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2009-090ORDINANCE 2009- 90 AN ORDINANCE ADDING CHAPTER 3.66, MUNICIPAL ELECTRICITY 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 municipality pursuant to the Illinois Constitution of 1970; and WHEREAS, Section 8 -11 -2 of the Illinois Municipal Code (65 ILCS 5/8- 11 -2.3) authorizes the Village of Buffalo Grove to impose a utility tax on the privilege of using or consuming electricity within the corporate limits of the Village; 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 an electricity 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 3.66, Municipal Electricity Use Tax, to the Village of Buffalo Grove Municipal Code which is to read as follows: CHAPTER 3.66 MUNICIPAL ELECTRICITY USE TAX Section 3.66.010 Definitions Section 3.66.020 Tax Imposed Section 3.66.030 Collection of Tax by Public Utility Section 3.66.040 Tax Remittance and Return Section 3.66.050 Resales Section 3.66.060 Books and Records Section 3.66.070 Credits and Refunds Section 3.66.080 Exemptions Section 3.66.090 Tax to be in Addition to Payment for Use of Streets, Alleys or Public Places 3.66.010 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. "Person Maintaining a Place of Business in this State" means any person having or maintaining within this State, directly or by a subsidiary or other affiliate, an office, generation facility, distribution facility, transmission facility, sales office or other place of business, or any employee, agent, or other representative operating within this State under the authority of the person or its subsidiary or other affiliate, irrespective of whether such place of business or agent or other representative is located in this state permanently or temporarily, or whether such person, subsidiary or other affiliate is licensed or qualified to do business in this State. C. "Public Utility" means a public utility as defined in Section 3 -105 of the Public Utilities Act D. "Public Utilities Act' means the Public Utilities Act as amended, (220 ILCS 5/1 -101 et seq.). E. "Purchaser" means any Person who uses or consumes, within the corporate limits of the Village, electricity acquired in a Purchase at Retail. F. "Purchase at Retail" means any acquisition of electricity by a purchaser for purposes of use or consumption, and not for resale, but shall not include the use of electricity by a public utility directly in the generation, production, transmission, delivery or sale of electricity. G. "Village" means the Village of Buffalo Grove, Illinois 3.66.020 Electricity Use Tax Kilowatt Hour Imposed; Amount: A. Pursuant to Section 8-11-2 of the Illinois Municipal Code (65 ILCS 5/8 -11 -2) and any and all other applicable authority, a tax is imposed upon the privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the Village at the following rates, calculated on a monthly basis for each purchaser: Kilowatt Hours Used or Consumed First 2,000 Next 48,000 Next 50,000 Next 400,000 Next 500,000 Next 2,000,000 Next 2,000,000 Next 5,000,000 Next 10,000,000 Excess of 20,000,000 Cents per kilowatt- hour 0.61 0.40 0.36 0.35 0.34 0.32 0.315 0.31 0.305 0.30 B. The tax is in addition to all taxes, fees and other revenue measure imposed by the Village, the State of Illinois, or any other political subdivision of.the State. C. Notwithstanding any other provision of this Chapter, the tax shall not be imposed if and to the extent that imposition or collection of the tax would violate the constitution of the United States, the Illinois statutes, or the constitution of the State of Illinois. The tax shall not apply to any school district or State of Illinois unit of local government lying either in whole or in part within the Village of Buffalo Grove. D. The tax shall be imposed with respect to the use or consumption of electricity by residential and nonresidential customers beginning with the first bill issued on or after February 1, 2010. 3.66.030 Collection of Tax by Public Utility. 2 A. Subject to the provisions of Section 3.66.050 of this Chapter regarding the delivery of electricity to resellers, the tax imposed under this Chapter shall be collected from purchasers by the person maintaining a place of business in this State who delivers electricity to such purchasers. This tax shall constitute a debt of the purchaser and is recoverable at the same time and in the same manner as the original charge for delivering the electricity. Any tax required to be collected by this Chapter, and any tax in fact collected, shall constitute a debt owed to the Village by the person delivering the electricity, provided, that the person delivering electricity shall be allowed credit for such tax related to deliveries of electricity, the charges for which are written off as uncollectible, and provided further, that if such charges are thereafter collected, the delivering supplier shall be obligated to remit such tax. C. Persons delivering electricity shall collect from the purchaser by adding such tax to the gross charge for delivering the electricity. Persons delivering electricity shall also be authorized to add to such gross charge an amount equal to three percent (3 %) of the tax they collect to reimburse them for their expenses incurred in keeping records, billing customers, preparing and filling returns, remitting the tax and supplying data to the Village upon request. For purposes of this Chapter, any partial payment of a billing amount not specifically identified by the purchaser shall be deemed to be for the delivery of electricity. 