HomeMy WebLinkAboutG39-25 Ordinance No. G39-25
AN ORDINANCE
IMPLEMENTING A MUNICIPAL GROCERY RETAILERS' OCCUPATION TAX AND A
MUNICIPAL GROCERY SERVICE OCCUPATION TAX AMENDING TITLE 4 OF THE
ELGIN MUNICIPAL CODE, ENTITLED"REVENUE AND FINANCE" BY ADDING A
NEW CHAPTER 4.23 THERETO ENTITLED "MUNICIPAL GROCERY TAX"
WHEREAS, the City of Elgin is a home rule unit pursuant to Article VII, Section 6 of the
Illinois Constitution, and as a home rule unit may exercise any power and perform any function
pertaining to its government affairs; and
WHEREAS, the Illinois Municipal Code, 65 ILCS 5/1-2-1, provides that the corporate
authorities of each municipality may pass all ordinances and make all rules and regulations proper
or necessary,to carry into effect the powers granted to municipalities, with such fines or penalties
as may be deemed proper; and
WHEREAS, section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24) provides
that, beginning on January 1, 2026, all Illinois municipalities may impose a tax "upon all persons
engaged in the business of selling groceries at retail in the municipality" (the"Municipal Grocery
Tax"); and
WHEREAS, the Municipal Grocery Retailers' Occupation Tax may be imposed "at the
rate of 1% of the gross receipts from these sales"(65 ILCS 5/8-11-24); and
WHEREAS, any Municipal Grocery Retailers' Occupation Tax shall be administered,
collected, and enforced by the Illinois Department of Revenue; and
WHEREAS, section 8-11-24 of the Illinois Municipal Code requires any municipality
imposing a Municipal Grocery Retailers' Occupation Tax under section 8-11-24 of the Illinois
Municipal Code to also impose a Service Occupation Tax at the same rate, "upon all persons
engaged, in the municipality, in the business of making sales of service, who, as an incident to
making those sales of service, transfer groceries" as "an incident to a sale of service" (the
"Municipal Grocery Service Occupation Tax") (65 ILCS 5/8-11-24); and
WHEREAS, any Municipal Grocery Service Occupation Tax shall be administered,
collected, and enforced by the Illinois Department of Revenue; and
WHEREAS, the city council of the city desires to make certain amendments to the Elgin
Municipal Code in order to levy a Municipal Grocery Retailers' Occupation Tax and a Municipal
Grocery Service Occupation Tax at a rate of one percent (1%) on the selling of groceries at retail
in the city pursuant to section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24); and
WHEREAS, the city council of the city finds that levying a Municipal Grocery Retailers'
Occupation Tax as permitted by section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-
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24)is in the best interests of the city,its residents,property owners,and businesses,and will further
the public's health, safety and welfare; and
WHEREAS, the city council of the city finds that levying a Municipal Grocery Service
Occupation Tax as permitted by section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-
24)is in the best interests of the city,its residents,property owners,and businesses,and will further
the public's health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS:
Section 1. The foregoing recitals shall and hereby are incorporated as findings of fact
as if said recitals were fully set forth herein.
Section 2. That Title 4 of the Elgin Municipal Code, as amended, entitled "Revenue and
Finance," be and is hereby further amended by adding a new Chapter 4.23 thereto entitled
"Municipal Grocery Tax," to read as follows:
"CHAPTER 4.23 MUNICIPAL GROCERY TAX
4.23.010. —Definitions.
A. Municipal Grocery Retailers' Occupation Tax. A tax is hereby imposed upon all
persons engaged in the business of selling groceries at retail in the city at the rate of
one percent (1%) of the gross receipts from such sales made in the course of such
business. The imposition of this tax is in accordance with and subject to the provisions
of section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24).
B. Municipal Grocery Service Occupation Tax. A tax is hereby imposed upon all persons
engaged in the city in the business of making sales of service, who, as an incident to
making those sales of service, transfer groceries as an incident to a sale of service. The
rate of this tax shall be one percent (1%). The imposition of this tax is in accordance
with and subject to the provisions of section 8-11-24 of the Illinois Municipal Code(65
ILCS 5/8-11-24).
C. The imposition of the taxes imposed by this chapter is in accordance with the provisions
of section 8-11-24, of the Illinois Municipal Code (65 ILCS 5/8-11-24), as amended,
and is in addition to any and all other applicable taxes and charges.
4.23.020. —Collection.
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 of the State of
Illinois. The Illinois Department of Revenue shall have full power to administer and
enforce the provisions of this chapter."
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Section 3. As required under section 8-11-24 of the Illinois Municipal Code(65 ILCS
5/8-11-24), the City Clerk is hereby directed to file a certified copy of this ordinance with the
Illinois Department of Revenue on or before October 1, 2025.
Section 4. The taxes imposed by this ordinance shall take effect on January 1, 2026.
Section 5. The taxes imposed by this ordinance shall be separate from the general fund
and shall be used exclusively for the city's Lead Water Service Line Replacement Program until
such time as the city's Lead Water Service Line Replacement Program has been completed. After
the completion or other termination of the city's Lead Water Service Line Replacement Program,
the taxes imposed by this ordinance shall be deposited in the general fund.
Section 6. That all ordinances or parts of ordinance in conflict with the provisions of
this ordinance be and are hereby repealed to the extent of any such conflict.
Section 7. 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 8. That this ordinance shall be in full force and effect upon its passage and
publication in the manner provided by law.
David J. Kap n, Ma or
Presented: September 10, 2025
Passed: September 10, 2025
Vote: Yeas: 8 Nays: 1p ;`
Recorded: September 10, 2025 ; .7%
Published: September 10, 2025
Att st' �Y
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Kimberly Dewi C. Clerk
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