Illinois § 3

§ 3.

Tax imposed; intrastate telecommunications. (a) 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. (b) Beginning January 1, 1998 and through June 30, 2025, 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. (c) Beginning July 1, 2025, 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 8.65% of the gross charge for such telecommunications purchased at retail from a retailer by that person. However, the tax is not imposed on the act or privilege to the extent the act or privilege may not, under the Constitution and statutes of the United States, be made the subject of taxation by the State. The 1.65% increase in the rate from 7% to 8.65% under this amendatory Act of the 104th General Assembly shall be designated as the statewide 9-8-8 surcharge and is established to support and enhance the 9-8-8 Suicide and Crisis Lifeline in compliance with the National Suicide Hotline Designation Act of 2020 as codified in 47 U.S.C. 251 and 251a. (d) Beginning January 1, 2001, prepaid telephone calling arrangements shall not be considered telecommunications subject to the tax imposed under this Act. (Source: P.A. 104-6, eff. 6-16-25.)