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HomeMy WebLinkAboutORDINANCE - 3492 - 4/25/2017 - Telecommunications tax rate 6% ORDINANCE NO. 3492 AN ORDINANCE AMENDING TITLE 3. CHAPTER 2, SECTION 3-2-8, SIMPLIFIED MUNICIPAL TELECOMMUNICATIONS TAX, OF THE VILLAGE CODE OF THE VILLAGE OF ELK GROVE VILLAGE, BY INCREASING THE SIMPLIFIED TELECOMMUNICATIONS TAX BY 1% FOR A TOTAL SIMPLIFIED TELECOMMUNICATION TAX RATE OF 6% WHEREAS, the Village of Elk Grove Village is a home rule municipality, as defined and set forth in the Constitution of the State of Illinois, and by the provisions thereof is empowered to enact such legislation pertaining to its local government affairs as is deemed necessary in the best interest of the Village including the power to tax; and WHEREAS, this Ordinance is being adopted pursuant to and by the Village as a home rule municipality; and WHEREAS, this Ordinance amends a portion of Ordinance 3488 duly passed and approved on February 28, 2017. NOW, THEREFORE, BE IT ORDAINED by the Mayor and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage as follows: Section 1: That the definition of"Gross Charge" as set forth in Section 3-2-8-A of the Village Code be amended by amending the initial introductory paragraph and exempt paragraph 5 and adding paragraph 10 to read as follows: GROSS CHARGE: 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 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. 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. Section 2: That the last phrase "retailers' occupations tax act" of the definition of TELECOMMUNICATIONS set forth in Section 3-2-8-A of the Village Code be amended to "Retailers' Occupation Tax Act." Section 3: That paragraph a. and b. of Section 3-2-813-1 Tax Imposed, of the Village Code, as it pertains to telecommunication tax rates, be amended to read as follows: 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%) 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%) of the gross charge for such telecommunications purchased at retail from a retailer. To prevent actual multistate 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. 2 Section 4: That Chapter 2, Section 3-2-813-2, Earmarked Revenues, of the Village Code of the Village of Elk Grove Village, be amended to read as follows: a. Three (3) of the six percent(6%) in revenues resulting from the imposition of this section shall be earmarked for the purposes of revitalizing the village's commercial and industrial areas. Under no circumstance shall this portion of the simplified municipal telecommunications tax revenue be utilized for other projects other than those established and recommended by the Business Leaders Forum. b. Two (2) of the six percent(6%) in revenues resulting from the imposition of this section shall be recorded in the general fund. c. One (1) of the six percent (6%) in revenues resulting from the imposition of this section shall be recorded in the capital projects fund. Section 5: The taxes hereby imposed, and all civil penalties that may be assessed as an incident thereto, shall be collected and enforced by the Department of Revenue shall have full power to administer and enforce the provisions of this ordinance. Section 6: The Village Clerk is hereby directed to file a certified copy of this ordinance to the Illinois Department of Revenue. Section 7: This ordinance shall take effect on the first day of July next following the adoption and filing of this ordinance. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 25th day of April 2017. APPROVED this 25th day of April 2017. APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphy,Village Clerk PUBLISHED this 28th day of April 2017 in pamphlet form. 3