Chapter 74
TAXATION*

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Cross references: Any ordinance or resolution promising or guaranteeing the payment of money for the village, or authorizing the issuance of any bonds of the village or any evidence of the village's indebtedness or any contract or obligation assumed by the village saved from repeal, 1-19(a)(2); any appropriation ordinance saved from repeal, 1-19(a)(5); any ordinance providing for local improvements and assessing taxes for such improvements saved from repeal, 1-19(a)(9); administration, ch. 2; finances, 2-441 et seq.; businesses, ch. 22.

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Article I. In General

Secs. 74-1 74-30. Reserved.

Article II. Home Rule Municipal Retailer's Occupation Tax

Sec. 74-31. Home Rule tax imposed.

Sec. 74-32. Report.

Sec. 74-33. Payment of tax.

Secs. 74-34 74-60. Reserved.

Article III. Home Rule Municipal Service Occupation Tax

Sec. 74-61. Home Rule tax imposed.

Sec. 74-62. Report.

Sec. 74-63. Payment of tax.

Secs. 74-64 74-90. Reserved.

Article IV. Home Rule Municipal Use Tax

Sec. 74-91. Tax imposed.

Sec. 74-92. Payment of tax.

Secs. 74-93 74-120. Reserved.

Article V. Foreign Fire Insurance Companies Tax

Sec. 74-121. Compliance required.

Sec. 74-122. Payment of fees.

Sec. 74-123. Report of agents.

Sec. 74-124. Collection of fees.

Sec. 74-125. Establishment of foreign fire insurance board.

Sec. 74-126. Establishment of foreign fire insurance fund.

Sec. 74-127. Transfers to foreign fire insurance fund.

Sec. 74-128. Administrative procedures.

Secs. 74-129 74-150. Reserved.

Article VI. Hotel or Motel Occupancy Tax

Sec. 74-151. Definitions.

Sec. 74-152. Tax imposed; liability for payment; additional to other taxes; collection.

Sec. 74-153. Responsibility of owner to keep daily records; right of village to inspect.

Sec. 74-154. Transmittal of tax revenue.

Sec. 74-155. Action to enforce payment.

Sec. 74-156. Disposition of proceeds from tax and fines.

Sec. 74-157. Penalties.

Secs. 74-158 74-176. Reserved.

Article VII. Resort Hotel Occupancy Tax

Sec. 74-177. Definitions.

Sec. 74-178. Tax imposed, liability for payment; additional to other taxes; collection.

Sec. 74-179. Responsibility of owner to keep daily records; right of village to inspect.

Sec. 74-180. Transmittal of tax revenue.

Sec. 74-181. Action to enforce payment.

Sec. 74-182. Disposition of proceeds from tax and fines.

Sec. 74-183. Penalties.

Secs. 78-184 74-199. Reserved.

Article VIII. Food and Beverage Tax

Sec. 74-200. Food and beverage tax.

Sec. 74-201. Definitions.

Sec. 74-202. Tax imposed.

Sec. 74-203. Collection of tax by retailer.

Sec. 74-204. Responsibility of owner to keep daily records; right of village to inspect.

Sec. 74-205. Transmittal of tax collection.

Sec. 74-206. Transmittal of excess tax collections.

Sec. 74-207. Late payment fee.

Sec. 74-208. Action to enforce payment.

Sec. 74-209. Penalties.

Sec. 74-210. Confidentiality.

Secs. 74-211 74-249. Reserved.

Article IX. Simplified Municipal Telecommunications Tax

Sec. 74-250. Definitions.

Sec. 74-251. Simplified municipal telecommunications tax imposed.

Sec. 74-252. Collection of tax by retailers.

Sec. 74-253. Returns to department.

Sec. 74-254. Resellers.

Sec. 74-255. Severability.

ARTICLE I.
IN GENERAL

Secs. 74-1 74-30. Reserved.

ARTICLE II.
HOME RULE MUNICIPAL RETAILER'S OCCUPATION TAX

Sec. 74-31. Home Rule tax imposed.

A tax is hereby imposed upon all persons engaged in the business of selling tangible personal property, other than an item of tangible personal property titled or registered with an agency of this state's government, at retail in this municipality at the rate of one-half of one percent of the gross receipts from such sales made in the course of business while this section is in effect, in accordance with the provisions of section 8-11-1 of the Illinois Municipal Code (65 ILCS 5/8-11-1).

Such "Home Rule Municipal Retailers' Occupation Tax" shall not be applicable to the sales of food for human consumption which is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics.

(Code 1977, 34.01(a)); Ord. No. 2000-114, 1(34.01(d)), 9-18-00)

Sec. 74-32. Report.

Every such person engaged in such business in the village shall file on or before the last day of each calendar month the report to the state department of revenue required by Section 3 of An Act in Relation to a Tax Upon Persons Engaged in the Business of Selling Tangible Personal Property to Purchasers for Use or Consumption, (35 ILCS 120/3) approved June 28, 1933, as amended.

(Code 1977, 34.01(b))

Sec. 74-33. Payment of tax.

The department of revenue shall have full power to administer and enforce the provisions of this section, including all civil penalties assessed as an incident to the tax imposed.

(Code 1977, 34.01(c); Ord. No. 2000-114, 1(34.01(e)), 9-18-00)

Secs. 74-34 74-60. Reserved.

ARTICLE III.
HOME RULE MUNICIPAL SERVICE OCCUPATION TAX

Sec. 74-61. Home Rule tax imposed.

A tax is hereby imposed upon all persons engaged in this municipality in the business of making sales of service, at the rate of one-half of one percent of the selling price of all tangible personal property transferred by such serviceman as an incident to a sale of service, in accordance with the provisions of section 8-11-5 of the Illinois Municipal Code (65 ILCS 5/8-11-5).

