G58-11 • Ordinance No. G58-11
AN ORDINANCE
ESTABLISHING A MUNICIPAL GAS 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, in furtherance of its home rule powers, the city council has determined that it is
necessary and desirable for the City of Elgin to amend its ordinances regarding taxation by creating a
municipal gas.use tax. y y
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 4.19 thereto entitled
• "Municipal Gas Use Tax" to read as follows:
"Chapter 4.19
MUNICIPAL GAS USE TAX
4.19.010: MUNICIPAL GAS USE TAX:
The tax imposed by this Chapter shall be known as the"Municipal Gas Use Tax"and
is imposed in addition to all other taxes imposed by the City of Elgin, the State of
Illinois, or any other municipal corporation or political subdivision thereof.
4.19.020: DEFINITIONS:
For the purpose of this Chapter, the following definitions shall apply:
A. `'City- means the City of Elgin, Illinois.
B. "Person" means any individual, firm, trust, estate; partnership, association,
joint stock company, joint venture, corporation, limited liability company,
municipal corporation or political subdivision of this state, or a receiver,
trustee, conservator or other representative appointed by order of any court.
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C. "Public Utility" means a public utility as defined in Section 3-105 of the
Public Utilities Act.
D. "Public Utilities Act"means the Public Utilities Act as amended, (220 ILCS
5/1-101 et se q.).
E. "Retail Purchaser" means any Person who purchases gas in a Sale at Retail.
F. "Sale at Retail" means any sale of gas by a retailer to a Person for use or
consumption, and not for resale. For this purpose, the term "retailer" means
any Person engaged in the business of distributing, supplying, furnishing or
selling gas.
4.19.030: TAX:
A. Except as otherwise provided by this Chapter, a tax is imposed on the
privilege of using or consuming gas in the City that is purchased in a Sale at
Retail at the rate of three (3) cents per therm.
B. The ultimate incidence of and liability for payment of the tax is on the Retail
Purchaser, and nothing in this Chapter shall be construed to impose a tax on
the occupation of distributing, supplying, furnishing, selling or transporting
• gas.
C. The Retail Purchaser shall pay the tax, measured by therms of gas delivered
to the Retail Purchaser's premises, to the Public Utility designated to collect
the tax pursuant to Section 4.19.040 of this Chapter on or before the payment
due date of the Public Utility's bill first reflecting the tax, or directly to the
City Finance Director on or before the fifteenth day of the second month
following the month in which the gas is delivered to the Retail Purchaser if
no Public Utility has been designated to collect the tax pursuant to Section
4.19.040 or if the gas is delivered by a person other than a Public Utility so
designated.
D. Nothing in this Chapter shall be construed to impose a tax upon any person,
business or activity which, under the constitutions of the United States or
State of Illinois, may not be made the subject of taxation by the City.
E. A Person who purchases gas for resale and therefore does not pay the tax
imposed by this Chapter with respect to the use or consumption of the vas,
but who later uses or consumes part or all of the gas, shall pay the tax directly
to the City Finance Director on or before the fifteenth day of the second
month following the month in which the gas is used or consumed.
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F. The tax shall apply to gas for which the delivery to the Retail Purchaser is
billed by a Public Utility on or after July 1, 2012.
G. If it shall appear that an amount of tax has been paid which was not due under
the provisions of this Chapter, whether as a result of mistake of fact or an
error of law, then such amount shall be (i) credited against any tax due; or to
become due, under this Chapter from the taxpayer who made the erroneous
payment or (ii) subject to a refund if no such tax is due or to become due;
provided that no amounts erroneously paid more than three (3)years prior to
the filing of a claim therefore shall be so credited or refunded.
H. 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.
L To prevent multiple taxation, the use of gas in the City by a Retail Purchaser
shall be exempt from the tax imposed by this Chapter if the gross receipts
from the Sale at Retail of such gas to the Retail Purchaser are properly
subject to a tax imposed upon the seller of such gas pursuant to the City's
municipal utility tax in Chapter 4.18 of this Code, as amended from time to
time, authorized pursuant to Section 8-11-2 of the Illinois Municipal Code
(65 ILCS 5/8-11-2).
• 4.19.040: COLLECTION OF TAX BY PUBLIC UTILITY:
The Mayor, City Manager and the Finance Director are each authorized to enter into
a contract for collection of the tax imposed by this Chapter with any Public Utility
providing gas service in the City. The contract shall include and substantially
conform with the following provisions:
(1) the Public Utility will collect the tax from Retail Purchasers as an
independent contractor;
(2) the Public Utility will remit collected taxes to the City Finance Director
no more often than once each month:
(3) the Public Utility will be entitled to withhold from tax collections a
service fee equal to three percent (3%) of the amounts collected and
timely remitted to the City Finance Director;
(4) the Public Utility shall not be responsible to the City for any tax not
actually collected from a Retail Purchaser; and
(5) such additional terms as the parties may agree upon.
4.19.050: BOOKS AND RECORDS:
Every taxpayer shall keep accurate books and records, including original source
documents and books of entry,denoting the activities or transaction that gave rise,or
may have given rise to any tax liability or exemption under this Chapter. All such
books and records shall, at all times during business hours, be subject to and
available for inspection by the City.
4.19.060: 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 3. That this ordinance shall be in full force and effect upon its passage and
publication in the manner provided by law.
David J. Ka ain, NKyor
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• Presented: December 21; 2011
Passed: December 21; 2011 f
Vote: Yeas: 7 Nays: 0 oae�"L `HK
Recorded: December 21, 2011
Published: December 22, 2011 .
Attest:
Kimberly Deg ' , City Clerk
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