O-64-98 08/10/98VILLAGE OF LEMONT
ORDINANCE NO.
ORDINANCE REVISING THE MUNICIPAL UTILITY TAX ORDINANCE
IN ORDER TO CONVERT THE COLLECTION OF THE ELECTRIC PORTION
OF THE TAX FROM A GROSS RECEIPTS METHOD
TO A KILOWATT -HOUR METHOD
ADOPTED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF LEMONT
This
Published in pamphlet form by
authority of the President and
Board of Trustees of the Village of
Lemont, Counties of Cook, Will, and
DuPage llinois this /D
day o , 1998
day of
, 1998.
ORDINANCE d „Ito ti_ 9k
ORDINANCE REVISING THE MUNICIPAL UTILITY TAX ORDINANCE
IN ORDER TO CONVERT THE COLLECTION OF THE ELECTRIC PORTION
OF THE TAX FROM A GROSS RECEIPTS METHOD
TO A KILOWATT -HOUR METHOD
WHEREAS, the State Legislature has approved legislation requiring electrical
deregulation within the State of Illinois; and
WHEREAS, the legislation has made provisions to allow municipalities to retain their
current municipal utility tax receipts despite the reduction in rates; and
WHEREAS, the means of accomplishing revenue neutrality is through the adoption of
an ordinance which eliminates the gross receipts basis of calculating the tax, and implementing a
kilowatt -hour basis.
NOW THEREFORE BE IT ORDAINED by the President and Board of Trustees that:
SECTION 1. Section 5.90 of the Lemont Municipal Code is amended by adding the
following language:
5.90 B (4) Gross receipts tax.
The tax imposed under this Section shall not apply with respect to gross receipts
pertaining to bills for the distribution, supply, furnishing or sale of electricity where the use or
consumption of the electricity is subject to the tax imposed under Section 5.90 B (3).
5.90 B (5) Overpayment of tax and credit.
If a taxpayer under this chapter is unable to use a credit authorized by this section solely
because the tax imposed by this chapter has been replaced by the tax imposed under the
proportional method of calculating the kilowatt hour -tax, then the taxpayer may apply such credit
against any tax due under the proportional method of calculating the kilowatt -hour tax.
SECTION 2. Section 5.90 of the Lemont Municipal Code is hereby amended by adding
a new Section 5.90.1 as follows:
5.90.1 Electrical Utility Taxes.
A. Definitions.
As used in this chapter, unless the context other requires:
"Village" means the Village of Lemont.
"Person" means any natural, individual, firm, trust, estate, partnership,
association, joint stock company, joint adventure, corporation, limited liability
company, municipal corporation, the State or any of its political subdivisions, any
State university created by statute, or a receiver, trustee, conservator or other
representative appointed by order of any court;
"Person maintaining a place of business in this State" means any person
having or maintaining within this State, directly or by a subsidiary or other
affiliate, an office, generation, facility, distribution facility, transmission facility,
sales office or other place of business, or any employee, agent, or other
representative operating within this State under the authority of the person or its
subsidiary or other affiliate, irrespective of whether such place of business or
agent or other representative is located in this State permanently or of whether
such place of business or agent or other representative is located in this State
permanently or temporarily, or whether such person, subsidiary or other affiliate
is licensed or qualified to do business in this State.
"Purchase at retail" means any acquisition of electricity by a purchaser for
purposes of use or consumption, and not for resale, but shall not include the use of
electricity by a public utility, as defined in Section 8 -11 -2 of the Illinois
Municipal Code (65 ILCS 5/8- 11/2), directly in the generation, production,
transmission, delivery or sale of electricity.
"Purchaser" means any person who uses or consumes, within the corporate
limits of the Village, electricity acquired in a purchase at retail, other than an
Exempt Purchaser.
"Exempt Purchaser" means units of local government located within the
corporate boundaries of the Village of Lemont.
B. Tax imposed.
1. Pursuant to Section 8 -11 -2 of the Illinois Municipal Code (65 -ILCS 5/8-
11-2) and any and all other applicable authority, a tax is imposed upon the
privilege of using or consuming electricity acquired in a purchase at retail
and used or consumed within the corporate limits of the Village at the
following rates, calculated on a monthly basis for each purchaser:
(I) For the first 2,000 kilowatt-hours used or consumed in a month;
0.554 cents per kilowatt -hour.
(ii) For the next 48,000 kilowatt-hours used or consumed in a month;
0.363 cents per kilowatt -hour.
(iii) For the next 50,000 kilowatt-hours used or consumed in a month;
0.327 cents per kilowatt -hour.
(iv) For the next 400,000 kilowatt-hours used or consumed in a month;
0.318 cents per kilowatt -hour.
