HomeMy WebLinkAboutORDINANCES-1982-024-O-82•
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24-0-82
AN ORDINANCE
IMPOSING A CIGARETTE TAX
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON, COOK COUNTY, ILLINOIS:
SECTION I: That Chapter 2 of Title 3 of the City code of the City
of Evanston, 1979 as amended, be and is hereby further
amended by the addition of 3-2-10 as follows:
3-2-10: CIGARETTE TAX
3-2-10-1: DEFINITIONS: For the purpose of the, taxes
enumerated in this Section, the following definitions shall apply:
CIGARETTE: Means any roll for smoking made wholly or in part
of tobacco, irrespective of size or shape and
whether such tobacco is flavored, adulterated or
mixed with any other ingredient, or not, and the
wrapper of which is made of paper or any other
substance or material except tobacco.
MANUFACTURER: Means any person who makes or fabricates
cigarettes, or packs and sells them in packages.
PACKAGE: Means the original packet, box or container
whatsoever used to contain and to convey
cigarettes to the consumer.
PERSON:
Means any natural person, trustee, court appointed j
representative, syndicate, association, partner-
ship, firm, club, company, corporation, business r
riss*-; institution, agency, government corporation,
mun-icipal corporation, district or other political
subdivision, contractor, supplier, vendor, vendee;
operator, user or owner, or any officers, agents,
employees, or other representative, acting either
for himself or for any other representative, acting
either for himself or for any other person in any
capacity, or any other entity recognized by law
as the subject of rights and duties. The masculine,
feminine, singular or plural is included in any
circumstances.
RETAIL TOBACCO DEALER: Means any person who engages in the
business of selling cigarettes in the City of
Evanston to a purchaser for use or consumption and
not for resale in any form.
= SALE, RESALE, SELLING: Means any transfer of ownership or
possession, or both, exchange or barter, condi-
tional or otherwise, in any manner or by any means
whatsoever for a valuable consideration.
STAMP: Means paper or other material with an imprint or
decalcomania device thereon, of such size, design
color and denominations as may be prescribed and
�i procured by the Finance Director which, when
affixed to a package of cigarettes, shall evidence
payment of the tax thereon, as provided by this
ordinance.
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WHOLESALE TOBACCO DEALER: Means
business of selling
person for resale in
3-2-10-2: TAX IMPOSED:
any person who engaged in the
of supplying cigarettes to any
the City of Evanston. 1
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(A) A Tax at the rate of five cents per each twenty
cigarettes or fraction thereof is hereby imposed
upon all cigarettes possessed for sale and upon
the use of all cigarettes within the City of
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Evanston, the ultimate incidence of and liability
for payment of said tax to be borne by the
consumer of said cigarettes. The tax herein
levied shall be in addition to any and all other
taxes.
(B) The tax herein levied shall be paid by purchase of
tax stamps from the Finance Director, except as
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otherwise provided in 3-2-10-8 (a). and (b) of this
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ordinance. It shall be the duty of every whole-
sale tobacco dealer, before delivering or causing
to be delivered any cigarettes to a retail tobacco
dealer in the City of Evanston to purchase from
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the Finance Director a tax stamp for each package
of cigarettes and to cancel said stamps prior to
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the delivery of such cigarettes to any retail
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tobacco dealer in the City of Evanston. Said
stamps shall be affixed and cancelled in the manner
prescribed by rules and regulations of the Finance
Director, as hereinafter provided. Any stamp
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which is defective or unused may be returned to
the Finance Director by a wholesale tobacco dealer,
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who shall thereafter be credited or reimbursed
with the amount paid the Finance Director for such
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stamps.
(C) Any wholesale tobacco dealer who shall pay the tax
levied by this ordinance to the Finance Director
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shall collect the tax from any retail tobacco
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dealer to whom the sale of said cigarettes is
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made; and any retail tobacco dealer shall, in turn,
then collect the tax from the purchaser of said
cigarettes. The tax shall be paid to the person
required to collect it as trustee for and on
account of the City of Evanston.
