[Adopted 9-17-2002 by Ord. No. 5555]
As used in this article, the following terms
shall have the following meanings:
The amount charged to the taxpayer's service address in this
municipality regardless of where such amount is billed or paid.
The Illinois Department of Revenue.
The amount paid for the act or privilege of originating or
receiving telecommunications in this municipality and for all services
and equipment provided in connection therewith by a retailer, 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. "Gross charges" for private
line service shall include charges imposed at each channel point within
this municipality, charges for the channel mileage between each channel
point within this municipality, and charges for that portion of the
interstate interoffice channel provided within Illinois. However,
"gross charge" shall not include:
Any amounts added to a purchaser's bill because
of a charge made pursuant to:
The tax imposed by this article;
The tax imposed by the Telecommunications Excise
Tax Act (35 ILCS 630/1);
The tax imposed by Section 4251 of the Internal
Revenue Code;
911 surcharges; or
Charges added to customers' bills pursuant to
the provisions of Section 9-221 or 9-222 of the Public Utilities Act,[1] as amended, or any similar charges added to customers'
bills by retailers who are not subject to rate regulation by the Illinois
Commerce Commission for the purpose of recovering any of the tax liabilities
or other amounts specified in those provisions of the Public Utilities
Act;
Charges for a sent collect telecommunication
received outside of such municipality;
Charges for leased time on equipment or charges
for the storage of data or information for 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;
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;
Charges to business enterprises certified as
exempt under Section 9-222.1 of the Public Utilities Act[2] to the extent of such exemption and during the period
of time specified by the 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 wholly owned subsidiaries
when the tax imposed under this article has already been paid to a
retailer 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 for the corporation rendering such
service;
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);
Charges paid by inserting coins in coin-operated
telecommunication devices; or
Amounts paid by telecommunications retailers
under the Telecommunications Infrastructure Maintenance Fee Act.[3]
All telecommunications that either originate or terminate
outside this state.
All telecommunications that originate and terminate within
this state.
Any natural individual, firm, trust, estate, partnership,
association, joint-stock company, joint venture, corporation, limited
liability company, or a receiver, trustee, guardian, or other representative
appointed by order of any court, the federal and state governments,
including 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 this section. The Department may, in its discretion,
upon application, authorize the collection of the tax hereby imposed
by any retailer not maintaining a place of business within this state,
who, to the satisfaction of the Department, furnishes adequate security
to insure collection and payment of the tax. Such retailer shall be
issued, without charge, a permit to collect such tax. When so authorized,
it shall be the duty of such retailer to collect the tax upon all
of the gross charges for telecommunications in this state in the same
manner and subject to the same requirements as a retailer maintaining
a place of business within this state. The permit may be revoked by
the Department at its discretion.
Includes any retailer having or maintaining within this state,
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.
The transmitting, supplying or furnishing of telecommunications
and all services and equipment provided in connection therewith for
a consideration, to persons other than the federal and state governments,
and state universities created by statute and other than between a
parent corporation and its wholly owned subsidiaries or between wholly
owned subsidiaries for their use or consumption and not for resale.
The location of telecommunications equipment from which telecommunications
services are originated or at which telecommunications services are
received by a taxpayer. In the event this may not be a defined location,
as in the case of mobile phones, paging systems, and maritime systems,
"service address" means the customer's place of primary use as defined
in the Mobile Telecommunications Sourcing Conformity Act.[4] For 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 who individually or through his or her agents, employees,
or permittees engages in the act or privilege of originating or receiving
telecommunications in a municipality and who incurs a tax liability
as authorized by this article.
In addition to the meaning ordinarily and popularly ascribed
to it, includes, without limitation, messages or information transmitted
through use of local, toll, and wide area telephone service, private
line services, channel services, telegraph services, teletypewriter,
computer exchange services, cellular mobile telecommunications service,
specialized mobile radio, stationary two-way radio, paging service,
or any other form of mobile and portable one-way or two-way communications,
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. As used
in this article, "private line" means a dedicated non-traffic sensitive
service for a single customer, that entitles the customer to exclusive
or priority use of a communications channel or group of channels,
from one or more specified locations to one or more other specified
locations. The definition of "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 purchases of telecommunications by a telecommunications service
provider for use as a component part of the service provided by such
provider to the ultimate retail consumer who originates or terminates
the taxable end-to-end communications. 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 shall be nontaxable as sales for resale. 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.[5]
A tax is hereby imposed upon any and all the
following acts or privileges:
A.
