Chapter 78
TAXATION*
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Cross references: Administration, ch. 2; alcoholic beverages, ch. 10; animals, ch. 14; buildings and building regulations, ch. 18; businesses, ch. 22.
State law references: Revenue, 35 ILCS 5/101 et seq.; levy and collection of municipal taxes, 65 ILCS 5/8-3-1 et seq.
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Article I. In General
Secs. 78-1– 78-25. Reserved.
Article II. Reserved
Secs. 78-26– 78-45. Reserved.
Article III. Municipal Use Tax
Sec. 78-46. Imposed.
Sec. 78-47. Collection.
Secs. 78-48– 78-70. Reserved.
Article IV. Municipal Retailers' Occupation Tax
Sec. 78-71. Imposed.
Sec. 78-72. Filing.
Sec. 78-73. Payment.
Secs. 78-74– 78-95. Reserved.
Article V. Municipal Service Occupation Tax
Sec. 78-96. Imposed.
Sec. 78-97. Filing.
Sec. 78-98. Payment.
Secs. 78-99– 78-120. Reserved.
Article VI. Hotel Operators' Occupation Tax
Sec. 78-121. Title.
Sec. 78-122. Definitions.
Sec. 78-123. Rate; exemption.
Sec. 78-124. Books and records.
Sec. 78-125. Certificate of registration– Laws applicable.
Sec. 78-126. Return of taxpayer– Payment of tax.
Sec. 78-127. Violations.
Sec. 78-128. Exemptions.
Sec. 78-129. Delinquent taxes– Liens.
Sec. 78-130. Foreclosure of lien and other judicial action.
Sec. 78-131. Personal liability penalty.
Secs. 78-132– 78-149. Reserved.
Article VII. Municipal Telecommunications Tax
Sec. 78-150. Definitions.
Sec. 78-151. Simplified municipal telecommunications tax imposed.
Sec. 78-152. Collection of tax by retailers.
Sec. 78-153. Returns to department.
Sec. 78-154. Resellers.
Secs. 78-155– 78-159. Reserved.
Article VIII. Locally Imposed and Administered Taxes
Sec. 78-160. Title.
Sec. 78-161. Scope.
Sec. 78-162. Definitions.
Sec 78-163. Notices.
Sec. 78-164. Late payment.
Sec. 78-165. Payment.
Sec. 78-166. Certain credits and refunds.
Sec. 78-167. Audit procedure.
Sec. 78-168. Appeal.
Sec. 78-169. Hearing.
Sec. 78-170. Interest and penalties.
Sec. 78-171. Abatement.
Sec. 78-172. Installment contracts.
Sec. 78-173. Statute of limitations.
Sec. 78-174. Voluntary disclosure.
Sec. 78-175. Publication of tax ordinances.
Sec. 78-176. Review of liens.
Sec. 78-177. Application.
ARTICLE I.
IN GENERAL
Secs. 78-1– 78-25. Reserved.
ARTICLE II.
RESERVED*
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Editor's note: Ordinance No. 93-26, § 1, adopted July 26, 1993, repealed § 78-26. Formerly, such section pertained to maximum rate limit established. Since, § 78-26 was the only § in article II, ad valorem tax, the whole article was deleted at the editor's discretion.
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Secs. 78-26– 78-45. Reserved.
ARTICLE III.
MUNICIPAL USE TAX*
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State law references: Home Rule Municipal Use Tax Act, 65 ILCS 5/8-11-6.
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Sec. 78-46. Imposed.
A tax is hereby imposed upon the privilege of using in the municipality any item of tangible personal property which is purchased outside the state at retail from a retailer, and which is titled or registered with an agency of state government. The tax shall be at a rate of one percent of the selling price of such tangible property.
(Code 1976, § 10-16)
Sec. 78-47. Collection.
The tax imposed in section 78-46 shall be collected by the state department of revenue for the city and shall be paid before the title or certificate of registration for the personal property is issued.
(Code 1976, § 10-17)
Secs. 78-48– 78-70. Reserved.
ARTICLE IV. ------------
State law references: Home Rule Municipal Retailers' Occupation Tax Act, 65 ILCS 5/8-11-1.
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Sec. 78-71. Imposed.
(a) A tax is hereby imposed upon all persons engaged in the business of selling tangible personal property at retail in this city at the rate of one percent of the gross receipts from such sales made in the course of such business.
(b) The exclusion contained in section 2, first paragraph (d) of the Retailers' Occupation Tax Act (35 ILCS 120/1 et seq.), approved June 28, 1933, as amended, shall not apply to property within this city.
(Code 1976, § 10-28)
Sec. 78-72. Filing.
Every person on whom the tax is imposed by section 78-71 engaged in such business in the city shall file on or before the last day of each calendar month a report to the state department of revenue.
(Code 1976, § 10-29)
Sec. 78-73. Payment.