Such "Home Rule Municipal Service Occupation Tax" shall not be applicable to the sales of food for human consumption which is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics.

(Code 1977, 34.02(a); Ord. No. 2000-114, 1(34.02(d)), 9-18-00)

Sec. 74-62. Report.

Every supplier or serviceman required to account for the municipal service occupation tax for the benefit of the village shall file, on or before the last day of each calendar month, the report to the state department of revenue required by section nine of the Service Occupation Tax Act. (35 ILCS 115/9) approved July 10, 1961, as amended.

(Code 1977, 34.02(b))

Sec. 74-63. Payment of tax.

The department of revenue shall have full power to administer and enforce the provisions of this section, including all civil penalties assessed as an incident to the tax imposed.

(Code 1977, 34.02(c); Ord. No. 2000-114, 1(34.02(e)), 9-18-00))

Secs. 74-64 74-90. Reserved.

ARTICLE IV.
HOME RULE MUNICIPAL USE TAX

Sec. 74-91. Tax imposed.

A tax is hereby imposed in accordance with the provisions of section 8-11-6 of the Illinois Municipal Code, 65 ILCS 5/8-11-6, upon the privilege of using in the village any item of tangible personal property which is purchased outside the state at retail from a retailer, and which is titled or registered with an agency of state government. The tax shall be at a rate of one percent of the selling price of such tangible property with selling price to have the meaning as defined in the Use Tax Act, approved July 14, 1955.

(Code 1977, 34.03(a))

Sec. 74-92. Payment of tax.

Such tax shall be collected by the state department of revenue for all municipalities imposing the tax and shall be paid before the title or certificate of registration for the personal property is issued.

(Code 1977, 34.03(b))

Secs. 74-93 74-120. Reserved.

ARTICLE V.
FOREIGN FIRE INSURANCE COMPANIES TAX*

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State law references: Foreign fire insurance companies, 65 ILCS 5/11-10-1.

Editor's note: Ord. No. 2001-09, 2(Ch. 36(a) (i), adopted Jan. 22, 2001, repealed former art. V, 74-121 74-126, in its entirety and enacted new provisions to read as herein set out. Prior to amendment 74-121 74-126 pertained to similar subject matter and derived from the 1977 Code 36.01(a) (f).

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Sec. 74-121. Compliance required.

It shall be unlawful for any company, corporation or association not incorporated under the laws of the State of Illinois to engage in effecting fire insurance, or to transact any business of fire insurance, in the village except in full compliance with all of the requirements of sections 74-121 74-124 of this article. Nothing in this section shall be construed or applied, however, to relieve any company, corporation or association from the payment of any loss upon any risk that may be taken in violation of this section.

(Ord. No. 2001-09, 2(Ch. 36(a), 1-22-01)

Sec. 74-122. Payment of fees.

Every company, corporation or association not incorporated under the laws of the State of Illinois that is engaged in effecting fire insurance in the village shall pay, for the maintenance, use and benefit of the fire department of the village, a sum of money equal in amount to two percent per annum of the gross receipts received from fire insurance upon property that is situated in the village. Each such company, corporation or association shall pay, at the rate so prescribed, upon the amount of all premiums that have been received during each year ending on July 1, for any fire insurance effected or agreed to be effected on property located within the village by or with such company, corporation or association during the year.

(Ord. No. 2001-09, 2(Ch. 36(b), 1-22-01)

Sec. 74-123. Report of agents.

Every person acting in the village as agent, or otherwise, for or on behalf of any such company, corporation or association shall, on or before July 15 of each year, render a full and true account, verified by his or her oath, of all premiums upon fire insurance on property located within the village that, during the year ending July 1 preceding such report, shall have been received by him or her, or by any other person for him or her on behalf of any such company, corporation or association. Such agent also shall, at the time of rendering the report, pay the sum of money for which the company, corporation or association represented by him or her is chargeable by virtue of the provisions of this section.

(Ord. No. 2001-09, 2(Ch. 36(c), 1-22-01)

Sec. 74-124. Collection of fees.

The sum of money for which such company, corporation or association effecting fire insurance is chargeable may be recovered from it, or from its agent or agents, by an action in the name of and for the use of the village as for money had and received. Nothing in this section shall be held to exempt any person from indictment and conviction under the provisions of section 11-10-3 of the Illinois Municipal Code.

(Ord. No. 2001-09, 2(Ch. 36(d), 1-22-2001)

Sec. 74-125. Establishment of foreign fire insurance board.

The creation and operation of the foreign fire insurance board shall be governed by 65 ILCS 5/11-10-2.

(Ord. No. 2001-09, 2(Ch. 36(e), 1-22-2001; Ord. No. 2010-14, I, 3-1-2010)

Sec. 74-126. Establishment of foreign fire insurance fund.

There is hereby established a foreign fire insurance fund to be managed and administered by the foreign fire insurance board.

(Ord. No. 2001-09, 2(Ch. 36(f), 1-22-2001; Ord. No. 2010-14, I, 3-1-2010)

Sec. 74-127. Transfers to foreign fire insurance fund.

Each year, the treasurer of the foreign fire insurance board shall collect and receive foreign fire insurance fees in the amount prescribed in section 74-122 of this article above and shall deposit such fees into the foreign fire insurance fund.

(Ord. No. 2001-09, 2(Ch. 36(g), 1-22-2001; Ord. No. 2010-14, I, 3-1-2010)

Sec. 74-128. Administrative procedures.

(a) The foreign fire insurance board shall make all needful rules and regulations with respect to the foreign fire insurance fund pursuant to state statute and the administrative procedures established for the board.

(b) The treasurer shall provide a bond to the village in a sufficient amount as determined by the village president; and the village president shall approve such bond, conditioned upon the faithful performance by the treasurer of the treasurer's duties under this article and under the rules and regulations promulgated in accordance with 65 ILCS 5/11-10-2.