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(D) It shall be unlawful for any retail tobacco dealer
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to purchase cigarettes from any person unless each
package bears an unmutilated tax stamp affixed
thereto and cancelled thereon in the manner
required by this ordinance and the rules and
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regulations of the Finance Director. Possession
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by said retail tobacco dealer of cigarettes having
no stamp affixed and. cancelied shall create a
prima facie presumption that such cigarettes are
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possessed by him in violation of the provisions of
this chapter.
3-2-10-3: RULES AND REGULATIONS:
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The Finance Director shall make and publish, in
° pamphlet form for distribution to the public, rules
and regulations appropriate toand in furtherance
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of the purposes of this ordinance.
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3-2-lo-4: AGENTS TO AFFIX STAMPS:
(A) The Finance Director shall contract for and
furnish tax stamps of such denominations and
quantities as may be necessary for the payment of
the tax imposed by this chapter, and may, from
time to time, provide for the issuance and
exclusive use of stamps of a new design and forbid
the use of stamps of any other design. The
Finance Director may make arrangements for the
method of acquiring and paying for such tax stamps.
(8) The Finance Director may appoint wholesale tobacco
dealers of cigarettes and any other person within
or without the City as agents to affix stamps to
be used in paying the tax hereby imposed and said
agent is hereby authorized to appoint other persons
in his employ who are to affix said stamps to any
cigarettes under his control in the manner
prescribed by the rules and regulations promulgated
by the Finance Director. Whenever the Finance
Director shall sell, consign or deliver to any
such agent any such stamps, such agent shall be
entitled to receive as compensation for his
services and expenses in affixing such stamps, and
to retain use of the monies to be paid by him for
such stamps a commission on the par value thereof.
The Finance Director is hereby authorized to
prescribe a schedule of commissions not exceeding
five percent allowable to such agent for affixing
such stamps; provided, however, that the Finance
Director may authorize commissions to agents not
exceeding ten percent for a special period not
exceeding thirty (30) days immediately following
the adoption of this ordinance to cover the initial
stamping of packages of cigarettes. Such schedule
shall be uniform for each type and denomination
of stamp used and may be on a graduated scale with
respect to the number of stamps purchased. The
Finance Director may, in his discretion, permit
an agent to pay for such stamps within thirty (30)
days after the date of sale, consignment or
delivery of such stamps to such agent, provided a
bond satisfactory to the Village Clerk and approved;
as to form and legality by the Village Attorney I
shall be submitted by said agent to the Village
Clerk in an amount not less than the par value of
such stamps. i
(C) The Finance Director may redeem unused tax stamps
lawfully in the possession of any person. No
person shall sell or offer for sale any stamp
issued under this ordinance except by written
permission of the Finance Director. The Finance
Director may prescribe rules and regulations
concerning refunds sales of stamps and redemption
under the provisions of this ordinance.
3-2-10-5: INVESTIGATION:
The Finance Director or any person certified by him
as his deputy or representative may enter the
premises of any wholesale or retail tobacco dealer
for inspection and examination of property,
inventory, books and records for the proper
administration of this ordinance and enforcement of
the collection of the tax imposed. It is unlawful
for any person to prevent, hinder or interfere
with the Finance Director or his duly authorized
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deputy or representative in the discharge of his
duties in the enforcement of this ordinance.
3-2-10-6: WHOLESALE TOBACCO DEALERS - RECORDS TO BE KEPT:
(A) At the time of delivering cigarettes to any person
doing business in the City of Evanston, it shall
be the duty of every wholesale tobacco dealer to
make a true triplicate invoice, numbered serially,
showing the date of delivery, the number of
packages, the number of cigarettes contained
therein in each shipment of cigarettes delivered,
and the name of the purchaser to whom delivery is
made and shall retain one legible copy of the same
for a period of three years subject to the use and
inspection of the City Finance Director,
(B) A sworn quarterly cigarette tax return shall be
filed by said wholesale tobacco dealer with the
Finance Director, on forms prescribed by him,
showing all purchases of cigarettes made by him
during the preceding three months, all sales made
by him to retail tobacco dealers doing business in
the City of Evanston, all sales made by him to
persons outside the City of Evanston, his remaining
inventory, the name and address of the place of
business of all persons doing business in the
City of Evanston to whom sai,d sales were made, the
date of each transaction, the seller's invoice
number, the number of the City retail tobacco
dealer's license of the purchaser, if any, and a
description of the cigarettes and quantity thereof
sold. Legible copies of the invoices required
by subsection (a) of this section shall be attached
to said cigarette tax returns.
