summary
Introduced
02/07/2025
02/07/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
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.
AI Summary
This bill modifies several Illinois tax acts related to prepaid telephone calling arrangements, specifically changing how these services will be taxed starting January 1, 2026. Currently, prepaid telephone services are considered taxable regardless of how they are obtained, but beginning in 2026, the bill stipulates that these services will only be subject to tax if they are purchased through a physical item like a preloaded phone, calling card, or other tangible personal property. This means digital or online recharges of phone services would no longer be taxed under these acts. The bill amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, Retailers' Occupation Tax Act, and Telecommunications Excise Tax Act to implement this change, ensuring that only prepaid telephone services obtained through a tangible item will be considered taxable. The modification appears designed to adapt tax regulations to changing telecommunications technologies and purchasing methods, potentially providing tax relief for digital service recharges while maintaining taxation on physical prepaid calling products.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3480&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3480.htm |
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