HomeMy WebLinkAboutG64-19 Ordinance No. G64-19
AN ORDINANCE
AMENDING TITLE 4 OF THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED,
ENTITLED "REVENUE AND FINANCE"BY ADDING A NEW CHAPTER 4.25 THERETO
ENTITLED"MUNICIPAL CANNABIS RETAILERS' OCCUPATION 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, Public Act 101-0027, known as the Cannabis Regulation and Tax Act, 410
ILCS 705/1,et seq. (the"Act"),which became effective on June 25,2019,will allow the possession,
use,cultivation,transportation and dispensing of adult-use cannabis in Illinois effective January 1,
2020; and
WHEREAS,Public Act 101-0027,as amended by Public Act 101-0593,also created a new
Section 8-11-23 of the Illinois Municipal Code (65 ILCS 5/8-11-23) authorizing imposition by
municipalities of a municipal cannabis retailers' occupation tax at a rate not to exceed three percent
(3%)of the gross receipts of cannabis sold in a municipality so long as the city permits the retail sale
of cannabis in the city,except for retail sales made under the Illinois Compassionate Use of Medical
Cannabis Program Act,410 ILCS 130/1, et seq.; and
WHEREAS, pursuant to the Act,the city has enacted reasonable zoning regulations which
will allow as conditional uses the location of adult-use cannabis dispensaries making retail sales of
cannabis within certain zoning districts in the city,subject to compliance by such dispensaries with
certain specified conditions; and
WHEREAS, the city council of the city desires to make certain amendments to the Elgin
Municipal Code in order to levy a municipal cannabis retailers' occupation tax at a rate of three
percent(3%)on the gross receipts of cannabis sold in the city,should such sales occur within the city
pursuant to the Cannabis Regulation and Tax Act,410 ILCS 705/1, et seq.; and
WHEREAS,the city council of the city finds that levying a tax on cannabis sales pursuant to
Section 8-11-23 of the Illinois Municipal Code(65 ILCS 5/8-11-23),at a rate of three percent(3%)
of the gross receipts of cannabis sold in the city is in the best interests of the city, the 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. That Title 4 of the Elgin Municipal Code, 1976,as amended,entitled"Revenue
and Finance" be and is hereby further amended by adding a new Chapter 4.25 thereto entitled
"Municipal Cannabis Retailers' Occupation Tax"to read as follows:
"Chapter 4.25
MUNICIPAL CANNABIS RETAILERS' OCCUPATION TAX
4.25.010: TAX IMPOSED:
A. A tax is hereby imposed upon all persons engaged in the business of selling cannabis,
other than cannabis purchased under the Compassionate Use of Medical Cannabis
Program Act, at retail in the City of Elgin at the rate of three (3%)of the gross receipts
from these sales made in the course of that business.
B. The imposition of this tax is in accordance with the provisions of Section 8-11-23,of the
Illinois Municipal Code(65 ILCS 5/8-11-23),as amended,and is in addition to any and
all other taxes and charges.
4.25.020: COLLECTION:
A. The tax imposed by this ordinance shall be remitted by such retailer to the Illinois
Department of Revenue(Department). Any tax required to be collected pursuant to or as
authorized by this ordinance 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 may reimburse themselves for their seller's tax liability hereunder by separately
stating that tax as an additional charge,which charge may be stated in combination,in a
single amount, with any State tax that sellers are required to collect.
B. The taxes hereby imposed, and all civil penalties that may be assessed as an incident
thereto, shall be collected and enforced by the Department. The Department shall have
full power to administer and enforce the provisions of this chapter."
Section 2. 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 3. 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 4. That this ordinance shall be in full force and effect upon its passage and
publication in the manner provided by law,provided,however,that the tax provided for herein shall
take effect for all sales on or after the first day of July,2020. Certified copies of this ordinance shall
be sent to the Illinois Department of Revenue prior to April 1, 2020.
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Section 5. The city clerk of the City of Elgin is directed to file certified copies of this
ordinance with the Illinois Department of Revenue prior to April 2020.
David J. Kaptai•, a •r
Presented: December 18, 2019
Passed: December 18, 2019
Vote: Yeas: 8 Nays: 1
Recorded: December 18, 2019 -_
Published: December 19, 2019 r `
Attest•
.y l .„-
Kimberly Dewis, Clerk a.„,- 'mr
3
Illinois Department of Revenue
mt Legal Services Office
*" 101 W. Jefferson St. MC 5-500
Springfield, IL 62794
September 3, 2020
Kimberly Dewis
City Clerk
City of Elgin
150 Dexter Court
Elgin, IL 60120
Re: Ordinance No. G64-19
Municipal Cannabis Retailers' Occupation Tax
Dear Ms. Dewis:
This is to acknowledge receipt of the City of Elgin's Ordinance No. G64-19 imposing a
Municipal Cannabis Retailers' Occupation Tax on sales of adult use cannabis at the rate of 3%. You
may use the Department of Revenue's "Tax Rate Finder" located at mytax.illinois.gov to determine the
combined state and local retailers' occupation tax rate on adult use cannabis sales in your location.
Public Act 101-593 renumbered the section of the Illinois Municipal Code (65 ILCS 5/Act)
where the Municipal Cannabis Retailers' Occupation Tax Law is codified as Section 8-11-23 and
provided that "[a]n ordinance or resolution imposing or discontinuing a tax under this Section or
effecting a change in the rate thereof that is adopted on or after June 25, 2019 . . . and for which a
certified copy is filed with the Department on or before April 1, 2020 shall be administered and enforced
by the Department beginning on July 1, 2020."
If and when a licensed cannabis dispensary opens in Elgin and begins making retail sales of
adult use cannabis, the Department shall collect, administer, and enforce Elgin's Municipal
Cannabis Retailers' Occupation Tax, in accordance with the provisions of 65 ILCS 5/8-11-23.
If you have any questions regarding this letter, please contact our office at the number listed
below. If you have questions regarding the distribution of the tax, please contact the Department's
Local Tax Allocation Division at (217) 785-6518.
Very truly yours;
Samuel J. Moore
Associate Counsel
(217) 782-2844
Cc: Aaron Allen, Local Tax Allocation Division