(v) for the next 500,000 kilowatt-hours used or consumed in a month;
0.309 cents per kilowatt-hour.
(vi) For the next 2,000,000 kilowatt-hours used or consumed in a
month; 0.290 cents per kilowatt-hour.
(vii) For the next 2,000,000 kilowatt-hours used or consumed in a
month; 0.286 cents per kilowatt -hour.
(viii) For the next 5,000,000 kilowatt -hours used or consumed in a
month; 0.281 cents per kilowatt -hour.
(ix) For the next 10,000,000 kilowatt -hours used or consumed in a
month; 0.277 cents per kilowatt -hour.
(x) For all electricity used or consumed in excess of 20,000,000
kilowatt -hours in a month; 0.272 cents per kilowatt-hour.
2. The tax is in addition to all taxes, fees and other revenue measures
imposed by the Village, the State of Illinois or any other political
subdivision of the State.
3. Notwithstanding any other provision of this chapter, the tax shall not be
imposed if and to the extent that imposition or collection of the tax would
violate the Constitution or statutes of the United States or the Constitution
of the State of Illinois.
4. The tax shall be imposed with respect to the use or consumption of
electricity by residential customers beginning with the first bill issued on
or after September 1, 1998; and with respect to the use or consumption of
electricity by nonresidential customers beginning with the first bill issued
to such customers for delivery services in accordance with Section 16 -104,
of the Public Utilities Act (220 ILCS 5/16 -104), or the first bill issued to
such customers on or after January 1, 2001, whichever issuance occurs
sooner.
C. Collection of tax.
1. Subject to the provisions regarding the delivery of electricity to resellers,
the tax imposed under this chapter shall be collected from purchasers by
the person maintaining a place of business in this State who delivers
electricity to such purchasers. This tax shall constitute a debt of the
purchaser to the person who delivers the electricity to the purchaser and is
recoverable at the same time and in the same manner as the original charge
for delivering the electricity.
2. Any tax required to be collected by this chapter, and any tax in fact
collected, shall constitute a debt owed to the Village by the person delivering
the electricity, provided, that the person delivering electricity shall be allowed
credit for such tax related to deliveries of electricity the charges for which are
written off as uncollectible, and provided further, that if such charges are
thereafter collected, the delivering supplier shall be obligated to remit such
tax.
3. Persons delivering electricity shall collect the tax from the purchaser by
adding such tax to the gross charge for delivering the electricity. Persons
delivering electricity shall also be authorized to add to such gross charge an
amount of the tax they collect to reimburse them for their expenses incurred
in keeping records, billing customers, preparing and filing returns, remitting
the tax and supplying data to the Village upon request. For purposes of this
chapter, any partial payment of a billed amount not specifically identified by
the purchaser shall be deemed to be for the delivery of electricity.
D. Tax remittance and return.
1. Every tax collector shall on a monthly basis file a return in a form prescribed
by the Village. The return and accompanying remittance shall be due on or
before the last day of the month following the month during which the tax is
collected or is required to be collected under Section 5.90.
2. If the person delivering electricity fails to collect the tax from the purchaser
or is excused from collecting the tax under Section 5.90.1 E 5 (2), then the
purchaser shall file a return in a form prescribed by the Village and pay the
tax directly to the Village on or before the last day of the month following the
month during which the electricity is used or consumed.
E. Resales.
1. Electricity that is delivered to a person in this Village shall be considered to
be for use and consumption by that person unless the person receiving the
electricity has an active resale number issued by the State of Illinois and
furnishes that number to the person who delivers the electricity, and certifies
to that person that the sale is either entirely or partially nontaxable as a sale
for resale.
2. If a person who receives electricity in the Village claims to be an authorized
reseller of electricity, that person shall apply to the State of Illinois for a
resale number. The applicant shall state facts showing why it is not liable for
the tax imposed by this chapter on any purchases of electricity and shall
burnish such additional information as the State of Illinois may reasonably
require.
3. Upon approval of the application, the State of Illinois shall assign a resale
number to the applicant and shall certify the number to the applicant.
4. The State of Illinois may cancel the resale number of any person if the person
fails to pay any tax payable under this chapter for electricity used or
consumed by the person, or if the number: (1) was obtained through
misrepresentation, or (2) is no longer necessary because the person has
discontinued making resales.
5. (1) If a reseller has acquired electricity partly for use or consumption and
partly for resale, the reseller shall pay the tax imposed by this chapter directly
to the Village pursuant to Section 5.90.1 C (2) on the amount of electricity
that the reseller uses or consumes, and shall collect the tax and remit the tax
pursuant to Section 5.90.1 C (1) on the amount of electricity delivered by the
reseller to a purchaser.