At the time the report required by section 78-72 is filed, there shall be paid to the state department of revenue the amount of tax imposed by this article on account of the receipts from sales of tangible personal property during the preceding month.
(Code 1976, § 10-30)
Secs. 78-74– 78-95. Reserved.
ARTICLE V. ------------
State law references: Home Rule Municipal Service Occupation Tax Act, 65 ILCS 5/8-11-6.
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Sec. 78-96. Imposed.
(a) A tax is hereby imposed upon all persons engaged in the city in the business of making sales of service at the rate of one percent of the cost price of all tangible personal property transferred by such servicemen either in the form of tangible property or in the form of real estate as an incident to a sale of service.
(b) The exclusion contained in section 2, definition of "sale of service" (e) of the Service Occupation Tax Act (35 ILCS 115/2), approved July 10, 1961, as amended, shall not apply to the property within this city.
(Code 1976, § 10-41)
Sec. 78-97. Filing.
Every supplier or serviceman on whom the tax is imposed in section 78-96 shall file, on or before the last day of each calendar month, a report to the state department of revenue.
(Code 1976, § 10-42)
Sec. 78-98. Payment.
At the time the report required under section 78-97 is filed, there shall be paid to the state department of revenue the amount of tax imposed by this article.
(Code 1976, § 10-43)
Secs. 78-99– 78-120. Reserved.
ARTICLE VI. ------------
Editor's note: Ordinance No. 93-12, §§ 1– 10, added a new article V. However, an article V already exists; therefore, in order to provide for better classification, such new provisions were included as article VI.
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Sec. 78-121. Title.
This article shall be known and cited as "The Hotel Operators' Occupation Tax Ordinance" and the tax herein imposed shall be in addition to all other occupation or privilege taxes imposed by the state and city.
(Ord. No. 93-12, § 1, 6-14-93)
Sec. 78-122. Definitions.
As used in this article, unless the context otherwise requires:
Department means the treasurer's office of the city.
Hotel means any building or buildings in which the public may, for a consideration, obtain living quarters, sleeping or housekeeping accommodations. The term includes inns, motels, tourist homes or courts, lodging houses, rooming houses and apartment houses.
Occupancy means the use or possession, or the right to the use or possession, of any room or rooms in a hotel for any purpose, or the right to the use or possession of the furnishings or to the services and accommodations accompanying the use and possession of the room or rooms.
Operator means any person operating a hotel.
Permanent resident means any person who occupied or has the right to occupy any room or rooms, regardless of whether or not it is the same room or rooms, in a hotel for at least 30 consecutive days.
Person means any natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation or a receiver, executor, trustee, guardian or other representative appointed by order of any court.
Rent or rental means the consideration received for occupancy, valued in money, whether received in money or otherwise, including all receipts, cash, credits and property or services of any kind or nature.
Room or rooms means any living quarters, sleeping or housekeeping accommodations.
(Ord. No. 93-12, § 2, 6-14-93)
Sec. 78-123. Rate; exemption.
(a) A tax is imposed upon persons engaged in the business of renting, leasing or letting rooms in a hotel at the rate of five percent of the gross rental receipts for such renting, leasing or letting, excluding, however, from gross rental receipts, the proceeds of such renting, leasing or letting to permanent residents of that hotel, and excluding therefrom any amount collected pursuant to the Hotel Operator's Occupation Tax Act (35 ILCS 145/1 et. seq.).
(b) Persons subject to the tax imposed by this article may reimburse themselves for their tax liability under this article by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with any tax imposed pursuant to The Hotel Operators' Occupation Tax Act.
(c) If any hotel operator collects an amount (however designated) which purports to reimburse such operator for hotel operators' occupation tax liability measured by receipts which are not subject to hotel operators' occupation tax, or if any hotel operator, in collecting an amount (however designated) which purports to reimburse such operator for hotel operators' occupation tax liability measured by receipts which are subject to tax under this Act, collects more from the customer than the operators' hotel operators' occupation tax liability in the transaction is, the customer shall have a legal right to claim a refund of such amount from such operator. However, if such amount is not refunded to the customer for any reason, the hotel operator is liable to pay such amount to the department.
(Ord. No. 93-12, § 3, 6-14-93)
Sec. 78-124. Books and records.
Every operator shall keep separate books or records of his or her business as an operator so as to show the rents and occupancies taxable under this article separately from his or her transactions not taxable hereunder. If any such operator fails to keep such separate books or records, the operator shall be liable to tax at the rate designated in section 78-123 of this article upon the entire proceeds from the operator's hotel. Upon reasonable notice to the operator, all applicable books and records shall be made available to the treasurer or the treasurer's representative for the treasurer's evaluation with respect to this article.
(Ord. No. 93-12, § 4, 6-14-93)
Sec. 78-125. Certificate of registration– Laws applicable.
