2009-089ORDINANCE 2009- 89
AN ORDINANCE ADDING CHAPTER 3.65, MUNICIPAL GAS USE TAX,
TO TITLE 3, REVENUE & FINANCE, OF THE MUNICIPAL CODE OF
THE VILLAGE OF BUFFALO GROVE
WHEREAS, the Village of Buffalo Grove is a home rule unit under subsection (a) of Section 6 of
Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any
function pertaining to its government and affairs for the protection of the public health, safety, morals and
welfare; and
WHEREAS, in furtherance of its home rule powers, it is necessary and desirable for the Village
of Buffalo Grove to amend its ordinances regarding taxation by creating a municipal gas use tax; and
WHEREAS, the Village is challenged to maintain its high level of services to the community in
an environment of declining revenues; and
WHEREAS, the institution of a gas use tax would help to replace significant declines in state
shared revenues and would continue the goal of maintaining a diversified revenue base; and
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS
AS FOLLOWS:
Section 1. The foregoing recitals are hereby adopted and incorporated into and made a part of this
Ordinance as if fully set forth herein.
Section 2. There is hereby added Chapter 3.65, Municipal Gas Use Tax, to the Village of Buffalo Grove
Municipal Code which is to read as follows:
CHAPTER 3.65
MUNICIPAL GAS USE TAX
Section 3.65.010
Short Title
Section 3.65.020
Definitions
Section 3.65.030
Tax Imposed
Section 3.65.040 Collection of Tax by Public Utility
Section 3.65.050 Books and Records
3.65.0 10 Short Title
The tax imposed by this Chapter shall be known as the "Municipal Gas Use Tax" and is imposed
in addition to all other taxes imposed by the Village of Buffalo Grove, the State of Illinois, or any
other municipal corporation or political subdivision therefore.
3.65.020 Definitions For the purpose of this Chapter, unless the context otherwise requires, the
following words or terms shall have the meanings respectively applied to them:
A. "Person" means any individual, firm, trust, estate, partnership, association, joint stock company,
joint venture, 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.
B. "Public Utility" means a public utility as defined in Section 3 -105 of the Public Utilities Act.
C. "Public Utilities Act" means the Public Utilities Act as amended, (220 ILCS 511 -101 et se .).
D. "Retail Purchaser" means any Person who purchases gas in a Sale at Retail.
E. "Sale at Retail" means any sale of gas 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
distributing, supplying, furnishing or selling gas.
F. "Village" means the Village of Buffalo Grove, Illinois.
3.65.030 Tax Imposed
A Except as otherwise provided by this Chapter, a tax is imposed on the privilege of using or
consuming gas in the Village that is purchased in a Sale at Retail at the rate of five cents
(50.050) 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
Purchaser's premises, to the Public Utility designated to collect the tax pursuant to Section 3.65.040
of this Chapter on or before the payment due date of the Public Utility's bill first reflecting the tax,
or directly to the Village Treasurer on or before the fifteenth 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 3.65.040 or if the gas is delivered by a person other than a
Public Utility so designated.
D. Nothing in this Chapter shall be construed to impose a tax upon any person, business or activity
which, under the constitutions, laws or rules of the United States or State of Illinois, may not be
made the subject of taxation by the Village. The tax shall not apply to any school district or State
2
of Illinois unit of local government lying either in whole or in part within the Village of Buffalo
Grove.
E. A Person 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 or consumes part or all of
the gas, shall pay the tax directly to the Village Treasurer on or before the fifteenth day of the
second month following the month in which the gas is used or consumed.
F The tax shall apply to gas for which the delivery to the Retail Purchaser is billed by a Public
Utility on or after February 1, 2010.
G. If it shall appear that an amount of tax has been paid which was not due under the provisions of
this Chapter, whether as a result of mistake of fact or an error of law, then such amount shall be
(i) credited against any tax due, or to become due, under this Chapter from the taxpayer who
made the erroneous payment or (ii) subject to a refund if no such tax is due or to become due;
provided that no amounts erroneously paid more than three (3) years prior to the filing of a claim
therefore shall be so credited or refunded.
H. No action to recover any amount of tax due under the provisions of this Chapter shall be
commenced more than three (3) years after the due date of such amount.
