For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AMOUNT PAID. The amount charged to the taxpayer’s service address located in the city, regardless of where the amount is billed or paid.
BAD DEBT. 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.
DEPARTMENT or FINANCE DEPARTMENT. The Department of Finance of the city.
DIRECTOR or FINANCE DIRECTOR. The Director of Finance of the city.
GROSS CHARGE. The amount paid for the act or privilege of originating or receiving telecommunications in the city, 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, which amount shall be determined without any deduction on account of the cost of the telecommunications, the cost of 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. However, GROSS CHARGE shall not include:
(1) Any amount added to a purchaser’s bill because of a charge made pursuant to:
(a) The tax imposed by this chapter;
(b) Additional charges added to the purchaser’s bill pursuant to § 9-222 of the State Public Utilities Act, being ILCS Ch. 220, Act 5, § 9-222;
(c) The tax imposed by the State Telecommunications Excise Tax Act; or
(d) The tax imposed by § 4251 of the United States Internal Revenue Code;
(2) Charges for a sent collection telecommunication received outside the city;
(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. This division 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;
(4) Charges for customer equipment, including equipment that is leased or rented by the customer from any source, provided that the charges are disaggregated and separately identified from other charges;
(5) Charges to business enterprises certified under § 9-222.1 of the State Public Utilities Act, being ILCS Ch. 220, Act 5, § 9-222.1, to the extent of the exemption and during the period of time specified by the Illinois Department of Commerce and Community Affairs;
(6) 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 chapter previously was paid to a retailer, but only to the extent that the charges between the parent corporation and wholly owned subsidiaries, or between the wholly owned subsidiaries, represent an expense allocation between the corporations and not the generation of profit for the corporation rendering the service;
(7) 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; and
(8) Charges paid by inserting coins in coin-operating telecommunication devices.
INTERSTATE TELECOMMUNICATIONS. All telecommunications that either originate or terminate outside the state.
INTRASTATE TELECOMMUNICATIONS. All telecommunications that originate and terminate within the state.
PERSON. Any natural individual, firm, trust, estate, partnership, association, joint stock company, joint venture or corporation; any receiver, trustee, guardian or other representative appointed by order of any court; the federal government, state governments or state universities created by statute; or any city, town, county or other political subdivision of the state.
PURCHASE AT RETAIL. The acquisition, consumption or use of telecommunications through a sale at retail.
RETAILER. Every person engaged in the business of making sales at retail, as defined in the definition below.
RETAILER MAINTAINING A PLACE OF BUSINESS IN THE STATE (OR ANY LIKE DESIGNATION). Any retailer having or maintaining within the state, directly or by a subsidiary, an office, distribution facilities, transmission facilities, a sales office, a warehouse or other place of business, or an agent (or any like designation) or other representative operating within the state, permanently or temporarily, whether the retailer or subsidiary is licensed to do business in the state.
SALE AT RETAIL. The transmitting, supplying or furnishing of telecommunications and all services rendered in connection therewith for consideration:
(1) To persons other than the city, federal government, state governments and state universities created by statute; and
(2) 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 corporation to another corporation is not greater than the gross charge paid to the retailer for its use or consumption and not for resale.
SERVICE ADDRESS. The location of telecommunications equipment from which telecommunications are originated or at which telecommunications are received by a taxpayer. If this location is not a deemed 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 the state where bills are sent.
TAXPAYER. 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 the city and who incurs a tax liability under this chapter.
TELECOMMUNICATIONS.
(1) In addition to the usual and popular meaning,
TELECOMMUNICATIONS includes but is not limited to messages or information transmitted through the use of local, toll and wide area telephone service, private line 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 messages or information by electronic or similar means between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities.
(2) The definition of
TELECOMMUNICATIONS set forth in division (1) hereof shall not include:
(a) 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; or
(b) 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.
(Ord. 96-40, passed 10-22-1996)