CHAPTER 35

TAXATION

 

Foreign Fire Insurance Companies Tax 35.01 Compliance with provisions relating to engaging in business 35.02 Annual gross receipts tax  35.03 Annual report; payment of tax  35.04 Recovery of tax by suit  35.05 Placement of insurance by broker restricted Municipal Retailers' Occupation Tax 35.15 Imposition of tax 35.16 Report to state to be filed  35.17 Payments Home Rule Municipal Retailers' Occupation Tax 35.20 Imposition of tax 35.21 Collection of tax

Municipal Service Occupation Tax 35.30 Imposition of tax 35.31 Report to state to be filed  35.32 Payments Home Rule Municipal Service Occupation Tax 35.35 Imposition of tax 35.36 Collection of tax Simplified Municipal Telecommunications Tax 35.101  Definitions 35.102  Simplified municipal telecommunications tax imposed 35.103  Collection of tax by retailers 35.104  Returns to department 35.105  Resellers 35.106  Severability 35.107  Effective date

 

FOREIGN FIRE INSURANCE COMPANIES TAX

 

§ 35.01  COMPLIANCE WITH PROVISIONS RELATING TO ENGAGING IN 

  BUSINESS.

 

It shall be unlawful for any corporation, company, or association, not incorporated under the laws of the state, to engage in the city in effecting fire insurance, or to transact any business of fire insurance in the city, while in default by not fully complying with any of the requirements of this subchapter and until such requirements shall have been fully complied with; but, this provision shall not relieve any company, corporation, or association from the payment of any risk that may be undertaken in violation of this subchapter.

 

§ 35.02  ANNUAL GROSS RECEIPTS TAX

 

Any corporation, company, or association not incorporated under the laws of the state, which is engaged in the city in effecting fire insurance, shall pay to the City Treasurer for the maintenance, use and benefit of the Fire Department a sum of money equal in amount to two percent (2%) per annum of the gross receipts received for premiums by any and all agents of any such corporation, company, or association during the year ending on every July 1, for any insurance effected or agreed to be effected in the city by or with any such corporation, company, or association during such year.

 

§ 35.03  ANNUAL REPORT; PAYMENT OF TAX

 

Every person acting in the city as agent for or on behalf of any corporation, company, or association under this subchapter shall, on or before July 15, of each and every year, render to the City Collector a full, true, and just account, verified by his oath, of all premiums which, during the year ending on July 15, preceding such report, shall have been received by him, or any other person for him, in behalf of any such corporation, company, or association. Such agent shall also, at the time of rendering the aforesaid report, pay to the City Treasurer the sum of money for which such company, corporation, or association represented by him is chargeable by virtue of the provisions of this subchapter.

 

§ 35.04  RECOVERY OF TAX BY SUIT.

1. The sum of money for which any company, corporation, or association is so chargeable under the provisions of this subchapter may be recovered of it, or its agent or agents, by an action in the name of and for the use of the city, as for money had and not received.

2. Nothing in this section shall be held to exempt any person, corporation, company, or association from indictment and conviction under the provisions of an act entitled, An Act to Enable Cities, Towns, and Villages; Organized under any General or Special Law, to Levy and Collect a Tax ox License Fee from Foreign Insurance Companies for the Benefit of Organized Fire Department, in force July 1, 1985.

 

§ 35.05  PLACEMENT OF INSURANCE BY BROKER RESTRICTED.

 

No insurance broker in the city shall place any insurance with any company, association, or corporation not incorporated under the laws of this state, which shall be in default for not reporting or making payment as provided in this division, until it shall have complied with all the requirements of this subchapter.

 

MUNICIPAL RETAILERS’ OCCUPATION TAX

 

§ 35.15  IMPOSITION OF TAX

 

A tax is imposed upon all persons engaged in the business of selling tangible personal property at retail in this city at the rate of one percent (1%) of the gross receipts from such sales made in the course of such business while this division, municipal retailers' occupation tax, is in effect, in accordance with the provisions of Ill. Rev. Stat. § 8-11-1.
(Ord. 974, passed 8-18-69)

 

§ 35.16  REPORT TO STATE TO BE FILED.

 

Every such person engaged in such businesses in the city shall file on or before the last day of each calendar month, the report to the State Department of Revenue required by section three of An Act in Relation to a Tax upon Persons Engaged in the Business of Selling Tangible Personal Property to Purchasers for Use or Consumption, approved June 28, 1933, as amended.
(Ord. 974, passed 8-18-69)

 

§ 35.17  PAYMENTS.

 

At the time such report is filed, there shall be paid to the State Department of Revenue the amount of tax imposed on account of the receipts from sales of tangible personal property during the preceding month.
(Ord. 974, passed 8-18-69)

 

HOMERULE MUNICIPAL RETAILERS' OCCUPATION TAX

 

§ 35.20  IMPOSITION OF TAX

 

A tax is imposed upon all persons engaged in the business of selling property, other than an item of tangible personal property titled or registered, and other than 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 non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics, at the rate of 1.25% of the gross receipts from such sales made in the course of such business while this division is in effect.

