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CHAPTER 5
TAXES
ARTICLE A. MUNICIPAL OCCUPATION TAXES
SECTION:
3-5A-1: Home Rule Municipal Retailers' Occupation Tax
3-5A-2: Home Rule Municipal Service Occupation Tax
3-5A-3: Home Rule Municipal Use Tax
3-5A-4: Hotel Operators' Occupation Tax
3-5A-1: HOME RULE MUNICIPAL RETAILERS' OCCUPATION TAX:
   A.   Tax Imposed; Rate; Exclusions: The Corporate Authorities of the Municipality shall and do hereby impose a tax upon all persons engaged in the Municipality in the business of selling tangible personal property, other than an item of tangible personal property titled or registered with an agency of the State of Illinois, at retail in the Municipality at the rate of 2.25 percent on and of the gross receipts from those sales made in the course of such business. This tax shall only be imposed at the rate of 2.25 percent as authorized by the Act, which is at the same rate that the Municipality imposes a Home Rule Municipal Service Occupation Tax under the Home Rule Municipal Service Occupation Tax Act. Under the Act, this additional tax may not be imposed on the sales of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics and otherwise or hereafter required by applicable law.
   B.   Collection And Enforcement: The tax imposed by the Municipality under this section and the Act and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Illinois Department of Revenue.
   C.   Limitations: Nothing in this section shall be construed to authorize the Municipality to impose a tax upon the privilege of engaging in any business which under the Constitution of the United States may not be made the subject of taxation by the State of Illinois. Notwithstanding anything herein to the contrary, this section shall be given effect in such a manner as to comply with the Act as it shall from time to time be in effect.
   D.   Effective Date: Pursuant to the Municipality's home rule authority, sections 1-2-4 and 4-5-13 of the Illinois Municipal Code shall not apply to this section. This section shall become effective immediately upon its adoption and approval and the tax under subsection A of this section shall be given effect in the time and manner as provided in the Act. (Ord. 3674, 3-20-2017; amd. Ord. 3563, 9-23-2019; Ord. 3564, 9-23-2019)
3-5A-2: HOME RULE MUNICIPAL SERVICE OCCUPATION TAX:
   A.   Tax Imposed; Rate; Exclusions: The Corporate Authorities of the Municipality shall and do hereby impose a tax upon all persons engaged in the Municipality in the business of making sales of service at the rate of 1.50 percent of the selling price of all tangible personal property transferred by such servicemen either in the form of tangible personal property or in the form of real estate as an incident to a sale of service. This tax shall only be imposed at the rate of 1.50 percent of the selling price, as authorized by the Act which is at the same rate that the Municipality imposes a Home Rule Municipal Retailers' Occupation Tax under the Home Rule Municipal Retailers' Occupation Tax Act. Under the Act this additional tax may not be imposed on the sales of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics and otherwise or hereafter required by applicable law.
   B.   Collection And Enforcement: The tax imposed by the Municipality under this section and the Act and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Illinois Department of Revenue.
   C.   Limitations: Nothing in this section shall be construed to authorize the Municipality to impose a tax upon the privilege of engaging in any business which under the Constitution of the United States may not be made the subject of taxation by the State of Illinois. Notwithstanding anything herein to the contrary, this section shall be given effect in such a manner as to comply with the Act as it shall from time to time be in effect.