3.66.040 Tax Remittance and Return. A. Every tax collector shall on a monthly basis file a return in a form prescribed by the Village Director of Finance. The return and accompanying remittance shall be due on or before the last day of the month following the month during which the tax is collected or is required to be collected under Section 3.66.030 of this Chapter. B. If the person delivering electricity fails to collect the tax from the purchaser or is excused from collecting the tax, under Section 3.66.080 of this Chapter, then the purchaser shall file a return in a form prescribed by the Village Director of Finance and pay the tax directly to the Village Treasurer on or before the last day of the month following the month during which the electricity is used or consumed. 3.66.050 Resales. A. Resale of Electricity: Electricity that is delivered to a person in the Village shall be considered to be for use and consumption by that person unless the person receiving the electricity has an active resale number issued by the Village Director of Finance and furnishes that number to the person who delivers the electricity, and certifies to that person that the sale is either entirely or partially nontaxable as a sale for resale. B. Resale Number: If a person who receives electricity in the Village claims to be an authorized reseller of electricity, that person shall apply to the Village Director of Finance for a resale number. The applicant shall state facts showing why it is not liable for the tax imposed by this Chapter on any purchases of electricity and shall furnish such additional information as the Director may reasonably require. C. Approval; Assignment: Upon approval of the application the Village Director of Finance shall assign a resale number to the applicant and shall certify the number to the applicant. D. Cancellation: The Village Director of Finance may cancel the resale number of any person if the person fails to pay any tax payable under this Chapter for electricity used or consumed by the parties, or if the number: (1) was obtained through misrepresentation, or (2) is no longer necessary because the person has discontinued making resales. E. Collection and Remittance: If a reseller has acquired electricity partly for use or consumption and partly for resale, the reseller shall pay the tax imposed by this Chapter directly to the Village Treasurer pursuant to Section 3.66.020.A. of this Chapter on the amount of electricity that the reseller uses or consumes, and shall collect the tax pursuant to Section 3.66.030 of this Chapter and remit the tax on the amount of electricity delivered by the reseller to a purchaser. 2. Any person who delivers electricity to a reseller having an active resale number and complying with all other conditions of this Chapter shall be excused from collecting and remitting the tax on any portion of the electricity delivered to the reseller, provided that the person reports to the Village Director of Finance the total amount of electricity delivered to the reseller, and such other information that the Director may reasonably require. 3.66.060 Books and Records. Every tax collector, and every taxpayer required to pay the tax imposed by this Chapter, shall keep accurate books and records of its business or activity, including contemporaneous books and records denoting the transactions that gave rise, or may have given rise, to any tax liability under this Chapter. The books and records shall be subject to and available for inspection by the Village at all times during business hours of the day. 3.66.070 Credits and Refunds. Notwithstanding any other provisions of this Chapter, in order to permit sound fiscal planning and budgeting by the Village, no person shall be entitled to a refund of, or credit for, a tax imposed under this Chapter unless the person files a claim for refund or credit within one year after the date on which the tax was paid or remitted with the Village Treasurer. 3.66.080 Exemptions. Notwithstanding any other provision of this Chapter, the tax shall not be imposed if and to the extent that imposition or collection of the tax would violate the constitution or statutes of the United States or the constitution of the State of Illinois. 3 66 090 Tax to be in Addition to Payment for Use of Streets, Alleys or Public Places. Any of the taxes enumerated in this Chapter may be in addition to the payment of money, or value of products or services furnished to the Village by the taxpayer as compensation for the use of its streets, alleys, or other public places, or installation and maintenance therein, thereon or there under of poles, wires, pipes or other equipment used in the operation of the taxpayer's business. Section 3. All ordinances or parts of ordinances thereof in conflict with this ordinance are hereby repealed to the extent of any such conflict. 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 15ih 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: 4 °• Brairian, Glovrar, Berrian, Tril-l_ _Ti NAYES: 2 — Stone, Sussman ABSENT: PASSED: December 21 4 2009 APPROVED: December 21 2009 PUBLISHED: December 22 12009 APPROVED: illage President ATTEST: V � 1 r l • y'"'�6'MA� lage Clerk STATE OF ILLINOIS) ss. COUNTY OF COOK ) CERTIFICATE 1, 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. 