(c) The foreign insurance fund shall be audited as a part of the annual municipal audit to verify that expenditures from the fund are for the maintenance, use and benefit of the fire department.

(Ord. No. 2010-14, I, 3-1-2010)

Editor's note: Sec. I of Ord. No. 2010-14, adopted Mar. 1, 2010, repealed 74-128, 74-129, which pertained to election, powers, duties of foreign fire insurance board; and management and administration of fund, respectively, and enacted new provisions to read as herein set out. Former 74-128, 74-129 derived from Ord. No. 2001-09, adopted Jan. 22, 2001.

Secs. 74-129 74-150. Reserved.

ARTICLE VI.
HOTEL OR MOTEL OCCUPANCY TAX*

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Cross references: Businesses, ch. 22.

State law references: Tax not preempted, 65 ILCS 5/8-11-6a(3).

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Sec. 74-151. Definitions.

The following words, terms and phrases when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Hotel room or motel room means a room within a structure offered for rental on a daily basis and containing facilities for sleeping. One room offered for rental with or without an adjoining bath shall be considered as a single hotel or motel room. The number of hotel or motel rooms within a suite shall be computed on the basis of those rooms utilized for the purpose of sleeping.

Owner means any person having an ownership interest in or conducting the operation of a hotel or motel room or receiving the consideration for the rental of such hotel or motel room.

Person means any natural person, trustee, court-appointed representative, syndicate, association, partnership, firm, club, company, corporation, business, trust, institution, agency, government corporation, municipal corporation, district or other political subdivision, contractor, supplier, vendor, vendee, operator, user or owner, or any officers, agents, employees or other representatives, acting either for himself or for any other person in any capacity, or any other entity recognized by law as the subject of rights and duties. The masculine, feminine, singular or plural is included in any circumstances.

(Code 1977, 38.01)

Cross references: Definitions generally, 1-2.

Sec. 74-152. Tax imposed; liability for payment; additional to other taxes; collection.

(a) There is hereby levied and imposed a tax of five percent of the rent charged for the privilege and use of renting a hotel or motel room within the village for each 24-hour period or any portion thereof for which a daily room charge is made; provided, however, that the tax shall not be levied and imposed upon any person who rents a hotel or motel room for more than 30 consecutive days or to a person who works and lives in the same hotel or motel.

(b) The ultimate incidence of any liability for payment of such tax is to be borne by the person who seeks the privilege of occupying the hotel or motel room, such person is referred to in this article as "renter."

(c) The tax levied in this article shall be paid in addition to any and all other taxes and charges. It shall be the duty of the owner of every hotel or motel to secure such tax from the renter of the hotel or motel room and to pay over to the village clerk such tax under procedures prescribed by the village clerk, or as otherwise provided in this article.

(d) Every person required to collect the tax levied by this article shall secure such tax from the renter at the time he collects the rental payment for the hotel or motel room. Upon the invoice receipt or other receipt or other statement or memorandum of the rent given to the renter at the time of payment, the amount due under the tax provided in this article shall be stated separately on such documents.

(Code 1977, 38.02)

Sec. 74-153. Responsibility of owner to keep daily records; right of village to inspect.

(a) It shall be the duty of every owner to keep accurate and complete books and records to which the village clerk, or his deputy or representative, authorized by him, shall at all times have full access, which records shall include a daily sheet showing:

(1) The number of hotel or motel rooms rented during the 24-hour period, including multiple rentals of the same hotel room where such shall occur; and

(2) The actual hotel or motel tax receipts collected for the date in question.

(b) The village clerk, or any person certified by him as his deputy or representative, may enter the premises of any hotel or motel for inspection and examination of books and records in order to effectuate the proper administration of this article and to assure the enforcement of the collection of the tax imposed. It shall be unlawful for any person to prevent, hinder or interfere with the village clerk or his duly authorized deputy or representative in the discharge of his duties in the performance of this article.

(Code 1977, 38.03)

Sec. 74-154. Transmittal of tax revenue.

(a) The owner or owners of each hotel or motel room within the village shall file tax returns showing tax receipts received with respect to each hotel and motel room during each month upon forms prescribed by the village clerk. The returns shall be due on or before the 20th day of the succeeding calendar month and the return shall indicate for what period the return is to be filed; i.e. return for January receipts is due on or before the 20th day of February. At the time of filing such tax returns, the owner shall pay to the village clerk all taxes due for the period for which the tax return applies.

(b) If for any reason any tax is not paid when due, a penalty at the rate of one percent per month on the amount of the unpaid tax which remains unpaid shall be added and collected.

(c) Except as provided in this section, all information received by the village clerk from returns filed under this article or from any investigation conducted under the provisions of this article, shall be confidential, except for official purposes with the accounts and finance department or pursuant to official procedures for collection of any state tax or enforcement of any civil or criminal penalty or sanction imposed by this article. Nothing contained in this article shall prevent the village clerk from publishing or making available to the public the names and addresses of persons filing returns under this article and the number of rooms covered in such return, or from publishing or making available reasonable statistics concerning the operation of the tax wherein the contents of returns are grouped into aggregates in such a way that the information contained in any individual return shall not be disclosed. The village clerk may make available to the Secretary of the Treasury of the United States, or a proper official of the state or a delegate of any other state imposing a tax upon a motel or hotel room, for exclusively official purposes, information received by the village clerk in the administration of this article.

(Code 1977, 38.04)

Sec. 74-155. Action to enforce payment.

Whenever any person shall fail to pay any tax as provided in this article, the village attorney shall, upon the request of the village clerk, bring or cause to be brought an action to enforce the payment of such tax in behalf of the village in any court of competent jurisdiction.

(Code 1977, 38.05)

Sec. 74-156. Disposition of proceeds from tax and fines.

