724
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731	731	1 consumer to remit use tax for any taxable transaction for
732	732	2 which a certified service provider acting on behalf of a
733	733	3 remote retailer or a marketplace facilitator does not collect
734	734	4 and remit the appropriate tax.
735	735	5 (k) Nothing in this Section shall allow the Department to
736	736	6 collect the retailers' occupation tax from both the
737	737	7 marketplace facilitator and the marketplace seller.
738	738	8 (Source: P.A. 103-592, eff. 1-1-25; 103-983, eff. 1-1-25;
739	739	9 revised 11-26-24.)
740	740	10 (35 ILCS 120/2-27)
741	741	11 Sec. 2-27. Prepaid telephone calling arrangements.
742	742	12 "Prepaid telephone calling arrangements" mean the right to
743	743	13 exclusively purchase telephone or telecommunications services
744	744	14 that must be paid for in advance and enable the origination of
745	745	15 one or more intrastate, interstate, or international telephone
746	746	16 calls or other telecommunications using an access number, an
747	747	17 authorization code, or both, whether manually or
748	748	18 electronically dialed, for which payment to a retailer must be
749	749	19 made in advance, provided that, unless recharged, no further
750	750	20 service is provided once that prepaid amount of service has
751	751	21 been consumed, and provided further that, on and after January
752	752	22 1, 2026, the telephone or telecommunications services included
753	753	23 in such arrangement are obtained through the purchase of a
754	754	24 preloaded phone, calling card, or other item of tangible
755	755	25 personal property. Prepaid telephone calling arrangements
756	756
757	757
758	758
759	759
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766	766	1 include the recharge of a prepaid calling arrangement if and
767	767	2 only if, on and after January 1, 2026, the additional
768	768	3 telephone or telecommunications services included in the
769	769	4 recharge are obtained through the purchase of a preloaded
770	770	5 phone, calling card, or other item of tangible personal
771	771	6 property. For purposes of this Section, "recharge" means the
772	772	7 purchase of additional prepaid telephone or telecommunications
773	773	8 services whether or not the purchaser acquires a different
774	774	9 access number or authorization code. For purposes of this
775	775	10 Section, "telecommunications" means that term as defined in
776	776	11 Section 2 of the Telecommunications Excise Tax Act. "Prepaid
777	777	12 telephone calling arrangement" does not include an arrangement
778	778	13 whereby the service provider reflects the amount of the
779	779	14 purchase as a credit on an account for a customer under an
780	780	15 existing subscription plan, nor, on and after January 1, 2026,
781	781	16 does it include a recharge that is not obtained through the
782	782	17 purchase of a preloaded phone, calling card, or other item of
783	783	18 tangible personal property.
784	784	19 (Source: P.A. 103-781, eff. 8-5-24; 103-1055, eff. 12-20-24.)
785	785	20 Section 25. The Telecommunications Excise Tax Act is
786	786	21 amended by changing Section 2 as follows:
787	787	22 (35 ILCS 630/2) (from Ch. 120, par. 2002)
788	788	23 Sec. 2. As used in this Article, unless the context
789	789	24 clearly requires otherwise:
790	790
791	791
792	792
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800	800	1 (a) "Gross charge" means the amount paid for the act or
801	801	2 privilege of originating or receiving telecommunications in
802	802	3 this State and for all services and equipment provided in
803	803	4 connection therewith by a retailer, valued in money whether
804	804	5 paid in money or otherwise, including cash, credits, services,
805	805	6 and property of every kind or nature, and shall be determined
806	806	7 without any deduction on account of the cost of such
807	807	8 telecommunications, the cost of materials used, labor or
808	808	9 service costs, or any other expense whatsoever. In case credit
809	809	10 is extended, the amount thereof shall be included only as and
810	810	11 when paid. "Gross charges" for private line service shall
811	811	12 include charges imposed at each channel termination point
812	812	13 within this State, charges for the channel mileage between
813	813	14 each channel termination point within this State, and charges
814	814	15 for that portion of the interstate inter-office channel
815	815	16 provided within Illinois. Charges for that portion of the
816	816	17 interstate inter-office channel provided in Illinois shall be
817	817	18 determined by the retailer as follows: (i) for interstate
818	818	19 inter-office channels having 2 channel termination points,
819	819	20 only one of which is in Illinois, 50% of the total charge
820	820	21 imposed; or (ii) for interstate inter-office channels having
821	821	22 more than 2 channel termination points, one or more of which
822	822	23 are in Illinois, an amount equal to the total charge
823	823	24 multiplied by a fraction, the numerator of which is the number
824	824	25 of channel termination points within Illinois and the
825	825	26 denominator of which is the total number of channel
826	826
827	827
828	828
829	829
830	830
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832	832
833	833
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836	836	1 termination points. Prior to January 1, 2004, any method
837	837	2 consistent with this paragraph or other method that reasonably
838	838	3 apportions the total charges for interstate inter-office
839	839	4 channels among the states in which channel terminations points
840	840	5 are located shall be accepted as a reasonable method to
841	841	6 determine the charges for that portion of the interstate
842	842	7 inter-office channel provided within Illinois for that period.
