Illinois Administrative Code › Title 86 - REVENUE › Part 495 - TELECOMMUNICATIONS EXCISE TAX › Section 495.140 - Imposition of Telecommunications Excise Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Telecommunications Excise Tax is
			 imposed upon the act or privilege of originating or receiving intrastate or
			 interstate telecommunications in Illinois at the rate of 7% of the gross charge
			 for such telecommunications purchased at retail from retailers. On and after
			 January 1, 2001, prepaid telephone calling arrangements shall not be considered
			 telecommunications subject to the Telecommunications Excise Tax. (Sections 3
			 and 4 of the Act) "Prepaid telephone calling arrangements" means 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 Section, "recharge" means the purchase of additional prepaid
			 telephone or telecommunications services whether or not the purchaser acquires
			 a different access number or authorization code. For purposes of this Section,
			 "telecommunications" means that term as defined in Section 2 of the
			 Telecommunications Excise Tax Act [35 ILCS 630 ]. "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
			 the purchase as a credit on an account for a customer under an existing
			 subscription plan. (Section 2 of the Act)
b) The Telecommunications Excise Tax must be
			 collected from a taxpayer by a "retailer maintaining a place of business in
			 this State".
1) "Retailer maintaining a place
			 of business in this State" 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. (Section 2(m) of the Act)
2) Retailers maintaining a place of business
			 in this State 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. Whenever possible, the tax
			 shall be stated as a distinct item separate and apart from the gross charge for
			 telecommunications.