3.65.040 Collection of Tax by Public Utility. The Village Manager 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 Village. The contract shall include and substantially conform with the following
provisions:
A. the Public Utility will collect the tax from Retail Purchasers as an independent contractor;
B. the Public Utility will remit collected taxes to the Village Treasurer no more often than once each
month;
C 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 Village Treasurer;
D the Public Utility shall not be responsible to the Village for any tax not actually collected from a
Retail Purchaser; and
E. such additional terms as the parties may agree upon.
3.65.050 Books and records. 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, at all times during business hours, be subject to and available for inspection by
the Village.
Section 3. All ordinances or parts of ordinances thereof in conflict with this ordinance are hereby
repealed to the extent of any such conflict.
3
Section 4. Any Section or provision of this ordinance that is construed to be invalid or void shall not
affect the remaining Sections or provisions which shall remain in full force and effect thereafter.
Section 5 No later than January 15 2011 and by January 15`h of every subsequent year thereafter,
this Ordinance shall be reviewed by the Village's Corporate Authorities to either retain, amend or
repeal for subsequent years.
Section 6. This ordinance shall be in full force and effect upon its passage, approval and publication.
This ordinance may be published in pamphlet form.
AYES:
NAYES:
ABSENT:
PASSED:
APPROVED:
PUBLISHED:
ATTEST:
5 - Braiman, Glover, Berman, Trilling, Sussman
1 -- Stone
0 -
December 2.1
December 21
December 22
illage Clerk
ll
'2009
'2009
, 2009
APPROVED
Village President
STATE OF ILLINOIS) ss.
COUNTY OF COOK )
CERTIFICATE
I, Janet M. Sirabian, certify that I am the duly elected
and acting Village Clerk of the Village of Buffalo
Grove, Cook and Lake Counties, Illinois. I further
certify that on, December 21, 2009 the Corporate
Authorities of the Village passed and approved
Ordinance No. 2009 -89, AN ORDINANCE
ADDING CHAPTER 3.65, MUNICIPAL GAS USE
TAX, TO TITLE 3, REVENUE& FINANCE, OF
THE MUNICIPAL CODE OF THE VILLAGE OF
BUFFALO GROVE provided by its terms that it
should be published in pamphlet form.
The pamphlet form of Ordinance No. 2009 -89,
including the Ordinance and a sheet thereof, was
prepared, and a copy of such Ordinance was posted
in and at the Village Hall, commencing on December
21, 2009 and continuing for at least ten days
thereafter. Copies of such Ordinance were also
available for public inspection upon request in the
Office of Village Clerk.
Dated at Buffalo Grove, Illinois, this 22nd day of
December, 2009.
)� 1'kd&ow��
Vil e Clerk tQ �(/
��t 1e 1 MX!v'�
By
ORDINANCE 2009- 89
AN ORDINANCE ADDING CHAPTER 3.65, MUNICIPAL GAS USE TAX,
TO TITLE 3, REVENUE & FINANCE, OF THE MUNICIPAL CODE OF
THE VILLAGE OF BUFFALO GROVE
WHEREAS, the Village of Buffalo Grove is a home rule unit under subsection (a) of Section 6 of
Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any
function pertaining to its government and affairs for the protection of the public health, safety, morals and
welfare; and
WHEREAS, in furtherance of its home rule powers, it is necessary and desirable for the Village
of Buffalo Grove to amend its ordinances regarding taxation by creating a municipal gas use tax; and
WHEREAS, the Village is challenged to maintain its high level of services to the community in
an environment of declining revenues; and
WHEREAS, the institution of a gas use tax would help to replace significant declines in state
shared revenues and would continue the goal of maintaining a diversified revenue base; and
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS
AS FOLLOWS:
Section 1. The foregoing recitals are hereby adopted and incorporated into and made a part of this
Ordinance as if fully set forth herein.
Section 2. There is hereby added Chapter 3.65, Municipal Gas Use Tax, to the Village of Buffalo Grove
Municipal Code which is to read as follows:
CHAPTER 3.65
MUNICIPAL GAS USE TAX
Section 3.65.010
Short Title
Section 3.65.020
Definitions
Section 3.65.030
Tax Imposed
I
Section 3.65.040 Collection of Tax by Public Utility
Section 3.65.050 Books and Records
3.65.010 Short Title
The tax imposed by this Chapter shall be known as the "Municipal Gas Use Tax" and is imposed
in addition to all other taxes imposed by the Village of Buffalo Grove, the State of Illinois, or any
other municipal corporation or political subdivision therefore.
