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Illinois Telecommunications Access Corporation (ITAC) Assessment

Statutory Reference

Electronic Services

Definition

The Illinois Telecommunications Access Corporation (ITAC) Assessment is a charge imposed on the consumer, to be collected by sellers, when a retail transaction takes place which includes prepaid wireless telecommunications service. This assessment has been implemented to ensure that funding for the ITAC Fund to serve the needs of persons with hearing or speech disabilities is maintained with equal contribution from consumers of prepaid wireless telecommunications service. Note: The ITAC Assessment must be collected on the same transactions as the Prepaid Wireless E911 Surcharge (i.e., sales of prepaid wireless telecommunications service). This assessment does not change previously established sales tax obligations on prepaid services.

Prepaid wireless telecommunications service is service that must be paid for in advance and is sold in predetermined units or dollars. As the predetermined units are used the amount remaining available for use declines in a known amount. Examples include prepaid calling cards and minutes added to “pay-as-you-go” phones.

“Retail transaction” means the purchases of prepaid wireless telecommunications service from a seller for any purpose other than resale.

“Seller” means a person who sells prepaid wireless telecommunications service to another person.

Tax Rate

The ITAC Assessment rate is a competitively neutral rate set by the Illinois Commerce Commission. The ITAC Assessment rate changes annually on July 1. Use the Tax Rate Database to determine the rate.

Exemptions

All exemptions that apply for other Sales and Use Taxes are effective for the ITAC Assessment. See 86 Ill. Adm. Code 130.120 and Publication 104, Common Sales Tax Exemptions for more information.

Filing and payment requirements

The ITAC Assessment is reported in combination with the Prepaid Wireless E911 Surcharge on Schedule B, to be filed and paid as part of Form ST-1, Sales and Use Tax and E911 Surcharge Return.

Additional Forms & Resources

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