[HISTORY: Adopted by the President and Board of Trustees of the Village of Granville as indicated in article histories. Amendments noted where applicable.]
Taxation — See Ch. 235.
[Adopted 11-3-1998 by Ord. No. 412; amended in its entirety 12-15-1998 by Ord. No. 414]
The Village of Granville, a municipality with a population of less than 500,000, hereby imposes an infrastructure maintenance fee upon all telecommunications retailers providing services within the municipal limits of the Village, Putnam County, Illinois. This fee is adopted pursuant to the provisions of the Illinois Telecommunications Municipal Infrastructure Maintenance Fee Act, Public Act 90-154 (the "Act"; 35 ILCS 635/1 et seq.).
The tax imposed shall be 1% of all gross charges charged by all telecommunications retailers to service addresses within the municipal limits of the Village, for telecommunications originating or received in the municipality.
This article is intended to create a uniform system for the collection of fees associated with the privilege of using Village rights-of-way and other public rights-of-way for telecommunications activity within the municipal boundaries of the Village, including the recovery of reasonable costs for regulating the use of all public rights-of-way within its municipal boundaries for telecommunications activity.
As used in this article, the following terms shall have the meanings indicated:
- GROSS CHARGE
- The amount paid to a telecommunications retailer for the act or privilege of originating or receiving telecommunications within 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 the cost of such telecommunications, the cost of the materials used, labor or service costs, or any other expense whatsoever. In case credit is extended, the amount thereof shall be included only as and when paid. 
- A. Gross charges for private line service shall include charges imposed at each channel termination point within the Village, charges for the channel mileage between each channel termination point within the Village, and charges for that portion of the interstate inter-office channel provided within the Village. However, gross charges shall not include:
- (1) Any amounts added to a purchaser's bill because of a charge made under:
- (a) The fee imposed by this article;
- (b) Additional charges added to a purchaser's bill under Section 9-221 or 9-222 of the Public Utilities Act (220 ILCS 5/9-221 and 5/9-222);
- (c) The tax imposed by the Telecommunications Excise Tax Act (935 ILCS 630/1 et seq.);
- (d) 911 surcharges; or
- (e) The tax imposed by Section 4251 of the Internal Revenue Code.
- (2) Charges for a sent collect telecommunication received outside the Village.
- (3) Charges for leased time on equipment or charges for the storage of data or information or subsequent retrieval or the processing of data or information intended to change its form or content. Such equipment includes, but is not limited to, the use of calculators, computers, data processing equipment, tabulating equipment or accounting equipment and also includes the usage of computers under a time-sharing agreement.
- (4) Charges for customer equipment, including such equipment that is leased or rented by the customer from any source, wherein such charges are disaggregated and separately identified from other charges.
- (5) Charges to business enterprises certified under Section 9-222.1 of the Public Utilities Act (220 ILCS 5/9-222.1) to the extent of such exemption and during the period of time specified by the Village.
- (6) Charges for telecommunications and all services and equipment provided in connection therewith between a parent corporation and its wholly owned subsidiaries or between wholly owned subsidiaries, and only to the extent that the charges between the parent corporation and wholly owned subsidiaries or between wholly owned subsidiaries represent expense allocation between the corporations and not the generation of profit other than a regulatory required profit for the corporation rendering such services.
- (7) Bad debts. ("Bad debt" means 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 under applicable federal income tax standards; if the portion of the debt deemed to be bad is subsequently paid, the retailer shall report and pay the tax on that portion during the reporting period in which the payment is made.)
- (8) Charges paid by inserting coins in coin-operated telecommunications devices.
- (9) Charges for telecommunications and all services and equipment provided to the Village.
- (10) Charges for nontaxable services or telecommunications if (i) those charges are aggregated with other charges for telecommunications that are taxable, (ii) those charges are not separately stated on the customer bill or invoice, and (iii) the retailer can reasonably identify the nontaxable charges on the retailer's books and records kept in the regular course of business. If the nontaxable charges cannot reasonably be identified, the gross charge from the sale of both taxable and nontaxable services or telecommunications billed on a combined basis shall be attributed to the taxable services or telecommunications. The burden of proving nontaxable charges shall be on the retailer of the telecommunications.
- B. Charges for that portion of the interstate inter-office channel provided in the Village shall be determined by the retailer as follows:
- (1) For interstate inter-office channels having two channel termination points, only one of which is in the Village, 50% of the total charge imposed;
- (2) For interstate inter-office channels having more than two channel termination points, one or more of which are in the Village, an amount equal to the total charge multiplied by a fraction, the numerator of which is the number of channel termination points within the Village and the denominator of which is the total number of channel termination points; or
- (3) Any other method that reasonably apportions the total charges for interstate inter-office channels among the states in which channel termination points are located.