   D.   Effective Date: Pursuant to the Municipality's home rule authority, sections 1-2-4 and 4-5-13 of the Illinois Municipal Code shall not apply to this section. This section shall become effective immediately upon its adoption and approval and the tax under subsection A of this section shall be given effect in the time and manner as provided in the Act. (Ord. 3675, 3-20-2017)
3-5A-3: HOME RULE MUNICIPAL USE TAX:
   A.   Tax Imposed; Rate: The Corporate Authorities of the City shall and do hereby impose a tax at the rate of one percent (1.00%) upon the privilege of using, in the City, any item of tangible personal property which is purchased at retail from a retailer, and which is titled or registered at a location within the corporate limits of the City with an agency of the government of the State of Illinois. The tax shall only be imposed at the rate of one percent (1.00%) and based on the selling price of such tangible personal property, as "selling price" is defined in the Use Tax Act 1 , as authorized by the Act. (Ord. 1815, 9-10-2001)
   B.   Collection And Enforcement:
      1.   The City's population is seventeen thousand one hundred twenty nine (17,129) under the most recently adjusted figures of or supplementing the 2000 Federal census. Under the Act, in home rule municipalities with less than two million (2,000,000) inhabitants, the tax shall be collected by the City imposing the tax from persons whose Illinois address for titling or registration purposes is given as being in such City. (Ord. 1815, 9-10-2001; amd. 2013 Code)
      2.   The tax imposed by the City under this section and the Act and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Illinois Department of Revenue, to the extent authorized by applicable law, if at all, and otherwise shall be collected and enforced by the City. The City acknowledges that under present law, the Illinois Department of Revenue does not collect or enforce this tax.
   C.   Limitations: Nothing in this section shall be construed to authorize the City to impose a tax upon the privilege of engaging in any business which, under the Constitution of the United States, may not be made the subject of taxation by the State of Illinois. Notwithstanding anything herein to the contrary, this section shall be given effect in such a manner as to comply with the Act as it shall, from time to time, be in effect.
   D.   Effective Date: Pursuant to the City's home rule authority, 65 Illinois Compiled Statutes 5/1-2-4 and 5/4-5-13 shall not apply to this section. This section shall become effective immediately upon its adoption and approval, and the tax under subsection A of this section shall be given effect in the time and manner as provided in the Act. (Ord. 1815, 9-10-2001)

 

Notes

1
1. 35 ILCS 105/1 et seq.
3-5A-4: HOTEL OPERATORS' OCCUPATION TAX:
   A.   Definitions: As used in this section, the following terms shall have the following meanings:
CITY:
The City of Marion, Illinois.
CITY COUNCIL AND CORPORATE AUTHORITIES:
The City Council of the City of Marion, Illinois.
FACILITATOR:
Any person or entity who provides a means through which a person may book a hotel room and/or transient occupancy rental unit to lessees, regardless of whether payment is transferred through or processed by such facilitator. Facilitators are considered lessors, as used herein. Online travel companies are considered facilitators, as used herein.
FINANCE DIRECTOR- TREASURER:
The City Finance Director-Treasurer of the City of Marion, Illinois.
GROSS RENT:
The total amount of consideration for occupancy, valued in money, whether received in money or otherwise, including all receipts, cash, credits, and property or services of any kind or nature, including but not limited to, amounts charged for the making, booking, facilitating or servicing of reservations. Gross rent means both (a) the "net rate" paid to the hotel or motel by a facilitator for room occupancy by the consumer; and (b) the amount retained by the facilitator for travel-related services provided to the consumer (sometimes referred to as a "facilitation fee"), and any additional amounts retained by the facilitator as compensation for its services to the consumer for the individual transaction, or, in the instance of a consumer's direct rental of a room with the hotel or motel, gross rent shall mean the amount charged by the hotel or motel directly to the consumer for the occupancy of the room.
HOTEL:
A structure kept, used or maintained as or advertised or held out to the public to be an inn, motel, hotel, apartment, home, lodging house, dormitory or place where sleeping, rooming, office, conference or exhibition accommodations are furnished for lease or rent, whether with or without meals. For avoidance of doubt, transient occupancy rental units are hotels under this definition.
LESSEE:
Any person who pays for the privilege of occupying all or part of a hotel.
LESSOR:
Any person having a sufficient proprietary interest in conducting the operation of a hotel, or receiving the consideration for the rental of all or part of such hotel, so as to entitle such person to all or a portion of the net receipts thereof, including facilitators, as defined herein.
ONLINE TRAVEL COMPANY:
An organization that books, reserves, or rents hotel or motel rooms and makes other travel arrangements for consumers via the World Wide Web, internet or other digital means. Online travel companies are considered facilitators, as used herein.
