ORDINANCE SERIES 1999
AN ORDINANCE AMENDING ORDINANCE 84-1 OF THE REVISED CODE OF THE VILLAGE OF KANSAS, ILLINOIS PROVIDING FOR A METHOD OF COLLECTING TAXES FOR THE PRIVILEGE OF USING ELECTRICITY BASED UPON KILOWATT HOUR USAGE OF INDIVIDUAL CUSTOMERS
WHEREAS, Public Act 90-561 adopted by the Illinois General Assembly amends
Section 8-11-2 of the Illinois Municipal Code requiring a change in municipal taxes on
electricity from a Gross Receipts Tax to a tax based on kilowatt hours of electricity usage
and consumption within the corporate limits of the Village of Kansas, and
WHEREAS, the Proportional Rate method of taxation should be adopted by the Village
of Kansas, Illinois.
NOW THEREFORE BE IT ORDAINED by the Board of Trustees of the Village of
Kansas, Illinois that Ordinance No. 84-1 (Article IV Section 36-4-1 et seq., Revised
Code) adopted by the Village of Kansas, Illinois on or about the 21st day of March, 1984
be amended as follows:
Section 1:TAX IMPOSED: A tax is imposed on all person engaged in the following occupations or privileges:
The privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the municipality at the
following rates, calculated on a monthly basis for each purchaser:
(A) For the first 2,000 kilowatt-hours used or consumed in a month; .201 per kilowatt-hour;
(B) For the next 48,000 kilowatt-hours used or consumed in a month; .132 kilowatt-hour;
(C) For the next 50,000 kilowatt-hours used or consumed in a month; .119 per kilowatt-hour;
(D) For the next 400,000 kilowatt-hours used or consumed in a month; .116 per kilowatt-hour;
(E) For the next 500,000 kilowatt-hours, used or consumed in a month; .112 per kilowatt-hour;
(F) For the next 2,000,000 kilowatt-hours, used or consumed in a month; .106 per kilowatt-hour;
(G) For the next 2,000,000 kilowatt-hours, used or consumed in a month; .104 per kilowatt-hour;
(H) For the next 5,000,000 kilowatt-hours, used or consumed in a month; .102 per kilowatt-hour;
(I) For the next 10,000,000 kilowatt-hours, used or consumed in a month; .101 per kilowatt-hour;
(J) For all electricity used or consumed in excess of 20,000,000 kilowatt-hours in a month; .099 per kilowatt-hour;
The tax rates set forth in the preceding table will be used at least through December 31, 2008, are proportional to the rates enumerated in 65 ILCS 5/8-11-2 (as modified by Public Act 90-561), and do not exceed the revenue that could have been collected during 1997 using the rates enumerated in 65 ILCS 5/8-11-2 (as modified by Public Act 90-561).
(B) Pursuant to 65 ILCS 5/8-11-2, the rates set forth in subsection (A) above shall be effective: (A) on August 1, 1999 for residential customers; and (B) on the earlier of (1) the last bill issued prior to December 31, 2000 or (2) the sate of the first bill issued pursuant to 220 ILCS 5/16-204, for nonresidential customers.
(C) Pursuant to 65 ILCS 5/8-11-2, Article IV, Section 36-4-1 et. Seq. of the Revised Code of Ordinances (commonly known as the Gross Receipts Utility Tax) shall specifically remain in effect: (A) for receipts attributable to residential customers, July 31, 1999; and (B) for receipts attributable to nonresidential customers, the earlier of (1) through the last bill issued prior to December 31, 2000, or (2) the date of the first bill issued to such nonresidential customer pursuant to 220 ILCS 5/16-104.
(D) The provisions of Section 1 shall not be effective until August 1, 1999.
Section 2 EXCEPTIONS. None of the taxes authorized by this Article may be imposed with respect to any transaction in interstate commerce or otherwise to the extent to which the business or privilege may no under the Constitution and statutes of the United States, be made the subject of taxation by the state or any political sub-division thereof; nor shall any persons engaged in the business of distributing, supplying, furnishing, or selling or transmitting gas, water or electricity, or engaged in the business of transmitting messages, or using or consuming electricity acquired in a purchase at retail, be subject to taxation under the provisions of this Article for those transactions that are or may become subject to taxation under the provisions of the Municipal Retailer’s Occupation Tax Act as authorized by 65 ILCS 5/8-11-1; nor shall any tax authorized by this Article be imposed upon any person engaged in a business or on any privilege unless the tax is imposed in like manner and at the same rate upon all persons engaged in businesses of the same class in the municipality, whether privately or municipally owned or operated, or exercising the same privilege within the municipality.