(2) Any person who delivers electricity to a reseller having an active resale
number and complying with all other conditions of this section shall be
excused from collecting and remitting the tax on any portion of the electricity
delivered to the reseller, provided that the person reports to the Village the
total amount of electricity delivered to the reseller, and such other
information that the Village may reasonably require.
F. Books and records.
Every tax collector, and every taxpayer required to pay the tax imposed by this
ordinance, shall keep accurate books and records of its business or activity, including
contemporaneous books and records denoting the transactions that gave rise, or may
have given rise, to any tax liability under this chapter. The books and records shall
be subject to and available for inspection at all times during business hours of the
day.
G. Credits and refunds.
Notwithstanding any other provision, in order to permit sound fiscal planning and
budgeting by the Village, no person shall be entitled to a refund of, or credit for, a tax
imposed under this chapter unless the person files a claim for refund or credit within
three years after the date on which the tax was paid or remitted.
SECTION 3. Nothing in this Ordinance shall be construed as limiting any
additional or further remedies that the Village may have for enforcement of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, phrase or portion of
this Ordinance is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and
such holding shall not affect the validity of the remaining provisions hereof.
SECTION 5. This Ordinance supersedes all Ordinances or parts thereof adopted
prior hereto which are in conflict herewith, to the extent of such conflict.
SECTION 6. This Ordinance shall take effect on all electric bills issued on or
after September 1, 1998.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE 99� LEMONY C21UNTIES OF COOK, WILL AND DU PAGE,
ILLINOIS, on this ,�1� day of , 1998.
Barbara Buschman
Keith Latz
Connie Markiewicz
Rick Rimbo
Ralph Schobert
Mary Studebaker
Approved by me this A) day of
Attest:
AYES NAYS PASSED ABSENT
vf
V
V
V
CHARLENE SMOLLEN, Village Clerk
, 1998
RALPH A. SCIIOBERT, Mayor Pro -Tem
CHARLENE SMOLLEN, Village Clerk
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Chapter 3.28
MUNICIPAL UTILITIES TAX
Sections:
3.28.010
3.28.020
3.28.030
3.28.040
3.28.050
3.28.060
3.28.070
3.28.080
3.28.090
Definitions.
Tax imposed.
Interstate commerce.
Tax in addition to other
payments.
Reports by taxpayer.
Erroneous payment.
Recovery limited.
Violation — Penalty.
Electrical utility taxes.
3.28.010 Definitions.
For the purpose of the taxes in this chapter
the following shall apply:
"Gross receipts" means the consideration re-
ceived for the transmission of messages, the
consideration received for distributing, supply-
ing, furnishing or selling gas for use or con-
sumption and not for resale, and the considera-
tion received for distributing, supplying, fur-
nishing or selling electricity for use or con-
sumption and not for resale, and for all services
rendered in connection therewith valued in
money, whether received in money or other-
wise, including cash, credit, services and prop-
erty of every kind and material and for all ser-
vices rendered therewith, without any deduc-
tion on account of the cost of the service, prod-
uct or commodity supplied, the cost of materi-
als used, labor or service cost, or any other ex-
penses whatsoever. The term "gross receipts"
shall not include that portion of the considera-
tion received for distributing, supplying, fur-
nishing or selling gas or electricity to, or for the
transmission of messages for, school districts
or units of local government.
66 -1
3.28.010
"Person" means any natural individual, firm,
trust, estate, partnership, association, joint
stock company, joint adventure, corporation,
municipal corporation or political subdivision
of this state, or a receiver, trustee, guardian or
other representative appointed by order of any
court.
"Public utility" shall have the meaning as-
cribed to it in Section 3 -105 of the Public Utili-
ties Act, as amended (220 ILCS 5/3 -105).
"Taxpayer" means a person engaged in the
business of distributing, supplying, furnishing
or selling electricity for use or consumption
and not for resale; and/or a person engaged in
the business of distributing, supplying, furnish-
ing or selling gas for use or consumption and
not for resale.
"Treasurer" means the treasurer of the vil-
lage of Lemont. (Ord. 0 -32 -97 § 5, 1997: Ord.
0 -15 -97 § 2(A), 1997)
3.28.020 Tax imposed.
A tax is imposed on all persons engaged in
the following occupations or privileges and at
the following rates:
A. Persons engaged in the business of dis-
tributing, supplying, furnishing or selling gas
for use or consumption within the corporate
limits of the village and not for resale, at the
rate of five percent of the gross receipts there-
from.
B. Persons engaged in the business of dis-
tributing, supplying, furnishing or selling elec-
tricity for use or consumption within the corpo-
rate limits of the village, and not for resale, at
the rate of five percent of the gross receipts
therefrom.
