Telecommunications Tax (7501)

  

Municipal Code Reference: 3-73
CAPS Code Reference: 1002920051410
Tax Return Form Code: Form 7501
Procedure: Applies to telecommunication retailers for all gross charges
Tax Base: 7% of receipts or charges
Exemptions, Deductions and Credits: Gross charge does not include:
  • any amounts added to a purchaser's bill for tax;
  • charges on sent collect telecommunications received outside the city;
  • charges for leased time on equipment;
  • charges for customer equipment;
  • charges to business enterprises under the Illinois Public Utilities Act;
  • charges for services and equipment between a parent corp. and its wholly owned subsidiary;
  • bad debts;
  • coin telecommunication devices.
  • charges for telecommunications and all services and equipment provided to the city of Chicago (gross charges included charges for telecommunications, services, and equipment provided to any governmental entity other than the city).
  • charges for inbound toll-free telecommunications service (800, 877or 888)
Telecommunications does not include:
  • value-added services in which the computer processing applications are used to act on the form, content, code and protocol of the information for purposed other than transmission
  • purchase by a service provider for use as a component part of his service
  • prepaid calling arrangements
  • carrier access charges, right of access charges, charges for use of inter-company facilities
There is also an allowable credit against the tax if a taxpayer has paid a tax in another state on the same transaction.
Rulings and Procedures:

Simplified Telecommunications Tax Ruling 1A - Completion of reduced rate 

Simplified Telecommunications Tax Ruling 2 - Termination charges

July 2008 Information Bulletin - Telecommunications Tax
Notice to Chicago Simplified Telecommunications Tax Collectors
Telecommunications Tax Regulations

 Supporting Information Facts

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