2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 630/ - Telecommunications Excise Tax Act.

(35 ILCS 630/1) (from Ch. 120, par. 2001)
Sec. 1. 
		
		This Article shall be known and may be cited as the
"Telecommunications Excise Tax Act".  The net proceeds from the taxes
imposed by this Act shall be used for the support of the General Revenue
Fund and education.
(Source: P.A. 84-126.)
(35 ILCS 630/2) (from Ch. 120, par. 2002)
Sec. 2. As used in this Article, unless the context clearly requires
otherwise:
(a) "Gross charge" means the amount paid for the act or
privilege of originating or receiving telecommunications in this State and
for all services and equipment provided in connection therewith by a
retailer, valued in money whether paid in money or otherwise, including
cash, credits, services and property of every kind or nature, and shall be
determined without any deduction on account of the cost of such
telecommunications, the cost of materials used, labor or service costs or
any other expense whatsoever.  In case credit is extended, the amount
thereof shall be included only as and when paid.
"Gross charges" for private line service shall include charges imposed at
each channel termination point within this State, charges for the channel
mileage
between each channel termination point within this State, and charges for
that portion
of the interstate inter-office channel provided within Illinois. Charges for
that portion of the interstate inter-office channel provided in Illinois shall
be determined by the retailer as follows:  (i) for interstate
inter-office channels having 2 channel termination points, only one of which
is in Illinois, 50% of the total charge imposed; or (ii) for interstate
inter-office channels having more than 2 channel termination points, one or
more of which
are in Illinois, an amount equal to the total charge
multiplied by a fraction, the numerator of which is the number of channel
termination points within Illinois and the denominator of which is the total
number of channel termination points. Prior to January 1,
2004, any method consistent with this
paragraph or other method that reasonably apportions the total charges for
interstate inter-office channels among the states in which channel terminations
points are located shall be accepted as a reasonable method to determine the
charges for
that portion of the interstate inter-office channel provided within Illinois
for that period.  However, "gross charges" shall not include any of the
following:
(1) Any amounts added to a purchaser's bill because     of a charge made pursuant to (i) the tax imposed by this Article; (ii) charges added to customers' bills pursuant to the provisions of Sections 9-221 or 9-222 of the Public Utilities Act, as amended, or any similar charges added to customers' bills by retailers who are not subject to rate regulation by the Illinois Commerce Commission for the purpose of recovering any of the tax liabilities or other amounts specified in such provisions of such Act; (iii) the tax imposed by Section 4251 of the Internal Revenue Code; (iv) 911 surcharges; or (v) the tax imposed by the Simplified Municipal Telecommunications Tax Act.
(2) Charges for a sent collect telecommunication     received outside of the State.
(3) Charges for leased time on equipment or charges     for the storage of data or information for subsequent retrieval or the processing of data or information intended to change its form or content.  Such equipment includes, but is not limited to, the use of calculators, computers, data processing equipment, tabulating equipment or accounting equipment and also includes the usage of computers under a time-sharing agreement.
(4) Charges for customer equipment, including such     equipment that is leased or rented by the customer from any source, wherein such charges are disaggregated and separately identified from other charges.
(5) Charges to business enterprises certified under     Section 9-222.1 of the Public Utilities Act, as amended, or under Section 95 of the Reimagining Energy and Vehicles in Illinois Act, to the extent of such exemption and during the period of time specified by the Department of Commerce and Economic Opportunity.
(5.1) Charges to business enterprises certified under     the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, to the extent of the exemption and during the period of time specified by the Department of Commerce and Economic Opportunity.
(6) Charges for telecommunications and all services     and equipment provided in connection therewith between a parent corporation and its wholly owned subsidiaries or between wholly owned subsidiaries when the tax imposed under this Article has already been paid to a retailer and only to the extent that the charges between the parent corporation and wholly owned subsidiaries or between wholly owned subsidiaries represent expense allocation between the corporations and not the generation of profit for the corporation rendering such service.
(7) Bad debts. Bad debt means any portion of a debt     that is related to a sale at retail for which gross charges are not otherwise deductible or excludable that has become worthless or uncollectable, as determined under applicable federal income tax standards.  If the portion of the debt deemed to be bad is subsequently paid, the retailer shall report and pay the tax on that portion during the reporting period in which the payment is made.
(8) Charges paid by inserting coins in coin-operated     telecommunication devices.
(9) Amounts paid by telecommunications retailers     under the Telecommunications Municipal Infrastructure Maintenance Fee Act.
(10) Charges for nontaxable services or     telecommunications if (i) those charges are aggregated with other charges for telecommunications that are taxable, (ii) those charges are not separately stated on the customer bill or invoice, and (iii) the retailer can reasonably identify the nontaxable charges on the retailer's books and records kept in the regular course of business. If the nontaxable charges cannot reasonably be identified, the gross charge from the sale of both taxable and nontaxable services or telecommunications billed on a combined basis shall be attributed to the taxable services or telecommunications. The burden of proving nontaxable charges shall be on the retailer of the telecommunications.
(b) "Amount paid" means the amount charged to the taxpayer's service
address in this State regardless of where such amount is billed or paid.
