[Adopted as Ch. 21, Art. XI, of the 1964 Code]
This article shall be known and cited as the "Village of Flossmoor
Telecommunications Tax Ordinance." The tax imposed by this article
shall be known as the "Village of Flossmoor Telecommunications Tax"
and is imposed in addition to all other taxes imposed by the Village
of Flossmoor, the State of Illinois or any other municipal corporation
or political subdivision thereof.
When any of the following words or terms are used in this article,
whether or not capitalized, they shall have the meaning or construction
ascribed to them in this section:
The amount charged to the taxpayer's service address located
in the Village regardless of where such amount is billed or paid.
Any portion of a debt that is related to a sale at retail,
for which gross charges are not otherwise deductible or excludable,
that has become worthless or uncollectible as determined by applicable
federal income tax standards.
The Finance Department of the Village.
The Director of Finance of the Village.
[Amended 7-7-2014 by Ord.
No. 2014-1783]
The amount paid for the act or privilege of originating or
receiving telecommunications in the Village, and for all services
rendered in connection therewith, valued in money, whether paid in
money or otherwise, including cash, credits, services and property
of every kind or nature, and shall be determined without any deduction
on account of then cost of such telecommunications, the cost of materials
used, labor service costs or any other expense whatsoever. In case
credit is extended, the amount thereof shall be included only as and
when paid. However, "gross charge" shall not include:
Any amounts added to a purchaser's bill because of a charge
made pursuant to:
Charges for a sent collect telecommunication received outside
of the Village;
Charges for leased time on equipment or charges for the storage of date or information or subsequent retrieval or the processing of data or information intended to change its form or content. This Subsection C applies but is not limited to the use of calculators, computers, data processing equipment, tabulating equipment and accounting equipment and also applies to the usage of computers under a time-sharing agreement;
Charges for customer equipment, including equipment that is
leased or rented by the customer from any source, provided that such
charges are desegregated and separately identified from other charges;
Charges to business enterprises certified under Section 9-222.1
of the Illinois Public Utilities Act (220 ILCS 5/9-222.1) to the extent
of such exemption and during the period of time specified by the Illinois
Department of Commerce and Community Affairs;
Charges for telecommunications and all services and equipment
provided in connection therewith between a parent corporation and
its wholly owned subsidiaries, or between the wholly owned subsidiaries,
when the tax imposed under this article previously was paid to a retailer,
but only to the extent that the charges between the parent corporation
and wholly owned subsidiaries, or between wholly owned subsidiaries,
represent an expense allocation between the corporations and not the
generation of profit for the corporation rendering such service;
Bad debts; provided, however, that if any portion of a debt
deemed to be bad is subsequently paid, the retailer shall report and
pay the tax on that portion of the debt paid during the reporting
period; or
Charges paid by inserting coins in coin-operating telecommunication
devices.
All telecommunications that either originate or terminate
outside the State of Illinois.
All telecommunications that originate and terminate within
the State of Illinois.
[Amended 7-7-2014 by Ord.
No. 2014-1783]
Any natural individual, firm, trust, estate, partnership,
association, joint stock company, joint venture, corporation, any
receiver, trustee, guardian or other representative appointed by order
of any court, the federal government, state governments, state universities
created by statute or any city, town county or other political subdivision
of this state.
The acquisition, consumption or use of telecommunications
through a sale at retail.
Includes every person engaged in the business of making sales
at retail as defined in the definition of "sale at retail" of this
section.
Any like designation, means and includes any retailer having
or maintaining within the State of Illinois, directly or by a subsidiary,
an office, distribution facilities, transmission facilities, sales
office, warehouse or other place of business, or an agent or other
representative operating within the State of Illinois under the authority
of the retailer or its subsidiary, irrespective of whether such place
of business, agent or other representative is located in the State
of Illinois permanently or temporarily, or whether such retailer or
subsidiary is licensed to do business in Illinois.
The transmitting, supplying or furnishing of telecommunications
and all services rendered in connection therewith for consideration:
To persons other than the federal government, state governments
and state universities created by statute; and
Other than between a parent corporation and its wholly owned
subsidiaries, or between the wholly owned subsidiaries, but only when
the tax previously has been paid to a retailer and the gross charge
made by one such corporation to another such corporation is not greater
than the gross charge paid to the retailer for their use or consumption
and not for resale.
The location of telecommunications equipment from which the
telecommunications are originated or at which telecommunications are
received by a taxpayer. If this location is not a defined location,
as in the case of mobile phones, paging systems, maritime systems,
air-to-ground systems and the like, "service address" shall mean the
location of a taxpayer's primary use of the telecommunications equipment
as defined by telephone number, authorization code or location in
Illinois where bills are sent.
A person that individually, or through its agents, employees
or permittee, engages in the act or privilege of originating or receiving
telecommunications in the Village that incurs a tax liability under
this article.
In addition to the usual and popular meaning, includes, but
is not limited to, messages or information transmitted through use
of local, toll and wide area telephone service, channel service, telegraph
service, teletypewriter service, computer exchange service, cellular
mobile telecommunications service, specialized mobile radio service,
paging service or any other form of mobile and portable one-way or
two-way communications, or any other transmission of message or information
by electronic or similar means, between or among points by wire, cable,
fiber-optics, laser, microwave, radio, satellite or similar facilities.
The definition of "telecommunications" set forth in Subsection A shall not include:
Value-added service in which computer processing applications
are used to act on the form, content, code and protocol of the information
for purposes other than transmission; or
Purchase of telecommunications by a telecommunications service
provider for use as a component part of the service provided by it
to the ultimate retail consumer originating or terminating the taxable
end-to-end telecommunications.
