HomeMy WebLinkAboutORDINANCES-1994-001-O-94EVANSTON:
12-28-93
02-24-94
1-0-94
AN ORDINANCE
Evanston Gas Use Tax
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WHEREAS, the City Council hereby finds as follows:
(a) recent_ changes in federal law have permitted and
encouraged large purchasers of gas to buy gas has
directly from out-of-state sellers rather than from
local public utilities;
(b) the municipal occupation tax authorized by section 8-
11-2(2a) of the Illinois Municipal Code and imposed by
section 3-2-9-2(B) of this Code applies to sales of
gas by local public utilities but not to sales by
sellers outside the state of Illinois;
(c) the city has the home rule power to tax the use of
tangible personal property such as gas purchased from
sellers not subject to the municipal occupation tax.
WHEREAS, the Code of Evanston is amended by adding the
following Sections:
EVANSTON GAS USE TAX
Table of Contents
3-2-9-7-1 Title
3-2-9-7-2 Definitions
3-2-9-7-3 Tax imposed
3-2-9-7-4 Complementary relation to Evanston Occupation Tax
3-2-9-7-5 Collection of tax
3-2-9-7-6 Books and records
3-2-9-7-7 Rules and regulations
3-2-9-7-8 Application. of Uniform Revenue Procedures
Ordinance
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3-2-9-7-1 Title
This chapter shall be known and may be cited as the
"Evanston Gas Use Tax Ordinance." The tax shall be known as 06
the Evanston Gas Use Tax and is imposed in addition to all
other taxes imposed by the City of Evanston, the State of
Illinois or any other municipal corporation or political
Subdivision of the State of Illinois.
3-2-9-7-2 Definitions
When any of the following words or terms are used in this
section, it shall have the meaning ascribed to it in this
section:
A. "Evanston Occupation Tax" means the tax imposed by
section 3-2-9-2(B) of this Code on persons engaged in the
business. of distributing, supplying, furnishing or
selling gas.
B. "City" means City of Evanston, Illinois.
C. "Department" or "department of revenue" means the
department of finance of the City.
D. "Director" or "director of finance" means the director of
finance of the City.
E. "Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company,
joint adventure, 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.
F. "Public utility" means a public utility as defined in
section 3-105 of the Public Utilities Act.
G. "Public Utilities Act" means the Public Utilities Act, as
amended, Illinois Compiled Statutes, chapter 220, section
5/1-101, et sea.
H. "Retail purchaser" means any person who purchases gas in
a sale at retail.
I. "Sale at retail" means any sale 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 distribution, supplying, furnishing or
selling gas.
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3-2-9-7-3 Tax imposed.
A. Except as otherwise provided by this section, a tax is
4P imposed on the privilege of using or consuming in the
city gas that is purchased in a sale at retail. The tax
shall be at the rate of .95 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 purchase's
premises, (1) to the public utility designated to collect
the tax pursuant to section 3-2-9-7-5 of this code on or
before the payment due date of the public utility's bill
first reflecting the tax, or (2) directly to the
department on or before the 15th 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 3-2-9-
7-5 or if the gas is delivered by a person other than a
public utility so designated.
D. The tax shall not apply to the use or consumption of gas
by, (1) a person purchasing the gas for use in operating
or propelling a vehicle, or vehicle fuel, as that term is
defined by this code or (2) a public utility engaged in
the business of distributing gas or (3) a school district
created and operating under the School Code of the State
of Illinois.
E. To prevent multiple taxation, the use of gas in the city
by a retail purchaser properly subject to a tax imposed
by any state or by the city or any other municipality
with respect to the sale at retail of such gas, whether
such tax is imposed (1) upon the retail purchaser or (2)
upon the seller and separately charged to the retail
purchaser by the seller, shall be exempt from the tax
imposed by this chapter. For purposes of this subsection
only, any charge imposed on a retail purchaser pursuant
to section 9-221 or section 9-222 of the Public Utilities
Act with respect to a sale at retail shall be treated as
a tax properly imposed on the retail purchaser by the
state of Illinois or by this city or other municipality.
F. A purchaser 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 gas, but who later uses
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or consumes part of all of the gas, shall pay the tax
directly to the department on or before the 15th day of
the second month following the month in which the gas is
used or consumed.
G. The tax shall apply to gas for which the delivery to the
customer is billed by a public utility after May 1, 1994.
3-2-9-7-4 Complementary relation to Evanston Occupation Tax
Notwithstanding any other provision of this chapter, the tax
shall not apply to the use or consumption of gas if the
gross receipts from the sale of the gas would not be taxable
under the Evanston Occupation Tax despite all elements of
the sale occurring in the city.
3-2-9-7-5 Collection of tax.
A. The director is 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 with respect to gas delivered by it to its
customers as an independent contractor; (2) the public
utility will remit collected taxes to the department no
more often than once each month; (3) the public utility
will be entitled to withhold from tax collections a
service fee equal to 3% of the amounts collected and
timely remitted to the department; (4) the public utility
will treat partial payments received from a customer as
payments made pro rata for each item or charge billed to
the customer, including the tax imposed by this section;
(5) the obligation of the public utility to collect and
remit the tax shall not apply to gas billed by the public
utility to a retail purchaser prior to a date two months
subsequent to the execution of such contract; (6) the
public utility shall not be liable to the city for any
tax not actually collected from a retail purchaser; and
(7) such additional terms as the parties may agree upon.
B. A public utility designated to collect the tax imposed by
this chapter from its customers shall bill each customer
for the tax on all gas delivered to the customer unless
(1) the customer's use or consumption is exempt from the
tax pursuant to subsection 3-2-9-7-3(E) of this code
because the customer's purchase of the gas is subject to
a charge authorized by section 9-221 or 9-222 of the
Public Utilities Act, or (2) the public utility has
received a written certificate issued by the city
authorizing the public utility not to collect tax on
deliveries to the customer.
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3-2-9-7-6 Books and records.
A. Every taxpayer shall keep accurate books and records,
including original source documents and books of entry,
denoting the activities or transactions that gave rise, or
may have given rise, to any tax liability or exemption under
this chapter. All such books and records shall be kept in
the English language and, at all times during business hours
of the day, shall be subject to and available for inspection
by the department.
B. Every person that delivers customer -owned gas within the
corporate limits of the city shall furnish to the
department, upon the department's request, the names,
addresses and therms delivered with respect to such
deliveries.
3-29-7-7 Rules and regulations.
The director is authorized to adopt, promulgate and enforce
reasonable rules and regulations pertaining to the
administration and enforcement of this chapter.
SECTION 2: SEVERABILITY: if any provision of this
ordinance of the application of any provision is held
unconstitutional or otherwise invalid, such occurrence shall not
affect other provisions of this ordinance or the chapters it
amends, or their application, that can be given effect without
the unconstitutional or invalid provision or its application.
Each unconstitutional or invalid provision, or application of
such provision, is severable, unless otherwise provided. The
unconstitutionality or invalidity of this ordinance or of any of
its provision shall not affect the specific ordinances or their
provisions that this ordinance amends or supplements.
SECTION 3: All ordinances or parts of ordinances
in conflict herewith are hereby repealed.
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SECTION 4: This ordinance shall be in full force and
effect from and after April 1, 1994, following its passage,
approval, and publication in the manner provided by law.
Introduc
Adopted:
Cit Clerk
d s 7
o f
Corporation Counsel
/&/7/ , 1994
'k
1994
Appro : 710,1.�/l/,(�
Mayor
6
1994
l:
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