C. Gross Receipts Tax. The tax imposed
under this section shall not apply with respect
to gross receipts pertaining to bills for the dis-
tribution, supply, furnishing or sale of electric-
ity where the use or consumption of the elec-
(Lemont 11 -01)
3.28.020
tricity is subject to the tax imposed under Sec-
tion 3.28.020B.
D. Overpayment of Tax and Credit. If a
taxpayer under this chapter is unable to use a
credit authorized by this section solely because
the tax imposed by this chapter has been re-
placed by the tax imposed under the propor-
tional method of calculating the kilowatt hour -
tax, then the taxpayer may apply such credit
against any tax due under the proportional
method of calculating the kilowatt-hour tax.
(Ord. 0 -05 -01 § 2, 2001; Ord 0 -05 -01 § 1,
2001; Ord. 0 -64 -98 § 1, 1998; Ord. 0 -32 -97 §
7, 1997: Ord. 0 -15 -97 § 2(B), 1997)
3.28.030 Interstate commerce.
No tax is imposed by this chapter with re-
spect to any transaction in interstate commerce
or otherwise to the extent to which such busi-
ness may not, under the Constitution and stat-
utes of the United States, be made subject to
taxation by this state or any political subdivi-
sion thereof, nor shall any persons engaged in
the business of distributing, supplying, furnish-
ing or selling gas or electricity be subject to
taxation under the provisions of this section for
such transactions as are or may become subject
to taxation under the provisions of this section
for such transactions as are or may become
subject to taxation under the provisions of the
Municipal Retailers' Occupation Tax Act au-
thorized by Section 8 -11 -1 of the Illinois Mu-
nicipal Code. (Ord. 0 -32 -97 § 8, 1997: Ord. 0-
15-97 § 2(C), 1997)
(Lemont 1I -0I)
66 -2
3.28.040 Tax in addition to other
payments.
Such tax shall be in addition to the payment
of money, or value of products or services fur-
nished to this municipality by the taxpayer as
compensation for the use of its streets, alleys or
other public places, or installation and mainte-
nance therein, thereon or thereunder of poles,
wires, pipes or other equipment used in the op-
eration of the taxpayer's business. (Ord. 0 -15-
97 § 2(D), 1997)
3.28.050 Reports by taxpayer.
A. Each taxpayer must make a report to the
village stating:
1. Name;
2. Principal place of business;
3. Gross receipts during the month upon
the basis of which the tax is imposed;
4. Amount of tax;
5. Such other reasonable and related in-
formation the corporate authorities may re-
quire.
Such report shall be made to the village
treasurer by those persons described in Section
3.28.020 on or before the last day of each
month of each year for the corresponding
month preceding each of the report dates.
B. The taxpayer making the return pro-
vided for shall, at the time of making such re-
turn, pay to the village treasurer, the amount of
tax imposed; provided, that in connection with
any return the taxpayer may, if he so elects, re-
port and pay an amount based upon his total
billings of business subject to the tax during the
period for 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
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•
the taxable gross receipts. (Ord. 0 -15 -97 §
2(E), 1997)
3.28.060 Erroneous payment.
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 error of law,
then such amount shall be credited against
any tax due, or to become due, under this
section from the taxpayer who made the
erroneous payment; provided, that no
amounts erroneously paid more than three
years prior to the filing of a claim therefor
shall be so credited. (Ord. 0 -15 -97 § 2(F),
1997)
3.28.070 Recovery limited.
No action to recover any amount of tax
due under the provisions of this chapter
shall be commenced more than three years
after the due date of such amount. (Ord. 0-
15-97 § 2(G), 1997)
3.28.080 Violation — Penalty.
Any taxpayer who fails to make a return,
or who makes a fraudulent return, or who
wilfully violates any other provision of this
Section 3.28.020 is guilty of a misdemeanor
and, upon conviction thereof, shall be fined
not less than one hundred dollars nor more
than seven hundred fifty dollars and in
addition shall be liable in a civil action for
the amount of the tax due. (Ord. 0 -15 -97 §
2(H), 1997)
3.28.090 Electrical utility taxes.
A. Defmitions. As used in this chapter,
unless the context otherwise requires:
66-3
3.28.050
"Exempt purchaser" means units of local
government located within the corporate
boundaries of the village of Lemont.
"Person" means any natural individual,
firm, trust, estate, partnership, association,
joint stock company, joint adventure, corpo-
ration, limited liability company, municipal
corporation, the state or any of its political
subdivisions, any state university created by
statute, or a receiver, trustee, conservator or
other representative appointed by order of
any court.