The Village of Flossmoor, Illinois.
A.
A tax is hereby imposed upon:
(1)
The act or privilege of originating in the Village or receiving
in the Village intrastate telecommunications by a person at a rate
of 5% of the gross charge for such telecommunications purchased at
retail from a retailer; and
[Amended 7-7-2014 by Ord.
No. 2014-1783]
(2)
The act or privilege of originating in the Village or receiving
in the Village interstate telecommunications by a person at a rate
of 5% of the gross charge for such telecommunications purchased at
retail from a retailer.
B.
To prevent actual multistate taxation of the act or privilege that is subject to taxation under Subsection A(2) of this section, any taxpayer, upon proof that the taxpayer has paid a tax in another state on the same event, shall be allowed a credit against the tax authorized by Subsection A(2) to the extent of the amount of such tax properly due and paid in such other state which was not previously allowed as a credit against any other state or local tax in this state.
C.
The tax imposed by this article is not imposed on any act or privilege
to the extent that such act or privilege may not, under the Constitution
or statutes of the United States, be made the subject of taxation
by the Village.
D.
Carrier access charges, right-of-access charges, charges for use
of intercompany facilities and all telecommunications resold in the
subsequent provision of, used as a component of or integrated into
end-to-end telecommunications service, are sales for resale and are
not subject to tax imposed by this article.
A.
Any retailer maintaining a place of business in this state and making or effectuating a sale at retail shall collect the tax authorized by this article from the taxpayer and remit it to the department as provided by § 250-3-5 of this article.
(1)
Any tax required to be collected pursuant to this article and
any tax collected by the retailer shall constitute a debt owed by
the retailer to the Village.
(2)
The retailer shall collect the tax from the taxpayer by adding
the tax to the gross charge for the act or privilege of originating
or receiving telecommunications when sold for use in the manner prescribed
this article.
(3)
The tax authorized by this article shall constitute a debt of
the purchaser to the retailer providing taxable services until paid
and, if unpaid, is recoverable at law in the same manner as the original
charge for taxable services.
B.
The director shall, upon application, authorize the collection of
this tax by any retailer not maintaining a place of business in this
state who, to the satisfaction of the director, furnishes adequate
security to insure collection and payment of the tax. Such retailer
shall be issued, without charge, a permit to collect the tax imposed
by this article. When so authorized, it shall be the duty of the retailer
to collect the tax upon all of the gross charges for telecommunications
originated or received in the Village in the same manner, and subject
to the same requirements, as a retailer maintaining a place of business
in this state.
C.
The tax authorized by this article shall, when collected, be stated
as a distinct item separate and apart from the gross charge for telecommunications.
On or before the last day of each calendar month, every retailer
maintaining a place of business in this state and every retailer authorized
by the Director to collect the tax imposed by this article shall file
with the Department a remittance return and remit all applicable tax
for the preceding calendar month. The return shall be filed on a form
prescribed by the Director, containing such information as the Director
may reasonably require.
Every retailer maintaining a place of business in this state
shall register with the Department within 30 days after the effective
date of this article or the date of becoming such a retailer, whichever
is later.
A.
If a retailer fails to collect the tax authorized by this article from a taxpayer, as required by § 250-3-4, then the taxpayer shall pay the tax directly to the Department.
B.
On or before the last day of each calendar month, every taxpayer
that has not paid the tax imposed by this article to a retailer shall
file with the Department a tax return and pay the tax upon the gross
charges the taxpayer paid to the retailer during the preceding calendar
month. The return shall be filed on a form prescribed by the Director,
containing such information as the Director may reasonably require.
C.
The Department may cancel the resale number of any person if the
number:
D.
The act or privilege of originating or receiving telecommunications
in the Village shall not be made tax-free on the grounds of being
a sale for resale unless the person has an active resale number issued
by the Department and furnishes that number to the retailer in connection
with certifying to the retailer that a sale is nontaxable as a sale
for resale.
Every retailer maintaining a place of business in this state, every retailer authorized by the Director to collect the tax imposed by this article and every taxpayer required by § 250-3-7 to pay the tax directly to the Department shall keep accurate books and records of its business or activity, including original source documents and books of entry denoting the transactions that give rise, or may have given rise, to any tax liability or exemption. All such books and records shall be kept in the English language and, at all times during business hours of the day, shall be subject to and available for inspection by the department.
The Director is authorized to adopt or promulgate such forms
as may be appropriate to or pertaining to the administration of this
article.
If any provisions of this article, or the application of any provision of this article, are held unconstitutional or otherwise invalid, such occurrence shall not affect other provisions of this article, or their application, that can be given effect without the unconstitutional or invalid provision or its application. Each unconstitutional or invalid provision, or application of such provision, is severable, unless otherwise provided by this article. In particular, if § 250-3-3A(2) of this article is declared unconstitutional or otherwise invalid, the tax imposed under § 250-3-3A(1) shall remain in full force and effect.
If Section 8-11-17 of the Illinois Municipal Code is repealed, or becomes ineffective for any reason, the tax imposed on persons described in § 250-1-1A of the Flossmoor Municipal Code, declared ineffective in favor of this article, by Section 2 of FMC-271, shall be deemed to be in full force and effect as of the date Section 8-11-17 is repealed or becomes effective.[1]
[1]
Editor's Note: 65 ILCS 5/8-11-17, relating to the municipal
telecommunications tax, was repealed effective 1-1-2003.