 

The imposition of this Home Rule Municipal Retailers' Occupation Tax is in accordance with the provisions of the § 8-11-1 of the Illinois Municipal Code (65 ILCS 5/8-11-1). The provisions and definitions of that section are hereby incorporated into this Division by reference thereto.

(Ord. 2171, passed 12-21-98; Am. Ord. 2662, passed 02-20-06)

 

§ 35.21  COLLECTION OF TAX

 

The tax hereby imposed, and all civil penalties that may be assessed as an incident thereto, shall be collected and enforced by the Illinois Department of Revenue. The Illinois Department of Revenue shall have full power to administer and enforce the provisions of this Division.
(Ord. 2171, passed 12-21-98; Am. Ord. 2662, passed 02-20-06)

 

MUNICIPAL SERVICE OCCUPATION TAX

 

§ 35.30  IMPOSITION OF TAX.

 

A tax is imposed upon all persons engaged in this municipality in the business of making sales of service at the rate of one percent (1%) of the cost price of all tangible personal property transferred by such service people either in the form of tangible personal property or in the form of real estate as an incident to a sale of service, in accordance with the provisions of Ill. Rev. Stat. § 8-11-5.
(Ord. 975, passed 8-18-69)

 

§ 35.31  REPORT TO STATE TO BE FILED.

 

Every supplier or service person required to account for municipal service occupation tax for the benefit of this municipality shall file, on or before the last day of each calendar month, the report to the State Department of Revenue required by section nine (9) of the "Service Occupation Tax Act," approved July 10, 1961, as amended.
(Ord. 975, passed 8-18-69)

 

§ 35.32  PAYMENTS.

 

At the time such report is filed, there shall be paid to the State Department of Revenue the amount of tax imposed.
(Ord. 975, passed 8-18-69)

 

HOME RULE MUNICIPAL SERVICE OCCUPATION TAX

 

§ 35.35  IMPOSITION OF TAX

 

A tax is imposed upon all persons engaged in the business of sales of service, other than 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 non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics, at the rate of 1.25% 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 or service while this division is in effect.

 

The imposition of this Home Rule Municipal Service Occupation Tax is in accordance with the provisions of the § 8-11-5 of the Illinois Municipal Code (65ILCS 5/8-11-5). The provisions and definitions of that section are hereby incorporated into this Division by reference thereto.
(Ord. 2171, passed 12-21-98; Am. Ord. 2662, passed 02-20-06)

 

§ 35.36  COLLECTION OF TAX

 

The tax hereby imposed, and all civil penalties that may be assessed as an incident thereto, shall be collected and enforced by the Illinois Department of Revenue. The Illinois Department of Revenue shall have full power to administer and enforce the provisions of this Division.
(Ord. 2171, passed 12-21-98; Am. Ord. 2662, passed 02-20-06)

SIMPLIFIED MUNICIPAL TELECOMMUNICATIONS TAX

§ 35.101 DEFINITIONS

As used in this Division, the following terms shall have the following meanings:

1. "Amount paid" means the amount charged to the taxpayer's service address in this municipality regardless of where such amount is billed or paid.
2. "Department" means the Illinois Department of Revenue.
3. "Gross charge" means the amount paid for the act or privilege of originating or receiving telecommunications in this municipality and for all services and equipment provided in connection therewith by a retailer, valued in money, whether paid in money or otherwise, including cast, 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 a municipality that has imposed a tax under this Chapter and charges for the portion of the inter-office channels provided within that municipality. Charges for that portion of the inter-office channel connecting 2 or more channel termination points, one or more of which is located within the jurisdictional boundary of such municipality, shall be determined by the retailer by multiplying an amount equal to the total charge for the inter-office channel by a fraction, the numerator of which is the number of channel termination points that are located within the jurisdictional boundary of the municipality, and the denominator of which is the total number of channel termination points connected by the inter-office channel. However, "gross charge" shall not include any of the following:

1. any amounts added to a purchaser's bill because of a charge made pursuant to: (i) the tax imposed by this Ordinance, (ii) the tax imposed by the Telecommunications Excise Tax Act, (iii) the tax imposed by Section 4251 of the Internal Revenue Code, (iv) 911 surcharges, or (v) 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;
2. charges for a sent collect telecommunication received outside of this municipality;
3. 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 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 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;
6. charges for telecommunications and all services an 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 Ordinance 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);
8. charges paid by inserting coins in coin-operated telecommunications devices; or
9. amounts paid by telecommunications retailers under the Telecommunications Infrastructure Maintenance Fee Act.
10.  charges for nontaxable services or telecommunications if (i) those charges are aggregated with other charges for telecommunications that are taxable, (ii) those charges are not separately stated on the customer bill or invoice, and (iii) 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.