(c) "Telecommunications", in addition to the meaning ordinarily and
popularly ascribed to it, includes, without limitation, messages or
information transmitted through use of local, toll and wide area telephone
service; private line services; channel services; telegraph services;
teletypewriter; computer exchange services; cellular mobile
telecommunications service; specialized mobile radio; stationary two way
radio; paging service; or any other form of mobile and portable one-way or
two-way communications; or any other transmission of messages or
information by electronic or similar means, between or among points by
wire, cable, fiber-optics, laser, microwave, radio, satellite or similar
facilities.  As used in this Act, "private line" means a dedicated non-traffic
sensitive service for a single customer, that entitles the customer to
exclusive or priority use of a communications channel or group of channels,
from one or more specified locations to one or more other specified
locations.  The definition of "telecommunications" shall not include value
added services in which computer processing applications are used to act on
the form, content, code and protocol of the information for purposes other
than transmission.  "Telecommunications" shall not include purchases of
telecommunications by a telecommunications service provider for use as a
component part of the service provided by him to the ultimate retail
consumer who originates or terminates the taxable end-to-end
communications.  Carrier access charges, right of access charges, charges
for use of inter-company facilities, and all telecommunications resold in
the subsequent provision of, used as a component of, or integrated into
end-to-end telecommunications service shall be non-taxable as sales for resale.
(d) "Interstate telecommunications" means all telecommunications that
either originate or terminate outside this State.
(e) "Intrastate telecommunications" means all telecommunications that
originate and terminate within this State.
(f) "Department" means the Department of Revenue of the State of Illinois.
(g) "Director" means the Director of Revenue for the Department of
Revenue of the State of Illinois.
(h) "Taxpayer" means a person who individually or through his agents,
employees or permittees engages in the act or privilege of originating or
receiving telecommunications in this State and who incurs a tax liability
under this Article.
(i) "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 and State governments, including State
universities created by statute or any city, town, county or other political
subdivision of this State.
(j) "Purchase at retail" means the acquisition, consumption or use of
telecommunication through a sale at retail.
(k) "Sale at retail" means the transmitting, supplying or furnishing of
telecommunications and all services and equipment provided in connection
therewith for a consideration to persons other than the Federal and State
governments, and State universities created by statute and other than between
a parent corporation and its wholly owned subsidiaries or between wholly
owned subsidiaries for their use or consumption and not for resale.
(l) "Retailer" means and includes every person engaged in the business
of making sales at retail as defined in this Article.  The Department may, in
its discretion, upon application, authorize the collection of the tax
hereby imposed by any retailer not maintaining a place of business within
this State, who, to the satisfaction of the Department, furnishes adequate
security to insure collection and payment of the tax.  Such retailer shall
be issued, without charge, a permit to collect such tax.  When so
authorized, it shall be the duty of such retailer to collect the tax upon
all of the gross charges for telecommunications in this State in the same
manner and subject to the same requirements as a retailer maintaining a
place of business within this State.  The permit may be revoked by the
Department at its discretion.
(m) "Retailer maintaining a place of business in this State", or any
like term, means and includes any retailer having or maintaining within
this State, directly or by a subsidiary, an office, distribution
facilities, transmission facilities, sales office, warehouse or other place
of business, or any agent or other representative operating within this
State under the authority of the retailer or its subsidiary, irrespective
of whether such place of business or agent or other representative is
located here permanently or temporarily, or whether such retailer or
subsidiary is licensed to do business in this State.
(n) "Service address" means the location of telecommunications  equipment
from which the telecommunications services are originated or at which
telecommunications services are received by a taxpayer.  In the event this may
not be a defined location, as in the case of mobile phones, paging systems,
maritime systems, service address means the customer's place of primary use
as defined in the Mobile Telecommunications Sourcing Conformity Act.  For
air-to-ground systems and the like, service address shall mean the location
of a taxpayer's primary use of the telecommunications equipment as defined by
telephone number, authorization code, or location in Illinois where bills are
sent.
(o) "Prepaid telephone calling arrangements" mean the right to exclusively
purchase telephone or telecommunications services that must be paid for in
advance and enable the origination of one or more intrastate, interstate, or
international telephone calls or other telecommunications using an access
number, an authorization code, or both, whether manually or electronically
dialed, for which payment to a retailer must be made in advance, provided
that, unless recharged, no further service is provided once that prepaid
amount of service has been consumed.  Prepaid telephone calling arrangements
include the recharge of a prepaid calling arrangement.  For purposes of this
subsection, "recharge" means the purchase of additional prepaid telephone or
telecommunications services whether or not the purchaser acquires a different
access number or authorization code.  "Prepaid telephone calling arrangement"
does not include an arrangement whereby a customer purchases a payment card and
pursuant to which the service provider reflects the amount of such purchase as
a credit on an invoice issued to that customer under an existing subscription
plan.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
(35 ILCS 630/3) (from Ch. 120, par. 2003)
Sec. 3. 
		