3.65.020 Definitions For the purpose of this Chapter, unless the context otherwise requires, the
following words or terms shall have the meanings respectively applied to them:
A. "Person" means any individual, firm, trust, estate, partnership, association, joint stock company,
joint venture, 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.
B. "Public Utility" means a public utility as defined in Section 3 -105 of the Public Utilities Act.
C. "Public Utilities Act" means the Public Utilities Act as amended, (220 ILCS 5/1 -101 et sM.).
D. "Retail Purchaser" means any Person who purchases gas in a Sale at Retail
E. "Sale at Retail" means any sale of gas 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
distributing, supplying, furnishing or selling gas.
F. "Village" means the Village of Buffalo Grove, Illinois.
3.65.030 Tax Imposed
A Except as otherwise provided by this Chapter, a tax is imposed on the privilege of using or
consuming gas in the Village that is purchased in a Sale at Retail at the rate of five cents
($0.050) 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
Purchaser's premises, to the Public Utility designated to collect the tax pursuant to Section 3.65.040
of this Chapter on or before the payment due date of the Public Utility's bill first reflecting the tax,
or directly to the Village Treasurer on or before the fifteenth 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 3.65.040 or if the gas is delivered by a person other than a
Public Utility so designated.
D. Nothing in this Chapter shall be construed to impose a tax upon any person, business or activity
which, under the constitutions, laws or rules of the United States or State of Illinois, may not be
made the subject of taxation by the Village. The tax shall not apply to any school district or State
2
of Illinois unit of local government lying either in whole or in part within the Village of Buffalo
Grove.
E. A Person 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 or consumes part or all of
the gas, shall pay the tax directly to the Village Treasurer on or before the fifteenth day of the
second month following the month in which the gas is used or consumed.
F The tax shall apply to gas for which the delivery to the Retail Purchaser is billed by a Public
Utility on or after February 1, 2010.
G. If it shall appear that an amount of tax has been paid which was not due under the provisions of
this Chapter, whether as a result of mistake of fact or an error of law, then such amount shall be
(i) credited against any tax due, or to become due, under this Chapter from the taxpayer who
made the erroneous payment or (ii) subject to a refund if no such tax is due or to become due;
provided that no amounts erroneously paid more than three (3) years prior to the filing of a claim
therefore shall be so credited or refunded.
H. No action to recover any amount of tax due under the provisions of this Chapter shall be
commenced more than three (3) years after the due date of such amount.
3.65.040 Collection of Tax by Public Utility. The Village Manager 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 Village. The contract shall include and substantially conform with the following
provisions:
A. the Public Utility will collect the tax from Retail Purchasers as an independent contractor;
B. the Public Utility will remit collected taxes to the Village Treasurer no more often than once each
month;
C 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 Village Treasurer;
D the Public Utility shall not be responsible to the Village for any tax not actually collected from a
Retail Purchaser; and
E. such additional terms as the parties may agree upon.
3.65.050 Books and records. 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, at all times during business hours, be subject to and available for inspection by
the Village.
Section 3. All ordinances or parts of ordinances thereof in conflict with this ordinance are hereby
repealed to the extent of any such conflict.
91
� 1
Y
Section 4. Any Section or provision of this ordinance that is construed to be invalid or void shall not
affect the remaining Sections or provisions which shall remain in full force and effect thereafter.
Section 5. No later than January 15, 2011 and by January 15'h of every subsequent Year thereafter,
this Ordinance shall be reviewed by the Village's Corporate Authorities to either retain, amend or
repeal for subsequent years.
Section 6. This ordinance shall be in full force and effect upon its passage, approval and publication.
This ordinance may be published in pamphlet form.
AYES:
NAYES:
ABSENT:
PASSED:
APPROVED:
PUBLISHED:
ATTEST:
5 - Brairsan, Glover, Berrian, Trilling,, Su.nsrian
1 - Stone
0 - None
Deceatber 21
Decenber 21
Deeembe,. 22
"'Village Clerk
in
'2009
12009
'2009
APPROVED:
Village President