OPERATOR:
As applicable, the owner/operator of each hotel within the city of Marion and the person(s) having a right of property operating such hotel under applicable law.
PERMANENT RESIDENT:
Any person who has occupied or has the right to occupy all or part of a hotel for at least seven (7) consecutive days.
PERSON:
Any natural person, receiver, administrator, executor, conservator, assignee, trust in perpetuity, trust, estate, firm, co-partnership, joint venture, club, company, business trust, domestic or foreign corporation, association, syndicate, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, whenever the term "person" is used in any clause prescribing and imposing a penalty, the term as applied to associations shall mean the owners or part-owners thereof, and as applied to corporations, the offices thereof, or any other entity recognized by law as the subject of rights and duties.
TRANSIENT OCCUPANCY RENTAL UNIT:
A dwelling unit or a habitable unit that is offered, in whole or in part, for rent, lease or hire that is rented, leased or hired for which a Lessor receives consideration from a person for a period of thirty (30) days or less and that person has the right to use, occupy or possess all or part of the dwelling unit or habitable unit for said period.
 
   B.   Tax Imposed; Rate And Restrictions:
      1.   The corporate authorities of the city hereby impose a tax upon all persons engaged in the city in the business of renting, leasing or letting rooms in a hotel at a rate of three percent (3%) of the gross rental receipts from such renting, leasing or letting, excluding, however, from the gross rental receipts, the proceeds of such renting, leasing or letting to permanent residents of that hotel.
      2.   Persons subject to the tax imposed pursuant to this section may reimburse themselves for their tax liability for such tax by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with state tax imposed under the Hotel Operators' Occupation Tax Act. However, the tax shall not be levied and imposed upon any permanent resident or to a person who works and lives in the same hotel or motel.
      3.   Nothing in this section shall be construed to authorize the city to impose a tax upon the privilege of engaging in any business which, under the constitution of the United States, may not be made the subject of taxation by the State of Illinois.
   C.   Registration Requirements:
      1.   Each hotel located within the boundaries of the city shall file a "certificate of registration" within the office of the City Clerk, whose office is located at Marion City Hall, 1102 Tower Square, Marion, Illinois. Registration forms shall be available to each hotel operator through the office of the City Clerk's Office.
      2.   It is the duty of the hotel operator to update the "certificate of registration" form on an annual basis. The final date for filing and updating this certificate of registration shall be December 15 of each year, commencing December 15, 2011, following the effective date hereof. Any new business coming under license to do business as a hotel within the city shall file a certificate of registration no later than thirty (30) days following the first day of operation as a new hotel business.
   D.   Report Required: Each Lessor shall file an "occupancy tax report" each month following the effective date hereof. The report shall contain the total dollar gross receipts received from room occupancy rentals along with the total amount due and payable to the city as required by this section. Occupancy tax reports shall be available to each hotel operator and Lessor through the office of the City Clerk.
   E.   Duty to Collect: It shall be the duty of every Lessor of every Hotel within the City to collect the tax from the Lessee at the time the Lessee pays for the privilege of occupying all or part of a Hotel Transient Occupancy Rental Unit, and to remit to the City the tax under procedures provided for in this chapter or otherwise prescribed by the City. If more than one Person is the Lessor as related to a particular transaction, the Lessors are jointly and severally responsible for collecting and remitting the tax. The Lessor receiving the revenue from the Lessee is responsible for
   F.   Due Date; Late Payment Penalty: All taxes due the city shall be paid and remitted to the city on or before the last day of the month immediately following the month of collection. A one percent (1%) late penalty will be due and payable to the city should any hotel Lessor fail to file an occupancy tax report by the end of each given month, and an additional one percent (1%) each month thereafter.
   G.   Remittance Of Taxes; Disposition And Use Of Funds:
      1.   All taxes due and owing the city under this section shall be made payable by or on behalf of the Lessor to the "City Clerk of the City of Marion, Illinois", and shall be due and payable monthly to the City Clerk on or before the tenth day of each month after the effective date hereof. The finance director- treasurer shall transfer such funds, by the fifteenth of the month following collection, into a separate fund established for the city tourism fund.