		Until December 31, 1997, a tax is imposed upon the act or
privilege of originating or
receiving intrastate telecommunications by a person in this State at the
rate of 5% of the gross charge for such telecommunications purchased at
retail from a retailer by such person.  Beginning January 1, 1998, a tax is
imposed upon the act or privilege of originating in this State or receiving in
this State intrastate telecommunications by a person in this State at the rate
of
7% of the gross charge for such telecommunications purchased at retail from a
retailer by such person.  However, such tax is not imposed on
the act or privilege to the extent such act or privilege may not, under the
Constitution and statutes of the United States, be made the subject of
taxation by the State.
Beginning January 1, 2001, prepaid telephone calling arrangements shall not
be considered telecommunications subject to the tax imposed under this Act.
(Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)
(35 ILCS 630/4) (from Ch. 120, par. 2004)
Sec. 4. 
		
		Until December 31, 1997, a tax is imposed upon the act or
privilege of originating in this State or receiving in this State interstate
telecommunications by a person in this State at the rate of 5% of the gross
charge for such telecommunications purchased at retail from a retailer by such
person.  Beginning January 1, 1998, a tax is imposed upon the act or
privilege
of originating in this State or receiving in this State interstate
telecommunications by a person in this State at the rate of 7% of the gross
charge for such telecommunications purchased at retail from a
retailer by such person.  To prevent actual multi-state
taxation of the act or privilege that is subject to taxation under this
paragraph, any taxpayer, upon proof that that taxpayer has paid a tax in
another state on such event, shall be allowed a credit against the tax
imposed in this Section 4 to the extent of the amount of such tax
properly due and paid in such other state.  However, such tax is not
imposed on the act or privilege to the extent such act or privilege
may not, under the Constitution and statutes of the United States, be made
the subject of taxation by the State.
Beginning on January 1, 2001, prepaid telephone calling arrangements shall
not be
considered telecommunications subject to the tax imposed under this Act.
(Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)
(35 ILCS 630/4.5)
Sec. 4.5. 
		Sunset of exemptions, credits, and deductions. 
		The application
of every exemption, credit, and deduction against tax imposed by this Act that
becomes law after the effective date of this amendatory Act of 1994 shall be
limited by a reasonable and appropriate sunset date.  A taxpayer is not
entitled to take the exemption, credit, or deduction beginning on the sunset
date and thereafter.  If a reasonable and appropriate sunset date is not
specified in the Public Act that creates the exemption, credit, or deduction, a
taxpayer shall not be entitled to take the exemption, credit, or deduction
beginning 5 years after the effective date of the Public Act creating the
exemption, credit, or deduction and thereafter.
(Source: P.A. 88-660, eff. 9-16-94.)
(35 ILCS 630/5) (from Ch. 120, par. 2005)
Sec. 5. 
		
		Any retailer maintaining a place of business in this State shall
collect and remit to the Department the tax imposed by this Act.  Any such
retailer shall be liable for the tax whether or not the tax has been collected
by the retailer.  To the extent that a retailer required to collect the tax
imposed by this Act has actually collected that tax, such tax is held in trust
for the benefit of the Department.  Retailers
shall collect the tax from the taxpayer by adding the tax to the gross
charge for the act or privilege of originating or receiving
telecommunications in this State, when sold for use, in the manner
prescribed by the Department. Whenever possible, the tax imposed by this
Article shall, when collected, be stated as a distinct item separate and apart
from the gross charge for telecommunications.  The tax imposed by this
Article shall constitute a debt of the purchaser to the retailer who
provides such taxable services until paid, and, if unpaid, is recoverable
at law in the same manner as the original charge for such taxable services.
(Source: P.A. 91-203, eff. 7-20-99.)
(35 ILCS 630/6) (from Ch. 120, par. 2006)
Sec. 6. Returns; payments. Except as provided hereinafter in this Section, on or before
the last day of each month, each retailer maintaining a place
of
business in
this State shall make a return to the Department for the preceding calendar
month, stating:
1. His name;
2. The address of his principal place of business, or     the address of the principal place of business (if that is a different address) from which he engages in the business of transmitting telecommunications;
3. Total amount of gross charges billed by him during     the preceding calendar month for providing telecommunications during such calendar month;
4. Total amount received by him during the preceding     calendar month on credit extended;
5. Deductions allowed by law;
6. Gross charges which were billed by him during the     preceding calendar month and upon the basis of which the tax is imposed;
7. Amount of tax (computed upon Item 6);
8. Such other reasonable information as the     Department may require.
Any taxpayer required to make payments under this Section may make the
payments by electronic funds transfer.  The Department shall adopt
rules
necessary to effectuate a program of electronic funds transfer.
Any taxpayer who has average monthly tax billings due to the Department under
this Act and the Simplified Municipal Telecommunications Tax Act that exceed
$1,000 shall
make all payments by electronic funds transfer as required by rules of the
Department and shall file the return required by this Section by electronic
means as required by rules of the Department.
If the retailer's average monthly tax billings due to the Department under
this Act and the Simplified Municipal Telecommunications Tax Act do
not exceed $1,000, the Department may authorize his 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 30 of such year; with the return for
April,
May and June of a given year being due by July 31st of such year;
with
the
return for July, August and September of a given year being due by October
31st of such year; and with the return of October, November and
December of a
given year being due by January 31st of the following year.
If the retailer is otherwise required to file a monthly or quarterly return
and if the retailer's average monthly tax billings due to the Department
under this Act and the Simplified Municipal Telecommunications Tax Act do
not
exceed $400, the Department may authorize his or her return to be
filed on an annual basis, with the return for a given year being due by January
31st of the following year.
Notwithstanding any other provision of this Article containing the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible for
filing returns under this Article, such retailer shall file a final return
under this Article with the Department not more than one month after
discontinuing such business.
In making such return, the retailer shall determine the value of any
consideration other than money received by him and he shall include such
value in his return.  Such determination shall be subject to review and
revision by the Department in the manner hereinafter provided for the
correction of returns.
Each retailer whose average monthly liability to the Department under
this Article and the Simplified Municipal Telecommunications Tax Act was
$25,000 or more during the preceding calendar year, excluding
the month of highest liability and the month of lowest liability in such
calendar year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which tax collection liability to the
Department is incurred in an amount not less than the lower of either 22.5%
of the retailer's actual tax collections for the month or 25% of the
retailer's actual tax collections for the same calendar month of the
preceding year.  The amount of such quarter monthly payments shall be
credited against the final liability of the retailer's return for that
month.  Any outstanding credit, approved by the Department, arising from
the retailer's overpayment of its final liability for any month may be
applied to reduce the amount of any subsequent quarter monthly payment or
credited against the final liability of the retailer's return for any
subsequent month.  If any quarter monthly payment is not paid at the time
or in the amount required by this Section, the retailer shall be liable for
penalty and interest on the difference between the minimum amount due as a
payment and the amount of such payment actually and timely paid, except
insofar as the retailer has previously made payments for that month to the
Department in excess of the minimum payments previously due.
The retailer making the return herein provided for shall, at the time of
making such return, pay to the Department the amount of tax herein imposed,
less a discount of 1% which is allowed to reimburse the retailer for the
expenses incurred in keeping records, billing the customer, preparing and
filing returns, remitting the tax, and supplying data to the Department upon
request.  No discount may be claimed by a retailer on returns not timely filed
and for taxes not timely
remitted.
If any payment provided for in this Section exceeds the retailer's liabilities under this Act, as shown on an original return, the Department may authorize the retailer to credit such excess payment against liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules adopted by the Department. If the Department subsequently determines that all or any part of the credit taken was not actually due to the retailer, the retailer's discount shall be reduced by an amount equal to the difference between the discount as applied to the credit taken and that actually due, and that retailer shall be liable for penalties and interest on such difference.
On and after the effective date of this Article of 1985,