(a) Two percent of the gross tax revenue collected shall be appropriated for and directed for promotion of tourism and conventions within the village or otherwise to attract nonresidents and overnight visitors to the village, and the village may by special agreement transfer such two percent to a convention or visitor's bureau on an annual basis.

(b) All of the remaining proceeds resulting from the imposition of the tax under this article, including penalties, shall be paid into the treasury of the village.

(Code 1977, 38.06)

Sec. 74-157. Penalties.

(a) Any person found guilty of violating, disobeying, omitting, neglecting or refusing to comply with, or resisting or opposing the enforcement of any of the provisions of this article, except when otherwise specifically provided, upon conviction thereof shall be punished by a fine of not less than $200.00 nor more than as provided in section 1-11 for the first offense and not less than as $300.00 nor more than provided in section 1-11 for the second and each subsequent offense in any 180-day period; provided, however, that all actions seeking the imposition of fines only shall be filed as quasi-criminal actions subject to the provisions of the state code of civil procedure.

(b) Repeated offenses in excess of three within any 180-day period may also be punishable as a misdemeanor by incarceration in the county jail for a term not to exceed six months under the procedure set forth in section 1-2-1.1 of the Illinois Municipal Code (65 ILCS 5/1-2-1.1) and under the provisions of the Illinois Code of Criminal Procedure (725 ILCS 5/100-1 et seq.) in a separate proceeding, A separate and distinct offense shall be regarded as committed each day upon which such person shall continue any such violation, or permit any such violation to exist after notification thereof.

(Code 1977, 38.07)

Secs. 74-158 74-176. Reserved.

ARTICLE VII.
RESORT HOTEL OCCUPANCY TAX

Sec. 74-177. Definitions.

The following words, terms and phrases when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Owner means any person having an ownership interest in or conducting the operation of a resort hotel room or receiving the consideration for the rental of such resort hotel room.

Person means any natural person, trustee, court-appointed representative, syndicate, association, partnership, firm, club, company, corporation, business, trust, institution, agency, government corporation, municipal corporation, district or other political subdivision, contractor, supplier, vendor, vendee, operator, user or owner, or any officers, agents, employees or other representatives, acting either for himself or for any person in any capacity, or any other entity recognized by law as the subject of rights and duties. The masculine, feminine, singular or plural is included in any circumstances.

Rent or rental means a transaction where under the person who owns or controls the resort hotel room permits another person to have the occupancy or use thereof for a consideration and for the duration of a definite or indefinite period of time without transfer of the title to such resort hotel room.

Resort hotel means a full-service hotel with at least the following characteristics:

(a) 300 rooms;

(b) 4,000 gross square feet of spa and fitness facilities;

(c) One full-service restaurant; and

(d) An accessory recreational or entertainment amenity such as but not limited to a water park, theater, or golf course.

Resort hotel room means a room within a resort hotel structure offered for rental on a daily basis and containing facilities for sleeping. One room offered for rental with or without an adjoining bath shall be considered as a single hotel room. The number of hotel rooms within a suite shall be computed on the basis of those rooms utilized for the purposes of sleeping.

(Ord. No. 2004-104, I, 12-20-2004)

Sec. 74-178. Tax imposed, liability for payment; additional to other taxes; collection.

(a) There is hereby levied and imposed a tax of two percent of the rent charged for the privilege of renting a resort hotel room, where such rent may or may not include the cost of use of the principal recreational or entertainment amenity, within the village for each 24-hour period or any portion thereof for which a daily room charge is made.

(b) The ultimate incidence of any liability for any payment of such tax is to be borne by the person who seeks the privilege of renting the resort hotel room, such person is referred to in this article as "renter."

(c) The tax levied in this article shall be paid in addition to any and all other taxes and charges including, but not limited to, the hotel or motel occupancy tax under section 74-151 et seq. of the village Municipal Code. It shall be the duty of the owner of every resort hotel to secure such tax from the renter of the resort hotel room and to pay over to the village clerk such tax under procedures prescribed by the village clerk, or as otherwise provided in this article.

(d) Every person required to collect the tax levied by this article shall secure such tax from the renter at the time he collects the rental payment for the resort hotel room. Upon the invoice receipt or other receipt or other statement or memorandum of the rent given to the renter at the time of payment, the amount due under the tax provided in this article shall be stated separately on such documents.

(Ord. No. 2004-104, I, 12-20-2004)

Sec. 74-179. Responsibility of owner to keep daily records; right of village to inspect.

(a) It shall be the duty of every owner to keep accurate and complete books and records to which the village clerk, or his deputy or representative, authorized by him, shall at all times have full access, which records shall include a daily sheet showing:

(1) The number of resort hotel rooms rented during the 24-hour period, including multiple rentals of the same resort hotel room where such shall occur; and

(2) The actual resort hotel tax receipts collected for the date in question.

(b) The village clerk, or any person certified by him as his deputy or representative, may enter the premises of any resort hotel for inspection and examination of books and records in order to effectuate the proper administration of this article and to assure the enforcement of the collection of the tax imposed. It shall be unlawful for any person to prevent, hinder or interfere with the village clerk or his duly authorized deputy or representative in the discharge of his duties in the performance of this article.

(Ord. No. 2004-104, I, 12-20-2004)

Sec. 74-180. Transmittal of tax revenue.

(a) The owner or owners of each resort hotel room within the village shall file tax returns showing tax receipts received with respect to each resort hotel room during each month upon forms prescribed by the village clerk. Each return shall be accompanied by a certification in a form reasonably acceptable to the village administrator and executed by a duly authorized official of the entity remitting the return which attests to the accuracy and completeness of the return. The returns shall be due on or before the 20th day of the succeeding calendar month and the return shall indicate for what period the return is to be filed; i.e., return for January receipts is due on or before the 20th day of February. At the time of filing such tax returns, the owner shall pay to the village clerk all taxes due for the period for which the tax return applies.

