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Home My WebLink AboutG39-04 (2) 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. 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: 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. s/Ed Schock Ed Schock, Mayor 2 Presented: March 31, 2004 Passed: March 31, 2004 Vote: Yeas: 5 Nays: 1 Recorded: April 1, 2004 Published: Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk 3 March 31 , 2004 MEMORANDUM TO: Mayor and Members of the City Council David M. Dorgan, City Manager FROM: William A. Cogley, Corporation Counsel SUBJECT: Ordinance Amending Ordinance No. G29-04 Providing for an Increase in the Municipal Telecommunications Tax On March 10 , 2004 the City Council adopted an ordinance providing for an increase in the municipal telecommunications tax to the rate of five (5%) percent . A certified copy of the ordinance was delivered to the Illinois Department of Revenue . The Illinois Department of Revenue will begin collecting the tax at the increased rate of five (5%) percent effective July 1, 2004 . The Illinois Department of Revenue has a preferred ordinance form which utilizes an adoption by reference format rather than restating the provisions of the Simplified Municipal Telecommunications Tax Act as provided for in the city' s ordinance G29-04 . The Illinois Department of Revenue is requesting that the city adopt an amendment to its ordinance to refer to the Simplified Municipal Telecommunications Tax Act by reference to ensure that amendments to the Act including future amendments will be automatically and properly incorporated into the city' s ordinance. The attached ordinance is in the Illinois Department of Revenue' s preferred format and has been added to tonight' s City Council Other Business agenda. The substance of the ordinance is identical to the ordinance previously adopted by the City Council on March 10, 2004 . The adoption of the amended ordinance will not delay the collection of the new tax rate which begins on July 1, 2004 . I am recommending that the City Council adopt the attached ordinance at tonight' s City Council meeting. My office will then arrange for transmitting certified copies of the ordinance to the Illinois Department of Revenue . WAC nr Attachment April 13 , 2004 MEMORANDUM TO: Loni Mecum, City Clerk FROM: William A. Cogley, Corporation Counsel SUBJECT : Simplified Municipal Telecommunications Tax Attached for the City Clerk' s files is a copy of a letter of April 5, 2004 from the Illinois Department of Revenue confirming that the Illinois Department of Revenue will begin collecting the city' s 5% Simplified Municipal Telecommunications Tax effective July 1, 2004 . \Vffil/ WAC nr Attachment cc : James Nowicki, w/att . Sean Stegall , w/att . Illinois Department of Revenue r K ' Legal Services Office 5-500 101 W.Jefferson St. Springfield, IL 62794 ',1&O .;�.: mss_ April 5, 2004 City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 Attention: William A. Cogley Corporation Counsel Dear Mr. Cogley: This is to acknowledge receipt of the City of Elgin's Ordinance No. G39-04 (amending Ordinance No. G 29-04) imposing a Simplified Municipal Telecommunications Tax at the rate of 5%. The Illinois Department of Revenue shall collect, administer, and enforce this Simplified Municipal Telecommunications Tax effective July 1, 2004, in accordance with the provisions of the Simplified Municipal Telecommunications Tax Act(35 ILCS 636/5-1 et seq.). If you have any questions regarding this matter, please feel free to contact our office at the number listed below. Sincerely, r f 211*7-)1 1 t Samuel J. oore Associate Counsel (217) 782-2844 SJM:msk Cc: Cecil Denton, Local Tax Allocation Division