Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3371 - Sales Factor for Telecommunications Services

Current through Register Vol. 48, No. 28, July 12, 2024
a) For taxable years ending on or after
				December 31, 2008, IITA Section 304(a)(3)(B-5) provides express guidance for
				determining when gross receipts from the sale of telecommunications service or
				mobile telecommunications service are in this State for purposes of computing
				the sales factor in IITA Section 304(a)(3).
b) Definitions. For purposes of this Section,
				the follow terms have the following meanings:
1) "Ancillary services" means services that
				are associated with or incidental to the provision of "telecommunications
				services", including but not limited to "detailed telecommunications billing",
				"directory assistance", "vertical service", and "voice mail services". (IITA
				Section 304(a)(3)(B-5)(i))
2)
				"Air-to-ground radiotelephone service" means a radio service, as that term is
				defined in
				47 CFR
				22.99(2007), in which common
				carriers are authorized to offer and provide radio telecommunications service
				for hire to subscribers in aircraft. (IITA Section 304(a)(3)(B-5)(i))
				47 CFR
				22.99 defines "air-to-ground ratiotelephone
				service" to mean a "radio service in which licensees are authorized to offer
				and provide radio telecommunications service for hire to subscribers in
				aircraft".
3) "Call-by-call basis"
				means any method of charging for telecommunications services where the price is
				measured by individual calls. (IITA Section 304(a)(3)(B-5)(i))
4) "Communications channel" means a physical
				or virtual path of communications over which signals are transmitted between or
				among customer channel termination points. (IITA Section
				304(a)(3)(B-5)(i))
5) "Conference
				bridging service" means an ancillary service that links two or more
				participants of an audio or video conference call and may include the provision
				of a telephone number. "Conference bridging service" does not include the
				telecommunications services used to reach the conference bridge. (IITA Section
				304(a)(3)(B-5)(i))
6) "Customer
				channel termination point" means the location where the customer either inputs
				or receives the communications. (IITA Section 304(a)(3)(B-5)(i))
7) "Detailed telecommunications billing
				service" means an ancillary service of separately stating information
				pertaining to individual calls on a customer's billing statement. (IITA Section
				304(a)(3)(B-5)(i))
8) "Directory
				assistance" means an ancillary service of providing telephone number
				information, and/or address information. (IITA Section
				304(a)(3)(B-5)(i))
9) "Home service
				provider"means the facilities-based carrier or reseller with which the customer
				contracts for the provision of "mobile telecommunications services". (IITA
				Section 304(a)(3)(B-5)(i))
10)
				"Mobile telecommunications service"means commercial mobile radio service, as
				defined in
				47
				CFR 20.3 (June 1, 1999). (IITA Section
				304(a)(3)(B-5)(i))
A) "Commercial mobile
				radio service" is defined in
				47
				CFR 20.3 (June 1, 1999) as "mobile service
				that is provided for profit, i.e., with the intent of receiving compensation or
				monetary gain; an interconnected service; and available to the public, or to
				such classes of eligible users as to be effectively available to a substantial
				portion of the public; or that is the functional equivalent of such a mobile
				service."
B) "Interconnected
				service" is defined in
				47
				CFR 20.3 (June 1, 1999) as a "service that is
				interconnected with the public switched network, or interconnected with the
				public switched network through an interconnected service provider, that gives
				subscribers the capability to communicate to or receive communication from all
				other users on the public switched network; or for which a request for such
				interconnection is pending pursuant to
				47 USC
				332(c)(1)(B). A mobile
				service offers interconnected service even if the service allows subscribers to
				access the public switched network only during specified hours of the day, or
				if the service provides general access to points on the public switched network
				but also restricts access in certain limited ways. Interconnected service does
				not include any interface between a licensee's facilities and the public
				switched network exclusively for a licensee's internal control
				purposes."
11) "Place of
				primary use" means the street address representative of where the customer's
				use of the telecommunications service primarily occurs, which must be the
				residential street address or the primary business street address of the
				customer. In the case of mobile telecommunications services, "place of primary
				use" must be within the licensed service area of the home service provider.