(b) If for any reason any tax is not paid when due, a penalty at the rate of one percent per month on the amount of the unpaid tax which remains unpaid shall be added and collected.

(c) Except as provided in this section, all information received by the village clerk from returns filed under this article or from any investigation conducted under the provisions of this article, shall be confidential, except for official purposes with the accounts and finance department or any state tax or enforcement of any civil or criminal penalty or sanction imposed by this article. Nothing contained in this article shall prevent the village clerk from publishing or making available to the public the names and addresses of persons filing returns under this article and the number of rooms covered in such return. The village clerk may make available to the Secretary of the Treasury of the United States, or a proper official of the state or a delegate of any other state imposing a tax upon a resort hotel room, for exclusively official purposes, information received by the village clerk in the administration of this article.

(Ord. No. 2004-104, I, 12-20-2004)

Sec. 74-181. Action to enforce payment.

Whenever any person shall fail to pay any tax as provided in this article, the village attorney shall, upon the request of the village clerk, bring or cause to be brought an action to enforce the payment of such tax in behalf of the village in any court of competent jurisdiction.

(Ord. No. 2004-104, I, 12-20-2004)

Sec. 74-182. Disposition of proceeds from tax and fines.

All of the proceeds resulting from the imposition of the tax under this article, including penalties, shall be paid to the treasury of the village.

(Ord. No. 2004-104, I, 12-20-2004)

Sec. 74-183. Penalties.

(a) Any person found guilty of violating, disobeying, omitting, neglecting or refusing to comply with any of the provisions of this article, except when otherwise specifically provided, upon conviction thereof shall be punished by a fine of not less than $200.00 nor more than as provided in section 1-11 for the first offense and not less than as $300.00 nor more than provided in section 1-11 for the second and each subsequent offense in any 180-day period; provided, however, that all actions seeking the imposition of fines only shall be filed as quasi-criminal actions subject to the provisions of the state code of civil procedure.

(b) Repeated offenses in excess of three within any 180-day period may also be punishable as a misdemeanor by incarceration in the county jail for a term not to exceed six months under the procedure set forth in section 1-2-1.1 of the Illinois Municipal Code (65 ILCS 5/1-2-1.1) and under the provisions of the Illinois Code of Criminal Procedure (725 ILCS 5/100-1 et seq.) in a separate proceeding. A separate and distinct offense shall be regarded as committed each day upon which such person shall continue any such violation, or permit any such violation to exist after notification thereof.

(Ord. No. 2004-104, I, 12-20-2004)

Secs. 74-184 74-199. Reserved.

ARTICLE VIII.
FOOD AND BEVERAGE TAX

Sec. 74-200. Food and beverage tax.

A tax shall be imposed on the sale at retail of prepared food and alcoholic liquor which is sold in the village. The tax imposed in this article shall be known and cited as the "Food and Beverage Tax".

(Ord. No. 2006-40, I, 5-15-2006)

Sec. 74-201. Definitions.

For the purposes of this article, unless the context otherwise requires, the following words or terms shall have the meanings respectively applied to them:

(a) Prepared food:

(1) "Prepared food" means and includes any solid, liquid (including both alcoholic and nonalcoholic liquid), powder or item used or intended to be used for human internal consumption, whether simple, compound or mixed, and which has been prepared for immediate consumption.

(2) "Prepared food" includes any such item purchased for consumption within or upon the premises where it is sold or where such item may be purchased for consumption off the premises. However, with respect to food purchased for consumption off the premises where it is sold, "prepared food" does not mean or include any food which is sold in a sealed bottle, can, carton, or container of the manufacturer or wholesaler or which has not been prepared for immediate consumption.

(3) "Prepared food" shall not include any sale or purchase of undispensed soft drinks, meaning any complete, finished, ready-to-use, nonalcoholic drink, whether carbonated or not, including but not limited to soda water, cola, fruit juice, vegetable juice, carbonated water, and all other preparations commonly known as soft drinks of whatever kind or description that are contained in any closed or sealed bottle, can, carton or container, regardless of size. Soft drinks as defined herein do not include coffee, tea, noncarbonated water, milk or milk products as defined in the Grade A Pasteurized Milk and Milk Products Act, or drinks containing 50 percent or more natural fruit or vegetable juice.

(b) Alcoholic liquor means any alcohol, spirits, wine, beer, or ale as defined, set forth and regulated in chapter 6 of this Code, which is sold at retail either for consumption on the premises where sold or is sold in its original package for consumption off the premises.

(c) Alcoholic liquor facility means any establishment licensed under the provisions of chapter 6, Alcoholic beverages, of this Code and that sells alcoholic liquor on a retail basis.

(d) Person means any individual, firm, corporation, limited liability company or similar representative or entity.

(e) Purchase at retail means to obtain for use or consumption in exchange for consideration, whether in the form of money, credits, barter or in any other nature, and not for resale.

(f) Retailer means a person as defined herein that sells or offers for sale prepared food in/or alcoholic liquor for use or consumption and not for resale.

(g) Prepared food facility:

(1) "Prepared food facility" means any person or establishment which sells at retail, food prepared for immediate consumption and whether or not such prepared food facility use is conducted along with any other use(s) in a common premises or business establishment.

(2) A "prepared food facility" includes, but is not limited to, those persons or establishments, commonly called an inn, restaurant, eating place, drive-in restaurant, bakery, buffet, cafeteria, cafe, lunch-counter, fast food outlet, catering service, coffee shop, diner, sandwich shop, service station mini market; soda fountain, tavern, bar, cocktail lounge, soft drink parlor, ice cream parlor, tea room, delicatessen, movie theater, mobile food or beverage or ice cream vehicle, hotel, motel or club, or other establishment which sells at retail, food which has been prepared for immediate consumption.

