A. Definitions: For the purposes of this section, the following definitions shall apply:
AMOUNT PAID: The amount charged to the taxpayer's service address in the village limits regardless of where such amount is billed or paid.
DEPARTMENT: The Illinois department of revenue.
GROSS CHARGE: The amount paid for the act or privilege of originating or receiving telecommunications in the village and for all services and equipment rendered 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 termination point within the village, and charges for the portion of the interoffice channels provided within the village. Charges for that portion of the interoffice channel connecting two (2) or more channel termination points, one or more of which is located within the jurisdictional boundary of the village, shall be determined by the retailer by multiplying an amount equal to the total charge for the interoffice channel by a fraction, the numerator of which is the number of channel termination points that are located within the jurisdictional boundary of the village and the denominator of which is the total number of channel termination points connected by the interoffice channel. However, "gross charge" shall not include any of the following:
1. Any amounts added to a purchaser's bill because of a charge made pursuant to: a) the tax imposed by this section, b) additional charges added to a purchaser's bill pursuant to section 9-221 or 9-222 of the public utilities act 1 , as amended, c) the tax imposed by the telecommunications excise tax act 2 , d) 911 surcharges, or e) the tax imposed by section 4251 of the internal revenue code 3 ;
2. Charges for a sent collect telecommunication received outside of 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 to the extent of such exemption and during the period of time specified by the department of commerce and economic opportunity;
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 when the tax imposed under this section 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;
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. Amounts paid by telecommunications retailers under the telecommunications municipal infrastructure maintenance fee act 4 ; or
10. Charges for nontaxable services or telecommunications if: a) those charges are aggregated with other charges for telecommunications that are taxable, b) those charges are not separately stated on the customer bill or invoice, and c) 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 be reasonably 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.
INTERSTATE TELECOMMUNICATIONS: All telecommunications that originate and terminate outside the state of Illinois.
INTRASTATE TELECOMMUNICATIONS: All telecommunications that originate and terminate within the state of Illinois.
PERSON: 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 the state of Illinois.
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 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 the state of Illinois, who to the satisfaction of the department, furnishes adequate security to ensure 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 the state in the same manner and subject to the same requirements as a retailer maintaining a place of business within the state. The permit may be revoked by the department at its discretion.
RETAILER MAINTAINING A PLACE OF BUSINESS IN THIS STATE: 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 the state of Illinois 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 the state of Illinois.
SALE AT RETAIL: The transmitting, supplying or furnishing of telecommunications and all services rendered 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, when the tax has already 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 a retailer, and for their use or consumption and not for resale.
SERVICE ADDRESS: The location of telecommunications equipment from which telecommunications services are originated or at which telecommunications services are received by a taxpayer. If this is not 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 source conformity act. 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 the state of Illinois where bills are sent.
TAXPAYER: A person who individually or through his agents, employees, or permittees engages in the act or privilege of originating in the village or receiving in the village telecommunications and who incurs a tax liability under this section.
TELECOMMUNICATIONS: 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, private line service, channel services, telegraph services, teletypewriter service, computer exchange services, cellular mobile telecommunications service, specialized mobile radio services, 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 section, "private line" means a dedicated nontraffic 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 specified locations. "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 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 section. For purposes of this section, "prepaid telephone calling arrangements" means that term as defined in section 2-27 of the retailers' occupation tax act. (Ord. O2008-13, 3-11-2008)
B. Imposition Of Tax: Effective July 1, 2009, a tax is imposed on all of the following acts or privileges:
1. The act or privilege of originating or receiving in the village intrastate telecommunications by a person at a rate of six percent (6%) of the gross charge for such telecommunications purchased at retail from a retailer by such person. To prevent actual multimunicipal 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 municipality on that event, shall be allowed a credit against any tax enacted pursuant to or authorized by this section to the extent of the amount of the tax properly due and paid in the municipality that was not previously allowed as a credit against any other municipal tax. However, such tax 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 municipalities in the state of Illinois.
