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HomeMy WebLinkAboutG57-11 • Ordinance No. G57-11 AN ORDINANCE ESTABLISHING A MUNICIPAL UTILITY TAX ON GAS 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 occupation or privilege of persons engaged in the business of distributina, supplying, furnishing or selling gas for use or consumption within the corporate limits of a municipality of 500,000 or fewer population and not for resale, at a rate not to exceed five percent (5%) of the gross receipts therefrom; and WHEREAS, the city council of the City of Elgin has detennined that it is necessary and desirable to provide for a municipal utility tax on gas. 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 4.18 thereto entitled "Municipal Utility Tax" to read as follows: "Chapter 4.18 MUNICIPAL UTILITY TAX 4.18.010: TAX IMPOSED: A. A tax is imposed on all persons engaged in the following occupations or privileges: persons engaged in the business of distributing, supplying, furnishing, or selling gas for use or consumption within the corporate limits of the City of Elgin, and not for resale, at the rate of five percent (5%) of the gross receipts therefrom. • B. Such tax shall be in addition to the payment of money;or value of products or services furnished to the City by the taxpayer as compensation for the use of its streets; alleys, or other public places, or installation and maintenance therein, thereon or thereunder of poles, wires,pipes or other equipment used in the operation of the taxpayer's business. Such tax is also in addition to all taxes,fees and other revenue measures imposed by the City; state or any other political subdivision of the state. 4.18.020: EXCEPTION: No tax is imposed by this Chapter with respect to any transaction in interstate commerce or otherwise to the extent to which such business may not, under the constitution and statutes of the United States, be made subject to taxation by this State or any political subdivision thereof; nor shall any persons engaged in the business of distributing, supplying, furnishing or selling gas be subject to taxation under the provisions of this ordinance for such transactions as are or may become subject to taxation under the provisions of the"Municipal Retailers' Occupation Tax Act" authorized by Section 8-11-1 of the Illinois Municipal Code. 4.18.030: DEFINITIONS: A. CITY: The City of Elgin, Illinois. • B. "Gross receipts"means the consideration received for distributing, supplying, furnishing or selling gas or water for use or consumption and not for resale; as the case may be; and for all services rendered in connection therewith valued in money, whether received in money or otherwise, including cash, credit, services and property of every kind and material and for all services rendered therewith; and shall be determined without any deduction on account of the cost of the service,product or commodity supplied,the cost of materials used, labor or service cost, or any other expenses whatsoever; provided, however that "gross receipts" shall not include any amounts specifically excluded from the definition of gross receipts in Section 8-11- 2(d) of the Illinois Municipal Code. C. "Persons" means any natural individual, firm, trust, estate, partnership, association, joint stock company, joint adventure, 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. • - 2 - • 4.18.040: EFFECTIVE DATE: The tax imposed by this Chapter shall be based on the gross receipts; as herein defined, actually paid to the taxpayer for services billed on or after the 1st day of July, 2012. 4.18.050: RETURNS; PAYMENT OF TAX: A. On or before the last day of August, 2012 each taxpayer shall make a return to the City Finance Director for the month of July, 2012, stating: 1. His name; 2. His principal place of business; 3. His gross receipts during those months upon the basis of which the tax is imposed. 4. Amount of tax: 5. Such other reasonable and related information as the corporate authorities may require. • B. On or before the last day of every month thereafter, each taxpayer shall make a like return to the City Finance Director for a corresponding one month period. C. The taxpayer making the return herein provided for shall, at the time of making such return, pay to the City Finance Director; the amount of tax herein imposed: provided that in connection with any return the taxpayer may; if he so elects, report and pay an amount based upon his total billings of business subject to the tax during the period for which the return is made (exclusive of any amounts previously billed)with prompt adjustments of later payments based upon any differences between such billings and the taxable gross receipts. D. If it shall appear that an amount of tax has been paid which was not due under the provisions of this Chapter, whether as the result of a mistake of fact or an error of law, then such amount shall be credited against any tax due; or to become due, under this Chapter from the taxpayer who made the erroneous payment; provided that no amounts erroneously paid more than three (3) years prior to the filing of a claim therefore shall be so credited. I • E. No action to recover any amount of tax due under the provisions of this Chapter shall be commenced more than three (3) years after the due date of such amount. 4.18.060: FAILURE TO MAKE RETURN; FRAUDULENT RETURN: Any taxpayer who fails to make a return, or who makes a fraudulent return; or who willfully violates any other provision of this Chapter is guilty of a misdemeanor-and; upon conviction thereof, shall be fined not less than two hundred dollars ($200) nor more than seven hundred fifty dollars($750) and in addition shall be liable in a civil action for the amount of tax due, plus interest and costs. 4.18.070: 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 the city clerk of the City of Elgin is hereby directed to send a certified copy of this ordinance to each utility company affected by this ordinance. Section 3. 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 4. That this ordinance shall be in full force and effect upon its passage and publication in the manner provided by law. Gl,6G/ David J. Kapt rn; Mfayor is - 4 - • Presented: December 21, 2011 Passed: December 21, 2011 Vote: Yeas: 7 Nays: 0 Recorded: December 21, 2011 Published: December 22. 2011 Attest: Kimberly De v is, City Clerk •