of the moneys received by the Department of Revenue pursuant to this
Article, other than moneys received pursuant to the additional
taxes imposed
by Public Act 90-548:
(1) $1,000,000 shall be paid each month into the     Common School Fund;
(2) beginning on the first day of the first calendar     month to occur on or after the effective date of this amendatory Act of the 98th General Assembly, an amount equal to 1/12 of 5% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department from the tax under this Act and the Simplified Municipal Telecommunications Tax Act shall be paid each month into the Tax Compliance and Administration Fund; those moneys shall be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue; and
(3) the remainder shall be deposited into the General     Revenue Fund.
On and after February 1, 1998,
however, of
the moneys received by the Department of Revenue pursuant to the additional
taxes imposed
by Public Act 90-548,
one-half shall be deposited
into the School Infrastructure Fund and one-half shall be deposited into the
Common School Fund.
On and after the effective date of this amendatory Act of the 91st General
Assembly, if in any fiscal year the total of the moneys deposited into the
School Infrastructure Fund under this Act is less than the total of the moneys
deposited into that Fund from the additional taxes imposed by Public Act
90-548 during fiscal year 1999, then, as soon as possible after the close of
the fiscal year, the Comptroller shall order transferred
and the Treasurer shall transfer from the General Revenue Fund to the School
Infrastructure Fund an amount equal to the difference between the fiscal year
total
deposits and the
total amount deposited into the Fund in fiscal year 1999.
(Source: P.A. 100-1171, eff. 1-4-19.)
(35 ILCS 630/7) (from Ch. 120, par. 2007)
Sec. 7. 
		
		When a taxpayer does not pay the tax imposed by this Article to
a retailer, such taxpayer shall file a return with the Department and pay
the tax upon that portion of gross charges so paid to the retailer during
the preceding calendar month by the 15th day of the month following that
month.  Such return shall be filed on a form prescribed by the Department
and shall contain such information as the Department may reasonably require.
When a taxpayer pays a tax imposed by this Article directly to the Department,
the Department (upon request therefor from such taxpayer) shall issue an
appropriate receipt to such taxpayer showing that he has paid such tax to
the Department.  Such receipt shall be sufficient to relieve the taxpayer
from further liability for the amount of tax to which such receipt may refer.
(Source: P.A. 84-126.)
(35 ILCS 630/8) (from Ch. 120, par. 2008)
Sec. 8. 
		
