G39-04 (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