(3) A "prepared food facility" does not include coin operated automatic food item dispensing machines, churches, public or private schools, boarding houses, hospitals, day care centers, nursing homes, retirement centers or similar residential care facilities or programs for the central preparation of meals to be delivered and consumed at private residences of invalids or the elderly, and other facilities of not-for-profit associations or corporations.

(Ord. No. 2006-40, I, 5-15-2006)

Sec 74-202. Tax imposed.

Effective as of and commencing on the July 1, 2006, a tax, in addition to any and all other taxes, is imposed upon the purchase of prepared foods and alcoholic liquor at retail at any prepared food facility or alcoholic liquor facility within the village at a rate of one percent of the purchase price of such prepared foods and alcoholic liquor. The liability for payment of the tax shall be borne by the purchaser.

(Ord. No. 2006-40, I, 5-15-2006)

Sec 74-203. Collection of tax by retailer.

The owner and the operator of each prepared food facility and each alcoholic liquor facility within the village shall jointly and severally have the duty to collect and account for said tax from each purchaser at the time that the consideration for such purchase is paid.

(Ord. No. 2006-40, I, 5-15-2006)

Sec 74-204. Responsibility of owner to keep daily records; right of village to inspect.

The owner and operator of each prepared food facility and each alcoholic liquor facility within the village shall jointly and severally have the duty to maintain complete and accurate books, records and accounts showing the gross receipts for sales of prepared food and alcoholic liquor and the taxes collected each day, which shall be made available to the village for examination and for audit by the village upon reasonable notice and during customary business hours.

(Ord. No. 2006-40, I, 5-15-2006)

Sec 74-205. Transmittal of tax collection.

Each prepared food facility and alcoholic liquor facility within the village shall jointly and severally have the duty to cause to be filed a sworn return with the village clerk for each such facility for each such licensed premises located in the village. Said return shall be prepared and submitted in forms prescribed by the village. Said returns shall be filed with the village by the 20th day of the succeeding calendar month. Said return shall also be accompanied by payment to the village of all taxes imposed by this article which are due and owing for the period covered by the return. The return shall also be accompanied with a copy of the return filed with the Illinois Department of Revenue for sales within the Village of Gurnee covering the same reporting period.

(Ord. No. 2006-40, I, 5-15-2006)

Sec 74-206. Transmittal of excess tax collections.

If any person collects an amount in excess of the tax imposed by this article, but which amount is purported to be a collection thereof, and does not return the same to the purchaser who paid the tax, the person who collected the tax shall account for and pay over those excess amounts to the village along with the tax properly collected.

(Ord. No. 2006-40, I, 5-15-2006)

Sec 74-207. Late payment fee.

If any tax imposed by this article is not paid when due, a late payment penalty equal to five percent of the unpaid tax shall be added for each month, or any portion thereof, that such tax remains unpaid, and the total of such late payment shall be paid along with the tax imposed by this article.

(Ord. No. 2006-40, I, 5-15-2006)

Sec. 74-208. Action to enforce payment.

Whenever any person shall fail to pay any tax as provided in this article, the village attorney shall, upon request of the village clerk, bring or cause to be brought an action to enforce the payment of such tax on behalf of the village in any court of competent jurisdiction.

(Ord. No. 2006-40, I, 5-15-2006)

Sec. 74-209. Penalties.

(a) Any person found guilty of violating, disobeying, omitting, neglecting, failing to submit a correct tax return by the return date or refusing to comply with any of the provisions of this article, except when otherwise specifically provided, upon conviction thereof shall be punished by a fine of not less than $200.00 nor more than as provided in section 1-11 of this Code for the first offense and not less than $300.00 nor more than as provided in section 1-11 of this Code for the second and each subsequent offense in any 180-day period; however, that all actions seeking the imposition of fines only shall be filed as quasi-criminal actions subject to the provisions of the Illinois Code of Civil Procedure.

(b) Repeated offenses in excess of three within any 180-day period may also be punishable as a misdemeanor by incarceration in the county jail for a term not to exceed six months under the procedure set forth in Section 1-2-1.1 of the Illinois Municipal Code (65 ILCS 5/1-2-1.1) and under the provisions of the Illinois Code of Criminal Procedure (725 ILCS 5/100-1 et seq.) in a separate proceeding. A separate and distinct offense shall be regarded as committed each day upon which such person shall continue any such violation, or permit any such violation to exist after notification thereof.

(c) Failure to comply with any provision of this article can result in the suspension, revocation, or refusal to renew alcoholic liquor licenses as defined in chapter 6 of this Code.

(Ord. No. 2006-40, I, 5-15-2006)

Sec. 74-210. Confidentiality.

All information received by the village from returns filed pursuant to this article or from any investigations conducted pursuant to this article, except for official village purposes, or as required by the Freedom of Information Act, shall be confidential.

(Ord. No. 2006-40, I, 5-15-2006)

Secs. 74-211 74-249. Reserved.

ARTICLE IX.
SIMPLIFIED MUNICIPAL TELECOMMUNICATIONS TAX

Sec. 74-250. Definitions.

As used in this article, the following terms shall have the following meanings:

Amount paid means the amount charged to the taxpayer's service address in this municipality regardless of where such amount is billed or paid.

Department means the Illinois Department of Revenue.