"Person maintaining a place of business
in this state" means any person having or
maintaining within this state, directly or by
a subsidiary or other affiliate, an office,
generation facility, distribution facility,
transmission facility, sales office or other
place of business, or any employee, agent,
or other representative operating within this
state under the authority of the person or its
subsidiary or other affiliate, irrespective of
whether such place of business or agent or
other representative is located in this state
permanently or temporarily, or whether such
person, subsidiary or other affiliate is li-
censed or qualified to do business in this
state.
"Purchase at retail" means any acquisi-
tion of electricity by a purchaser for purpos-
es of use or consumption, and not for re-
sale, but shall not include the use of elec-
tricity by a public utility, as defined in
Section 8 -11 -2 of the Illinois Municipal
Code (65 ILCS 5/8- 11/2), directly in the
generation, production, transmission, deliv-
ery or sale of electricity.
"Purchaser" means any person who uses
or consumes, within the corporate limits of
the village, electricity acquired in a pur-
chase at retail, other than an exempt pur-
chaser.
(Lemont 11 -98)
3.28.090
"Village" means the village of Lemont.
B. Tax Imposed.
1. Pursuant to Section 8 -11 -2 of the
Illinois Municipal Code (65 -ILCS 5/8 -11 -2)
and any and all other applicable authority,
a tax is imposed upon the privilege of using
or consuming electricity acquired in a pur-
chase at retail and used or consumed within
the corporate limits of the village at the
following rates, calculated on a monthly
basis for each purchaser:
a. For the first two thousand kilowatt-
hours used or consumed in a month, 0.554
cents per kilowatt-hour;
b. For the next forty -eight thousand
kilowatt-hours used or comsumed in a
month, 0.363 cents per kilowatt-hour;
c. For the next fifty thousand kilowatt-
hours used or consumed in a month, 0.327
cents per kilowatt-hour;
d. For the next four hundred thousand
kilowatt-hours used or consumed in a
month, 0.318 cents per kilowatt-hour;
e. For the next five hundred thousand
kilowatt-hours used or consumed in a
month, 0.309 cents per kilowatt-hour;
f. For the next two million kilowatt-
hours used or consumed in a month, 0.290
cents per kilowatt-hour;
g. For the next two million kilowatt-
hours used or consumed in a month, 0.286
cents per kilowatt-hour;
h. For the next five million kilowatt-
hours used or consumed in a month, 0.281
cents per kilowatt-hour;
i. For the next ten million kilowatt-
hours used or consumed in a month, 0.277
cents per kilowatt-hour;
j. For all electricity used or consumed
in excess of twenty million kilowatt-hours
in a month, 0.272 cents per kilowatt-hour.
(Lemont 11 -98)
66-4
2. The tax is in addition to all taxes,
fees and other revenue measures imposed
by the village, the state of Illinois or any
other political subdivision of the state.
3. Notwithstanding any other provision
of this chapter, the tax shall not be imposed
if and to the extent that imposition or col-
lection of the tax would violate the Consti-
tution or statutes of the United States or the
Constitution of the state of lllinois.
4. The tax shall be imposed with respect
to the use or consumption of electricity by
residential customers beginning with the
first bill issued on or after September 1,
1998; and with respect to the use or con-
sumption of electricity by nonresidential
customers beginning with the first bill is-
sued to such customers for delivery services
in accordance with Section 16-104 of the
Public Utilities Act (220 RCS 5/16 -104), or
the first bill issued to such customers on or
after January 1, 2001, whichever issuance
occurs sooner.
C. Collection of Tax.
1. Subject to the provisions regarding
the delivery of electricity to resellers, the
tax imposed under this chapter shall be
collected from purchasers by the person
maintaining a place of business in this state
who delivers electricity to such purchasers.
This tax shall constitute a debt of the pur-
chaser to the person who delivers the elec-
tricity to the purchaser and is recoverable at
the same time and in the same manner as
the original charge for delivering the elec-
tricity.
2. Any tax required to be collected by
this chapter, and any tax in fact collected,
shall constitute a debt owed to the village
by the person delivering the electricity; pro-
vided, that the person delivering electricity
shall be allowed credit for such tax related
•
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to deliveries of electricity the charges for
which are written off as uncollectible; and
provided further, that if such charges are
thereafter collected, the delivering supplier
shall be obligated to remit such tax.
3. Persons delivering electricity shall
collect the tax from the purchaser by adding
such tax to the gross charge for delivering
the electricity. Persons delivering electricity
shall also be authorized to add to such gross
charge an amount of the tax they collect to
reimburse them for their expenses incurred
in keeping records, billing customers, pre-
paring and filing returns, remitting the tax
and supplying data to the village upon
request. For purposes of this chapter, any
partial payment of a billed amount not
specifically identified by the purchaser shall
be deemed to be for the delivery of electric-
ity.