2. The act or privilege of originating or receiving in the village interstate telecommunications by a person at a rate of six percent (6%) of the gross charge for such telecommunications purchased at retail from a retailer by such person. To prevent actual multistate or multimunicipal taxation of the act or privilege that is subject to taxation under this section, any taxpayer, upon proof that the taxpayer has paid a tax in another state or municipality in this state on such event, shall be allowed a credit against any tax enacted pursuant to this section to the extent of the amount of such tax properly due and paid in such other state or such tax properly due and paid in a municipality in this state which was not previously allowed as a credit against any other state or local tax in the state of Illinois. However, such tax is not imposed on the 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 municipalities in the state of Illinois. (Ord. O2009-12, 3-3-2009)
C. Collection Of Tax:
1. Collection By Retailers: The tax authorized by this section shall be collected from the taxpayer by a retailer maintaining a place of business in the state of Illinois and making or effectuating the sale at retail and shall be remitted by such retailer to the village. Any tax required to be collected pursuant to this section and any such tax collected by such retailer shall constitute a debt owed by the retailer to the village. 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 village. The tax authorized by this section shall constitute a debt of the purchaser to the retailer who provides such taxable services until paid and, if unpaid, is recoverable at law in the same manner as the original charge for such taxable services. If the retailer fails to collect the tax from the taxpayer, then the taxpayer shall be required to pay the tax directly to the village in the manner provided by the village.
2. Tax Returns: The tax authorized by this section shall be remitted by a retailer to the village not later than the last day of the month subsequent to the month in which a bill is issued to a taxpayer. Each retailer shall make a return to the village treasurer, for the previous month, stating the following:
a. Name of retailer;
b. Retailer's principal place of business;
c. Retailer's gross charge during the previous month, upon which the tax is imposed;
d. Amount of the tax;
e. Such other reasonable and related information as the corporate authorities or the village treasurer may require.
Where a retailer's total tax owed to the village averages less than twenty five dollars ($25.00) per month in a calendar quarter, the retailer may request permission from the village treasurer to file a return on a calendar quarter, rather than a monthly, basis.
3. Payment Of Tax; Collection Commission: Retailers filing returns pursuant to this section shall, at the time of filing such return, pay to the village the amount of the tax imposed by this section, less a commission of 1.75 percent, which is allowed to reimburse the retailer for the expenses incurred in keeping records, billing the customer, preparing and filing returns, remitting the tax and supplying data to the village upon request. No commission may be claimed by a retailer for tax not timely remitted to the village.
4. Separate Item: Whenever possible, the tax authorized by this section shall, when collected, be stated as a distinct item separate and apart from the gross charge for telecommunications.
5. Credit For Erroneous Payment: If the retailer demonstrates, to the satisfaction of the village treasurer, that an amount of tax has been paid that was not due under the provisions of this section, whether as a result of a mistake of fact or an error of law, then such amount shall be credited against any tax due, or to become due, under this section, from the retailer who made the erroneous payment. However, no such claim may be made more than three (3) years after the date of the erroneous payment.
D. Exemption For Reselling:
1. Application For Resale Number: If a person, who originates or receives telecommunications in the village, claims to be a reseller of such telecommunications, such person shall apply to the village for a resale number. Such applicant shall state facts which will show the village why such applicant is not liable for tax under this section on any of such purchases and shall furnish such additional information as the village may reasonably require.
2. Issuance Of Resale Number: Upon approval of the application, the village manager, or his designee, shall assign a resale number to the applicant and shall certify such number to the applicant. The village manager, or his designee, may cancel any number which is obtained through misrepresentation, or which is used to send or receive such telecommunications tax free when such actions in fact are not for resale, or which no longer applies because of the person having discontinued the making of resales.
3. Use Of Resale Number: Except as provided hereinabove in this section, the act or privilege of sending or receiving telecommunications in this state shall not be made tax free on the grounds of being a sale for resale unless the person has an active resale number from the village 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.
E. Not A Replacement For Other Payments: The tax imposed by this section shall be in addition to the payment of money, or value of products or services furnished, to the village by the retailer or the taxpayer as compensation for the use of its streets, alleys, or other public places, or installation and maintenance therein, thereon, or thereunder of poles, wires, pipes, or other equipment used in the operation of the retailer's or taxpayer's business.
F. Failure To Return Tax:
1. Any taxpayer who fails to make a return, or who makes a fraudulent return, or who wilfully violates any other provision of this section shall be subject to the penalties provided in section 3-14-12 of this title.
2. In addition to the fine above, such taxpayer shall be liable in a civil action for the amount of tax due. (Ord. O2001-5, 2-6-2001, eff. 5-1-2001)
Notes
| 1 | 1. 220 ILCS 5/9. |
| 2 | 2. 35 ILCS 630/1 et seq. |
| 3 | 3. 26 USCA § 4251. |
| 4 | 1. 35 ILCS 635/1 et seq. |