What are all the different taxes and fees listed on an Illinois landline phone bill, and who collects each one?

Plain-English summary

A consumer wrote to the Illinois Department of Revenue asking what each of six unfamiliar line items on their landline phone bill actually was, what rate each one charged, and which government body collected it. Because the question asked for general explanation rather than a ruling on the requester's own specific tax liability, the Department answered with a General Information Letter (GIL) rather than a binding Private Letter Ruling (PLR).

The Department's response breaks the bill down item by item. "IL 911" is an Emergency Telephone System Act surcharge of $1.50 per connection, collected by the Illinois State Police. "IL PUC Tax" is a Public Utilities Fund tax of 0.1%, collected by the Illinois Commerce Commission. "IL IMF" is the Telecommunications Infrastructure Maintenance Fee at 0.5%, collected by the Illinois Department of Revenue. "IL USF Surcharge" is the Illinois Universal Service Fund surcharge, and "IL Telecom Relay Service" is the Illinois Telecommunications Assistance Charge that funds relay services for the hearing impaired -- both collected by the Illinois Commerce Commission. Finally, "IL COUNTY Excise Tax" is actually two combined taxes: the State Telecommunications Excise Tax at 7%, plus the Simplified Municipal Telecommunications Tax of up to 1% for the customer's city, both collected by the Illinois Department of Revenue (with the local share remitted to the city).

The letter is explicitly informational: it directs the taxpayer to relevant statutes and to the Department's website rather than resolving a specific dispute, and it states plainly that a GIL is not a statement of Department policy and is not binding on the Department.

What this means for you

Telecommunications providers and billers

If you administer billing systems that list these charges, this GIL is a useful checklist confirming which agency collects each item and the specific statutory citation for it. Only two of the six charges (the IMF and the combined excise tax) are collected by the Illinois Department of Revenue; the 911 surcharge goes to the Illinois State Police, and the PUC tax, USF surcharge, and relay charge all go to the Illinois Commerce Commission.

Consumers and small business phone-bill payers

Each charge on a landline bill has a distinct legal basis and rate: a flat $1.50 connection fee for 911, small percentage-based fees for utility regulation, infrastructure maintenance, and universal service/relay funding, and a combined ~7-8% excise tax (state plus local) that functions similarly to a sales tax on telecommunications service.

Accountants and tax professionals

The letter is a good reference for reconciling client phone bills against Illinois statutory citations, but it is a GIL -- not binding on the Department and not a substitute for reviewing the current statutory rates, which can change over time.

Common questions

Q: What is the "IL COUNTY Excise Tax" line actually made up of?
A: It combines the State Telecommunications Excise Tax under 35 ILCS 630/3 and 4 (7%) with the Simplified Municipal Telecommunications Tax under 35 ILCS 636/5-10 and 5-15 (up to 1%, set by the customer's city). Both are collected by the Illinois Department of Revenue, with the local portion remitted to the city.

Q: Who collects the IL 911 surcharge, and how much is it?
A: It is $1.50 per connection under the Emergency Telephone System Act, 50 ILCS 750/20, and it is collected by the Illinois State Police, not the Department of Revenue.

Q: Is this letter binding on the Department of Revenue?
A: No. It is a General Information Letter issued under 2 Ill. Adm. Code 1200.120, meaning it directs the taxpayer to relevant regulations and sources of information but is not a statement of Department policy and is not binding, unlike a Private Letter Ruling issued under 2 Ill. Adm. Code 1200.110.

Q: Which of these charges does the Illinois Department of Revenue actually administer?
A: Only the Telecommunications Infrastructure Maintenance Fee (35 ILCS 635/15) and the combined state/municipal Telecommunications Excise Tax (35 ILCS 630/3-4 and 35 ILCS 636/5-10, 5-15). The 911 surcharge goes to the Illinois State Police, and the PUC tax, Universal Service Fund surcharge, and Telecom Relay Service charge all go to the Illinois Commerce Commission.