(C) Notwithstanding the provisions above, the first
taxing period for the purpose of this ordinance
shall commence on April 1, 1982 and shall cease on
June 30, 1982. The tax return and payment for such
period shall be due on or before July 15, 1982.
All subsequent reporting periods shall be full
calendar quarters, commencing on January lst,
April lst, July 1st, and October 1st. At the time
of filing said tax returns, the cwner shall pay
to the City of Evanston all taxes due for the
period to.which the tax return applies. If, for
any reason, any tax is not paid when due, a penalty
at the rate of one per cent (1%) per thirty -day
period (30) or portion thereof, from the date of
delinquency shall be added and collected.
3-2-10-7: COUNTERFEIT STAMPS:
Every person who shall falsely make, alter, forge
or counterfeit any tax stamp, or who, with intent
to defraud the City shall affix or cause to be
affixed any counterfeit stamp to any package of
cigarettes, knowing said stamp to be counterfeit,
shall be charged with forgery under the Illinois
Criminal Code and shall be subject of prosecution
for such crime.
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3-2-10-8: ALTERATIVE METHOD OF COLLECTION:
(A) Notwithstanding the provisions of this cigarette
tax ordinance, the Finance Director may provide
by regulation that the tax imposed by this
ordinance shall, in the alternative, be collected
by means of the issuance and sale of a single tax
stamp to be prepared jointly with the Department
of Revenue of the State of Illinois, or Cook
County evidencing the payment of the tax imposed
by this ordinance. Toward that end, the Finance
Director may make such arrangements and agreements
with the Department of Revenue of the State of
Illinois or Cook County as may be required with
respect to the method of acquiring, affixing,
cancelling and the manner of sharing the cost of
such joint single tax stamps and may establish
procedures for joint collection of such revenues.
In the event such alternative method as herein
provided is utilized, no other method of collecting
said tax may be used; however, all other applicable
provisions of this ordinance shall nevertheless
remain in full force and effect.
(.B) Notwithstanding the provisions of this cigarette
tax ordinance, the Finance Director may provide
by regulation that the tax imposed by this
ordinance, in the alternative, shall be collected
by means of the filing of a sworn tax return to
be prepared and filed by every wholesale tobacco
dealer who sells cigarettes for consumption in the
City of Evanston. Said return shall be filed on
a monthly basis and shall contain the same infor-
mation required by 3-2-10-6. Said return shall be
filed with the Finance Director on or before the
first day of each month stating such other and
further information as may be required by the
Finance Director, and said return shall be
accompanied by a certified check in the amount of
the tax due and payable upon such taxable sales
made by said wholesale tobacco dealer in the
City of Evanston during the preceding month. In
the event such alternative method is utilized,
no other method of collecting said tax may be used;
however, all other applicable provisions or this
ordinance shall remain in full force and effect
with the exception of the necessity of filing a
quarterly tax return as provided in 3-2-10-6 of
this ordinance which shall not be required.
3-2-10-9: MUTILATING STAMPS:
It is unlawful for any
stamp herein required
before it is sold by a
3-2-10-10: FAILURE TO PAY TAX:
person to mutilate a tax
on any package of cigarettes
retail tobacco dealer.
(A) Whenever any person shall fail to pay any tax as
herein provided, the City Attorney shall, upon the
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request of the Finance Director; bring or cause to
be brought an action to enforce the payment of
said tax on behalf of the City in any court of
competent jurisdiction.