		If a person who originates or receives telecommunications
in this State claims to be a reseller of such telecommunications, such
person shall apply to the Department for a resale number.  Such applicant
shall state facts which will show the Department why such applicant is not
liable for tax under this Article on any of his purchases and shall furnish
such additional information as the Department may reasonably require.
Upon approval of the application, the Department shall assign a resale
number to the applicant and shall certify such number to him.  The
Department may cancel any such number which is obtained through
misrepresentation, or which is used to originate or receive such
telecommunications tax-free when such actions in fact are not for resale,
or which no longer applies because of the person's having discontinued the
making of resales.
Except as provided hereinabove in this Section, the act or privilege of
originating or receiving telecommunications in this State shall not be made
tax-free on the ground of being a sale for resale unless the person has an
active resale number from the Department and furnishes that number to the
retailer in connection with certifying to the retailer that any sale to
such person is nontaxable because of being a sale for resale.
(Source: P.A. 84-126.)
(35 ILCS 630/9) (from Ch. 120, par. 2009)
Sec. 9. 
		
		All of the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e,
5f, 5g, 5i, 5j, 6b, and 6c of the Retailers' Occupation Tax
Act,
which are not
inconsistent with this Act, and Section 3-7 of the Uniform Penalty and Interest
Act, shall apply, as far as practicable, to the subject matter of this Act to
the same extent as if such provisions were included herein.  References in such
incorporated Sections of the Retailers' Occupation Tax Act to retailers,
to sellers or to persons engaged in the business of selling tangible
personal property mean retailers, as defined in this Article, or persons
engaged in the act or privilege of originating or receiving
telecommunications.  References in such incorporated Sections of the
Retailers' Occupation Tax Act to purchasers of tangible personal
property mean purchasers of telecommunications as defined in this Article.
References in such incorporated Sections of the Retailers' Occupation Tax
Act to sales of tangible personal property mean the act or privilege of
originating or receiving telecommunications as defined in this Article.
(Source: P.A. 90-491, eff. 1-1-98.)
(35 ILCS 630/10) (from Ch. 120, par. 2010)
Sec. 10. 
If it shall appear that an amount of tax or penalty or
interest has been paid in error hereunder to the Department by a taxpayer,
as distinguished from the retailer, whether such amount be paid through a
mistake of fact or an error of law, such taxpayer may file a claim for
credit or refund with the Department.  If it shall appear that an amount of
tax or penalty or interest has been paid in error to the Department
hereunder by a retailer who is required or authorized to collect and remit
the tax imposed by this Article, whether such amount be paid through a mistake
of fact or an error of law, such retailer may file a claim for credit or
refund with the Department, provided that no credit or refund shall be
allowed for any amount paid by any such retailer unless it shall appear
that he bore the burden of such amount and did not shift the burden thereof
to anyone else, or unless it shall appear that he or she or his or her
legal representative has unconditionally repaid such amount to his customer
(1) who bore the burden thereof and has not shifted such burden directly or
indirectly in any manner whatsoever; or (2) who, if he or she shifted such
burden, has repaid unconditionally such amount to his or her own customer;
and (3) who is not entitled to receive any reimbursement therefor from any
other source than from his retailer, nor to be relieved of such burden in
any other manner whatsoever.
If it is determined that the Department should issue a credit or refund
under this Article, the Department may first apply the amount thereof against
any amount of tax or penalty or interest due hereunder from the
person entitled to such credit or refund.  For this purpose, if proceedings
are pending to determine whether or not any tax or penalty or interest is
due under this Article from such person, the Department may withhold issuance
of the credit or refund pending the final disposition of such proceedings
and may apply such credit or refund against any amount found to be due to
the Department as a result of such proceedings.  The balance, if any, of
the credit or refund shall be issued to the person entitled thereto.
If no tax or penalty or interest is due and no proceeding is pending to
determine whether such person is indebted to the Department for tax or
penalty or interest, the credit memorandum or refund shall be issued to the
claimant; or (in the case of a credit memorandum) the credit memorandum may
be assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other person who is subject to
this Article, and the amount thereof shall be applied by the Department against
any tax or penalty or interest due or to become due under this Article from
such  assignee.
As to any claim for credit or refund filed with the Department on or after
each January 1 and July 1, no amounts erroneously paid more than three
years prior to such January 1 and July 1, respectively, shall be
credited or refunded, except that if both the Department and the taxpayer
have agreed to an
extension of time to issue a notice of tax liability under this Act, the claim
may be filed at any time prior to the expiration of the period agreed upon. Notwithstanding any other provision of this Act to the contrary, for any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under this Act will expire less than 6 months after the date a taxpayer files the claim for credit or refund, the statute of limitations is automatically extended for 6 months from the date it would have otherwise expired.
Claims for credit or refund shall be filed upon forms provided by the
Department.  As soon as practicable after any claim for credit or refund is
filed, the Department shall examine the same and determine the amount of
credit or refund to which the claimant is entitled and shall notify the
claimant of such determination, which amount shall be prima facie correct.
A claim for credit or refund shall be considered to have been filed with
the Department on the date upon which it is received by the Department.
Upon receipt of any claim for credit or refund filed under this Article, any
officer or employee of the Department, authorized in writing by the
Director of Revenue to acknowledge receipt of such claims on behalf of the
Department, shall execute on behalf of the Department, and shall deliver or
mail to the claimant or his duly authorized agent, a written receipt,
acknowledging that the claim has been filed with the Department, describing
the claim in sufficient detail to identify it and stating the date upon
which the claim was received by the Department.  Such written receipt shall
be prima facie evidence that the Department received the claim described in
such receipt and shall be prima facie evidence of the date when such claim
was received by the Department.  In the absence of such a written receipt,
the records of the Department as to when the claim was received by the
Department, or as to whether or not the claim was received at all by the
Department, shall be deemed to be prima facie correct upon these questions
in the event of any dispute between the claimant (or his or her legal
representative) and the Department concerning these questions.
Any credit or refund that is allowed under this Article shall bear interest
at the rate and in the manner specified in the Uniform Penalty and Interest
Act.
In case the Department determines that the claimant is entitled to a
refund, such refund shall be made only from such appropriation as may be
available for that purpose.  If it appears unlikely that the amount
appropriated would permit everyone having a claim allowed during the period
covered by such appropriation to elect to receive a cash refund, the
Department by rule or regulation shall provide for the payment of refunds
in hardship cases and shall define what types of cases qualify as hardship
cases.
If a retailer who has failed to pay tax on gross charges for
telecommunications is required by the Department to pay such tax, such
retailer, without filing any formal claim with the Department, shall be
allowed to take credit against such tax liability
to the extent, if any, to which such retailer has paid the
tax to its vendor of the telecommunications which
such retailer purchased and used for resale, and no penalty or interest
shall be charged to such retailer on the amount of such credit.  However,
when such credit is allowed to the retailer by the Department, the vendor
is precluded from refunding any of the tax to the retailer and filing a
claim for credit or refund with respect thereto with the Department.  The
provisions of this Section added by this amendatory Act of 1988 shall be
applied retroactively, regardless of the date of the transaction.
(Source: P.A. 102-40, eff. 6-25-21.)
(35 ILCS 630/11) (from Ch. 120, par. 2011)
Sec. 11. 
		
