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HomeMy WebLinkAboutG56-11 • Ordinance No. G56-11 AN ORDINANCE ESTABLISHING A MUNICIPAL ELECTRICITY USE TAX WHEREAS, the City of Elgin is a home rule unit pursuant to Article VII Section 6 of the Illinois Constitution; and WHEREAS, as a home rule unit the City of Elgin may exercise any power and perform any function pertaining to its government and affairs including, but not limited to, the power to regulate for the protection of the public health, safety, morals and welfare and to tax. and WHEREAS, 65 ILCS 5/8-11-2 provides in part that the corporate authorities of any municipality may tax the privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the municipality at rates specified in such statute, calculated on a monthly basis for each purchaser; and WHEREAS, the city council of the City of Elgin has determined that it is necessary and desirable to provide for a municipal electricity use tax. 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 4.14 thereto entitled "Municipal Electricity Use Tax" to read as follows: "Chapter 4.14 MUNICIPAL ELECTRICITY USE TAX 4.14.010: MUNICIPAL ELECTRICITY USE TAX: The tax imposed by this Chapter shall be known as the "Municipal Electricity Use Tax" and is imposed in addition to all other taxes imposed by the City, the State of Illinois or any other municipal corporation or political subdivision thereof. 4.14.020: DEFINITIONS: For the purposes of this Chapter, the following definitions shall apply: A. CITY: The City of Elgin, Illinois. B. PERSON: Any natural individual, firm, trust, estate, partnership, association,joint stock company,joint venture, corporation, limited • liability company, municipal corporation, the state or any of its political subdivisions, any state university created by statute, or a receiver, trustee, guardian or other representative appointed by order of any court. C. PERSON MAINTAINING A PLACE OF BUSINESS IN THIS STATE: Any person having or maintaining within this State, directly or by a subsidiary or other affiliate, an office, generation facility,distribution facility,transmission facility,sales office or other place of business, or any employee, agent, or other representative operating within this State under the authority of the person or its subsidiary or other affiliate, irrespective of whether such place of business or agent or other representative is located in this State permanently or temporarily, or whether such person, subsidiary or other affiliate is licensed or qualified to do business in this State. D. PUBLIC UTILITY: "Public Utility"shall have the meaning ascribed to it in Section 3-105 of the Public Utilities Act (220 ILCS 5/3-105) and shall include alternative retail electric suppliers as defined in Section 16-102 of that Act (220 ILCS 5/16-102). E. PURCHASE AT RETAIL: Any acquisition of electricity by a • purchaser for purposes of use or consumption, and not for resale, but shall not include the use of electricity by a public utility directly in the generation, production, transmission, delivery or sale of electricity. F. PURCHASER: Any person who uses or consumes, within the corporate limits of the City,electricity acquired in a purchase at retail. G. TAX COLLECTOR: The person delivering electricity to the purchaser. 4.14.030: ELECTRICAL USE TAX KILOWATT HOUR TAX IMPOSED; AMOUNT: A. Pursuant to 65 ILCS 5/8-11-2,the City's home rule authority,and any and all other applicable authority,a tax is imposed upon the privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the City at the following rates, calculated on a monthly basis for each purchaser: 1. For the first 2,000 kilowatt-hours used or consumed in a month: 0.61 cents per kilowatt-hour; • 2. For the next 48,000 kilowatt-hours used or consumed in a month: 0.40 cents per kilowatt-hour; 3. For the next 50.000 kilowatt-hours used or consumed in a month: 0.36 cents per kilowatt-hour; 4. For the next 400,000 kilowatt-hours used or consumed in a month: 0.35 cents per kilowatt-hour; 5. For the next 500,000 kilowatt-hours used or consumed in a month: 0.34 cents per kilowatt-hour: 6. For the next 2,000,000 kilowatt-hours used or consumed in a month: 0.32 cents per kilowatt-hour; 7. For the next 2,000,000 kilowatt-hours used or consumed in a month: 0. 315 cents per kilowatt-hour; S. For the next 5.000.000 kilowatt-hours used or consumed in a month: 0.31 cents per kilowatt-hour; 9. For the next 10,000,000 kilowatt-hours used or • consumed in a month: 0.305 cents per kilowatt-hour: and 10. For all electricity used or consumed in excess of 20,000,000 kilowatt-hours in a month: 0.30 cents per kilowatt-hour. B. Said tax is in addition to all taxes, fees and other revenue measures imposed by the City,the State or any other political subdivision of the State. C. Notwithstanding any other provision of this Chapter, the tax authorized by this Chapter shall not be imposed if and to the extent that the imposition or collection of the tax would violate the constitution or statutes of the United States or the constitution or statutes of the State of Illinois. D. The tax shall be imposed with respect to the use or consumption of electricity by residential customers beginning with the first bill issued on or after July 1, 2012; and with respect to the use or consumption of electricity by nonresidential customers beginning with the first bill issued to such customers for delivery services, in accordance with • Section 16-104 of the Public Utilities Act(220 ILCS 5/16-104)or the first bill issued to such customers on or after July 1, 2012, whichever issuance occurs sooner. 