- PUBLIC RIGHT-OF-WAY
- Any municipal street, alley, water or public right-of-way dedicated or commonly used for utility purposes, including utility easements wherein the Village has acquired the right and authority to locate or permit the location of utilities consistent with telecommunications facilities. "Public right-of-way" shall not include any real or personal Village property that is not specifically described in the previous sentence and shall not include Village buildings and other structures or improvements, regardless of whether they are situated in the public right-of-way.
- RETAILER MAINTAINING A PLACE OF BUSINESS IN THIS STATE
- 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 any agent or other representative operating within this state under the authority of the retailer or its subsidiary, irrespective of whether such place of business or agent or other representative is located here permanently or temporarily, or whether such retailer or subsidiary is licensed to do business in this state.
- SALE OF TELECOMMUNICATIONS AT RETAIL
- The transmitting, supplying, or furnishing of telecommunications and all services rendered in connection therewith for a consideration, other than between a parent corporation and its wholly owned subsidiaries or between wholly owned subsidiaries, when the gross charge made by one such corporation to another such corporation is not greater than the gross charge paid to the retailer for its use of consumption and not for sale.
- SERVICE ADDRESS
- The location of telecommunications equipment from which telecommunications services are originated or at which telecommunications services are received. If this is not a defined location, as in the case of wireless telecommunications, paging systems, maritime systems, air-to-ground systems, and the like, "service address" shall mean the location of the customer's primary use as defined in the Mobile Telecommunications Sourcing Conformity Act (35 ILCS 638/1 et seq.). For air-to-ground systems and the like, "service address" shall mean the location of the customer’s primary use of the telecommunications equipment as defined by the location in Illinois where bills are sent.
- Includes, but is not limited to, messages or information transmitted through use of local, toll, and wide-area telephone service, channel services, telegraph services, teletypewriter service, computer exchange services, private line services, specialized mobile radio services, or any other transmission of messages or information by electronic or similar means between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite, or similar facilities. Unless the context clearly requires otherwise, telecommunications shall also include wireless telecommunications as hereinafter defined. Telecommunications shall not include value-added services in which computer processing applications are used to act on the form, content, code, and protocol of the information for purposes other than transmission. Telecommunications shall not include purchase of telecommunications by a telecommunications service provider for use as a component part of the service provided by him or her to the ultimate retail consumer who originates or terminates the end-to-end communications. Retailer access charges, right-of-access charges, charges for use of intercompany facilities, and all telecommunications resold in the subsequent provision and used as a component of, or integrated into, end-to-end telecommunications service shall not be included in gross charges as sales for resale. Telecommunications shall not include the provision of cable services through a cable system as defined in the Cable Communications Act of 1984 (47 U.S.C. § 521 et seq.), as now or hereafter amended, or cable or other programming services subject to an open video system fee payable to the Village through an open video system as defined in the Rules of the Federal Communications Commission (47 CFR 76.1500 et seq.), as now or hereafter amended. Prepaid telephone calling arrangements shall not be considered "telecommunications" subject to the tax imposed under this article. For purposes of this definition, "prepaid telephone calling arrangements" means that term as defined in Section 2-27 of the Retailers' Occupation Tax Act (35 ILCS 120/2-27).
- TELECOMMUNICATIONS RETAILER or RETAILER or CARRIER
- Includes every person engaged in the business of making sales of telecommunications at retail as defined in this section. The Village may, in its discretion, upon application, authorize the collection of the fee hereby imposed by any retailer not maintaining a place of business within this state who, to the satisfaction of the Village, furnishes adequate security to ensure collection and payment of the fee. When so authorized, it shall be the duty of such retailer to pay the fee upon all of the gross charges for telecommunications in the same manner and subject to the same requirements as a retailer maintaining a place of business within the Village.
- WIRELESS TELECOMMUNICATIONS
- Includes cellular mobile telephone services, personal wireless services as defined in Section 704(C) of the Telecommunications Act of 1996 (Public Law No. 104-104), 42 U.S.C. § 332(c)(7), as now or hereafter amended, including all commercial mobile radio services, and paging services.
Every telecommunications provider as defined by this article shall register with the Village within 30 days after the effective date of this article or becoming a telecommunications provider, whichever is later, on a form to be provided by the Village; provided, however, that any telecommunications retailer that has filed a return pursuant to § 239-7C of this article shall be deemed to have registered in accordance with this section.
Every telecommunications provider who has registered with the Village pursuant to Subsection A has an affirmative duty to submit an amended registration form or current return as required by § 239-7C, as the case may be, to the Village within 30 days from the date of the occurrence of any changes in the information provided by the telecommunications provider in the registration form or most recent return on file with the Village.
A Village telecommunications infrastructure maintenance fee is hereby imposed upon all telecommunications retailers in the amount of 1% of all gross charges charged by the telecommunications retailer to service addresses within the Village for telecommunications originating or received in the Village.
Upon the effective date of the infrastructure maintenance fee authorized in this article, the Village infrastructure maintenance fee authorized hereunder shall be the only fee or compensation for the use of all public rights-of-way within the Village by telecommunications retailers. Imposition of the infrastructure maintenance fee provided under this article does not, however, serve as a limitation on the levying of any taxes or imposition of any fees otherwise authorized by law.