Gross charge means the amount paid for the act or privilege of originating or receiving telecommunications in this municipality and for all services and equipment provided in connection therewith by a retailer, valued in money whether paid in money or otherwise, including cash, credits, services and property of every kind or nature, and shall be determined without any deduction on account of the cost of such telecommunications, the cost of the materials used, labor or service costs or any other expense whatsoever. In case credit is extended, the amount thereof shall be included only as and when paid. "Gross charges" for private line service shall include charges imposed at each channel termination point within this municipality and charges for the portion of the inter-office channels provided within this municipality. Charges for that portion of the inter-office channel connecting two or more channel termination points, one or more of which is located within the jurisdictional boundary of this municipality, shall be determined by the retailer by multiplying an amount equal to the total charge for the inter-office channel by a fraction, the numerator of which is the number of channel termination points that are located within the jurisdictional boundary of the municipality and the denominator of which is the total number of channel termination points connected by the inter-office channel. However, "gross charge" shall not include any of the following:

(1) Any amounts added to a purchaser's bill because of a charge made pursuant to: (i) the tax imposed by this article , (ii) the tax imposed by the Telecommunications Excise Tax Act (35 ILCS 630/1), (iii) the tax imposed by Section 4251 of the Internal Revenue Code, (iv) 911 surcharges, or (v) charges added to customers' bills pursuant to the provisions of Section 9-221 or 9-222 of the Public Utilities Act, as amended, or any similar charges added to customers' bills by retailers who are not subject to rate regulation by the Illinois Commerce Commission for the purpose of recovering any of the tax liabilities or other amounts specified in those provisions of the Public Utilities Act;

(2) Charges for a sent collect telecommunication received outside of such municipality;

(3) Charges for leased time on equipment or charges for the storage of data or information for subsequent retrieval or the processing of data or information intended to change its form or content. Such equipment includes, but is not limited to, the use of calculators, computers, data processing equipment, tabulating equipment or accounting equipment and also includes the usage of computers under a time-sharing agreement;

(4) Charges for customer equipment, including such equipment that is leased or rented by the customer from any source, wherein such charges are disaggregated and separately identified from other charges;

(5) Charges to business enterprises certified as exempt under Section 9-222.1 of the Public Utilities Act (220 ILCS 5/9-222.1) to the extent of such exemption and during the period of time specified by the Department of Commerce and Economic Opportunity;

(6) Charges for telecommunications and all services and equipment provided in connection therewith between a parent corporation and its wholly owned subsidiaries or between wholly owned subsidiaries when the tax imposed under this article has already been paid to a retailer and only to the extent that the charges between the parent corporation and wholly owned subsidiaries or between wholly owned subsidiaries represent expense allocation between the corporations and not the generation of profit for the corporation rendering such service;

(7) Bad debts ("bad debt" means any portion of a debt that is related to a sale at retail for which gross charges are not otherwise deductible or excludable that has become worthless or uncollectible, as determined under applicable federal income tax standards; if the portion of the debt deemed to be bad is subsequently paid, the retailer shall report and pay the tax on that portion during the reporting period in which the payment is made);

(8) Charges paid by inserting coins in coin-operated telecommunication devices;

(9) Amounts paid by telecommunications retailers under the Telecommunications Infrastructure Maintenance Fee Act;

(10) Charges for nontaxable services or telecommunications if (i) those charges are aggregated with other charges for telecommunications that are taxable, (ii) those charges are not separately stated on the customer bill or invoice, and (iii) the retailer can reasonably identify the nontaxable charges on the retailer's books and records kept in the regular course of business. If the nontaxable charges cannot reasonably be identified, the gross charge from the sale of both taxable and nontaxable services of telecommunications billed on a combined basis shall be attributed to the taxable services or telecommunications. The burden of proving nontaxable charges shall be on the retailer of the telecommunications.

Interstate telecommunications means all telecommunications that either originate or terminate outside this state.

Intrastate telecommunications means all telecommunications that originate and terminate within this state.

Person means any natural individual, firm, trust, estate, partnership, association, joint stock company, joint venture, corporation, limited liability company, or a receiver, trustee, guardian, or other representative appointed by order of any court, the federal and state governments, including state universities created by statute, or any city, town, county, or other political subdivision of this state.

Purchase at retail means the acquisition, consumption or use of telecommunications through a sale at retail.

Retailer means and includes every person engaged in the business of making sales at retail as defined in this section. The department may, in its discretion, upon application, authorize the collection of the tax hereby imposed by any retailer not maintaining a place of business within this state, who, to the satisfaction of the department, furnishes adequate security to insure collection and payment of the tax. Such retailer shall be issued, without charge, a permit to collect such tax. When so authorized, it shall be the duty of such retailer to collect the tax upon all of the gross charges for telecommunications in this state in the same manner and subject to the same requirements as a retailer maintaining a place of business within this state. The permit may be revoked by the department at its discretion.

Retailer maintaining a place of business in this state, or any like term, means and includes any retailer having or maintaining within this state, directly or by a subsidiary, an office, distribution facilities, transmission facilities, sales office, warehouse or other place of business, or any agent or other representative operating within this state under the authority of the retailer or its subsidiary, irrespective of whether such place of business or agent or other representative is located here permanently or temporarily, or whether such retailer or subsidiary is licensed to do business in this state.

Sale at retail means the transmitting, supplying or furnishing of telecommunications and all services and equipment provided in connection therewith for a consideration, to persons other than the federal and state governments, and state universities created by statute and other than between a parent corporation and its wholly owned subsidiaries or between wholly owned subsidiaries for their use or consumption and not for resale.

Service address means the location of telecommunications equipment from which telecommunications services are originated or at which telecommunications services are received by a taxpayer. In the event this may not be a defined location, as in the case of mobile phones, paging systems, and maritime systems, service address means the customer's place of primary use as defined in the Mobile Telecommunications Sourcing Conformity Act. For air-to-ground systems and the like, "service address" shall mean the location of a taxpayer's primary use of the telecommunications equipment as defined by telephone number, authorization code, or location in Illinois where bills are sent.

Taxpayer means a person who individually or through his or her agents, employees, or permittees engages in the act or privilege of originating or receiving telecommunications in a municipality and who incurs a tax liability as authorized by the article.