843	843	8 However, "gross charges" shall not include any of the
844	844	9 following:
845	845	10 (1) Any amounts added to a purchaser's bill because of
846	846	11 a charge made pursuant to (i) the tax imposed by this
847	847	12 Article; (ii) charges added to customers' bills pursuant
848	848	13 to the provisions of Section Sections 9-221 or 9-222 of
849	849	14 the Public Utilities Act, as amended, or any similar
850	850	15 charges added to customers' bills by retailers who are not
851	851	16 subject to rate regulation by the Illinois Commerce
852	852	17 Commission for the purpose of recovering any of the tax
853	853	18 liabilities or other amounts specified in such provisions
854	854	19 of such Act; (iii) the tax imposed by Section 4251 of the
855	855	20 Internal Revenue Code; (iv) 911 surcharges; or (v) the tax
856	856	21 imposed by the Simplified Municipal Telecommunications Tax
857	857	22 Act.
858	858	23 (2) Charges for a sent collect telecommunication
859	859	24 received outside of the State.
860	860	25 (3) Charges for leased time on equipment or charges
861	861	26 for the storage of data or information for subsequent
862	862
863	863
864	864
865	865
866	866
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868	868
869	869
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872	872	1 retrieval or the processing of data or information
873	873	2 intended to change its form or content. Such equipment
874	874	3 includes, but is not limited to, the use of calculators,
875	875	4 computers, data processing equipment, tabulating
876	876	5 equipment, or accounting equipment and also includes the
877	877	6 usage of computers under a time-sharing agreement.
878	878	7 (4) Charges for customer equipment, including such
879	879	8 equipment that is leased or rented by the customer from
880	880	9 any source, wherein such charges are disaggregated and
881	881	10 separately identified from other charges.
882	882	11 (5) Charges to business enterprises certified under
883	883	12 Section 9-222.1 of the Public Utilities Act, as amended,
884	884	13 or under Section 95 of the Reimagining Energy and Vehicles
885	885	14 in Illinois Act, to the extent of such exemption and
886	886	15 during the period of time specified by the Department of
887	887	16 Commerce and Economic Opportunity.
888	888	17 (5.1) Charges to business enterprises certified under
889	889	18 the Manufacturing Illinois Chips for Real Opportunity
890	890	19 (MICRO) Act, to the extent of the exemption and during the
891	891	20 period of time specified by the Department of Commerce and
892	892	21 Economic Opportunity.
893	893	22 (5.2) Charges to entities certified under Section
894	894	23 605-1115 of the Department of Commerce and Economic
895	895	24 Opportunity Law of the Civil Administrative Code of
896	896	25 Illinois to the extent of the exemption and during the
897	897	26 period of time specified by the Department of Commerce and
898	898
899	899
900	900
901	901
902	902
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904	904
905	905
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907	907	HB3480 - 25 - LRB104 11072 HLH 21154 b
908	908	1 Economic Opportunity.
909	909	2 (6) Charges for telecommunications and all services
910	910	3 and equipment provided in connection therewith between a
911	911	4 parent corporation and its wholly owned subsidiaries or
912	912	5 between wholly owned subsidiaries when the tax imposed
913	913	6 under this Article has already been paid to a retailer and
914	914	7 only to the extent that the charges between the parent
915	915	8 corporation and wholly owned subsidiaries or between
916	916	9 wholly owned subsidiaries represent expense allocation
917	917	10 between the corporations and not the generation of profit
918	918	11 for the corporation rendering such service.
919	919	12 (7) Bad debts. Bad debt means any portion of a debt
920	920	13 that is related to a sale at retail for which gross charges
921	921	14 are not otherwise deductible or excludable that has become
922	922	15 worthless or uncollectable, as determined under applicable
923	923	16 federal income tax standards. If the portion of the debt
924	924	17 deemed to be bad is subsequently paid, the retailer shall
925	925	18 report and pay the tax on that portion during the
926	926	19 reporting period in which the payment is made.
927	927	20 (8) Charges paid by inserting coins in coin-operated
928	928	21 telecommunication devices.
929	929	22 (9) Amounts paid by telecommunications retailers under
930	930	23 the Telecommunications Municipal Infrastructure
931	931	24 Maintenance Fee Act.