      2.   The amounts collected by the city pursuant to this section shall be expended by the city solely to promote tourism and conventions within the city or otherwise to attract nonresident overnight visitors to the city.
      3.   No funds received pursuant to this section shall be used to advertise for or otherwise promote new competition in the hotel business.
   H.   Interpretation And Effective Date:
      1.   This section incorporates chapter 6 of this title concerning the local government taxpayers' bill of rights act.
      2.   This section shall be effective immediately upon its adoption, approval and publication in pamphlet form; provided, that the hotel tax imposed by this section shall not become effective until the later of: a) June 22, 2011; or b) the date that the Illinois finance authority's qualified 501(c)(3) not for profit revenue bonds (Williamson County events commission project), series 2003, are not outstanding. Pursuant to section 6 (powers of home rule units) of article VII (local government) of the constitution of the state of Illinois, sections 1-2-4, 8-1-7 and 4-5-13 of the Illinois municipal code shall not apply to this section. (Ord. 2356, 6-13-2011; amd. 2013 Code; Ord. 3216, 9-8-2014; Ord. 3730, 5-24-2021; Ord. 3882, 5-8-2023)
ARTICLE B. SIMPLIFIED TELECOMMUNICATIONS TAX
SECTION:
3-5B-1: Definitions
3-5B-2: Tax Imposed; Rate
3-5B-3: Exclusions
3-5B-4: Collection By Retailers
3-5B-5: Returns To Department
3-5B-6: Resales
3-5B-1: DEFINITIONS:
As used in this article, the following terms shall have the following meanings:
AMOUNT PAID: The amount charged to the taxpayer's service address in the city 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 city 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 termination point within the city and charges for the portion of the interoffice channels provided within the city. 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 city, 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 city, 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:
   A.   Any amounts added to a purchaser's bill because of a charge made pursuant to: 1) the tax imposed by this article; 2) the tax imposed by the telecommunications excise tax act; 3) the tax imposed by section 4251 of the internal revenue code; 4) 911 surcharges; or 5) charges added to customers' bills pursuant to the provisions of section 9-221 or 9-222 of the public utilities act, 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;
   B.   Charges for a sent collect telecommunication received outside of the city;
   C.   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 timesharing 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 as exempt 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 community affairs;
   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 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;
   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; 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);
   H.   Charges paid by inserting coins in coin operated telecommunications devices;
   I.   Amounts paid by telecommunications retailers under the telecommunications infrastructure maintenance fee act;
   J.   Charges for nontaxable services or telecommunications if: 1) those charges are aggregated with other charges for telecommunications that are taxable; 2) those charges are not separately stated on the customer bill or invoice; and 3) 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.
INTERSTATE TELECOMMUNICATIONS: All telecommunications that either originate or terminate outside this state.
INTRASTATE TELECOMMUNICATIONS: All telecommunications that originate and terminate within this state.
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 this state.
PURCHASE AT RETAIL: The acquisition, consumption or use of telecommunications through a sale at retail.
RETAILER: Means and includes every person engaged in the business of making sales at retail as defined in this section. The department may, in it 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 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 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.
RETAILER MAINTAINING A PLACE OF BUSINESS IN THIS STATE (Or Any Like Term): Means and 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.
SALE AT RETAIL: 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.
SERVICE ADDRESS: 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 term 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. 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.
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 as authorized by this article.
TELECOMMUNICATIONS: In addition to the meaning ordinarily and popularly ascribed thereto, includes, without limitation, messages or information transmitted through use of local, toll and wide area telephone service, private line service, channel service, telegraph service, teletypewriter, computer exchange service, 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 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 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 chapter, "prepaid telephone calling arrangements" means that term as defined in section 2-27 of the retailers' occupation tax act. (Ord. 2039, 9-19-2005, eff. 1-1-2006)
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