For the purpose of this subchapter, 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 such amount is billed or paid.
GROSS CHARGE.
(1) 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 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 materials used, labor or service costs, or any other expense whatsoever. If credit is extended, the amount thereof shall be included only as and when paid.
(2) GROSS CHARGE shall not include:
(a) Any amount added to a purchaser’s bill because of a charge made pursuant to:
1. The tax imposed by this subchapter;
2. Additional charges added to a purchaser’s bill pursuant to 220 ILCS 5/9-222, as amended;
3. The tax imposed by the Illinois Telecommunications Excise Tax Act, being 35 ILCS 630, as amended; or
4. The tax imposed by § 4251 of the United States Internal Revenue Code, as amended.
(b) Charges for a sent collect telecommunications received outside the city;
(c) 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 (2)(c) applies to, 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;
(d) 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;
(e) Charges to business enterprises certified under 220 ILCS 5/9-222.1, as amended, to the extent of such exemption and during the period of time specified by the State Department of Commerce and Community Affairs or such other agency of the state having competent jurisdiction;
(f) 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 represent expense allocation between the corporations and not the generation of profit for the corporation rendering such service;
(g) 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), however, 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; or
(h) Charges paid by inserting coins in coin-operated telecommunications devices.
INTERSTATE TELECOMMUNICATIONS. All telecommunications that either originate or terminate outside the state.
INTRASTATE TELECOMMUNICATIONS. All telecommunications that originate and terminate within the state.
PURCHASE AT RETAIL. The acquisition, consumption or use of telecommunications through a sale at retail.
RETAILER. Includes every person engaged in the business of making sales at retail as defined in this section.
RETAILER MAINTAINING A PLACE OF BUSINESS IN THIS STATE (OR ANY LIKE TERM). Includes any retailer having or maintaining within the state, directly or by a subsidiary, an office, distribution facility, transmission facility, sales office, warehouse or other place of business, or any agent or other representative operation within the state under the authority of the retailer or its subsidiary, irrespective of whether such place of business, agent or other representative is located within the state permanently or temporarily, or whether such 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 federal and state governments, and state universities created by statute; and
(2) 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 the retailer for their use or consumption and not for resale.
SERVICE ADDRESS. The location of telecommunications equipment from which telecommunication 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, 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 subchapter.
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, channel services, telegraph services, teletypewriter service, specialized mobile radio services, 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, fiberoptics, laser, microwave, radio, satellite or similar facilities. The definition of TELECOMMUNICATIONS set forth herein shall not include:
(1) 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
(2) Purchase of telecommunications by a telecommunications service provider for use as a component part of the services provided by him or her to the ultimate retail consumer who originates or terminates the taxable end-to-end telecommunications.
(Prior Code, § 39-51) (Ord. 96-7, passed 2-5-1996)