932	932	25 (10) Charges for nontaxable services or
933	933	26 telecommunications if (i) those charges are aggregated
934	934
935	935
936	936
937	937
938	938
939	939	HB3480 - 25 - LRB104 11072 HLH 21154 b
940	940
941	941
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943	943	HB3480 - 26 - LRB104 11072 HLH 21154 b
944	944	1 with other charges for telecommunications that are
945	945	2 taxable, (ii) those charges are not separately stated on
946	946	3 the customer bill or invoice, and (iii) the retailer can
947	947	4 reasonably identify the nontaxable charges on the
948	948	5 retailer's books and records kept in the regular course of
949	949	6 business. If the nontaxable charges cannot reasonably be
950	950	7 identified, the gross charge from the sale of both taxable
951	951	8 and nontaxable services or telecommunications billed on a
952	952	9 combined basis shall be attributed to the taxable services
953	953	10 or telecommunications. The burden of proving nontaxable
954	954	11 charges shall be on the retailer of the
955	955	12 telecommunications.
956	956	13 (b) "Amount paid" means the amount charged to the
957	957	14 taxpayer's service address in this State regardless of where
958	958	15 such amount is billed or paid.
959	959	16 (c) "Telecommunications", in addition to the meaning
960	960	17 ordinarily and popularly ascribed to it, includes, without
961	961	18 limitation, messages or information transmitted through use of
962	962	19 local, toll, and wide area telephone service; private line
963	963	20 services; channel services; telegraph services;
964	964	21 teletypewriter; computer exchange services; cellular mobile
965	965	22 telecommunications service; specialized mobile radio;
966	966	23 stationary 2-way two way radio; paging service; or any other
967	967	24 form of mobile and portable one-way or 2-way two-way
968	968	25 communications; or any other transmission of messages or
969	969	26 information by electronic or similar means, between or among
970	970
971	971
972	972
973	973
974	974
975	975	HB3480 - 26 - LRB104 11072 HLH 21154 b
976	976
977	977
978	978	HB3480- 27 -LRB104 11072 HLH 21154 b HB3480 - 27 - LRB104 11072 HLH 21154 b
979	979	HB3480 - 27 - LRB104 11072 HLH 21154 b
980	980	1 points by wire, cable, fiber optics fiber-optics, laser,
981	981	2 microwave, radio, satellite, or similar facilities. As used in
982	982	3 this Act, "private line" means a dedicated non-traffic
983	983	4 sensitive service for a single customer, that entitles the
984	984	5 customer to exclusive or priority use of a communications
985	985	6 channel or group of channels, from one or more specified
986	986	7 locations to one or more other specified locations. The
987	987	8 definition of "telecommunications" shall not include value
988	988	9 added services in which computer processing applications are
989	989	10 used to act on the form, content, code, and protocol of the
990	990	11 information for purposes other than transmission.
991	991	12 "Telecommunications" shall not include purchases of
992	992	13 telecommunications by a telecommunications service provider
993	993	14 for use as a component part of the service provided by him to
994	994	15 the ultimate retail consumer who originates or terminates the
995	995	16 taxable end-to-end communications. Carrier access charges,
996	996	17 right of access charges, charges for use of inter-company
997	997	18 facilities, and all telecommunications resold in the
998	998	19 subsequent provision of, used as a component of, or integrated
999	999	20 into end-to-end telecommunications service shall be
1000	1000	21 non-taxable as sales for resale.
1001	1001	22 (d) "Interstate telecommunications" means all
1002	1002	23 telecommunications that either originate or terminate outside
1003	1003	24 this State.
1004	1004	25 (e) "Intrastate telecommunications" means all
1005	1005	26 telecommunications that originate and terminate within this
1006	1006
1007	1007
1008	1008
1009	1009
1010	1010
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1012	1012
1013	1013
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1015	1015	HB3480 - 28 - LRB104 11072 HLH 21154 b
1016	1016	1 State.
1017	1017	2 (f) "Department" means the Department of Revenue of the
1018	1018	3 State of Illinois.
1019	1019	4 (g) "Director" means the Director of Revenue for the
1020	1020	5 Department of Revenue of the State of Illinois.
1021	1021	6 (h) "Taxpayer" means a person who individually or through
1022	1022	7 his agents, employees, or permittees engages in the act or
1023	1023	8 privilege of originating or receiving telecommunications in
1024	1024	9 this State and who incurs a tax liability under this Article.