A telecommunications retailer shall charge to and collect from each customer an additional charge in an amount equal to the Village infrastructure maintenance fee attributable to that customer's service address.
Unless otherwise approved by the Village President, the infrastructure maintenance fee shall be remitted by the telecommunications retailer to the Village not later than the last day of the month subsequent to the month in which a bill is issued to the customer; provided, however, that the telecommunications retailer may retain an amount not to exceed 2% of the Village infrastructure maintenance fee collected by it to reimburse itself for expenses incurred in accounting for and remitting the fee.
Remittance of the municipal infrastructure fee to the Village shall be accompanied by a return, in a form to be prescribed by the Village President, which shall contain such information as the Village President may reasonably require.
Any infrastructure maintenance fee required to be collected pursuant to this article and any such infrastructure maintenance fee collected by such telecommunications retailer shall constitute a debt owed by the telecommunications retailer to the Village. The charge imposed under Subsection A by the telecommunications retailer pursuant to this article shall constitute a debt of the purchaser to the telecommunications retailer who provides such services until paid and, if unpaid, is recoverable at law in the same manner as the original charge for such services.
If it shall appear that an amount of infrastructure maintenance fee has been paid that was not due under the provisions of this article, whether as a result of a mistake of fact or an error of law, then such amount shall be credited against any infrastructure maintenance fee due, or to become due, under this article, from the telecommunications retailer who made the erroneous payment; provided, however, the Village President may request, and the telecommunications retailer shall provide, written substantiation for such credit. However, no claim for such credit may be made more than three years after the date of the erroneous payment unless:
Amounts paid under this article by telecommunications retailers shall not be included in the tax base under any of the following acts as described immediately below:
"Gross charges" for purposes of the Telecommunications Excise Tax Act (35 ILCS 630/1 et seq.).
"Gross revenue" for purposes of the tax on annual gross revenue of public utilities prescribed in Section 2-202 of the Public Utilities Act (220 ILCS 5/2-202).
The Village shall have the right, in its discretion, to audit the books and records of all telecommunications retailers subject to this article to determine whether the telecommunications retailer has properly accounted to the Village for the Village infrastructure maintenance fee. Any underpayment of the amount of the Village infrastructure maintenance fee due to the Village by the telecommunications retailer shall be paid to the Village plus 5% of the total amount of the underpayment determined in an audit, plus any costs incurred by the Village in conducting the audit, in an amount not to exceed 5% of the total amount of the underpayment determined in an audit. The sum shall be paid to the Village within 21 days after the date of issuance of an invoice for same.
The Village President, or his or her designee, may promulgate such further or additional regulations concerning the administration and enforcement of this article, consistent with its provisions, as may be required from time to time and shall notify all telecommunications retailers that are registered pursuant to § 239-5 of this article of such regulations.
Nothing in this article shall excuse any person or entity from obligations imposed under any law, including, but not limited to:
Generally applicable taxes; and
Standards for construction on, over, under, or within, use of or repair of the public rights-of-way, including standards relating to freestanding towers and other structures upon the public rights-of-way, as provided; and
Any liability imposed for the failure to comply with such generally applicable taxes or standards governing construction on, over, under, or within, use of or repair of the public rights-of-way; and
Compliance with any article or provision of this Code concerning uses or structures not located on, over, or within the right-of-way.
Any franchise, license, or similar agreements between telecommunications retailers and the Village entered into before the effective date of this article regarding the use of public rights-of-way shall remain valid according to and for their stated terms except for any fees, charges or other compensation to the extent waived.
Any telecommunications provider who violates, disobeys, omits, neglects or refuses to comply with any of the provisions of this article shall be subject to penalties as set forth in Chapter 1, Article III, of the Village Code.
Nothing in this article shall be construed as limiting any additional or further remedies that the Village may have for enforcement of this article.
The Village hereby waives all fees, charges, and other compensation that may accrue, after the effective date of the waiver, to the Village by a telecommunications retailer pursuant to any existing Village franchise, license, or similar agreement with a telecommunications retailer during the time the Village imposes the telecommunications infrastructure maintenance fee. This waiver shall only be effective during the time the infrastructure maintenance fee provided for in this article is subject to being lawfully imposed on the telecommunications retailer and collected by the telecommunications retailer from the customer.
The Village Clerk shall send a notice of the waiver by certified mail, return receipt requested, to each telecommunications retailer with whom the Village has a franchise.
The Village infrastructure maintenance fee provided for in this article shall become effective and imposed on the first day of the month not less than 90 days after the Village provides written notice by certified mail to each telecommunications retailer with whom the Village has an existing franchise, license, or similar agreement that the Village waives all compensation under such existing franchise, license, or similar agreement during such time as the fee is subject to being lawfully imposed and collected by the retailer and remitted to the Village. The infrastructure maintenance fee shall apply to gross charges billed on or after the effective date as established in the preceding sentence.