				(IITA Section 304(a)(3)(B-5)(i))
12) "Post-paid telecommunication service"
				means the telecommunications service obtained by making a payment on a
				call-by-call basis either through the use of a credit card or payment mechanism
				such as a bank card, travel card, credit card, or debit card, or by charge made
				to a telephone number which is not associated with the origination or
				termination of the telecommunications service. A post-paid calling service
				includes telecommunications service, except a prepaid wireless calling service,
				that would be a prepaid calling service except it is not exclusively a
				telecommunication service. (IITA Section 304(a)(3)(B-5)(i))
13) "Prepaid telecommunication service" means
				the right to access exclusively telecommunications services, which must be paid
				for in advance and which enables the origination of calls using an access
				number or authorization code, whether manually or electronically dialed, and
				that is sold in predetermined units or dollars of which the number declines
				with use in a known amount. (IITA Section 304(a)(3)(B-5)(i))
14) "Prepaid mobile telecommunication
				service" means a telecommunications service that provides the right to utilize
				mobile wireless service as well as other non-telecommunication services,
				including but not limited to ancillary services, which must be paid for in
				advance that is sold in predetermined units or dollars of which the number
				declines with use in a known amount. (IITA Section 304(a)(3)(B-5)(i))
15) "Private communication service" means a
				telecommunication service that entitles the customer to exclusive or priority
				use of a communications channel or group of channels between or among
				termination points, regardless of the manner in which such channel or channels
				are connected, and includes switching capacity, extension lines, stations, and
				any other associated services that are provided in connection with the use of
				such channel or channels. (IITA Section 304(a)(3)(B-5)(i))
16) "Service address" means:
A) The location of the telecommunications
				equipment to which a customer's call is charged and from which the call
				originates or terminates, regardless of where the call is billed or paid. (IITA
				Section 304(a)(3)(B-5)(i))
B) If
				the location in subsection (b)(16)(A) is not known, service address means the
				origination point of the signal of the telecommunications services first
				identified by either the seller's telecommunications system or in information
				received by the seller from its service provider where the system used to
				transport such signals is not that of the seller. (IITA Section
				304(a)(3)(B-5)(i))
C) If the
				locations in subsections (b)(16)(A) and (B) are not known, the service address
				means the location of the customer's place of primary use. (IITA Section
				304(a)(3)(B-5)(i))
17)
				"Telecommunications service" means the electronic transmission, conveyance, or
				routing of voice, data, audio, video, or any other information or signals to a
				point, or between or among points. The term "telecommunications service"
				includes such transmission, conveyance, or routing in which computer processing
				applications are used to act on the form, code or protocol of the content for
				purposes of transmission, conveyance or routing without regard to whether such
				service is referred to as voice over Internet protocol services or is
				classified by the Federal Communications Commission as enhanced or value added.
				"Telecommunications service" does not include:
A) Data processing and information services
				that allow data to be generated, acquired, stored, processed, or retrieved and
				delivered by an electronic transmission to a purchaser when such purchaser's
				primary purpose for the underlying transaction is the processed data or
				information;
B) Installation or
				maintenance of wiring or equipment on a customer's premises;
C) Tangible personal property;
D) Advertising, including but not limited to
				directory advertising;
E) Billing
				and collection services provided to third parties;
F) Internet access service;
G) Radio and television audio and video
				programming services, regardless of the medium, including the furnishing of
				transmission, conveyance and routing of such services by the programming
				service provider. Radio and television audio and video programming services
				shall include but not be limited to cable service as defined in
				47
				USC 522(6) and audio and
				video programming services delivered by commercial mobile radio service
				providers, as defined in
				47
				CFR 20.3.
i) Under
				47
				USC 522(6), "cable service"
				is defined to mean "the one-way transmission to subscribers of video
				programming or other programming service, and subscriber interaction, if any,
				which is required for the selection or use of such video programming or other
				programming service".
ii) For the
				provisions of
				47
				CFR 20.3, see subsection (b)(1).
H) "Ancillary services";
				or
I) Digital products "delivered
				electronically", including but not limited to software, music, video, reading
				materials or ring tones. (IITA Section 304(a)(3)(B-5)(i))
18) "Vertical service" means an "ancillary
				service" that is offered in connection with one or more "telecommunications
				services", which offers advanced calling features that allow customers to
				identify callers and to manage multiple calls and call connections, including
				"conference bridging services". (IITA Section 304(a)(3)(B-5)(i))
19) "Voice mail service" means an "ancillary
				service" that enables the customer to store, send or receive recorded messages.
				"Voice mail service" does not include any "vertical services" that the customer
				may be required to have in order to utilize the "voice mail service". (IITA
				Section 304(a)(3)(B-5)(i))