4. "Interstate telecommunications" means all telecommunications that either originate or terminate outside this State.
5. "Intrastate telecommunications" means all telecommunications that originate and terminate within this State.
6. "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, including State universities created by statute, or any city, town, county, or other political subdivision of this State.
7. "Purchase at retail" means the acquisition, consumption or use of telecommunications through a sale at retail.
8. "Retailer" means and includes every person engaged in the business of making sales at retail as defined in this Section. The Department 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 Department, 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 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.
9. "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.
10. "Sale at retail" means 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.
11. "Service address" means 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 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.
12. "Taxpayer" means 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 a municipality and who incurs a tax liability as authorized by the Ordinance.
13. "Telecommunications", in addition to the meaning ordinarily and popularly ascribed to it, includes, without limitation, messages or information transmitted through use of local, toll, and wide area telephone service, private line services, channel services, telegraph services, teletypewriter, computer exchange services, 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 Ordinance, "private line" means a dedicated non-traffic 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 inter-company 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 non-taxable as sales for resale. Prepaid telephone calling arrangements shall not be considered "telecommunications" subject to the tax imposed under this Ordinance. For purposes of this Section, "prepaid telephone calling arrangements" means that term as defined in Section 2-27 of the Retailers' Occupations Tax Act.

§ 35.102 SIMPLIFIED MUNICIPAL TELECOMMUNICATIONS TAX IMPOSED

A tax is hereby imposed upon any and all the following acts or privileges:

1. The act or privilege of originating in the municipality or receiving in the municipality 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. To prevent actual multi-municipal 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 municipality on that event, shall be allowed a credit against any tax enacted pursuant to or authorized by this Section to the extent of the amount of the tax properly due and paid in the municipality that was not previously allowed as a credit against any other municipal tax.
2. The act or privilege of originating in the municipality or receiving in the municipality 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. To prevent actual multi-state or multi-municipal taxation of the act or privilege that is subject to taxation under this paragraph, any taxpayer, upon proof that the taxpayer has paid a tax in another state or municipality in this State on such event, shall be allowed a credit against any tax enacted pursuant to or authorized by this Section 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.
3. The tax imposed by this Ordinance is not imposed on such at or privilege to the extent such act or privilege may not, under the Constitution and statutes of the United States, be made subject of taxation by the municipality.

§35.103 COLLECTION OF TAX BY RETAILERS

1. The tax authorized by this Ordinance shall be collected from the taxpayer by a retailer maintaining a place of business in this State and shall be remitted by such retailer to the Department. Any tax required to be collected pursuant to or as authorized by this Ordinance and any such tax collected by such retailer and required to be remitted to the Department shall constitute a debt owed by the retailer to the State. Retailers 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 by the Department. The tax authorized by this Ordinance shall constitute a debt of the taxpayer to the retailer until paid, and, if unpaid, is recoverable at law in the same manner as the original charge for such sale at retail. If the retailer fails to collect the tax from the taxpayer, then the taxpayer shall be required to pay the tax directly to the Department in the manner provided by the Department.
2. Whenever possible, the tax authorized by this Ordinance shall, when collected, be stated as a distinct item separate and apart from the gross charge for telecommunications.

§34.104 RETURNS TO DEPARTMENT

On or before the last day of February 2006, and on or before the last day of every month thereafter, the tax imposed under this Ordinance on telecommunication retailers shall be returned with appropriate forms and information as required by the Department pursuant to the Illinois Simplified Municipal Telecommunications Tax Act (Public Act 92-526, Section 5-50) and any accompanying rules and regulations created by the Department to implement the Act.

§35.105 RESELLERS

1. If a person who originates or receives telecommunications claims to be a reseller of such telecommunications, such person shall apply to the Department for a resale number. Such applicant shall state facts which will show the Department why such applicant is not liable for the tax authorized by this Division on any of such purchases and shall furnish such additional information as the Department may reasonably require.
2. Upon approval of the application, the Department shall assign a resale number to the applicant and shall certify such number to the applicant. The Department may cancel any number which is obtained through misrepresentation, or which is used to send or receive such telecommunication tax-free when such actions in fact are not for resale, or which no longer applies because of the person's having discontinued the making of resales.
3. Except as provided hereinabove in this Section, the act or privilege of originating or receiving telecommunications in this State shall not be made tax-free on the ground of being a sale for resale unless the person has an active resale number from the Department and furnishes that number tot he retailer in connection with certifying to the retailer that any sale to such person is non-taxable because of being a sale for resale.

35.106 SEVERABILITY

If any provision of this Ordinance, or the application of any provision of this Ordinance, is held unconstitutional or otherwise invalid, such occurrence shall not affect other provisions of this Ordinance, or their application, that can be given effect without 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 Ordinance.

§35.107 EFFECTIVE DATE

This Ordinance shall be in full force and effect from and after its passage and approval and publication as required by law, provided, however, that the tax provided for herein shall take effect for all bills issued on or after the first day of January, 2006. Copies of this Ordinance shall be certified and sent to the Illinois Department of Revenue prior to September 20, 2005. (Am. Ord. 2636, passed 9-6-05; Am. Ord. 2640, passed 9-19-05)