D. Tax Remittance and Return.
1. Every tax collector shall on a month-
ly basis file a return in a form prescribed by
the village. The return and accompanying
remittance shall be due on or before the last
day of the month following the month dur-
ing which the tax is collected or is required
to be collected under Chapter 3.28.
2. If the person delivering electricity
fails to collect the tax from the purchaser or
is excused from collecting the tax under
Section 3.28.090E5b, then the purchaser
shall file a return in a form prescribed by
the village and pay the tax directly to the
village on or before the last day of the
month following the month during which
the electricity is used or consumed.
E. Resales.
1. Electricity that is delivered to a per-
son in this village shall be considered to be
for use and consumption by that person
unless the person receiving the electricity
66-4a
3.28.090
has an active resale number issued by the
state of Illinois and furnishes that number
to the person who delivers the electricity,
and certifies to that person that the sale is
either entirely or partially nontaxable as a
sale for resale.
2. If a person who receives electricity
in the village claims to be an authorized
reseller of electricity, that person shall apply
to the state of Illinois for a resale number.
The applicant shall state facts showing why
it is not liable for the tax imposed by this
chapter on any purchases of electricity and
shall furnish such additional information as
the state of Illinois may reasonably require.
3. Upon approval of the application, the
state of Illinois shall assign a resale number
to the applicant and shall certify the number
to the applicant.
4. The state of Illinois may cancel the
resale number of any person if the person
fails to pay any tax payable under this chap-
ter for electricity used or consumed by the
person, or if the number (1) was obtained
through misrepresentation; or (2) is no
longer necessary because the person has
discontinued making resales.
5. a. If a reseller has acquired electricity
partly for use or consumption and partly for
resale, the reseller shall pay the tax imposed
by this chapter directly to the village pursu-
ant to Section 3.28.090C2 on the amount of
electricity that the reseller uses or con-
sumes, and shall collect the tax and remit
the tax pursuant to Section 3.28.090C1 on
the amount of electricity delivered by the
reseller to a purchaser.
b. Any person who delivers electricity
to a reseller having an active resale number
and complying with all other conditions of
this section shall be excused from collecting
and remitting the tax on any portion of the
(Lemont 11 -98)
3.28.090
electricity delivered to the reseller; provid-
ed, that the person reports to the village the
total amount of electricity delivered to the
reseller, and such other information that the
village may reasonably require.
F. Books and Records. Every tax collec-
tor, and every taxpayer required to pay the
tax imposed by this chapter, shall keep
accurate books and records of its business
or activity, including contemporaneous
books and records denoting the transactions
that gave rise, or may have given rise, to
any tax liability under this chapter. The
books and records shall be subject to and
available for inspection at all times during
business hours of the day.
G. Credits and Refunds. Notwithstanding
any other provision, in order to permit
sound fiscal planning andbudgeting by the
village, no person shall be entitled to a
refund of, or credit for, a tax imposed under
this chapter unless the person files a claim
for refund or credit within three years after
the date on which the tax was paid or remit-
ted. (Ord. 0 -64 -98 § 2, 1998)
(Lemont 11 -98)
66-4b
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Chapter 3.32
MUNICIPAL
TELECOMMUNICATIONS TAX
Sections:
3.32.010 Definitions.
3.32.020 Tax imposed.
3.32.030 Collection of tax by
retailers.
3.32.040 Filing returns and
remittance by retailers.
3.32.050 Registration.
3.32.060 Obligation of taxpayers
to file returns and pay
tax.
3.32.070 Resale numbers.
3.32.080 Maintaining books and
records.
3.32.010 Definitions.
For the purpose of the taxes in this sec-
tion the following shall apply:
"Amount paid" means the amount
charged to the taxpayer's service address in
the village regardless of where such amount
is billed or paid.
"Gross charge" means the amount paid
for the act or privilege of originating or
receiving telecommunications in the village
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 na-
ture, and shall be determined without any
deduction on account of the cost of such
telecommunications, the cost of the materi-
als used, labor or service costs or any other
expense whatsoever. In case credit is ex-
tended the amount thereof shall be included
only as and when paid. However "gross
charge" shall not include:
66 -4c
3.32.010
1. Any amounts added to a purchaser' s
bill because of a charge made pursuant to:
(i) the tax imposed by this chapter, (ii)
additional charges added to a purchaser' s
bill pursuant to Section 9 -222 of the Public
Utilities Act (220 ILCS 5/9 -222), (iii) the
tax imposed by the Telecommunications
Excise Tax Act (35 ILCS 630/1 et seq.), or
(iv) the tax imposed by Section 4251 of the
Internal Revenue Code (26 U.S.C.A.
