G54-17 Ordinance No. G54-17
AN ORDINANCE
AMENDING THE CITY OF ELGIN'S HOME RULE MUNICIPAL RETAILERS'
AND SERVICE OCCUPATION TAX EXEMPTING CERTAIN FOOD,
DRUGS AND MOTOR VEHICLES
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, the City of Elgin has previously adopted a home rule municipal retailers' and
service occupation tax exempting certain food,drugs and motor vehicles as set forth in Chapter 4.10
of the Elgin Municipal Code, 1976, as amended; and
WHEREAS, the city council of the City of Elgin has determined that it is necessary and
desirable to amend such home rule municipal retailers' and service occupation tax by increasing the
rate thereof.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS:
Section 1. That Chapter 4.10 of the Elgin Municipal Code, 1976, as amended, entitled
"Home Rule Municipal Retailers' and Service Occupation Tax Exempting Certain Food,Drugs and
Motor Vehicles" be and is hereby further amended to read as follows:
"Chapter 4.10
HOME RULE MUNICIPAL RETAILERS' AND SERVICE OCCUPATION TAX
EXEMPTING CERTAIN FOOD, DRUGS AND MOTOR VEHICLES
4.10.010: TAX IMPOSED:
A tax is hereby imposed upon all persons engaged in the business of selling tangible
personal property,other than an item of tangible personal property titled or registered
with an agency of this State's government, at retail in this municipality at a rate of
1.50 percent of the gross receipts from such sales made in the course of such business
while this ordinance is in effect; and a tax is hereby imposed upon all persons
engaged in this municipality in the business of making sales of service, at the rate of
1.50 percent of the selling price of all tangible personal property transferred by such
servicemen as incident to a sale of service. Such"Home Rule Municipal Retailers'
Occupation Tax"and the"Home Rule Municipal Service Occupation Tax"shall not
be applicable to the sales of food for human consumption which is to be consumed
off the premises where it is sold(other than alcoholic beverages,soft drinks and food
which has been prepared for immediate consumption) and prescription and non-
prescription medicines,drugs,medical appliances and insulin,urine testing materials,
syringes and needles used by diabetics. The imposition of these home rule taxes are
in accordance with the provisions of 65 Illinois Compiled Statutes 5/8-11-1 and 5/8-
11-5, respectively, as amended.
4.10.020: COLLECTION; ENFORCEMENT:
The taxes hereby imposed,and all civil penalties that may be assessed as an incident
thereto,shall be collected and enforced by the Department of Revenue of the State of
Illinois. The Department of Revenue shall have full power to administer and enforce
the provisions of this ordinance."
Section 3. The city clerk of the City of Elgin is hereby directed to file a certified copy of
this ordinance with the Illinois Department of Revenue on or before the first day of April, 2018.
Section 4. This ordinance shall take effect on July 1, 2018, following the adoption and
filing of this ordinance with the Department of Revenue.
zite
avid J. Kapta , Ma or
Presented: December 20, 2017
Passed: December 20, 2017
Vote: Yeas: 9 Nays: 0
Recorded: December 20, 2017
Published: December 21, 2017
Attest: ;;'
Kimberly Dewis, City CYerk
,¢ ^� Illinois Department of Revenue
m; Legal Services Office 5 -500
- 101 W. Jefferson St.
Springfield, IL 62794
April 11, 2018
Kimberly Dewis, City Clerk
City of Elgin
150 Dexter Court
Elgin, Illinois 60120
Re: City of Elgin Ordinance No. G54 -17
Home Rule Municipal Retailers' and Service Occupation Tax
Dear Ms. Dewis:
This is to acknowledge receipt of the City of Elgin's Ordinance No. G54 -17 increasing
the Home Rule Municipal Retailers' Occupation Tax and Home Rule Municipal Service
Occupation Tax to the rate of 1.5 %. With the increase, the general merchandise rate in the
portion of the City that lies in Kane County will be 8.5 %, and the general merchandise rate in the
portion of the City that lies in Cook County will be 10.5 %.
The Illinois Department of Revenue shall collect, administer, and enforce the increase in
the Home Rule Municipal Retailers' Occupation Tax and Home Rule Municipal Service
Occupation Tax effective July 1, 2018, in accordance with the provisions of 65 ILCS 5/8 -11 -1
and 65 ILCS 5/8 -11 -5.
If you have any questions regarding this letter, please contact our office at the number
listed below. If you have questions concerning the administration of the tax, please contact the
Department's Local Tax Allocation Division at (217) 785 -6518.
Very truly yours,
i 9] nvo�j
(217) 782 -2844
SJM:bkl
Cc: Brenda Towers, Local Tax Allocation Division