HomeMy WebLinkAbout39-O-25 Amending Title 3 Chapter 2 Section 23 Municipal Grocery Tax5/12/25
39-O-25
AN ORDINANCE
AN ORDINANCE IMPLEMENTING A MUNICIPAL GROCERY RETAILERS’
OCCUPATION TAX AND A MUNICIPAL GROCERY SERVICE
OCCUPATION TAX
WHEREAS, the Illinois Municipal Code, 65 ILCS 5/1-2-1, provides that the
corporate authorities of each municipality may pass all ordinances and make all rules and
regulations proper or necessary, to carry into effect the powers granted to municipalities,
with such fines or penalties as may be deemed proper; and,
WHEREAS, the City of Evanston is a home rule Illinois municipality
pursuant to the Constitution of the State of Illinois of 1970, as amended; and,
WHEREAS, Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-
24) provides that, beginning on January 1, 2026, all Illinois municipalities may impose a
tax “upon all persons engaged in the business of selling groceries at retail in the
municipality” (the “Municipal Grocery Tax”) (65 ILCS 5/8-11-24); and,
WHEREAS, the Municipal Grocery Retailers’ Occupation Tax may be
imposed “at the rate of 1% of the gross receipts from these sales ” (65 ILCS 5/8-11-24);
and,
WHEREAS, any Municipal Grocery Retailers’ Occupation Tax shall be
administered, collected and enforced by the Illinois Department of Revenue; and,
WHEREAS, Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-
24) requires any municipality imposing a Municipal Grocery Retailers’ Occupation Tax
under Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24) to also impose
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a Service Occupation Tax at the same rate, “upon all persons engaged, in the
municipality, in the business of making sales of service, who, as an incident to making
those sales of service, transfer groceries” as “an incident to a sale of service” (the
“Municipal Grocery Service Occupation Tax”) (65 ILCS 5/8-11-24); and,
WHEREAS, any Municipal Grocery Service Occupation Tax shall be
administered, collected and enforced by the Illinois Department of Revenue; and,
WHEREAS, the City Council of the City of Evanston believe that it is
appropriate, necessary and in the best interests of the City and its residents, that the City
levy a Municipal Grocery Retailers’ Occupation Tax as permitted by Section 8-11-24 of
the Illinois Municipal Code (65 ILCS 5/8-11-24); and,
WHEREAS, the City Council of the City of Evanston believe that it is
appropriate, necessary and in the best interests of the City and its residents, that the City
of Evanston levy a Municipal Grocery Service Occupation Tax as permitted by Section 8-
11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF EVANSTON, COOK COUNTY, ILLINOIS, THAT:
SECTION 1: Title 3, Chapter 2, Section 23, “Municipal Grocery Tax” of the
Evanston City Code of 2012, as amended to add Chapter 23, is hereby further
amended as follows:
3-2-23. – MUNICIPAL GROCERY RETAILERS’ OCCUPATION TAX.
3-2-23-1. TAX IMPOSED.
A. A tax is hereby imposed upon all persons engaged in the business of selling
groceries at retail in this municipality at the rate of 1% of the gross receipts
from such sales made in the course of such business while this Ordinance is
in effect. The imposition of this tax is in accordance with and subject to the
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provisions of Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-
24).
B. A tax is hereby imposed upon all persons engaged in this municipality in the
business of making sales of service, who, as an incident to making those
sales of service, transfer groceries as an incident to a sale of service. The
rate of this tax shall be the same rate identified in Section 2, above. The
imposition of this tax is in accordance with and subject to the provisions of
Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24).
3-2-23-2. ILLINOIS DEPARTMENT OF REVENUE TO ADMINISTER BOTH TAXES.
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 Illinois Department of Revenue shall have full power to administer
and enforce the provisions of this Ordinance.
SECTION 2. The foregoing recitals are found as fact and incorporated
herein by reference.
SECTION 3. As required under Section 8-11-24 of the Illinois Municipal
Code (65 ILCS 5/8-11-24), the City Clerk is hereby directed to file a certified copy of this
Ordinance with the Illinois Department of Revenue on or before October 1, 2025.
SECTION 4. The taxes imposed by this Ordinance shall take effect on (i)
January 1, 2026.
SECTION 5. All ordinances, resolutions and policies or parts thereof, in
conflict with the provisions of this Ordinance are, to the extent of the conflict, expressly
repealed on the effective date of this Ordinance.
SECTION 6. If any provision of this Ordinance or application thereof to any
person or circumstances is ruled unconstitutional or otherwise invalid, such invalidity shall
not affect other provisions or applications of this Ordinance that can be given effect
without the invalid application or provision, and each invalid provision or invalid
application of this Ordinance is severable.
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SECTION 7. The Clerk is directed by the corporate authorities to publish
this Ordinance in pamphlet form.
Introduced: _________________, 2025
Adopted: ___________________, 2025
Approved:
__________________________, 2025
_______________________________
Daniel Biss, Mayor
Attest:
_______________________________
Stephanie Mendoza, City Clerk
Approved as to form:
______________________________
Alexandra B. Ruggie.
Corporation Counsel