O-10-12VILLAGE OF DEERFIELD
LAKE AND COOK COUNTIES, ILLINOIS
ORDINANCE NO. 0 -10 -12
AN ORDINANCE AMENDING THE MUNCIPAL CODE OF
THE VILLAGE OF DEERFIELD BY REPEALING THE MUNICIPAL
INFRASTRUCTURE MAINTENACE FEE AND IMPOSING THE
SIMPLIFIED MUNICIPAL TELECOMMUNICATIONS TAX
PASSED AND APPROVED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF DEERFIELD, LAKE
AND COOK COUNTIES, ILLINOIS, this
19th day of April , 2010.
Published in pamphlet form
by authority of the President
and Board of Trustees of the
Village of Deerfield, Lake and
Cook Counties, Illinois, this
19th day of April , 2010.
VILLAGE OF DEERFIELD
LADE AND COOK COUNTIES, ILLINOIS
ORDINANCE NO. 0 -10 -12
AN ORDINANCE AMENDING THE MUNCIPAL CODE OF
THE VILLAGE OF DEERFIELD BY REPEALING THE MUNICIPAL
INFRASTRUCTURE MAINTENACE FEE AND IMPOSING THE
SIMPLIFIED MUNICIPAL TELECOMMUNICATIONS TAX
WHEREAS, the Village has the authority to adopt ordinances and to promulgate rules
and regulations that pertain to its government and affairs and that protect the public health,
safety, and welfare of its citizens; and
WHEREAS, the Village imposes certain taxes and fees related to telecommunications
services; and
WHEREAS, pursuant to 35 ILCS 635/1 et M., the Village adopted Ordinance 0 -97 -48
in 1997 enacting Article 8 ( "Municipal Telecommunications Infrastructure Maintenance Fee ") of
Chapter 9 ( "Finance and Taxation ") of the Municipal Code of the Village of Deerfield to impose
a municipal telecommunications infrastructure maintenance fee at a rate of 1.0% of gross charges
as defined therein; and
WHEREAS, on February 8, 2002, the Governor of the State of Illinois signed into law
Public Act 92 -0526 entitled the Simplified Municipal Telecommunications Tax Act (35 ILCS
636/5 -1 et seq.) providing that, effective January 1, 2003, any municipal telecommunications tax
and any municipal telecommunications infrastructure maintenance fee imposed by a municipality
would be replaced with a simplified municipal telecommunications tax at a rate of up to 6% of
gross charges in municipalities that imposed such fees and taxes; and
VkIMREAS, the Village of Deerfield implemented the provisions of Public Act 92 -0526,
including the imposition of a one percent (1 %) simplified municipal telecommunications tax in
lieu of the existing one percent (1 %) municipal telecommunications infrastructure maintenance
fee imposed by the Village, by certifying to the Illinois Department of Revenue the amount of
the municipal telecommunications infrastructure maintenance fee previously imposed by the
Village; and
WHEREAS, this Ordinance is intended 'to codify the simplified municipal
telecommunications tax as authorized and imposed by the Village pursuant to the Simplified
Municipal Telecommunications Tax Act, as amended, and to repeal the obsolete references
contained in the Municipal Code of the Village of Deerfield to the municipal
telecommunications infrastructure maintenance fee previously imposed by the Village; and,
WHEREAS, the corporate authorities have further determined that the simplified
municipal telecommunications tax imposed by the Village should be amended as provided herein
and *imposed at the rate of six percent (6.0 %) of gross charges effective January 1, 2011;
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES,
ILLINOIS, in the exercise of its home rule powers, as follows:
SECTION 1: The facts and statements contained in the preamble to this Ordinance are
found to be true and correct and are hereby incorporated in and made a part of this Ordinance as
if fully set forth herein.
SECTION 2: That Article 8 ( "Municipal Telecommunications Infrastructure
Maintenance Fee ") of Chapter 9 ( "Finance and Taxation ") of the Municipal Code of the Village
of Deerfield, consisting of Sections 9 -42 through 9 -52, both inclusive, is hereby repealed in its
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entirety and shall be replaced by a new Article 8 entitled "Simplified Municipal
Telecommunications Tax" as follows:
Article 8: Simplified Municipal Telecommunications Tax
See. 9-42. Definitions:
As used in this Article, the following terms shall have the following meanings:
(a) "Amount paid" means the amount charged to the taxpayer's
service address in this municipality regardless of where such amount is billed or
paid.
(b) "Department" means the Illinois Department of Revenue.
(c) "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 cash, credits, services and
property of every kind or nature, and shall be determined without any deduction
on account of the cost of such telecommunications, the cost of the materials used,
labor or service costs or any other expense whatsoever. In case credit is extended,
the amount thereof shall be included only as and when paid. "Gross charges" for
private line service shall include charges imposed at each channel termination
point within this municipality and charges for that portion of the interoffice
channels provided within this 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 this 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
this 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
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tax liabilities or other amounts specified in those provisions of the Public
Utilities Act.
(2) charges for a sent collect telecommunication received outside of
such 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
Economic Opportunity.
(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 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
telecommunication devices.
(9) amounts paid by telecommunications retailers under the
Telecommunications Infrastructure Maintenance Fee Act.
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(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.
(d) "Interstate telecommunications" means all telecommunications
that either originate or terminate outside this State.