		Every retailer maintaining a place of business in this State
under this Article and every taxpayer making direct tax payments to the
Department under this Article shall keep books, records, papers and other
documents which are adequate to reflect the information required by
Sections 6 and 7 of this Article to be reported to the Department by filing
timely returns with the Department. The Department may adopt rules that
establish requirements, including record forms and formats, for records
required to be kept and maintained by taxpayers. For purposes of this Section,
"records" means all data maintained by the taxpayer, including data on paper,
microfilm, microfiche or any type of machine-sensible data compilation. All
books and records and other papers and documents required by this Article to be
kept shall be kept in the English language and shall, at all times during
business hours of the day, be subject to inspection by the Department or its
duly authorized agents and employees.
The Department may, upon written authorization of the Director, destroy
any returns or records, papers or memoranda pertaining to such returns upon
the expiration of any period covered by such returns with respect to which
the Department is authorized to establish liability.
(Source: P.A. 88-480.)
(35 ILCS 630/12) (from Ch. 120, par. 2012)
Sec. 12. 
For the purpose of administering and enforcing the
provisions of this Article, the Department or any officer or employee of the
Department designated, in writing, by the Director thereof, may
hold investigations and, except for matters otherwise reserved to the Illinois Independent Tax Tribunal, may hold hearings concerning any matters covered by this
Article  and may examine any books, papers, records or memoranda bearing upon the
business transacted or purchased by any such retailer or taxpayer and may
require the attendance of such retailer or taxpayer or any officer or
employee of such, or of any person having knowledge of such business, and
may take testimony and require proof of its information.  In the conduct of
any investigation or hearing, neither the Department nor any officer or
employee thereof shall be bound by the technical rules of evidence,
and no informality in any proceeding, or in the manner of taking testimony,
shall invalidate any order, decision, rule or regulation made or approved
or confirmed by the Department.  The Director or any officer or employee
thereof shall have power to administer oaths to any such persons.  The
books, papers, records and memoranda of the Department, or parts thereof,
may be provided in any hearing, investigation or legal proceeding by a
reproduced copy thereof under the certificate of the Director.  Such
reproduced copy shall, without further proof, be admitted into evidence
before the Department or in any legal proceeding.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 630/13) (from Ch. 120, par. 2013)
Sec. 13. 
		
		No person shall be excused from testifying or from producing
any books, papers, records or memoranda in any investigation or upon any
hearing, when ordered to do so by the Department or any officer or employee
thereof, upon the ground that the testimony or evidence, documentary or
otherwise, may tend to incriminate him or subject him to criminal penalty,
but no person shall be prosecuted or subjected to any criminal penalty for,
or on account of, any transaction made or thing concerning which he
may testify or produce evidence, documentary or otherwise, before the
Department or any officer or employee thereof; provided that such immunity
shall extend only to a natural person who, in obedience to a subpoena,
gives testimony under oath or produces evidence, documentary or otherwise,
under oath.  No person so testifying shall be exempt from prosecution and
punishment for perjury committed in so testifying.
(Source: P.A. 84-126.)
(35 ILCS 630/14) (from Ch. 120, par. 2014)
Sec. 14. 
		
