G56-11 • 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
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