SECTION 3: ADDITIONAL TAXES. Such tax shall be in addition to the other taxes levied upon the taxpayer or its business.
SECTION 4: COLLECTION. The tax authorized by this Article shall be collected from the purchaser by the person maintaining a place of business in this State who delivers the electricity to the purchaser. This tax shall constitute a debt of the purchaser to the person who delivers the electricity to the purchaser and if unpaid, is recoverable in the same manner as the original charge for delivering the electricity. Any tax required to be collected pursuant to this Article and any such tax collected by a person delivering electricity shall constitute a debt owed to the municipality by such person delivering the electricity. Persons delivering electricity shall collect the tax 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 3% of the tax to reimburse the person delivering electricity for the expense incurred in keeping records, billing customers, preparing and filing returns, remitting the tax and supplying date to the municipality upon request. If the person delivering electricity fails to collect the tax from the purchaser, then the purchaser shall be required to pay the tax directly to the municipality in the manner prescribed by the municipality. On or before the last day of each month, person delivering electricity shall make a return to the Village of Kansas, Illinois for the preceding month and shall, at the time of filing such return, pay the municipality the amount of the tax collected pursuant to this Article.
SECTION 5 REPORTS TO MUNICIPALITY. On or before the last day of each month, each taxpayer who has not paid the tax imposed by this Article to a person delivering electricity as set for in the foregoing Sections and who is not otherwise exempted from paying such tax shall make a return to the Village Treasurer for the preceding month stating:
(A) His Name.
(B) His principal place of business.
(C) His gross receipts and/or kilowatt-hour usage during the month upon the basis of which the tax is imposed.
(D) Amount of Tax.
(E) Such other reasonable and related information as the corporate authorities may require.
The taxpayer making the return herein provided for shall, at the time of making such return, pay to the Village of Kansas, Illinois, the amount of tax herein imposed; provided that in connection with any return, the taxpayer may, if he so elects, report and pay an amount based upon his total billings of business subject to the tax during the period for which the return is made (exclusive of any amounts previously billed) with prompt adjustments of later payments based upon any differences between such billings and the taxable gross receipts.
SECTION 6: CREDIT FOR OVERPAYMENT. If it shall appear that an amount of tax has been paid which was not due under the provisions of this Article, whether as the result of a mistake of fact or an error of law, then such amount shall be credited against any tax due, or to become due, under this Article form the taxpayer who made the erroneous payment provided that no amounts erroneously paid more than three (3) years prior to the filing of a claim therefore shall be so credited.
No action to recover any amount of tax due under the provisions of this Article shall be commenced more than three (3) years after the due date of such amount.
SECTION 7: PENALTY. Any taxpayer who fails to make a return, or who makes a fraudulent return, or who willfully violates any other provision of this Article is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than One Hundred Dollars ($100) nor more than Two Hundred Dollars ($200) and in addition, shall be liable in a civil action for the amount of tax due. (Sec. 65 ILCS 5/8-11-2)
(A) In the event that Public Act 90-561 is declared unconstitutional, or if the Ordinance creating this Amendment is voided by court action, the provisions of Article IV, Section 36-4-1 et, seq, of the Revised Code or Ordinances (commonly know as the Gross Receipts Utility Tax) shall remain in effect in all respects as if it had never been amended by this Ordinance, and nay amount paid to the Village of Kansas by any person delivering electricity pursuant to this Amendatory Ordinance shall be deemed to have been paid pursuant to the Gross Receipts Utility Tax as it existed prior to the passage of this Amendatory Ordinance.
(B) The Village Clerk is authorized to publish this Ordinance as provided by law.
(C) This Ordinance shall become effective ten days after the date of its publication.
(D) Except as provided herein, Article IV, Section 36-4-1 et. Seq. of the Revised Code of Ordinances, as amended shall remain in full force and effect.
Betty Boyer moved for the passage and adoption of this Ordinance May 5, 1999.
Seconded by Ronald Baker.
Ordinance passed 05-05-1999.