2009-10, AN ORDINANCE ADDING CHAPTER 3.66, MUNICIPAL ELECTRICITY 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 -90, 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. Villa erk By ORDINANCE 2009 - 90 AN ORDINANCE ADDING CHAPTER 3.66, MUNICIPAL ELECTRICITY 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 municipality pursuant to the Illinois Constitution of 1970; and WHEREAS, Section 8 -11 -2 of the Illinois Municipal Code (65 ILCS 5/8- 11 -2.3) authorizes the Village of Buffalo Grove to impose a utility tax on the privilege of using or consuming electricity within the corporate limits of the Village; 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 an electricity 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 3.66, Municipal Electricity Use Tax, to the Village of Buffalo Grove Municipal Code which is to read as follows: CHAPTER 3.66 MUNICIPAL ELECTRICITY USE TAX Section 3.66.0 10 Definitions Section 3.66.020 Tax Imposed Section 3.66.030 Collection of Tax by Public Utility Section 3.66.040 Tax Remittance and Return Section 3.66.050 Resales Section 3.66.060 Books and Records Section 3.66.070 Credits and Refunds Section 3.66.080 Exemptions Section 3.66.090 Tax to be in Addition to Payment for Use of Streets, Alleys or Public Places 3.66.0 10 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. "Person Maintaining a Place of Business in this State" means any person having or maintaining within this State, directly or by a subsidiary or other affiliate, an office, generation facility, distribution facility, transmission facility, sales office or other place of business, or any employee, agent, or other representative operating within this State under the authority of the person or its subsidiary or other affiliate, irrespective of whether such place of business or agent or other representative is located in this state permanently or temporarily, or whether such person, subsidiary or other affiliate is licensed or qualified to do business in this State. C. "Public Utility" means a public utility as defined in Section 3 -105 of the Public Utilities Act. D. "Public Utilities Act' means the Public Utilities Act as amended, (220 ILCS 511 -101 et sM.). E. "Purchaser" means any Person who uses or consumes, within the corporate limits of the Village, electricity acquired in a Purchase at Retail. F. "Purchase at Retail' means any acquisition of electricity by a purchaser for purposes of use or consumption, and not for resale, but shall not include the use of electricity by a public utility directly in the generation, production, transmission, delivery or sale of electricity. G. "Village" means the Village of Buffalo Grove, Illinois 3.66.020 Electricity Use Tax Kilowatt Hour Imposed, Amount: A. Pursuant to Section 8 -11 -2 of the Illinois Municipal Code (65 ILCS 5/8 -11 -2) and any and all other applicable authority, a tax is imposed upon the privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the Village at the following rates, calculated on a monthly basis for each purchaser: Kilowatt Hours Used or Consumed Cents per kilowatt- hour First 2,000 0.61 Next 48,000 0.40 Next 50,000 0.36 Next 400,000 0.35 Next 500,000 0.34 Next 2,000,000 0.32 Next 2,000,000 0.315 Next 5,000,000 0.31 Next 10,000,000 0.305 Excess of 20,000,000 0.30 B. The tax is in addition to all taxes, fees and other revenue measure imposed by the Village, the State of Illinois, or any other political subdivision of the State. C. Notwithstanding any other provision of this Chapter, the tax shall not be imposed if and to the extent that imposition or collection of the tax would violate the constitution of the United States, the Illinois statutes, or the constitution of the State of Illinois. The tax shall not apply to any school district or State of Illinois unit of local government lying either in whole or in part within the Village of Buffalo Grove. D. The tax shall be imposed with respect to the use or consumption of electricity by residential and nonresidential customers beginning with the first bill issued on or after February 1, 2010. 3.66.030 Collection of Tax by Public Utility. A. Subject to the provisions of Section 3.66.050 of this Chapter regarding the delivery of electricity to resellers, the tax imposed under this Chapter shall be collected from purchasers by the person maintaining a place of business in this State who delivers electricity to such purchasers. This tax shall constitute a debt of the purchaser and is recoverable at the same time and in the same manner as the original charge for delivering the electricity. B. Any tax required to be collected by this Chapter, and any tax in fact collected, shall constitute a debt owed to the Village by the person delivering the electricity, provided, that the person delivering electricity shall be allowed credit for such tax related to deliveries of electricity, the charges for which are written off as uncollectible, and provided further, that if such charges are thereafter collected, the delivering supplier shall be obligated to remit such tax. C. Persons delivering electricity shall collect from the purchaser by adding such tax to the gross charge for delivering the electricity. Persons delivering electricity shall also be authorized to add to such gross charge an amount equal to three percent (3 %) of the tax they collect to reimburse them for their expenses incurred in keeping records, billing customers, preparing and filling returns, remitting the tax and supplying data to the Village upon request. For purposes of this Chapter, any partial payment of a billing amount not specifically identified by the purchaser shall be deemed to be for the delivery of electricity. 