News and Insights

Chicago Civic Federation Publishes Illinois Telecommunications Tax Study

Tax Development Nov 12, 2001

The Chicago Civic Federation recently released a definitive study of the Illinois telecommunications tax structure ("Study"). The Study examines the history of telecom taxes in Illinois and includes a detailed description of each type of tax and surcharge imposed upon telecom retailers and the services they provide.

The Study further analyzes the impacts of the taxation of telecommunications services on Illinois municipal revenues. Based upon municipal survey information gathered by the Civic Federation, the Study provides an analysis of the municipal tax rates imposed on telecommunications, the current levels of telecom tax revenues in the survey communities, and the number of filings submitted by telecommunications retailers.

In addition, the Study provides an aggregate model of rates, revenues, and filings with regard to the vast majority of municipalities in Illinois. Aggregate revenues for the municipal excise tax, utility tax, and infrastructure maintenance fee are computed in the model. The model also provides detailed rate information throughout the state as well as estimates of the aggregate number of filings required by municipalities and submitted by carriers.

The Study was authored by James Kranjc, CPA, MST, who is the Senior Manager in Charge of the Chicago office of Ryan & Company, a Dallas-based state and local tax consulting firm. Mr. Kranjc received a Bachelor of Business Administration degree from Cleveland State University and a Master of Taxation degree from the University of Akron. He is also a certified public accountant.

Scott Metcalf 312.201.9028