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O-16-97 04/28/97VILLAGE OF LEMONT ORDINANCE NO. - 9 AN ORDINANCE APPROVING A 5% MUNICIPAL TELECOMMUNICATIONS TAX ADOPTED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT This 28th day of April , 1997. Published in pamphlet form by authority of the President and Board of Trustees of the Village of Lemont, Counties of Cook, Will, and DuPage, Illinois this 28th day of April , 1997 ORDINANCE �') - f'- l 7 AN ORDINANCE APPROVING A 5% MUNICIPAL TELECOMMUNICATIONS TAX WHEREAS, the Village of Lemont seeks to impose a 5% municipal telecommunications tax as authorized by 65 ILCS 5/8- 11 -17; and WHEREAS, the revenues to be generated from the municipal telecommunications tax shall be directed to finance the repair and maintenance of Village streets; and WHEREAS, the revenues shall be segregated from other Village revenues in order to provide an accounting of the use of these funds. NOW,'1'HEREFORE, BE IT ORDAINED by the President and Board of Trustees of the Village of Lemont as follows: SECTION ONE: That a 5% municipal telecommunications tax shall be adopted by the Village of Lemont in accordance with the requirements of 65 ILCS 5/8- 11 -17. SECTION TWO: That the Lemont Municipal Code shall be amended to add Section 5.91 titled "Municipal Utility Tax." and shall appear in words and figures as listed in exhibit "A." SECTION THREE: Units of local government located within the corporate boundaries of the Village of Lemont shall be exempted from the collection of the municipal telecommunication tax established by the adoption of this ordinance. SECTION FOUR: The effective date of the collection of this tax shall be July 1, 1997 SECTION FIVE: The provisions and sections of this ordinance shall be deemed separable and the invalidity of any portion of this ordinance shall not affect the validity of the remainder. PASSED AND APPROVED BY Hit PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DU PAGE, ILLINOIS on this 28th day of April , 19 97 . Barbara Buschman Alice Chin Keith Latz Connie Markiewicz Richard Rimbo Ralph Schobert Approved by me this 28th day of Attest: AYES NAYS PASSED ABSENT e , At., AAA , C :PT ."1 A:" ASNESKI, Village President ENE SMOLLEN, Village Clerk , 19 97 . RLENE SMOLLEN, Village Clerk EXHIBIT A SECTION 5.91 MUNICIPAL TELECOMMUNICATIONS TAX A. Definitions For the purpose of the taxes in this section the following shall apply: (1) "Amount paid" means the amount charged to the taxpayer's service address in the Village regardless of where such amount is billed or paid. (2) "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 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. However "gross charge" shall not include: a. any amounts added to a purchaser's bill because of a charge made pursuant to: (I) the tax imposed by this section, (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. §4251); charges for a sent collect telecommunication received outside of the Village; 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. 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; 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 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. (3) 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 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; 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 g. h. charges paid by inserting coins in coin - operated telecommunication devices. "Interstate telecommunications" means all telecommunications that either originate or terminate outside this State. (4) "Intrastate telecommunications" means all telecommunications that originate and terminate within this State. (5) "Person" means 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, include State universities created by statute, or any city, town, county, or other political subdivision of this State. (6) "Purchase of retail" means the acquisition, consumption or use of telecommunications through a sale at retail. (7) "Retailer" means and includes every person engaged in the business of making sales at retail as defined in this Section. The Village may, in its 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 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 telecommunications in the Village in the same manner and subject to the same requirements as a retailer maintaining a place of business within the Village. (8) "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 B. Tax Imposed. (1) A tax is hereby imposed upon: (a) The act or privilege of originating in the Village or receiving in the Village intrastate telecommunications by a person at a rate of five percent (5 %) of the gross charge for such telecommunications purchased at retail from a retailer by such person; and (b) The act or privilege of originating in the Village or receiving in the Village interstate telecommunications by a person at a rate of five percent (5 %) of the gross charge for such telecommunications purchased at retail from a retailer by such person; and (2) To prevent actual multi -state taxation of the act or privilege that is subject to taxation under Section B. (1) b., 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 allowed as a credit against any other state or local tax in this State. 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 taxation by the Village. (3) C. Collection of Tax by Retailers. (1) The tax shall be collected as follows: (a) Any retailer maintaining a place of business in this state and making or effectuating a sale at retail shall collect the tax imposed by Section B from the taxpayer and remit it to the Village Treasurer. (b) Any tax required to be collected pursuant to Section C and any tax collected by the retailer shall constitute a debt owed by the retailer to the Village. (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 prescribed in this chapter. (d) 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. (2) 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 satisfaction of the Treasurer, furnishes adequate security to ensure collection and payment of the tax. Such retailer shall be issued, without charge, a permit to collect the tax imposed. When so authorized, it shall be the duty of the retailer to collect the tax upon all of the gross charges for telecommunications 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. (3) Whenever possible, the tax authorized shall, when collected, be stated as a distinct item separate and apart from the gross charge for telecommunications. (4) Retailers filing tax returns pursuant to this Subsection shall, at the time of filing such return, pay to the Village the amount of the tax imposed, less a commission of 1.75% which is allowed to reimburse the retailer for the expenses incurred in keeping records, billing the customer, preparing and filing returns, remitting the tax and supplying data to the Village upon request. No commission may be claimed by a retailer for tax not timely remitted to the Village. D. Filing Returns and Remittance by Retailers. On or before the last day of each calendar 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 return shall be filed on a form prescribed by the Village Treasurer, containing such information as the Treasurer may reasonably require. E. Registration. Every retailer maintaining a place of business in this state shall register with the Finance Department by July 1, 1997 or the date of becoming such a retailer, whichever is later. F. Obligation of Taxpayers to File Returns and Pay Tax. (1) 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. (2) 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. G. Resale Numbers. (1) 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 telecommunications and shall furnish such additional information as the Treasurer may reasonable require. (2) Upon approval of the application, the Finance Department shall assign a resale number to the applicant and shall certify the number to the applicant. The Finance Department may cancel the resale number of any person if the number: (a) was obtained through misrepresentation; (b) is used to originate or receive 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. (3) (4) 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 Finance 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. H. Maintaining Books and Records. Every retailer maintaining a place of business in this State, every retailer authorized 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 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 and available for inspection by the Finance Department.