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
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