(B) If the City Manager, after hearing held by or for
him, shall find that any person has willfully
evaded payment of the tax imposed by this ordin-
ance, he may suspend or revoke all City licenses
held by such tax evader. Said person shall have
an opportunity to be heard at such hearing to be
held not less than five days after notice of the
time and place of the hearing to be held,
addressed to him at his last known place of
business. Pending notice, hearing and finding,
any tobacco dealer's license possessed by said
person shall be temporarily suspended. Any
suspension or revocation of any license shall not
release or discharge said person from his civil
liability for the payment of the tax, nor from
prosecution for such offense.
3-2-10-11: CIGARETTES TO BE SEIZED:
Whenever the Finance Director or any of his duly
authorized representatives shall discover any
cigarettes subject to any tax provided by this
chapter upon which said tax has not been paid or
the stamps affixed and cancelled as herein
required, they are hereby authorized and empowered
forthwith to seize and take possession of such
cigarettes together with any vending machine or
receptacle in which they are held for sale which,
except for money contained in such vending machine
or receptacle, shall thereupon be deemed to be
forfeited to the City. The Finance Director may,
within a reasonable time thereafter, by a public
notice given at least five days before the day of
sale, sell such forfeited cigarettes and vending
machines or receptacles at public sale and pay the
proceeds into the treasury of the City of Evanston.
In the alternative, the Finance Director, on
reasonable notice, may permit the person from
whom said cigarettes were seized, to redeem the
same and any vending machine or receptacle seized
therewith, by the payment of the tax due together
with a penalty of fifty percent (50%) thereof and
the cost incurred in such proceeding, provided,
however, that such seizure and sale or redemption
shall not be deemed to relieve any person from
fine or imprisonment provided herein for violation
of any provision of this chapter.
3-2-10-12: PROCEEDS TO BE PAID INTO CITY TREASURY:
All proceeds resulting from the imposition of the
tax under this chapter, including penalties,
shall be paid into the treasury of the City of
Evanston and shall be credited to and deposited in
the corporate fund of the City.
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3-2-10-13: PENALTIES:
Any person found guilty of violating, disobeying,
omitting, neglecting, or refusing to comply with,
or resisting or opposing the enforcement of any of
the provisions of this chapter except when other-
wise specifically provided, upon conviction thereof
shall be punished by a fine of not less than Fifty
Dollars ($50.00) nor more than Three Hundred
Dollars ($300.00) for the first offense and not
less than Fifty Dollars ($50.00) nor more than
Five Hundred Dollars ($500.00) for the second
and each subsequent offense in any 180-day period;
provided, however, that all actions seeking the
imposition of fines only shall be filed as quasi -
criminal actions subject to the provisions of the
Illinois Civil Practice Act (I11. Rev. Stat. 1979,
Ch. 110 par. 1 et seq.). Repeated offenses in
excess of three within any 180-day period may also
be punishable as a misdemeanor by incarceration
in the county jail for a term not to exceed six
months under the procedure set forth in Section
1-2-1.1 of the Illinois Municipal Code (I11. Rev.
Stat. 1979, ch. 24, par. 1-2-1.1) and under the
provisions of the Illinois Code of Criminal
Procedure (I11. Rev. Stat. 1979, ch. 38, pars.
100-1, et seq.) in a separate proceeding. A
separate and distinct offense shall be regarded as
committed each day upon which said person shall
continue any such violation, or permit any such
violation to exist after notification thereof,
3-2-10-14: SAVING CLAUSE:
If any provision of this ordinance, or the
application thereof to any person or circumstances,
is held invalid, the remainder of this ordinance
and the application of such provisions to other
persons or circumstances shall not be affected
thereby.
SECTION 2: That is ordinance shall be in full force and effect
on April 1, 1982 after its passage, approval, and
publication in the manner provided by law.
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Introduced:
Adopted:
ATTEST:
A"
City Clerk /
Approv s t m:
�Ad��
CdVporation Counsel
ME
1982
Approved: -2-,$' 1982 ,