Section 4251);
2. Charges for a sent collect telecom-
munication received outside of the village;
3. Charges for leased time on equipment
or charges for the storage of data or infor-
mation or subsequent retrieval or the pro-
cessing 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 account-
ing 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 certi-
fied 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 Commu-
nity Affairs;
6. Charges for telecommunications and
all services and equipment provided in con-
nection therewith between a parent corpora-
tion and its wholly owned subsidiaries or
between wholly owned subsidiaries when
the tax imposed under this chapter has
already been paid to a retailer and only to
(Lemont 11 -98)
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the extent that the charges between the
parent corporation and wholly owned sub-
sidiaries or between wholly owned subsid-
iaries 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 other-
wise deductible or excludable that has be-
come worthless or uncollectible, as deter-
mined 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 telecommunication devices.
The term "gross charge" shall not include
that portion of the consideration received
for distributing, supplying, furnishing or
selling gas or electricity to, or for the trans-
mission of messages for, school districts or
units of local government.
"Interstate telecommunications" means all
telecommunications that either originate or
terminate outside this state.
"Intrastate telecommunications" means all
telecommunications that originate and termi-
nate within this state.
"Person" means any natural individual,
firm, trust, estate, partnership, association,
joint stock company, joint venture, corpo-
ration, limited liability company, or a re-
ceiver, trustee, guardian or other representa-
tive appointed by order of any court, the
federal and state governments, include state
universities created by statute, or any city,
town, county or other political subdivision
of this state.
66 -5
3.32.010
"Purchase of retail" means the acquisi-
tion, consumption or use of telecommunica-
tions through a sale at retail.
"Retailer" means and includes every per-
son engaged in the business of making sales
at retail as defined in this chapter. The
village may, in its discretion, upon applica-
tion, authorize the collection of the tax
imposed by any retailer not maintaining a
place of business within this state, who to
the satisfaction of the village, furnishes
adequate security to insure 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 telecommunica-
tions in the village in the same manner and
subject to the same requirements as a retail-
er maintaining a place of business within
the village.
"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 represen-
tative is located here permanently or tempo-
rarily, or whether such retailer or subsidiary
is licensed to do business in this state.
"Sale at retail" means the transmitting,
supplying or furnishing of telecommunica-
tions and all services rendered in connection
therewith for a consideration, to persons
other than the village, federal and state gov-
ernments, and state universities created by
statute and other than between a parent
(Lemont 11 -97)
3.32.010
corporation and its wholly owned subsidiar-
ies 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" means 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 de-
fined location, as in the case of mobile
phones, paging systems, maritime systems,
air -to- ground systems and the like, "service
address" means the location of a taxpayer' s
primary use of the telecommunication
equipment as defined by telephone number,
authorization code, or location in Illinois
where bills are sent.
"Taxpayer" means a person who individ-
ually or through his agents, employees or
permittees engages in the act or privilege of
originating or receiving telecommunications
in the village and who incurs a tax liability
under this chapter.
"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 servic-
es, telegraph services, teletypewriter service,
computer exchange services; cellular mobile
telecommunications service, specialized
mobile radio services, paging service, or
any other form of mobile radio and portable
one -way or two-way communications, or
any other form of mobile radio and portable
one -way or two -way communications, or
any other transmission of messages or infor-
mation by electronic or similar means,
(Lemont 11 -97)
66-6
between or among points by wire, cable,
fiber optics, laser, microwave, radio, satel-
lite or similar facilities. The defmition of
"telecommunications" shall not include pur-
chase of telecommunications by a telecom-
munications 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
inter- company facilities, and all telecommu-
nications resold in the subsequent provision
used as a component of, or integrated into,
end - to-end telecommunications service shall
be non - taxable as sales for resale. (Ord. 0-
33-97, 1997; Ord. 0 -16-97 § 2(A), 1997)
332.020 Tax imposed.
A. A tax is imposed upon:
1. The act or privilege of originating in
the village or receiving in the village intra-
state telecommunications by a person at a
rate of five percent of the gross charge for
such telecommunications purchased at retail
from a retailer by such person; and
2. The act or privilege of originating in
the village or receiving in the village inter-
state telecommunications by a person at a
rate of five percent of the gross charge for
such telecommunications purchased at retail
from a retailer by such person; and
B. To prevent actual multi -state taxation
of the act or privilege that is subject to
taxation under subsection (A)(2) of this
section, any taxpayer, upon proof that the
taxpayer has paid a tax in another state on
the same 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 al-
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lowed as a credit against any other state or
local tax in this state.