4.14.040: COLLECTION OF TAX: A. Subject to the provisions of Section 4.14.060,Resales, of this Chapter regarding the delivery of electricity to resellers,the tax imposed under this Chapter shall be collected from purchasers by the person maintaining a place of business in this State who delivers electricity to such purchasers. This tax shall constitute a debt of the purchaser and is recoverable at the same time and in the same manner as the original charge for delivering the electricity. B. Any tax required to be collected by this Chapter, and any tax in fact collected, shall constitute a debt owed to the City by the person delivering the electricity, provided, that the person delivering electricity shall be allowed credit for such tax related to deliveries of electricity, the charges for which are written off as uncollectible, and provided further, that if such charges are thereafter collected, the delivering supplier shall be obligated to remit such tax. • C. Persons delivering electricity shall collect from the purchaser by adding such tax to the gross charge for delivering, the electricity. Persons delivering electricity shall also be authorized to add to such gross charge, an amount equal to 3% of the tax they collect to reimburse them for their expenses incurred in keeping records,billing customers, preparing and filing returns, remitting the tax and supplying data to the City upon request. For purposes of this Chapter, any partial payment of a billing amount not specifically identified by the purchaser shall be deemed to be for the delivery of electricity. 4.14.050: TAX REMITTANCE AND RETURN: A. Every tax collector shall on a monthly basis file a return in a form prescribed by the Finance Department. The return and accompanying remittance shall be due on or before the last day of the month following the month during which the tax is collected or is required to be collected under Section 4.14.040. Collection of Tax, of this Chapter. • - 4 - B. If the person delivering electricity fails to collect the tax from the purchaser or is excused from collecting the tax, under Section 4.14.040, Collection of Tax, of this Chapter, then the purchaser shall file a return in a form prescribed by the Finance Deparriment and pay the tax directly to the Finance Department on or before the last day of the month following the month during which the electricity is used or consumed. 4.14.060: RESALES: A. Resale of Electricity. Electricity that is delivered to a person in the City shall be considered to be for use and consumption by that person unless the person receiving the electricity has an active resale number issued by the Finance Department and furnishes that number to the person who delivers the electricity,and certifies to that person that the sale is either entirely or partially nontaxable as a sale for resale. B. Resale Number. If a person who receives electricity in the City claims to be an authorized reseller of electricity, that person shall apply to the Finance Department for a resale number. The applicant shall state facts showing why it is not liable for the tax imposed by this Chapter on any purchases of electricity and shall furnish such additional information as the Finance Department may reasonably require. C. Approval; Assignment. Upon approval of the application the Finance Department shall assign a resale number to the applicant and shall certify the number to the applicant. D. Cancellation. The Finance Department may cancel the resale number of any person if the person fails to pay any tax payable under tills Chapter for electricity used or consumed by the parties, or if the number: 1)was obtained through misrepresentation,or 2)is no longer necessary because the person has discontinued making resales. E. Collection and Remittance. 1. If a reseller has acquired electricity partly for use or consumption and partly for resale, the reseller shall pay the tax imposed by this Chapter directly to the Finance Department pursuant to Section 4.14.030A, Electrical Use Tax Kilowatt Hour Tax Imposed; Amount,by this Chapter on the amount of electricity that the reseller uses or consumes, and shall collect the tax pursuant to Section 4.14.040, S Collection of Tax, of this Chapter and remit the tax on the amount of electricity delivered by the reseller to a purchaser. 2. Any person who delivers electricity to a reseller having an active resale number and complying with all other conditions of this Section shall be excused from collecting and remitting the tax on any portion of the electricity delivered to the reseller, provided that the person reports to the Finance Department the total amount of electricity delivered to the reseller, and such other information that the Finance Department may reasonably require. 4.14.070: BOOKS AND RECORDS: Every tax collector, and every taxpayer required to pay the tax imposed by this Chapter, shall keep accurate books and records of its business or activity, including contemporaneous books and records denoting the transactions that gave rise,or may have given rise, to any tax liability under this Chapter. The books and records shall be subject to and available for inspection at all times during business hours of the day. 4.14.080: EXEMPTIONS: Notwithstanding any other provision of this Chapter, the tax shall not be imposed if and to the extent that imposition or collection of the tax would violate the constitution or statutes of the United States or the constitution or statutes of the State of Illinois. 4.14.090: SEVERABILITY: If any provision, clause, sentence, paragraph, section or part of this chapter or the application thereof to any person or circumstance shall, for any reason, be adjudged by a court of competent jurisdiction to be unconstitutional or invalid, said judgment shall not affect; impair or invalidate the remainder of this chapter and the application of such provision to other persons or circumstances, but shall be confined in its operation to the provision, clause,sentence,paragraph; section or part thereof directly involved in the controversy in which such judgment shall have been rendered and to the person or circumstance involved. It is hereby declared to be the legislative intent of the City Council that this chapter would have been adopted had such unconstitutional or invalid provision, clause, sentence, paragraph, section or part thereof had not been included." • Section 2. That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed to the extent of any such conflict. Section I That this ordinance shall be in full force and effect upon its passage and publication in the manner provided by law. -t David J. Kap ain, i ' yor Presented: December 21, 2011 Passed: December 21, 2011 Vote: Yeas: 7 Nays: 0 Recorded: December 21, 2011 Published: December 22, 2011 • FUW Attest: imberly Ded s, City Clerk • ,1