It shall be unlawful for any person to engage in the business of renting, leasing or letting rooms in a hotel in the city without a certificate of registration from the city clerk or the state. Those persons who are registered with and have a certificate of registration from the state do not have to register with the city clerk.
(Ord. No. 93-12, § 4, 6-14-93)
Sec. 78-126. Return of taxpayer– Payment of tax.
(a) Except as provided hereinafter in this section, on or before the last day of each calendar month, every person engaged in the business of renting, leasing or letting rooms in a hotel in the city during the preceding calendar month shall file a return with the department stating:
(1) The name of the operator;
(2) The address of the operator's principal place of business and the address of the principal place of business (if that is a different address) from which the operator engages in the business of renting, leasing or letting rooms in a hotel in the city;
(3) Total amount of rental receipts received by the operator during the preceding calendar month from renting, leasing or letting rooms during such preceding calendar month and consideration other than money shall be described in detail;
(4) Total amount of rental receipts received by the operator during the preceding calendar month from renting, leasing or letting rooms to permanent residents during such preceding calendar month and the component parts of this amount shall be described in detail;
(5) Total amount of other exclusions from gross rental receipts allowed by this article and the component parts of this amount shall be described in detail;
(6) Gross rental receipts which were received by the operator during the preceding calendar month and upon the basis of which the tax is imposed;
(7) The amount of tax due;
(8) The amount of penalty due, if any;
(9) Such other reasonable information as the department may require.
(b) If the operator's average monthly tax liability to the department does not exceed $50.00, the department may authorize the operator's returns to be filed on a quarter annual basis, with the return for January, February and March of a given year being due by April 30 of such year, with the return for April, May and June of a given year being due by July 31 of such year; with the return for July, August and September of a given year being due by October 31 of such year; and with the return for October, November and December of a given year being due by January 31 of the following year.
(c) If the operator's average monthly tax liability to the department does not exceed $10.00, the department may authorize the operator's returns to be filed on an annual basis with the return for a given year being due by January 31 of the following year.
(d) Such quarter annual and annual returns, as to form and substance, shall be subject to the same requirements as monthly returns.
(e) Notwithstanding any other provision in this article concerning the time within which an operator may file his or her return, in the case of any operator who ceases to engage in a kind of business which makes the operator responsible for filing returns under this article, such operator shall file a final return under this article with the department not more than one month after discontinuing such business.
(f) Where the same person has more than one business registered with the department under separate registrations under this article, such person shall not file each return that is due as a single return covering all such registered businesses, but shall file separate returns for each such registered business.
(g) In his or her return, the operator shall determine the value of any consideration other than money received by the operator in connection with the renting, leasing or letting of rooms in the course of the operator's business and the operator shall include such value in the operator's return and shall describe it in detail. Such determination shall be subject to review and revision by the department in the manner hereinafter provided for the correction of returns.
(h) Each return filed by an operator shall be signed by the president, vice-president, secretary or treasurer or an corporation, by an active partner of a partnership, by an individual operator or by the properly accredited agent of any operator.
(i) The person filing the return herein provided for shall, at the time of filing such return, pay to the department the amount of tax herein imposed. If a return is not filed when and as required or if a tax payment is not made as required or if a return is not filed until after the city issues a notice of tax delinquency or notice of tax liability, the taxpayer shall be liable for the interest, late filing penalty, late payment penalty, and failure to file penalty, all as provided in section 11 of the city's Locally Imposed and Administered Tax Rights and Responsibility Ordinance [section 78-170 of this chapter], until such return is filed and payment is made as required. The treasurer shall be authorized to compromise or waive part or all of the interest and penalty requirements pursuant to section 12 of the City's Locally Imposed and Administered Tax Rights and Responsibility Ordinance [section 78-171 of this chapter].
(j) The department may, upon separate written notice to a taxpayer, require the taxpayer to prepare and file with the department on a form prescribed by the department within not less than 30 days after receipt of the notice an annual information return for the tax year specified in the notice. Such annual return to the department shall include a statement of gross receipts as shown by the operator's last state income tax return and any other reasonable information as the department may require. If the total receipts of the business as reported in the state income tax return do not agree with the gross receipts reported to the department for the same period, the operator shall attach to the annual information return a schedule showing a reconciliation of the two amounts and the reasons for the difference. The operator's annual information return to the department shall also disclose pay roll information of the operator's business during the year covered by such return and any additional reasonable information which the department deems would be helpful in determining the accuracy of the monthly, quarterly or annual tax returns by such operator as hereinbefore provided for in this section.
(k) If the annual information return required by this section is not filed when and as required, the taxpayer shall be liable for a late filing penalty as provided in section 11(b) of the city's Locally Imposed and Administered Tax Rights and Responsibility Ordinance [section 78-170(b) of this chapter] based on the tax which became due from such taxpayer under this article during the period to be covered by the annual return until such return is filed as required and the penalty paid. The authority of the treasurer to waive part or all of the previously stated penalty is also applicable to this penalty.
