Statutory Reference
Electronic Services
Definition
The tax is imposed on intrastate messages (i.e., those that originate or terminate in Illinois and are billed to a service address in Illinois) as well as interstate messages. The types of telecommunications which are taxable include, but are not limited to, messages or information transmitted through use of local, toll, or wide area telephone services; private line services; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunication services; specialized mobile radio; stationary two-way radio; paging services; Digital Subscriber Line (DSL) services; Voice Over Internet Protocol (VOIP) services; and any other form of mobile and portable one-way or two-way communications; and any other transmission of messages or information by electronic or similar means.
Tax Rate
The state rate is 7% of gross charges. To find municipal rates please use the
Tax Rate Finder.
Form/Filing & Payment Requirements
**A taxpayer that has an average monthly liability that is over $1,000 must file and pay all returns and schedules electronically. For more information please see
WebFile & Pay Telecommunications Tax OR
Tax-Prep Software.
Return
Form RT-2, Telecommunications Tax Return is due either monthly, quarterly, or annually based on the taxpayer’s average monthly liability. The department determines how often a return must be filed.
- A monthly return is due on or before the last day of the month following the month for which the return is filed.
- A quarterly return is due on or before the last day of the month following the quarter for which the return is filed.
- An annual return is due January 31st of the year following the year for which the return is filed.
- Form RT-2-X, Amended Telecommunications Tax Return
- Create your own forms
Quarter-monthly payments - Companies (other than a unit of local government) that have an average monthly liability of $25,000 or more must make quarter-monthly payments by Electronic Funds Transfer (EFT). Payments are due on the 7th, 15th, 22nd, and the last day of the month. Payments can be made using the department's
Telecommunication Tax WebFile program.
Allowable Deductions and Nontaxable Sales
The following telecommunication messages are not subject to this tax:
- Sales for resale;
- Sales in interstate commerce;
- Sales to businesses certified by the Illinois Department of Commerce and Economic Opportunity and located in an enterprise zone;
- Sales to federal and state governments and to state universities for their use and not for resale;
- Sales between a parent corporation and its subsidiaries provided there is no markup and the parent paid the tax to the provider.
Prepaid telephone calling arrangements (prepaid calling cards) are not subject to Telecommunications Excise Tax but are subject to sales tax.
Local Taxes
The rate, which can be imposed in quarter-percent increments, cannot exceed 6%. The department collects the municipal tax for all municipalities that have an ordinance in effect other than the city of Chicago. For the most current tax rate information, see the
RT-8, Illinois Telecommunication Tax Rate Reference Manual. This publication contains the telecommunication tax rates which the IDOR administers. The tax rates are updated and a new revision of this publication is issued each January and July.
Questions?
- Call us at: 1 800 732-8866 or 1 217 782-3336
- Call TDD: 1 800 544-5304
- Mail your RT-2 and RT-2-X forms to:
Attn: Telecommunications Tax
Illinois Department of Revenue
P.O. Box 19019
Springfield, Illinois 62794-9019