3.66.040 Tax Remittance and Return. A. Every tax collector shall on a monthly basis file a return in a form prescribed by the Village Director of Finance. The return and accompanying remittance shall be due on or before the last day of the month following the month during which the tax is collected or is required to be collected under Section 3.66.030 of this Chapter. If the person delivering electricity fails to collect the tax from the purchaser or is excused from collecting the tax, under Section 3.66.080 of this Chapter, then the purchaser shall file a return in a form prescribed by the Village Director of Finance and pay the tax directly to the Village Treasurer on or before the last day of the month following the month during which the electricity is used or consumed. 3.66.050 Resales. A. Resale of Electricity: Electricity that is delivered to a person in the Village shall be considered to be for use and consumption by that person unless the person receiving the electricity has an active resale number issued by the Village Director of Finance and furnishes that number to the person who delivers the electricity, and certifies to that person that the sale is either entirely or partially nontaxable as a sale for resale. B. Resale Number: If a person who receives electricity in the Village claims to be an authorized reseller of electricity, that person shall apply to the Village Director of Finance for a resale number. The applicant shall state facts showing why it is not liable for the tax imposed by this Chapter on any purchases of electricity and shall furnish such additional information as the Director may reasonably require. C. Approval; Assignment: Upon approval of the application the Village Director of Finance shall assign a resale number to the applicant and shall certify the number to the applicant. D. Cancellation: The Village Director of Finance may cancel the resale number of any person if the person fails to pay any tax payable under this Chapter for electricity used or consumed by the parties, or if the number: (1) was obtained through misrepresentation, or (2) is no longer necessary because the person has discontinued making resales. E. Collection and Remittance: If a reseller has acquired electricity partly for use or consumption and partly for resale, the reseller shall pay the tax imposed by this Chapter directly to the Village Treasurer pursuant to Section 3.66.020.A. of this Chapter on the amount of electricity that the reseller uses or consumes, and shall collect the tax pursuant to Section 3.66.030 of this Chapter and remit the tax on the amount of electricity delivered by the reseller to a purchaser. 2. Any person who delivers electricity to a reseller having an active resale number and complying with all other conditions of this Chapter shall be excused from collecting and remitting the tax on any portion of the electricity delivered to the reseller, provided that the person reports to the Village Director of Finance the total amount of electricity delivered to the reseller, and such other information that the Director may reasonably require. 3.66.060 Books and Records. Every tax collector, and every taxpayer required to pay the tax imposed by this Chapter, shall keep accurate books and records of its business or activity, including contemporaneous books and records denoting the transactions that gave rise, or may have given rise, to any tax liability under this Chapter. The books and records shall be subject to and available for inspection by the Village at all times during business hours of the day. 3.66.070 Credits and Refunds. Notwithstanding any other provisions of this Chapter, in order to permit sound fiscal planning and budgeting by the Village, no person shall be entitled to a refund of, or credit for, a tax imposed under this Chapter unless the person files a claim for refund or credit within one year after the date on which the tax was paid or remitted with the Village Treasurer. 3.66.080 Exemptions. Notwithstanding any other provision of this Chapter, the tax shall not be imposed if and to the extent that imposition or collection of the tax would violate the constitution or statutes of the United States or the constitution of the State of Illinois. 3.66.090 Tax to be in Addition to Payment for Use of Streets, Alleys or Public Places. Any of the taxes enumerated in this Chapter may be in addition to the payment of money, or value of products or services furnished to the Village by the taxpayer as compensation for the use of its streets, alleys, or other public places, or installation and maintenance therein, thereon or there under of poles, wires, pipes or other equipment used in the operation of the taxpayer's business. Section 3. All ordinances or parts of ordinances thereof in conflict with this ordinance are hereby repealed to the extent of any such conflict. 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`x' 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: 4 - Braiman, Glover, Berman, Trilling, NAYES: 2 — Stone, Sus ABSENT: PASSED: December 21 _ ,2009 APPROVED: December 21 ,2009 PUBLISHED: December 22 , 2009 APPROVED: illage President ATTEST: V � IA. C-Wlage Clerk