C. The tax imposed by this section is
not imposed on any act or privilege to the
extent that such act or privilege may not,
under the Constitution or statutes of the
United States, be made the subject of taxa-
tion by the village. (Ord. 0 -16-97 § 2(B),
1997)
3.32.030 Collection of tax by
retailers.
A. The tax shall be collected as follows:
1. Any retailer maintaining a place of
business in this state and making or effectu-
ating a sale at retail shall collect the tax
imposed by Section 3.32.020 from the tax-
payer and remit it to the village treasurer.
2. Any tax required to be collected
pursuant to this section and any tax col-
lected by the retailer shall constitute a debt
owed by the retailer to the village.
3. 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 prescribed in this
chapter.
4. The tax imposed by this chapter,
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.
B. The village treasurer shall, upon
application, authorize the collection of this
tax by any retailer not maintaining a place
of business in this state who, to the satis-
faction of the treasurer, furnishes adequate
security to ensure collection and payment of
the tax. Such retailer shall be issued, with-
out charge, a permit to collect the tax im-
66 -7
3.32.020
posed. When so authorized, it shall be the
duty of the retailer to collect the tax upon
all of the gross charges for telecommunica-
tions originated or received in the village in
this same manner, and subject to the same
requirements, as a retailer maintaining a
place of business in this state.
C. Whenever possible, the tax autho-
rized shall, when collected, be stated as a
distinct item separate and apart from the
gross charge for telecommunications.
D. Retailers filing tax returns pursuant
to this section shall, at the time of filing
such return, pay to the village the amount
of the tax imposed, less a commission of
1.75 percent which is allowed to reimburse
the retailer for the expenses incurred in
keeping records, billing the customer, pre-
paring 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. (Ord. 0 -16-97 § 2(C), 1997)
3.32.040 Filing returns and
remittance by retailers.
On or before the last day of each calen-
dar month, every retailer maintaining a
place of business in this state and every
retailer authorized by the treasurer to collect
the tax imposed shall file with the village
treasurer a remittance return and remit all
applicable tax for the preceding calendar
month. The retum shall be filed on a form
prescribed by the village treasurer, contain-
ing such information as the treasurer may
reasonably require. (Ord. 0 -16-97 § 2(D),
1997)
3.32.050 Registration.
Every retailer maintaining a place of
(Lemont 11 -97)
3.32.050
business in this state shall register with the
fmance department by July 1, 1997 or the
date of becoming such a retailer, whichever
is later. (Ord. 0 -16-97 § 2(E), 1997)
3.32.060 Obligation of taxpayers to
file returns and pay tax.
A. If a retailer fails to collect the tax
imposed from a taxpayer, as required, then
the taxpayer shall pay the tax directly to the
village.
B. On or before the last day of each
calendar month, every taxpayer that has not
paid the tax imposed to a retailer shall file
with the village treasurer 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 village
treasurer, containing such information as the
treasurer may reasonably require. (Ord. 0-
16-97 § 2(F), 1997)
3.32.070 Resale numbers.
A. If a person who originates or receives
telecommunications in the village claims to
be a reseller of telecommunications, that
person shall apply to the finance department
for a resale number. The applicant shall
state facts showing why it is not liable for
the tax imposed on any purchase of tele-
communications and shall furnish such
additional information as the treasurer may
reasonable require.
B. Upon approval of the application, the
finance department shall assign a resale
number to the applicant and shall certify the
number to the applicant.
C. The finance department may cancel
the resale number of any person if the num-
ber: (a) was obtained through misrepresenta-
tion; (b) is used to originate or receive
(Lemont 11 -97)
66-8
telecommunications tax -free when such
telecommunications are not for resale; or (c)
is no longer necessary or no longer applies
because the person has discontinued making
resales.
D. The act or privilege of originating or
receiving telecommunications in the village
shall not be made tax -free on the ground of
being a sale for resale unless the person has
an active resale number issued by the fi-
nance department and furnishes that number
to the retailer in connection with certifying
to the retailer that any sale to that person is
nontaxable as a sale for resale. (Ord. 0-16-
97 § 2(G), 1997)
3.32.080 Maintaining books and
records.
Every retailer maintaining a place of
business in this state, every retailer autho-
rized by the village treasurer to collect the
tax imposed and every taxpayer required to
pay the tax directly to the village treasurer
shall keep accurate books and records of its
business or activity, including original
source documents and books of entry denot-
ing the transactions that gave rise, or may
have given rise, to any tax liability or ex-
emption. 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 and available for inspection
by the finance department. (Ord. 0 -16-97 §
2(H), 1997)
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