1025	1025	10 (i) "Person" means any natural individual, firm, trust,
1026	1026	11 estate, partnership, association, joint stock company, joint
1027	1027	12 venture, corporation, limited liability company, or a
1028	1028	13 receiver, trustee, guardian or other representative appointed
1029	1029	14 by order of any court, the federal Federal and State
1030	1030	15 governments, including State universities created by statute
1031	1031	16 or any city, town, county, or other political subdivision of
1032	1032	17 this State.
1033	1033	18 (j) "Purchase at retail" means the acquisition,
1034	1034	19 consumption, or use of telecommunication through a sale at
1035	1035	20 retail.
1036	1036	21 (k) "Sale at retail" means the transmitting, supplying, or
1037	1037	22 furnishing of telecommunications and all services and
1038	1038	23 equipment provided in connection therewith for a consideration
1039	1039	24 to persons other than the federal Federal and State
1040	1040	25 governments, and State universities created by statute and
1041	1041	26 other than between a parent corporation and its wholly owned
1042	1042
1043	1043
1044	1044
1045	1045
1046	1046
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1048	1048
1049	1049
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1052	1052	1 subsidiaries or between wholly owned subsidiaries for their
1053	1053	2 use or consumption and not for resale.
1054	1054	3 (l) "Retailer" means and includes every person engaged in
1055	1055	4 the business of making sales at retail as defined in this
1056	1056	5 Article. The Department may, in its discretion, upon
1057	1057	6 application, authorize the collection of the tax hereby
1058	1058	7 imposed by any retailer not maintaining a place of business
1059	1059	8 within this State, who, to the satisfaction of the Department,
1060	1060	9 furnishes adequate security to insure collection and payment
1061	1061	10 of the tax. Such retailer shall be issued, without charge, a
1062	1062	11 permit to collect such tax. When so authorized, it shall be the
1063	1063	12 duty of such retailer to collect the tax upon all of the gross
1064	1064	13 charges for telecommunications in this State in the same
1065	1065	14 manner and subject to the same requirements as a retailer
1066	1066	15 maintaining a place of business within this State. The permit
1067	1067	16 may be revoked by the Department at its discretion.
1068	1068	17 (m) "Retailer maintaining a place of business in this
1069	1069	18 State", or any like term, means and includes any retailer
1070	1070	19 having or maintaining within this State, directly or by a
1071	1071	20 subsidiary, an office, distribution facilities, transmission
1072	1072	21 facilities, sales office, warehouse or other place of
1073	1073	22 business, or any agent or other representative operating
1074	1074	23 within this State under the authority of the retailer or its
1075	1075	24 subsidiary, irrespective of whether such place of business or
1076	1076	25 agent or other representative is located here permanently or
1077	1077	26 temporarily, or whether such retailer or subsidiary is
1078	1078
1079	1079
1080	1080
1081	1081
1082	1082
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1084	1084
1085	1085
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1088	1088	1 licensed to do business in this State.
1089	1089	2 (n) "Service address" means the location of
1090	1090	3 telecommunications equipment from which the telecommunications
1091	1091	4 services are originated or at which telecommunications
1092	1092	5 services are received by a taxpayer. In the event this may not
1093	1093	6 be a defined location, as in the case of mobile phones, paging
1094	1094	7 systems, maritime systems, "service address" means the
1095	1095	8 customer's place of primary use as defined in the Mobile
1096	1096	9 Telecommunications Sourcing Conformity Act. For air-to-ground
1097	1097	10 systems and the like, "service address" shall mean the
1098	1098	11 location of a taxpayer's primary use of the telecommunications
1099	1099	12 equipment as defined by telephone number, authorization code,
1100	1100	13 or location in Illinois where bills are sent.
1101	1101	14 (o) "Prepaid telephone calling arrangements" mean the
1102	1102	15 right to exclusively purchase telephone or telecommunications
1103	1103	16 services that must be paid for in advance and enable the
1104	1104	17 origination of one or more intrastate, interstate, or
1105	1105	18 international telephone calls or other telecommunications
1106	1106	19 using an access number, an authorization code, or both,
1107	1107	20 whether manually or electronically dialed, for which payment
1108	1108	21 to a retailer must be made in advance, provided that, unless
1109	1109	22 recharged, no further service is provided once that prepaid
1110	1110	23 amount of service has been consumed, and provided further
1111	1111	24 that, on and after January 1, 2026, the telephone or
1112	1112	25 telecommunications services included in such arrangement are
1113	1113	26 obtained through the purchase of a preloaded phone, calling
1114	1114
1115	1115
1116	1116
1117	1117
1118	1118
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1120	1120
1121	1121
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1123	1123	HB3480 - 31 - LRB104 11072 HLH 21154 b
1124	1124
1125	1125
1126	1126
1127	1127
1128	1128
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