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Ordinance No. G39-04
AN ORDINANCE
AMENDING ORDINANCE NO. G29-04 PROVIDING FOR AN
INCREASE IN THE MUNICIPAL TELECOMMUNICATIONS TAX
WHEREAS,the City of Elgin has the authority to adopt ordinances and to promulgate rules
and regulations that pertain to its government and affairs and to protect the public health, safety and
welfare of its citizens; and
WHEREAS,the City of Elgin imposes certain taxes and fees related to telecommunications
services; and
WHEREAS, pursuant to 35 ILCS 635/1, et seq., the City of Elgin previously enacted the
Telecommunications Infrastructure Maintenance Fee ordinance in Chapter 4.60 of the Elgin
Municipal Code, 1976, as amended, which imposed a telecommunications infrastructure
maintenance fee at a rate of one (1%)percent of gross charges; and
WHEREAS,on February 8,2002,the Governor of the State of Illinois signed into law Public
Act 92-0526, entitled the Simplified Municipal Telecommunications Tax Act, providing that
effective January 1,2003,the municipal telecommunications infrastructure maintenance fee will be
replaced with a simplified municipal telecommunications tax at a rate up to six(6%)percent of gross
charges in municipalities; and
WHEREAS,by operation of law in the Simplified Municipal Telecommunications Tax Act
effective January 1, 2003, the City of Elgin's previous telecommunications infrastructure
maintenance fee of one(1%)percent was replaced with a simplified municipal telecommunications
tax of one (1%) percent in the City of Elgin; and
WHEREAS, the simplified municipal telecommunications tax has the benefit of easing
burdens on businesses by reducing the number of filings and payments required each year; and
WHEREAS, the City Council of the City of Elgin has determined it is necessary and
desirable to increase the rate of the tax authorized by the Simplified Municipal Telecommunications
Tax Act from the current rate of one(1%)percent of gross charges to the rate of five(5%)percent of
gross charge; and
WHEREAS, on March 10, 2004 the City Council of the City of Elgin adopted Ordinance
No. G29-04 providing for an increase in the Simplified Municipal Telecommunications Tax rate to
five (5%) percent; and
WHEREAS, the City Council of the City of Elgin has determined that it is necessary and
desirable to make certain technical amendments to Ordinance G29-04.
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essi. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS, that Ordinance No. G29-04 adopted by the City Council on March 10,2004 be
and is hereby amended to read as follows:
Section 1. Recitals. The facts and statements contained in the preamble to this ordinance
are found to be true and correct and are hereby adopted as part of this ordinance.
Section 2. That the Elgin Municipal Code, 1976, as amended, be and is hereby further
amended by adding a new Chapter 4.38 thereto entitled"Simplified Municipal Telecommunications
Tax" to read as follows:
"Chapter 4.38
Simplified Municipal Telecommunications Tax
4.38.010 Simplified Municipal Telecommunications Tax:
The rate of the Simplified Municipal Telecommunications Tax imposed under the Simplified
Municipal Telecommunications Tax Act(35 ILCS 636/5-1 et seq.)is hereby changed to five
(5%)percent.
4.38.020 Collection:
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The tax hereby imposed 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 ordinance."
Section 3. That Chapter 4.60 of the Elgin Municipal Code, 1976, as amended, entitled
"Telecommunications Infrastructure Maintenance Fee"be and is repealed.
Section 4. All ordinances or parts of ordinances in conflict with the provisions of this
ordinance be and are hereby repealed.
Section 5. This ordinance shall be in full force and effect from and after its passage and
approval and publication as required by law,provided,however,that(1) the tax provided for herein
shall take effect for all bills issued on or after the first day of July 2004 and(2) any amounts due or
payable to the municipality for any tax periods ending prior to the first day of July, 2004 shall
nevertheless remain payable as if this ordinance had not been adopted. Copies of this ordinance shall
be certified and filed with the Illinois Department of Revenue.
E• Schock, Mayor
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Presented: March 31, 2004
Passed: March 31, 2004
Vote: Yeas: 5 Nays: 1
Recorded: April 1, 2004
Published:
Attest:
Dolonna Mecum, City Clerk
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