(l) The chief executive officer, proprietor, owner or highest ranking manager shall sign the annual return to certify the accuracy of the information contained therein. Any person who wilfully signs the annual return containing false or inaccurate information shall be guilty of perjury and punished accordingly. The annual return form prescribed by the department shall include a warning that the person signing the return may be liable for perjury.
(m) The foregoing portion of this section concerning the filing of an annual information return shall not apply to an operator who is not required to file an income tax return with the United States Government.
(Ord. No. 93-12, § 6, 6-14-93; Ord. No. 00-15, §§ 1, 2, 12-27-00)
Sec. 78-127. Violations.
(a) Any person engaged in the business of renting, leasing or letting hotel rooms in the city who fails to make a return, or to keep books and records as required herein, or who makes a fraudulent return, or willfully violates any rule or regulation of the department for the administration and enforcement of the provisions of this article, or any officer or agent of a corporation engaged in the business of renting, leasing, or letting hotel rooms in this state who signs a fraudulent return made on behalf of such corporation shall, upon conviction therefor, be fined according to the provisions of section 1-5 of this Code for each offense.
(b) Any person who violates any provision of section 78-125 of this article shall, upon conviction therefor, be fined according to the provisions of section 1-5 of this Code for each offense. Each and everyday any such person is engaged in business in violation of such section 78-125 shall constitute a separate offense.
(c) Any hotel operator who collects or attempts to collect an amount (however designated) which purports to reimburse such operator for hotel operators' occupation tax liability measured by receipts which such operator knows are not subject to hotel operators' occupation tax, or any hotel operator who over-collects or attempts to over-collect an amount purporting to reimburse such operator for hotel operators' occupation tax liability in a transaction which is subject to the tax that is imposed by this article shall, upon conviction therefor, be fined according to the provisions of section 1-5 of this Code for each offense.
(Ord. No. 93-12, § 7, 6-14-93; Ord. No. 97-24, § 3, 10-27-97)
Sec. 78-128. Exemptions.
Persons engaged in the business of renting, leasing or letting rooms in a hotel only to permanent residents are exempt from the provisions of this article.
(Ord. No. 93-12, § 8, 6-14-93)
Sec. 78-129. Delinquent taxes– Liens.
In the event any hotel operators' occupation tax, including interest and penalties, is not paid within 20 days after payment thereof is due, such charges shall be deemed and are hereby declared to be delinquent, and thereafter such delinquent taxes and all subsequent taxes, including penalties, incurred while the delinquent charges remain unpaid and all costs of filing and lien notice(s) and of releasing any lien(s) shall constitute a lien upon the real estate to which such taxes relate. The treasurer or the treasurer's authorized representative is hereby authorized to file sworn statements showing such delinquencies and subsequent taxes, including penalties, in the office of the recorder of deeds of the county. These statements shall contain the legal description of the involved premises, the amount of the unpaid taxes and penalties and a notice that the city claims a lien for the total amount. The filing of such statements shall be deemed lien notices for the payment of such taxes and penalties.
(Ord. No. 93-12, § 9, 6-14-93; Ord. No. 99-25, § 1, 12-13-99; Ord. No. 00-15, § 3, 12-27-00)
Sec. 78-130. Foreclosure of lien and other judicial action.
(a) Any and all lien(s) for hotel operators' occupation tax(es) established by law against the premises to which they relate may be enforced and foreclosed by and on behalf of the city at any time in the appropriate circuit court of the county according to the rules and practices of such court. Such lien(s) also may be enforced and foreclosed by intervention at any time in any suit already commenced in such court or any other court when such intervention is proper under the law. Whenever the city is made a defendant in any suit in any court, it shall have full power to enforce such liens(s) in such proceedings at any time in any manner permitted by law. The party or parties responsible for such taxes and penalties may also be sued for the amount thereof as debt(s) owed to the city. The city attorney is hereby authorized to take any judicial action referred to herein on behalf of the city or to authorize any other person to do so.
(b) The cost of the enforcement and foreclosure of the lien or the cost of the enforcement against the party or parties responsible for such taxes and penalties incurred by the city, including court costs, attorneys fees and other costs related to the enforcement are recoverable from the owner or owners of the real estate, or the previous owner or both if the property was transferred during the lien period, or the party or parties responsible for such taxes and penalties.
(c) No method(s) herein provided for collecting such taxes shall be considered as excluding any other method of collecting such taxes but shall be concurrent with all other remedies and methods.
(Ord. No. 93-12, § 10, 6-14-93; Ord. No. 99-25, § 2, 12-13-99)
Sec. 78-131. Personal liability penalty.
