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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 39-O-25 ~2~ 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 39-O-25 ~3~ 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. 39-O-25 ~4~ 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