Simplified Telecommunications Tax

FAQ’s about the Simplified Municipal Telecommunications Tax 

Who?

The Village of Cherry Valley is implementing the Simplified Municipal Telecommunications Tax at a rate of 6%.

What?

Statutory Reference 35 ILCS 636:

Municipalities may impose the Simplified Municipal Telecommunications Tax on the privilege of originating or receiving telecommunications.  DSL services purchased, used, or sold by a provider of internet access, to provide internet access are also subject to Illinois Telecommunications Taxes.  DSL services purchased, used, or sold by a non-provider of internet access are also subject to Illinois Telecommunications Tax.

Where?

The Simplified Municipal Telecommunications Tax will apply to all residents within the limits of the Village of Cherry Valley who are receiving and originating telecommunications.

When?

The Village of Cherry Valley has adopted a 6% telecommunications tax which will go into effect on January 1, 2010.

Why?

Cherry Valley is very interested in maintaining the same quality level of services for the residents of the Village. Unfortunately, the cost of providing basic village services is increasing, while revenues are decreasing.  The Simplified Municipal Telecommunications Tax will help provide adequate funding to the Village of Cherry Valley to maintain its quality services to its residents.

Examples?

Telecommunications that are subject to be taxed would include but not limited to phone landlines, wireless phones (cell phones), and faxes.

Questions?

Contact the Village Hall at (815) 332-3441.  Click here for brochure.