(a) Any officer or employee of any taxpayer subject to the provisions of this article who has the control, supervision or responsibility of filing returns and making payment of the amount of any trust tax imposed in accordance with this article and who wilfully fails to file the return or make the payment to the department or wilfully attempts in any other manner to evade or defeat the tax shall be personally liable for a penalty equal to the total amount of the tax unpaid by the taxpayer including interest and penalties thereon. The department shall determine a penalty due under this section according to its best judgment and information, and that determination shall be prima facie correct and shall be prima facie evidence of a penalty due under this section.
(b) The department shall issue a notice of penalty liability for the amount claimed by the department pursuant to this section.
(c) The personal liability imposed by this section shall survive the dissolution of a partnership, limited liability company, or corporation. Interest shall continue to accrue on that portion of the penalty imposed by this section which represents the tax unpaid by the taxpayer at the same rate and in the same amount as interest accrues on the tax unpaid by the taxpayer.
(d) For the purposes of this section, "officer or employee of any taxpayer" includes a partner of a partnership, a manager or member of a limited liability corporation, and a member of a registered limited liability partnership.
(e) A trust tax is any tax for which an amount is collected or withheld by a taxpayer from another person, and any tax for which an amount is required to be collected or withheld by a taxpayer from another person, regardless of whether it is in fact collected or withheld.
(f) The personal liability imposed by this section is in addition to liability incurred by a partner of a partnership or limited liability partnership resulting from the tax liability to the partnership or limited liability of partnership otherwise incurred pursuant to this article.
(Ord. No. 99-25, § 3, 12-13-99)
ARTICLE VII. Sec. 78-150. 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 such 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 such 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 point within this state, charges for the channel mileage between each channel point within this state, and charges for that portion of the interstate inter-office channel provided within Illinois. However, "gross charge" shall not include:
(1) Any amounts added to a purchaser's bill because of a charge made pursuant to: (i) the tax imposed by this article, (ii) the tax imposed by the Telecommunications Excise Tax Act, (iii) the tax imposed by Section 4251of 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 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 Community Affairs;
(6) Charges for telecommunications and all services and equipment provided in connection therewith between a parent corporation and its wholly owned subsidiaries or between wholly owned subsidiaries when the tax imposed under this article 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; or
(9) Amounts paid by telecommunications retailers under the Telecommunications Infrastructure Maintenance Fee Act.
(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 representative is located here permanently or temporarily, or whether such retailer or subsidiary is licensed to do business in this state.
(j) 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.
(l) 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 this article.
(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 article, "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 article. For purposes of this section, "prepaid telephone calling arrangements" means that term as defined in section 2-27 of the Retailers' Occupations Tax Act.
(Ord. No. 02-13, § 3, 8-14-02; Ord. No. 04-19, § 4, 7-29-04)
Sec. 78-151. Simplified municipal telecommunications tax imposed.
A tax is hereby imposed upon any and all 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 one percent of the gross charge for such telecommunications purchased at retail from a retailer.
(b) The act or privilege of originating in the municipality or receiving in the municipality interstate telecommunications by a person at a rate of one percent of the gross charge for such telecommunications purchased at retail from a retailer. To prevent actual multistate taxation of the act or privilege that is subject to taxation under this subsection, any taxpayer, upon proof that the taxpayer has paid a tax in another state on such event, shall be allowed a credit against 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.
(c) The tax imposed by this article 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.
(Ord. No. 02-13, § 3, 8-14-02)
Sec. 78-152. Collection of tax by retailers.
(a) The tax authorized by this article 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 article 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 article 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 article shall, when collected, be stated as a distinct item separate and apart from the gross charge for telecommunications.
(Ord. No. 02-13, § 3, 8-14-02)
Sec. 78-153. Returns to department.
Commencing on February 1, 2003, the tax imposed under this article 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.
(Ord. No. 02-13, § 3, 8-14-02)
Sec. 78-154. 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 connection with certifying to the retailer that any sale to such person is non-taxable because of being a sale for resale.
(Ord. No. 02-13, § 3, 8-14-02)
Secs. 78-155– 78-159. Reserved.
ARTICLE VIII. ------------
State law references: Local Government Taxpayers' Bill of Rights Act, 50 ILCS 45/1 et seq.
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Sec. 78-160. Title.
This ordinance shall be known as, and may be cited as, the "Locally Imposed and Administered Tax Rights and Responsibility Ordinance."
(Ord. No. 00-16, § 1(1), 12-27-00)
Sec. 78-161. Scope.
The provisions of this ordinance shall apply to the city's procedures in connection with all of the city's locally imposed and administered taxes.
(Ord. No. 00-16, § 1(2), 12-27-00)
Sec. 78-162. Definitions.
Certain words or terms herein shall have the meaning ascribed to them as follows:
Act means the "Local Government Taxpayers' Bill of Rights Act."