Citations and references

• 35 ILCS 630/3 and 4 (State Telecommunications Excise Tax, 7%)
• 35 ILCS 635/15 (Telecommunications Infrastructure Maintenance Fee, 0.5%)
• 35 ILCS 636/5-10 and 5-15 (Simplified Municipal Telecommunications Tax)
• 50 ILCS 750/20 (Emergency Telephone System Act surcharge / IL 911)
• 220 ILCS 5/2-202(c) (Public Utilities Fund tax / IL PUC Tax)
• 220 ILCS 5/13-301 (Illinois Universal Service Fund surcharge)
• 220 ILCS 5/13-703(c) (Illinois Telecommunications Assistance/Relay Service charge)
• 2 Ill. Adm. Code 1200.110 (Private Letter Ruling procedure)
• 2 Ill. Adm. Code 1200.120 (General Information Letter procedure)

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2025.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2025/st25-0010-gil.pdf

Original ruling text

ST 25-0010-GIL

03/11/2025

TELECOMMUNICATIONS EXCISE TAX

Responds to inquiry about various telecommunications-related taxes. See 35 ILCS
630/3 and 4; 35 ILCS 635/15. This is a GIL.
March 11, 2025
NAME
COMPANY
ADDRESS
Dear NAMEr:
This letter is in response to your letter dated February 20, 2025, in which you
requested information. The Department issues two types of letter rulings. Private Letter
Rulings (“PLRs”) are issued by the Department in response to specific taxpayer inquiries
concerning the application of a tax statute or rule to a particular fact situation. A PLR is
binding on the Department, but only as to the taxpayer who is the subject of the request for
ruling and only to the extent the facts recited in the PLR are correct and complete. Persons
seeking PLRs must comply with the procedures for PLRs found in the Department’s
regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter
(“GIL”) is to direct taxpayers to Department regulations or other sources of information
regarding the topic about which they have inquired. A GIL is not a statement of Department
policy and is not binding on the Department. See 2 Ill. Adm. Code 1200.120. You may
access our website at https://tax.illinois.gov/ to review regulations, letter rulings and other
types of information relevant to your inquiry.
The nature of your inquiry and the information you have provided require that we
respond with a GIL. In your letter you have stated and made inquiry as follows:
I was hoping to get some answers on IL taxes and fees on land line phone bills.
I am including a copy of my phone bill for reference purposes. I had questions
on the following items, all highlighted on my bill:
IL 911
IL PUC Tax
IL IMF
IL USF Surcharge
IL Telecom Relay Service
IL COUNTY Excise Tax
I would like to know what each one is and also the tax rate of each item – Based
off of my location. Location being COUNTY – CITY IL. Also would like to know
which governmental body receives each tax item.
DEPARTMENT’S RESPONSE:

COMPANY
Page 2
March 11, 2025
Below is a brief description of the taxes you inquired about including rates, a
statutory citation, and which State agency collects and administers the tax. For those taxes
administered by the Illinois Department of Revenue, further information can be found on the
Department’s website at tax.illinois.gov. For taxes and charges listed below that are
collected by another State agency, you will need to contact the agency listed for more
details.
IL 911: Emergency Telephone System Act surcharge imposed at $1.50 per connection for
telecommunications carriers (50 ILCS 750/20). Collected by Illinois State Police.
IL PUC Tax: Public Utilities Fund tax for regulation of public utilities imposed at 0.1% (220
ILCS 5/2-202(c)). Collected by Illinois Commerce Commission.
IL IMF: Telecommunications Infrastructure Maintenance Fee imposed at 0.5% (35 ICLS
635/15). Collected by Illinois Department of Revenue.
IL USF: Illinois Universal Service Fund surcharge. (220 ILCS 5/13-301). Collected by Illinois
Commerce Commission.
IL Telecom Relay Service: Illinois Telecommunications Assistance Charge related to hearing
impaired telecommunications services. (220 ILCS 5/13-703(c)). Collected by the Illinois
Commerce Commission.
IL COUNTY Excise Tax: State Telecommunications Excise Tax (7%) (35 ILCS 630/3 & 4) and
Simplified Municipal Telecommunications Tax – CITY = 1% (35 ILCS 636/5-10 & 5-15).
Collected by Illinois Department of Revenue (local portion remitted to CITY).
I hope this information is helpful. If you require additional information, please visit
our website at https://tax.illinois.gov/ or contact the Department’s Taxpayer Information
Division at 800-732-8866.
Very truly yours,
Samuel J. Moore
Associate Counsel
SJM:sce