A. Definitions: For the purpose of this section the following definitions shall apply:
AMOUNT PAID: The amount charged to the taxpayer's service address in the city regardless of where such amount is billed or paid.
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, and shall be determined without any deduction on account 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 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 9-222 of the public utilities act, c) the tax imposed by the telecommunications excise tax act, or d) the tax imposed by section 4251 of the internal revenue code;
2. Charges for a sent collect telecommunication received outside of 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. 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 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 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); or
8. Charges paid by inserting coins in coin- operated telecommunications devices.
INTERSTATE TELECOMMUNICATIONS: All telecommunications that either originate or 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, 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: Includes every person engaged in the business of making sales at retail as defined in this subsection.
RETAILER MAINTAINING A BUSINESS IN ILLINOIS (Or Any Like Term): Includes 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 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 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 the retailer 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, maritime systems, air-to-ground systems and the like, "service address" shall mean the location of the taxpayer's primary use of the telecommunication equipment as defined by the telephone number, authorization code, or location in 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 City or receiving in the City 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, channel services, telegraph services, teletypewriter services, computer exchange services; cellular mobile telecommunications 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, fiber optics, laser, microwave, radio, satellite or similar facilities. 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 the 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. (Ord. 0-91-42, 12-16-1991)
B. Tax Imposed:
1. Effective January 1, 2003, there is hereby imposed pursuant to the Illinois municipal code a tax upon:
a. The act or privilege of originating or receiving in the city 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. 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 this state.
b. The act or privilege of originating or receiving in the city 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 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 the tax to the extent of the amount of such tax properly due and paid in such other state which was not previously allowed a credit against any other state or local tax in this state. 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 this state. (Ord. 0-91-42, 12-16-1991; amd. Ord. 0-02-19, 8-19-2002, eff. 8-29-2002)
2. 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.
C. Collection Of Tax By Retailers:
1. Retailers Maintaining A Place Of Business In Illinois:
a. Any retailer maintaining a place of business in this state and making or effectuating a sale at retail shall collect the tax authorized by this section from the taxpayer and remit it to the city in the manner and on forms provided by the city treasurer.
b. Any tax required to be collected pursuant to this section and any tax collected by the retailer shall constitute a debt owed by the retailer to the city.
c. The retailer 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 presented by this section.
d. The tax authorized by this section shall constitute a debt of the purchaser to the retailer providing taxable services until paid, and, if unpaid, is recoverable at law in the same manner as the original charge for taxable services.
2. Retailers Not Maintaining A Place Of Business In Illinois: The city shall, upon application, authorize the collection of this tax by any retailer not maintaining a place of business in this state who, to the satisfaction of the city, 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 city in the same manner and subject to the same requirements as a retailer maintaining a place of business in Illinois.
D. Registration And Filing Returns By Retailers:
1. Every retailer maintaining a place of business in Illinois shall register with the city within thirty (30) days after the effective date of this section or the date of becoming such a retailer, whichever is later.
2. On or before the last day of each calendar month every retailer maintaining a place of business in Illinois and every retailer authorized by the city to collect the tax imposed by this section shall file a return with the city and remit all applicable tax for the preceding calendar month. The return shall state:
a. The retailer's name.
b. Its principal place of business.
c. The gross charge for telecommunications during such month.
d. The amount of tax due.
e. Such other reasonable and related information as the city may require.
3. The retailer making the return herein provided for shall, at the time of making such return, pay to the city the amount of tax herein imposed; provided that in connection with a return the retailer may, if he so elects, report and pay an amount based upon his total billings of business subject to the tax during the period of which the return is made (exclusive of any amounts previously billed) with prompt adjustments of later payments based upon any differences between such billings and the taxable gross charges. Provided, however, that in the event that the amount of billing for a month is not ascertainable by the retailer, then the tax may be paid based upon an estimate of the month's collection for a period not to exceed two (2) months. For the third month of each quarter, the payment shall be based on actual billings for the quarter, less the payments made for the previous two (2) months.
4. If it shall appear that an amount of tax has been paid which was not due under the provisions of this section, whether as the 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; provided, that no amounts erroneously paid more than three (3) years prior to the filing of a claim therefor shall be so credited.
E. Obligation Of Taxpayers To File Returns And Pay Tax:
1. If a retailer fails to collect the tax authorized by this section from a taxpayer, as required by subsection C of this section, then the taxpayer shall pay the tax directly to the city.
2. On or before the last day of each calendar month, every taxpayer that has not paid the tax imposed by this section to a retailer shall file with the city a tax return and pay the tax upon the gross charges the taxpayer paid to the retailer during the preceding calendar month. The return shall be filed on a form prescribed by the city, containing such information as the city may reasonably require.
F. Resellers: If a person who originates or receives telecommunications in the city claims to be a reseller of telecommunications, that person shall apply to the city for a resale number. The applicant shall state facts showing why it is not liable for the tax imposed by this section on any purchases of telecommunications and shall furnish such additional information as the city may reasonably require. Upon approval of the application, the city shall assign a resale number to the applicant and shall certify the number to the applicant. The city may cancel the resale number of any person if the number:
1. Was obtained through misrepresentation;
2. Is used to originate or receive telecommunications tax free when such telecommunications are not for resale; or
3. Is no longer necessary because the person has discontinued making resales.
The act or privilege of originating or receiving telecommunications in the city shall not be made tax free on the ground of being a sale for resale unless the person has an active resale number 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.
G. Maintaining Books And Records: Every retailer maintaining a place of business in Illinois, every retailer authorized by the city to collect the tax imposed by this section and every taxpayer required by subsection E of this section, to pay the tax directly to the city shall keep accurate books and records of its business or activity, including original source documents and books of entry denoting the transactions that gave rise, or may have given rise, to any tax liability or exemption. All such books and records shall be kept in the English language and, at all times during business hours of the day, shall be subject to and available for inspection by the city authorities.
H. Severability: If any provision of this section, or the application of any provision of this section, is held unconstitutional or otherwise invalid, such occurrence shall not affect provisions of this section, or their application, that can be given effect with the unconstitutional or invalid provision or its application. Each unconstitutional or invalid provision, or application of such provision, is severable, unless otherwise provided by this section. In particular, if subsection B1b of this section is declared unconstitutional or otherwise invalid, the tax imposed under subsection B1a of this section shall remain in full force and effect. (Ord. 0-91-42, 12-16-1991)