Corporate authorities means the city's mayor and city council.
Locally imposed and administered tax or tax means each tax imposed by the city that is collected or administered by the city and not an agency or department of the state. It does not include any taxes imposed upon real property under the property tax code or fees collected by the city other than infrastructure maintenance fees.
Local tax administrator, the city's treasurer is charged with the administration and collection of the locally imposed and administered taxes, including staff, employees or agents to the extent they are authorized by the local tax administrator to act in the local tax administrator's stead. The local tax administrator shall have the authority to implement the terms of this ordinance to give full effect to this ordinance. The exercise of such authority by the local tax administrator shall not be inconsistent with this ordinance and the Act.
City means the City of Marshall, Illinois.
Notice means each audit notice, collection notice or other similar notice or communication in connection with each of the city's locally imposed and administered taxes.
Tax ordinance means each ordinance adopted by the city that imposes any locally imposed and administered tax.
Taxpayer means any person required to pay any locally imposed and administered tax and generally includes the person upon whom the legal incidence of such tax is placed and with respect to consumer taxes includes the business or entity required to collect and pay the locally imposed and administered tax to the city.
(Ord. No. 00-16, § 1(3), 12-27-00)
Sec. 78-163. Notices.
Unless otherwise provided, whenever notice is required to be given, the notice is to be in writing mailed not less than seven calendar days prior to the date fixed for any applicable hearing, audit or other scheduled act of the local tax administrator. The notice shall be sent by the local tax administrator as follows:
(1) First class or express mail, or overnight mail, addressed to the persons concerned at the persons' last known address; or
(2) Personal service or delivery.
(Ord. No. 00-16, § 1(4), 12-27-00)
Sec. 78-164. Late payment.
Any notice, payment remittance or other filing required to be made to the city pursuant to any tax ordinance shall be considered late unless it is:
(a) Physically received by the city on or before the due date; or
(b) Received in an envelope or other container displaying a valid, readable U.S. postmark dated on or before the due date, properly addressed to the city, with adequate postage prepaid.
(Ord. No. 00-16, § 1(5), 12-27-00)
Sec. 78-165. Payment.
Any payment or remittance received for a tax period shall be applied in the following order:
(1) First to the tax due for the applicable period;
(2) Second to the interest due for the applicable period; and
(3) Third to the penalty for the applicable period.
(Ord. No. 00-16, § 1(6), 12-27-00)
Sec. 78-166. Certain credits and refunds.
(a) The city shall not refund or credit any taxes voluntarily paid without written protest at the time of payment in the event that a locally imposed and administered tax is declared invalidly enacted or unconstitutional by a court of competent jurisdiction. However, a taxpayer shall not be deemed to have paid the tax voluntarily if the taxpayer lacked knowledge of the facts upon which to protest the taxes at the time of payment or if the taxpayer paid the taxes under duress.
(b) The statue of limitations on a claim for credit or refund shall be four years after the end of the calendar year in which payment in error was made. The city shall not grant a credit or refund of locally imposed and administered taxes, interest, or penalties to a person who has not paid the amounts directly to the city.
(c) The procedure for claiming a credit or refund of locally imposed and administered taxes, interest or penalties paid in error shall be as follows:
(1) The taxpayer shall submit to the local tax administrator in writing a claim for credit or refund together with a statement specifying:
a. The name of the locally imposed and administered tax subject to the claim;
b. The tax period for the locally imposed and administered tax subject to the claim;
c. The date of tax payment subject to the claim and the cancelled check or receipt for the payment;
d. The taxpayer's recalculation, accompanied by an amended or revised tax return, in connection with the claim; and
e. A request for either a refund or credit in connection with the claim to be applied to the amount of tax, interest and penalties overpaid, and, as applicable, related interest on the amount overpaid; provided, however, that there shall be no refund and only a credit given in the event the taxpayer owes any monies of the city.
(2) Within ten days of the receipt by the local tax administrator of any claim for a refund or credit, the local tax administrator shall either:
a. Grant the claim; or
b. Deny the claim, in whole or in part, together with a statement as to the reason for the denial or the partial grant and denial.
(3) In the event the local tax administrator grants, in whole or in part, a claim for refund or credit, the amount of the grant for refund or credit shall bear interest at the rate of six percent per annum, based on a year of 365 days and the number of days elapsed, from the date of the overpayment to the date of mailing of a refund check or the grant of a credit.
(Ord. No. 00-16, § 1(7), 12-27-00)
Sec. 78-167. Audit procedure.
Any request for proposed audit pursuant to any local administered tax shall comply with the notice requirements of this ordinance.
(a) Each notice of audit shall contain the following information:
1. The tax;
2. The time period of the audit; and
3. A brief description of the books and records to be made available for the auditor.
(b) Any audit shall be conducted during normal business hours and if the date and time selected by the local tax administrator is not agreeable to the taxpayer, another date and time may be requested by the taxpayer within 30 days after the originally designated audit and during normal business hours.