(e) "Intrastate telecommunications" means all telecommunications
that originate and terminate within this State.
(f) "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.
(g) "Purchase at retail" means the acquisition, consumption or use of
telecommunications through a sale at retail.
(h) "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.
(i) "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
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representative is located here permanently or temporarily, or whether such
retailer or subsidiary is licensed to do business in this State.
0) "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.
(k) "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.
(1) "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.
(m) "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
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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' Occupation Tax Act.
Sec. 9 -43. Simplified Municipal Telecommunications Tax Imposed:
A tax is hereby imposed upon any and all of the following acts or privileges:
(a) The act or privilege of originating in the municipality or receiving
in the municipality intrastate telecommunications by a person at a rate of six
percent (6.0 %) 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.
(b) The act or privilege of originating in the municipality or receiving
in the municipality interstate telecommunications by a person at a rate of six
percent (6.0 %) 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 subsection, 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 or such tax properly due and paid in a municipality in
this State which was not previously allowed as a credit against any other state or
local tax in this State.
(c) The tax imposed by this Ordinance 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 the municipality.
Sec. 9 -44. Collection of Tax by Retailers:
(a) 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
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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.
(b) 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.
See. 9 -45. Returns to Department:
On or before the last day of February, 2003, 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 (35 ILCS 636/5 -50) and any
accompanying rules and regulations created by the Department to implement the
Act.
Sec. 9-46. Resellers:
(a) 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
Article on any of such purchases and shall furnish such additional information as
the Department may reasonably require.
(b) 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.
(c) 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 to the retailer in
In
connection with certifying to the retailer that any sale to such person is non-
taxable because of being a sale for resale.
Sec. 9 -47. Effective Date of Rate Amendment:
(a) Six Percent (6 %) Tax Rate Effective on and after January 1, 2011.
The simplified municipal telecommunications tax authorized by this Ordinance to
be imposed at the rate of six percent (6.0 %) with respect to the gross charges
billed by telecommunications retailers with respect to the act or privilege of
originating in the municipality or receiving in the municipality intrastate and
interstate telecommunications shall be effective with respect to the gross charges
billed by telecommunications retailers on or after January 1, 2011.
(b) One Percent (1 %) Tax Rate Effective until January 1, 2011. The
simplified municipal telecommunications tax now imposed by the Village at the
rate of one percent (1.0 %) with respect to the gross charges billed by
telecommunications retailers with respect to the act or privilege of originating in
the municipality or receiving in the municipality intrastate and interstate
telecommunications shall continue in effect until January 1, 2011, provided,
however, that any amounts due or payable to the Village for any tax periods
ending prior to the first day of January 1, 2011, shall nevertheless remain payable
as if this Ordinance had not be adopted.
See. 9-48. 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.
SECTION 5: That the Village Clerk is hereby authorized and directed to file a certified
copy of this ordinance with the Local Tax Allocation Division of the Illinois Department of
Revenue, 101 West Jefferson Street, Springfield, IL 62702, on or before September 20, 2010.
SECTION 6: That the additional taxes hereby imposed by this ordinance shall take
effect on the first day of January 2011, following the adoption and filing of a certified copy of
this ordinance with the Illinois Department of Revenue.
in
SECTION 7: This Ordinance and each of its terms shall be the effective legislative act
of a home rule municipality without regard to whether such ordinance should (a) contain terms
contrary to the provisions of current or subsequent non - preemptive state law, or (b) legislate in a
manner or regarding a matter not delegated to municipalities by state law. It is the intent of the
corporate authorities of the Village of Deerfield that to the extent that the terms of this ordinance
should be inconsistent with any non - preemptive state law, that this ordinance shall supersede
state law in that regard within its jurisdiction.
SECTION 8: That this Ordinance shall be in full force and effect from and after its
passage, approval and publication in pamphlet form as provided by law.
PASSED this 19th day of April , 2010.
AYES: Benton, Farkas, Jester, Oppenheim, Struthers (5)
NAYS: Seiden (1)
ABSENT: None (0)
ABSTAIN: None (0)
APPROVED this 19th day of April , 2009.
ATTES .
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V llage erk
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Village Pr6sident
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Illinois Department of Revenue
m :�.:� U i Legal Services Office 5 -500
- =► ' 101 W. Jefferson St.
t` `0 Springfield, IL 62794
w0- .Cite
August 27, 2010
Mr. Robert Fialkowski
Director of Finance /Treasurer
Village of Deerfield
850 Waukegan Road
Deerfield, IL 60015
s
Dear Mr. Fialkowski:
7` 71,v
or,P o- /o -(L- ,
This is to acknowledge receipt of the Village of Deerfield's Ordinance No. 0 -10 -12
increasing the ratio of the Simplified Municipal Telecommunications Tax to 6 %.
The Illinois Department of Revenue shall collect, administer, and enforce Deerfield's
Simplified Municipal Telecommunications Tax at the rate of 6% effective January 1, 2011 in
accordance with the provisions of 35 ILCS 636/5 -1 et seq.
If you have. any questions regarding this letter, please contact our office at the number
listed below. If you have questions concerning the administration of the tax, please contact the
Department's Local Tax Allocation Division at (217) 785 -6518.
Sincerely,
t�
`Samuel J. oore
Associate Counsel
(217) 782 -2844
Cc: Brenda Towers, Local Tax Allocation Division
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