Telecommunications, in addition to the meaning ordinarily and popularly ascribed to it, includes, without limitation, messages or information transmitted through use of local, toll, and wide area telephone service, private line services, channel services, telegraph services, teletypewriter, computer exchange services, cellular mobile telecommunications service, specialized mobile radio, stationary two-way radio, paging service, or any other form of mobile and portable one-way or two-way communications, or any other transmission of messages or information by electronic or similar means, between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite, or similar facilities. As used in this article, "private line" means a dedicated non-traffic sensitive service for a single customer, that entitles the customer to exclusive or priority use of a communications channel or group of channels, from one or more specified locations to one or more other specified locations. The definition of "telecommunications" shall not include value added services in which computer processing applications are used to act on the form, content, code, and protocol of the information for purposes other than transmission. "Telecommunications" shall not include purchases of telecommunications by a telecommunications service provider for use as a component part of the service provided by such provider to the ultimate retail consumer who originates or terminates the taxable end-to-end communications. Carrier access charges, right of access charges, charges for use of inter-company facilities, and all telecommunications resold in the subsequent provision of, used as a component of, or integrated into, end-to-end telecommunications service shall be nontaxable as sales for resale. Prepaid telephone calling arrangements shall not be considered "telecommunications" subject to the tax imposed under this article. For purposes of this section, "prepaid telephone calling arrangements" means that term as defined in Section 2-27 of the Retailers' Occupation Tax Act (35 ILCS 120/2-27).

State means the State of Illinois.

(Ord. No. 2010-26, I, 3-15-2010)

Sec. 74-251. Simplified municipal telecommunications tax imposed.

A tax is hereby imposed upon any and all the following acts or privileges:

(a) The act or privilege of originating in the municipality or receiving in the municipality intrastate telecommunications by a person at a rate of six percent of the gross charge for such telecommunications purchased at retail from a retailer. To prevent actual multi-municipal taxation of the act or privilege that is subject to taxation under this subsection, any taxpayer, upon proof that the taxpayer has paid a tax in another municipality on that event, shall be allowed a credit against any tax enacted pursuant to or authorized by this section to the extent of the amount of the tax properly due and paid in the municipality that was not previously allowed as a credit against any other municipal tax.

(b) The act or privilege of originating in the municipality or receiving in the municipality interstate telecommunications by a person at a rate of six percent of the gross charge for such telecommunications purchased at retail from a retailer. To prevent actual multistate or multimunicipal taxation of the act or privilege that is subject to taxation under this subsection, any taxpayer, upon proof that the taxpayer has paid a tax in another state or municipality in this state on such event, shall be allowed a credit against any tax enacted pursuant to or authorized by this section to the extent of the amount of such tax properly due and paid in such other state or such tax properly due and paid in a municipality in this state which was not previously allowed as a credit against any other state or local tax in this state.

(c) The tax imposed by this article is not imposed on such act or privilege to the extent such act or privilege may not, under the Constitution and statutes of the United States, be made the subject of taxation by the municipality.

(Ord. No. 2010-26, I, 3-15-2010; Ord. No. 2010-30, I, 4-5-2010)

Sec. 74-252. Collection of tax by retailers.

(a) The tax authorized by this article shall be collected from the taxpayer by a retailer maintaining a place of business in this state and shall be remitted by such retailer to the department. Any tax required to be collected pursuant to or as authorized by this article and any such tax collected by such retailer and required to be remitted to the department shall constitute a debt owed by the retailer to the state. Retailers shall collect the tax from the taxpayer by adding the tax to the gross charge for the act or privilege of originating or receiving telecommunications when sold for use, in the manner prescribed by the department. The tax authorized by this article shall constitute a debt of the taxpayer to the retailer until paid, and, if unpaid, is recoverable at law in the same manner as the original charge for such sale at retail. If the retailer fails to collect the tax from the taxpayer, then the taxpayer shall be required to pay the tax directly to the department in the manner provided by the department.

(b) Whenever possible, the tax authorized by this article shall, when collected, be stated as a distinct item separate and apart from the gross charge for telecommunications.

(Ord. No. 2010-26, I, 3-15-2010)

Sec. 74-253. Returns to department.

On or before the last day of July, and on or before the last day of every month thereafter, the tax imposed under this article on telecommunication retailers shall be returned with appropriate forms and information as required by the department pursuant to the Illinois Simplified Municipal Telecommunications Tax Act (636 ILCS 5/5-50) and any accompanying rules and regulations created by the department to implement the Act.

(Ord. No. 2010-26, I, 3-15-2010)

Sec. 74-254. Resellers.

(a) If a person who originates or receives telecommunications claims to be a reseller of such telecommunications, such person shall apply to the department for a resale number. Such applicant shall state facts which will show the department why such applicant is not liable for the tax authorized by this article on any of such purchases and shall furnish such additional information as the department may reasonably require.

(b) Upon approval of the application, the department shall assign a resale number to the applicant and shall certify such number to the applicant. The department may cancel any number which is obtained through misrepresentation, or which is used to send or receive such telecommunication tax-free when such actions in fact are not for resale, or which no longer applies because of the person's having discontinued the making of resales.

(c) Except as provided hereinabove in this section, the act or privilege of originating or receiving telecommunications in this state shall not be made tax-free on the ground of being a sale for resale unless the person has an active resale number from the department and furnishes that number to the retailer in connection with certifying to the retailer that any sale to such person is nontaxable because of being a sale for resale.

(Ord. No. 2010-26, I, 3-15-2010)

Sec. 74-255. Severability.

If any provision of this article, or the application of any provision of this article, is held unconstitutional or otherwise invalid, such occurrence shall not affect other provisions of this article, or their application, that can be given effect without the unconstitutional or invalid provision or its application. Each unconstitutional or invalid provision, or application of such provision, is severable, unless otherwise provided by this article.

(Ord. No. 2010-26, I, 3-15-2010)