(c) The taxpayer may request an extension of time to have an audit conducted. The audit shall be conducted not less than seven days nor more than 30 days from the date the notice is given, unless the taxpayer and local tax administrator agreed to some other convenient time. In the event taxpayer is unable to comply with the audit on the date in question, the taxpayer may request another date within the 30 days, approved in writing, that is convenient to the taxpayer and the local tax administrator.
(d) Every taxpayer shall keep accurate books and records of the taxpayer's business or activities, including original source documents and books of entry denoting the transactions which had given rise or may have given rise to any tax liability, exemption or deduction. All books shall be kept in the English language and shall be subject to and available for inspection by the city.
(e) It is the duty and responsibility of every taxpayer to make available its books and records for inspection by the city. If the taxpayer fails to provide the documents necessary for audit within the time provided, the local tax administrator may issue a tax determination and assessment based on the tax administrator's determination of the best estimate of the taxpayer's tax liability.
(f) If an audit determines there has been an overpayment of a locally imposed and administered tax as a result of the audit, written notice of the amount of overpayment shall be given to the taxpayer within 30 days of the city's determination of the amount of overpayment.
(g) In the event a tax payment was submitted to the incorrect local government entity, the local tax administrator shall notify the local governmental entity imposing such tax.
(Ord. No. 00-16, § 1(8), 12-27-00)
Sec. 78-168. Appeal.
(a) The local tax administrator shall send written notice to a taxpayer upon the local tax administrator's issuance of a protestable notice of tax due, a bill, a claim denial, or a notice of claim reduction regarding any tax. The notice shall include the following information:
(1) The reason for the assessment;
(2) The amount of the tax liability proposed;
(3) The procedure for appealing the assessment; and
(4) The obligation of the city during the audit, appeal, refund and collection process.
(b) A taxpayer who receives written notice from the local tax administrator of a determination of tax due or assessment may file with the local tax administrator a written protest and petition for hearing, setting forth the basis of the taxpayers' request for a hearing. The written protest and petition for hearing must be filed with the local tax administrator within 45 days of receipt of the written notice of the tax determination and assessment.
(c) If a timely written notice and petition for hearing is filed, the local tax administrator shall fix the time and place for hearing and shall give written notice to the taxpayer. The hearing shall be scheduled for a date within 14 days of receipt of the written protest and petition for hearing, unless the taxpayer requests a later date convenient to all parties.
(d) If a written protest and petition for hearing is not filed within the 45 day period, the tax determination, audit or assessment shall become a final bill due and owing without further notice.
(e) Upon the showing of reasonable cause by the taxpayer and the full payment of the contested tax liability along with interest accrued as of the due date of the tax, the local tax administrator may reopen or extend the time for filing a written protest and petition for hearing. In no event shall the time for filing a written protest and petition for hearing be reopened or extended for more than 90 days after the expiration of the 45 day period.
(Ord. No. 00-16, § 1(9), 12-27-00)
Sec. 78-169. Hearing.
(a) Whenever a taxpayer has filed a timely written protest and petition for hearing under section nine, above, the local tax administrator shall conduct a hearing regarding any appeal.
(b) No continuances shall be granted except in cases where a continuance is absolutely necessary to protect the rights of the taxpayer. Lack of preparation shall not be grounds for a continuance. Any continuance granted shall not exceed 14 days.
(c) At the hearing the local tax administrator shall preside and shall hear testimony and accept any evidence relevant to the tax determination, audit or assessment. The strict rules of evidence applicable to judicial proceedings shall not apply.
(d) At the conclusion of the hearing, the local tax administrator shall make a written determination on the basis of the evidence presented at the hearing. The taxpayer shall be provided with a copy of the written decision.
(Ord. No. 00-16, § 1(10), 12-27-00)
Sec. 78-170. Interest and penalties.
In the event a determination has been made that a tax is due and owing, through audit, assessment or other bill sent, the tax must be paid within the time frame otherwise indicated.
(a) Interest. The city hereby provides for the amount of interest to be assessed on a late payment, underpayment, or nonpayment of the tax, to be nine percent per annum, based on a year of 365 days and the number of days elapsed.
(b) Late filing and payment penalties. If a tax return is not filed within the time and manner provided by the controlling tax ordinance, a late filing penalty, of five percent of the amount of tax required to be shown as due on a return shall be imposed; and a late payment penalty of five percent of the tax due shall be imposed. If no return is filed within the time or manner provided by the controlling tax ordinance and prior to the city issuing a notice of tax delinquency or notice of tax liability, then a failure to file penalty shall be assessed equal to 25 percent of the total tax due for the applicable reporting period for which the return was required to be filed. A late filing or payment penalty shall not apply if a failure to file penalty is imposed by the controlling ordinance.