		The Department or any officer or employee of the Department
designated, in writing, by the Director thereof, shall at its or his or her
own instance, or on the written request of any party to the proceeding,
issue subpoenas requiring the attendance of and the giving of testimony by
witnesses, and subpoenas duces tecum requiring the production of books,
papers, records or memoranda.  All subpoenas issued under this Article may be
served by any person of full age.  The fees of witnesses for attendance and
travel shall be the same as the fees of witnesses before the circuit court
of this State; such fees to be paid when the witness is excused from
further attendance.  When the witness is subpoenaed at the instance of the
Department or any officer or employee thereof, such fees shall be paid in
the same manner as other expenses of the Department, and when the witness
is subpoenaed at the instance of any retailer or taxpayer to any such
proceeding, the Department may require that the cost of service of the
subpoena and the fee of the witness be borne by the retailer or taxpayer at
whose instance the witness is summoned.  In such case, the Department, in
its discretion, may require a deposit to cover the cost of such service and
witness fees.  A subpoena issued as aforesaid shall be served in the same
manner as a subpoena issued out of a court.
Any circuit court of this State, upon the application of the Department
or any officer or employee thereof may, in its discretion, compel the
attendance of witnesses, the production of books, papers, records or
memoranda and the giving of testimony before the Department or any officer
or employee thereof conducting an investigation or holding a hearing
authorized by this Article, by an attachment for contempt, or otherwise, in the
same manner as production of evidence may be compelled before the court.
The Department or any officer or employee thereof, or any party in an
investigation or hearing before the Department, may cause the depositions of
witnesses residing within or without the State to be taken in the manner
prescribed by law for like depositions in civil actions in courts of this
State, and, to that end, compel the attendance of witnesses and the
production of books, papers, records or memoranda.
(Source: P.A. 84-126.)
(35 ILCS 630/15) (from Ch. 120, par. 2015)
Sec. 15. Confidential information. All information received by the
Department from returns
filed under this Article, or from any investigations conducted under this
Article, shall be confidential, except for official purposes, and any person
who
divulges any such information in any manner, except in accordance with a
proper judicial order or as otherwise provided by law, shall be guilty of a
Class B misdemeanor.
Provided, that nothing contained in this Article shall prevent the Director
from publishing or making available to the public the names and addresses
of retailers or taxpayers filing returns under this Article, or from publishing
or making available reasonable statistics concerning the operation of the
tax wherein the contents of returns are grouped into aggregates in such a
way that the information contained in any individual return shall not be
disclosed.
And provided, that nothing contained in this Article shall prevent the
Director from making available to the United States Government or the
government of any other state, or any officer or agency thereof, for
exclusively official purposes, information received by the Department in
the administration of this Article, if such other governmental agency agrees to
divulge requested tax information to the Department.
The furnishing upon request of the Auditor General, or his authorized
agents, for official use, of returns filed and information related thereto
under this Article is deemed to be an official purpose within the meaning of
this Section.
The furnishing of financial information to a municipality that has imposed
a tax under the Simplified Municipal Telecommunications Tax Act, upon request
of the
chief executive thereof, is an official purpose within the meaning of this
Section, provided that the municipality agrees in writing to the requirements
of this Section.  Information so provided shall be subject to all
confidentiality provisions of this Section.  The written agreement shall
provide for reciprocity, limitations on access, disclosure, and procedures for
requesting information.
The Director shall make available for public
inspection in the Department's principal office and for publication, at cost,
administrative decisions issued on or after January
1, 1995. These decisions are to be made available in a manner so that the
following
taxpayer information is not disclosed:
(1) The names, addresses, and identification numbers     of the taxpayer, related entities, and employees.
(2) At the sole discretion of the Director, trade     secrets or other confidential information identified as such by the taxpayer, no later than 30 days after receipt of an administrative decision, by such means as the Department shall provide by rule.
The Director shall determine the
appropriate extent of the
deletions allowed in paragraph (2). In the event the taxpayer does not submit
deletions,
the Director shall make only the deletions specified in paragraph (1).
The Director shall make available for public inspection and publication an
administrative decision within 180 days after the issuance of the
administrative
decision. The term "administrative decision" has the same meaning as defined in
Section 3-101 of Article III of the Code of Civil Procedure. Costs collected
under this Section shall be paid into the Tax Compliance and Administration
Fund.
Nothing contained in this Act shall prevent the Director from divulging
information to any person pursuant to a request or authorization made by the
taxpayer or by an authorized representative of the taxpayer.
(Source: P.A. 94-1074, eff. 12-26-06.)
(35 ILCS 630/16) (from Ch. 120, par. 2016)
Sec. 16. 
Except as otherwise provided in this Section with respect to the Illinois Independent Tax Tribunal, the circuit court of any county wherein a hearing is held
shall have power to review all final administrative decisions of the
Department in administering the provision of this Article:  Provided that if
the administrative proceeding which is to be reviewed judicially is a claim
for refund proceeding commenced under this Article and Section 2a of "An Act in
relation to the payment and disposition of moneys received by officers and
employees of the State of Illinois by virtue of their office or
employment", approved June 9, 1911, as amended, the circuit court having
jurisdiction of the action for judicial review under this Section and under
the Administrative Review Law shall be the same court that entered the
temporary restraining order or preliminary injunction which is provided for
in Section 2a of "An Act in relation to the payment and disposition of
moneys received by officers and employees of the State of Illinois by
virtue of their office or employment", and which enables such claim
proceeding to be processed and disposed of as a claim for refund proceeding
rather than as a claim for credit proceeding.
Except as otherwise provided in this Section with respect to the Illinois Independent Tax Tribunal, the provisions of the Administrative Review Law, and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Department
hereunder.  The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure.
The provisions of the Illinois Independent Tax Tribunal Act of 2012, and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Department that are subject to the jurisdiction of the Illinois Independent Tax Tribunal.
Service upon the Director or Assistant Director of the Department of
Revenue of summons issued in any action to review a final administrative
decision shall be service upon the Department.  The Department shall certify
the record of its proceedings if the taxpayer shall pay to it the sum of
75¢ per page of testimony taken before the Department  and 25¢ per page of
all other matters contained in such record, except that these charges may
be waived where the Department is satisfied that the aggrieved party is a
poor person who cannot afford to pay such charges.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 630/17) (from Ch. 120, par. 2017)
Sec. 17. 
		