The act or privilege of originating in the municipality
or receiving in the municipality intrastate telecommunications by
a person at a rate of 1% of the gross charge for such telecommunications
purchased at retail from a retailer.
B.
The act or privilege of originating in the municipality
or receiving in the municipality interstate telecommunications by
a person at a rate of 6% of the gross charge for such telecommunications
purchased at retail from a retailer. (Sections 5-25 and 5-30 of the
Simplified Municipal Telecommunications Tax Act, P.A. 92-0526.[1]) To prevent actual multi-state taxation of the act or
privilege that is subject to taxation under this subsection, any taxpayer,
upon proof that the taxpayer has paid a tax in another state on such
event, shall be allowed a credit against any tax enacted pursuant
to or authorized by this section 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.
[Amended 3-16-2004 by Ord. No. 5750; 3-27-2004 by Ord. No.
5754]
[1]
Editor's Note: See 636 ILCS 5/5-25 and 5-30.
C.
The tax imposed by this article is not imposed on
such act or privilege to the extent such act or privilege may not,
under the Constitution and statutes of the United States, be made
the subject of taxation by the municipality,
A.
The tax authorized by this article shall be collected
from the taxpayer by a retailer maintaining a place of business in
this state and shall be remitted by such retailer to the Department.
Any tax required to be collected pursuant to or as authorized by this
article and any such tax collected by such retailer and required to
be remitted to the Department shall constitute a debt owed by the
retailer to the state. Retailers 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 by the Department. The tax authorized by this
article shall constitute a debt of the taxpayer to the retailer until
paid, and, if unpaid, is recoverable at law in the same manner as
the original charge for such sale at retail. If the retailer fails
to collect the tax from the taxpayer, then the taxpayer shall be required
to pay the tax directly to the Department in the manner provided by
the Department.
B.
Whenever possible, the tax authorized by this article
shall, when collected, be stated as a distinct item separate and apart
from the gross charge for telecommunications.
[Amended 3-16-2004 by Ord. No. 5750]
On or before the last day of July, and on or
before the last day of every month thereafter, the tax imposed under
this article on telecommunication retailers shall be returned with
appropriate forms and information as required by the Department pursuant
to the Illinois Simplified Municipal Telecommunications Tax Act (Public
Act 92-526, Section 5-50[1]) and any accompanying rules and regulations created by
the Department to implement the Act.
[1]
Editor's Note: See 636 ILCS 5/5-50.
A.
If a person who originates or receives telecommunications
claims to be a reseller of such telecommunications, such person shall
apply to the Department for a resale number. Such applicant shall
state facts which will show the Department why such applicant is not
liable for the tax authorized by this article on any of such purchases
and shall furnish such additional information as the Department may
reasonably require.
B.
Upon approval of the application, the Department shall
assign a resale number to the applicant and shall certify such number
to the applicant. The Department may cancel any number which is obtained
through misrepresentation, or which is used to send or receive such
telecommunication tax-free when such actions in fact are not for resale,
or which no longer applies because of the person's having discontinued
the making of resales.
C.
Except as provided hereinabove in this section, the
act or privilege of originating or receiving telecommunications in
this state shall not be made tax-free on the ground of being a sale
for resale unless the person has an active resale number from the
Department and furnishes that number to the retailer in connection
with certifying to the retailer that any sale to such person is nontaxable
because of being a sale for resale.
[Amended 3-16-2004 by Ord. No. 5750]
A.
This article shall be in full force and effect from
and after its passage and approval and publication as required by
law; provided, however, that:
(2)
The tax provided for herein shall take effect for
all bills issued on or after the first day of July 2004; and
(3)
Any amounts due or payable to the municipality for
any tax periods ending prior to the first day of July 2004, shall
nevertheless remain payable as if this article had not been adopted.
B.
The City Clerk is hereby directed to file a certified
copy of this article with the Illinois Department of Revenue on or
before March 20, 2004.