(Ord. No. 00-16, § 1(11), 12-27-00)
Sec. 78-171. Abatement.
The local tax administrator shall have the authority to waive or abate any late filing penalty, late payment penalty or failure to file penalty if the local tax administrator shall determine reasonable cause exists for delay or failure to make a filing.
(Ord. No. 00-16, § 1(12), 12-27-00)
Sec. 78-172. Installment contracts.
The city may enter into an installment contract with the taxpayer for the payment of taxes under the controlling tax ordinance. The local tax administrator may not cancel any installment contract so entered unless the taxpayer fails to pay any amount due and owing. Upon written notice by the local tax administrator that the payment is 20 days delinquent, the taxpayer shall have 14 working days to cure any delinquency. If the taxpayer fails to cure the delinquency within the 14 day period or fails to demonstrate good faith in restructuring the installment contract with the local administrator, the installment contract shall be canceled without further notice to the taxpayer.
(Ord. No. 00-16, § 1(13), 12-27-00)
Sec. 78-173. Statute of limitations.
The city, through the local tax administrator, shall review all tax returns in a prompt and timely manner and inform taxpayers of any amounts due and owing. The taxpayer shall have 45 days after receiving notice of the reviewed tax returns to make any request for refund or provide any tax still due and owing.
(a) No determination of tax due and owing may be issued more than four years after the end of the calendar year for which the return for the applicable period was filed or for the calendar year in which the return for the applicable period was due, whichever occurs later.
(b) If any tax return is not filed or if during any four-year period for which a notice of tax determination or assessment may be issued by the city, the tax paid was less than 75 percent of the tax due, the statute of limitations shall be six years maximum after the end of the calendar year in which return for the applicable period was due or end of the calendar year in which the return for the applicable period was filed.
(c) No statute of limitations shall not apply if a fraudulent tax return was filed by the taxpayer.
(Ord. No. 00-16, § 1(14), 12-27-00)
Sec. 78-174. Voluntary disclosure.
For any locally imposed and administered tax for which a taxpayer has not received a written notice of an audit, investigation, or assessment from the local tax administrator, a taxpayer is entitled to file an application with the local tax administrator for a voluntary disclosure of the tax due. A taxpayer filing a voluntary disclosure application must agree to pay the amount of tax due, along with interest of one percent per month, for all periods prior to the filing of the application but not more than four years before the date of filing the application. A taxpayer filing a valid voluntary disclosure application may not be liable for any additional tax, interest or penalty for any period before the date of application was filed. However, if the taxpayer incorrectly determined and underpaid the amount of tax due, the taxpayer is liable for the underpaid tax along with applicable interest on the underpaid tax, unless the underpayment was the result of fraud on the part of the taxpayer, in which case the application shall be deemed invalid and void. The payment of tax and interest must be made by no later than 90 days after the filing of the voluntary disclosure application or the date agreed to by the local tax administrator. However, any additional amounts owed as a result of an underpayment of tax and interest previously paid under this section must be paid within 90 days after a final determination and the exhaustion of all appeals of the additional amount owed or the date agreed to by the local tax administrator, whichever is longer.
(Ord. No. 00-16, § 1(15), 12-27-00)
Sec. 78-175. Publication of tax ordinances.
Any locally administered tax ordinance shall be published via normal or standard publishing requirements. The posting of a tax ordinance on the Internet shall satisfy the publication requirements. Copies of all tax ordinances shall be made available to the public upon request at the city clerk's office.
(Ord. No. 00-16, § 1(16), 12-27-00)
Sec. 78-176. Review of liens.
The local tax administrator shall establish an internal review procedure regarding any liens filed against any taxpayers for unpaid taxes. Upon a determination by the local tax administrator that the lien is valid, the lien shall remain in full force and effect. If the lien is determined to be improper, the local tax administrator shall:
(a) Timely remove the lien at the city's expense;
(b) Correct the taxpayer's credit record; and
(c) Correct any public disclosure of the improperly imposed lien.
(Ord. No. 00-16, § 1(17), 12-27-00)
Sec. 78-177. Application.
This article shall be liberally construed and administered to supplement all of the city's tax ordinances. To the extent that any tax ordinance is in conflict with or inconsistent with this ordinance, this article shall be controlling.
(Ord. No. 00-16, § 1(18), 12-27-00)
MUNICIPAL RETAILERS' OCCUPATION TAX*
MUNICIPAL SERVICE OCCUPATION TAX*
HOTEL OPERATORS' OCCUPATION TAX*
SIMPLIFIED MUNICIPAL TELECOMMUNICATIONS TAX
LOCALLY IMPOSED AND ADMINISTERED TAX RIGHTS AND RESPONSIBILITY ORDINANCE*