		The Department may make, promulgate and enforce such
reasonable rules and regulations relating to the administration and
enforcement of this Article as may be deemed expedient.
Any informal rulings, opinions or letters issued by the Department in
response to any inquiry or request for any opinion from any person
regarding the coverage and applicability of this Article shall be maintained as
a public record, and made available for public inspection and copying.  If
the informal ruling, opinion or letter contains trade secrets or other
confidential information, where possible the Department shall delete such
information prior to publication.  Whenever such informal rulings,
opinions or letters contain any policy of general applicability, the
Department shall formulate and adopt such policy as a rule in accordance
with the provisions of the Illinois Administrative Procedure Act.
Whenever notice to a retailer or taxpayer is required by this Article, such
notice may be personally served or given by United States certified or
registered mail, addressed to the retailer or taxpayer concerned at his
last known address, and proof of such mailing shall be sufficient for the
purposes of this Article.  In the case of a notice of hearing, such notice
shall be mailed not less than 7 days prior to the date fixed for the hearing.
All hearings provided for in this Article with respect to a retailer or
taxpayer having his principal place of business in any of the several
counties of this State shall be held in the county wherein the retailer or
taxpayer has his principal place of business.  If the retailer or taxpayer
does not have his principal place of business in this State, such hearings
shall be held in Sangamon County.
Whenever any proceeding provided by this Article has been begun by the
Department or by a person subject thereto and such person thereafter dies
or becomes a person under legal disability before the proceeding has been
concluded, the legal representative of the deceased person or a person
under legal disability shall notify the Department of such death or legal
disability.  The legal representative, as such, shall then be substituted
by the Department in place of and for the person.  Within 20 days after
notice to the legal representative of the time fixed for that purpose, the
proceeding may proceed in all respects and with like effect as though the
person had not died or become a person under legal disability.
(Source: P.A. 84-126.)
(35 ILCS 630/18) (from Ch. 120, par. 2018)
Sec. 18. 
The Illinois Administrative Procedure Act is hereby expressly
adopted and shall apply to all administrative rules and procedures of the
Department of Revenue under this Article, except that: (1) paragraph (b) of
Section 5-10 of the Illinois Administrative Procedure Act does not
apply to final orders, decisions and opinions of the Department; (2)
subparagraph (a)(2) of Section 5-10 of the Illinois Administrative
Procedure Act does not apply to forms established by the Department for use
under this Article; and (3) the provisions of Section 10-45 of the
Illinois Administrative Procedure Act regarding proposals for decision are
excluded and not applicable to the Department under this Article to the extent Section 10-45 applies to hearings not otherwise subject to the Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 630/19) (from Ch. 120, par. 2019)
Sec. 19. 
		
		Any retailer or taxpayer who fails to make a return, or who
makes a fraudulent return, or who wilfully violates any other provision of
this Article or any rule or regulation of the Department for the administration
and enforcement of this Article, is guilty of a Class 4 felony.
(Source: P.A. 84-126.)
(35 ILCS 630/20) (from Ch. 120, par. 2020)
Sec. 20. 
		
		If any clause, sentence, Section, provision or part of this
Article or the application thereof to any person or circumstance, other than
the applicability of the Article to messages originating or terminating outside
this State, shall be adjudged to be unconstitutional, the remainder of this
Article or its application to persons or circumstances other than those to
which it is held invalid shall not be affected thereby.  In particular, if
any provision which exempts or has the effect of exempting some class of
persons or some act or privilege of sending or receiving telecommunication
from the tax imposed by this Article should be held to constitute or to result
in an invalid classification or to be unconstitutional for some other
reason, such provision shall be deemed to be severable, with the remainder
of this Article, without said provision, being held constitutional.
(Source: P.A. 84-126.)
(35 ILCS 630/21) (from Ch. 120, par. 2021)
Sec. 21. 
		
		If Section 4 of this Article is declared unconstitutional or
invalid, no part of this Article shall be effective.
(Source: P.A. 84-126.)