HomeMy WebLinkAboutOrdinances - 22-13 - 02/22/2022 - Gas Use Tax CITY OF MCHENRY
MCHENRY COUNTY
STATE OF ILLINOIS
Ordinance 22-13
An Ordinance Amending the McHenry City Code to Create a New
Title 3, Chapter 9, Imposing a New Gas Use Tax
Passed by the
Mayor and City Council
Of the
City of McHenry
McHenry County
State of Illinois
February 22, 2022
Published in pamphlet form by authority of the Mayor and City Council of the City
of McHenry, McHenry County, Illinois this 23d day of February 2022.
ORDINANCE NO. 22-13
An Ordinance Amending the McHenry City Code to Create a
New Title 3, Chapter 9, Imposing a New Gas Use Tax
WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality
as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the
passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as
granted in the Constitution of the State of Illinois; and
WHEREAS, subj ect to said Section,a home rule unit may exercise any power and perform
any function pertaining to its government and affairs for the protection of the public health, safety,
morals and welfare; and
WHEREAS,the City Council has determined that additional revenue is needed to fund the
development of new capital assets; and
WHEREAS, in furtherance of its home rule powers, it is necessary and desirable for the
City of McHenry to amend its ordinances regarding taxation by creating a municipal gas use tax.
NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF
McHENRY, McHenry County, Illinois, as follows:
SECTION 1: The McHenry Municipal Code, Title 3, be and is hereby amended by adding
a new Chapter 9 as follows:
CHAPTER 9.Municipal Gas Use Tax
3-9-1 Short Title
The tax imposed by this Chapter shall be known as the "Municipal Gas Use Tax" and is
imposed in addition to all other taxes imposed by the City of McHenry,the State of Illinois, or any
other municipal corporation or political subdivision thereof.
3-9-2 Definitions
For the purpose of this Chapter, the following definitions shall apply:
(a) "Person" means any individual, firm, trust, estate, partnership, association, joint
stock company, joint venture, corporation, limited liability company, municipal
corporation or political subdivision of this state, or a receiver, trustee, conservator
or other representative appointed by order of any court.
(b) "Public Utilities Act" means the Public Utilities Act as amended (220 ILCS 511-
101 et se .).
An Ordinance Amending the McHenry City Code to Create a
New Title 3, Chapter 9, Imposing a New Gas Use Tax, Page 1
(c) "Public Utility" means a public utility as defined in Section 3-105 of the Public
Utilities Act.
(d) "Retail Purchaser"means any Person who purchases gas in a Sale at Retail.
(e) "Sale at Retail" means any sale of gas by a retailer to a Person for use or
consumption, and not for resale. For this purpose, the term "retailer" means any
Person engaged in the business of distributing, supplying, furnishing or selling gas.
3-9-3 Tax
(a) Except as otherwise provided by this Chapter, a tax is imposed on the privilege of
using or consuming gas in the City that is purchased in a Sale at Retail at the rate
of three cents ($0.03) per therm with respect to all bills issued on or after June 1,
2023.
(b) The ultimate incidence of and liability for payment of the tax is on the Retail
Purchaser, and nothing in this Chapter shall be construed to impose a tax on the
occupation of distributing, supplying, furnishing, selling or transporting gas.
(c) The Retail Purchaser shall pay the tax, measured by therms of gas delivered to the
Retail Purchaser's premises, to the Public Utility designated to collect the tax
pursuant to Section 9.4 of this Chapter on or before the payment due date of the
Public Utility's bill first reflecting the tax, or directly to the [City Finance Director]
on or before the fifteenth day of the second month following the month in which
the gas is delivered to the Retail Purchaser if no Public Utility has been designated
to collect the tax pursuant to Section 9.4 or if the gas is delivered by a person other
than a Public Utility so designated.
(d) Nothing in this Chapter shall be construed to impose a tax upon any person,
business or activity which, under the constitutions of the United States or State of
Illinois, may not be made the subject of taxation by the City.
(e) A Person who purchases gas for resale and therefore does not pay the tax imposed
by this Chapter with respect to the use or consumption of the gas, but who later
uses or consumes part or all of the gas, shall pay the tax directly to the City Finance
Director on or before the fifteenth day of the second month following the month in
which the gas is used or consumed.
(f) The tax shall apply to gas for which the delivery to the Retail Purchaser is billed by
a Public Utility on or after June 1, 2023.
(g) If it shall appear that an amount of tax has been paid which was not due under the
provisions of this Chapter, whether as a result of mistake of fact or an error of law,
then such amount shall be (i) credited against any tax due, or to become due, under
this Chapter from the taxpayer who made the erroneous payment or (ii) subject to
An Ordinance Amending the McHenry City Code to Create a
New Title 3, Chapter 9, Imposing a New Gas Use Tax, Page 2
a refund if no such tax is due or to become due; provided that no amounts
erroneously paid more than three (3) years prior to the filing of a claim therefore
shall be so credited or refunded.
(h) No action to recover any amount of tax due under the provisions of this Chapter
shall be commenced more than three (3) years after the due date of such amount.
(i) Reserved.
3-9-4 Collection of Tax by Public Utility.
The City Administrator and City Finance Director are each authorized to enter into a
contract for collection of the tax imposed by this Chapter with any Public Utility providing
gas service in the City. The contract shall include and substantially conform with the
following provisions:
(1) the Public Utility will collect the tax from Retail Purchasers as an
independent contractor;
(2) the Public Utility will remit collected taxes to the City Finance Director no
more often than once each month;
(3) the Public Utility will be entitled to withhold from tax collections a service
fee equal to 3% of the amounts collected and timely remitted to the City
Finance Director;
(4) the Public Utility shall not be responsible to the City for any tax not actually
collected from a Retail Purchaser; and
(5) such additional terms as the parties may agree upon.
3-9-5 Books and records.
Every taxpayer shall keep accurate books and records,including original source documents
and books of entry, denoting the activities or transactions that gave rise, or may have given rise to
any tax liability or exemption under this Chapter. All such books and records shall, at all times
during business.hours, be subject to and available for inspection by the City.
3-9-6 Exemption for Local Governments: The taxes described in this article shall not be
applicable to any school districts,or any unit of local government located in whole or in part within
the corporate limits of the City. The City Finance Director is authorized to prepare and maintain a
list of properties exempt from the taxes described in this Chapter so long as the property is in
possession by any school district, or any unit of local government located in whole or in part
within the corporate limits of the City.
An Ordinance Amending the McHenry City Code to Create a
New Title 3, Chapter 9, Imposing a New Gas Use Tax, Page 3
3-9-7 Use: The proceeds from this tax shall be used exclusively to fund the development
of new capital assets as approved as part of the annual budget process by City Council. No
operating costs are to be paid from these revenues.
3-9-8 Violations; Penalty: Any person found guilty of violating any provision of this
Chapter may, in addition to any fee or penalty due, be assessed a fine up to seven hundred fifty
dollars ($750.00). Each day a violation continues to exist shall be a separate offense. Citations for
violations of this Chapter shall be adjudicated by the City's administrative adjudication hearing
officer, or at the choice of the City, by any court of competent jurisdiction.
SECTION 2: Communication to Public Utility: Prior to the effective date of this Ordinance,
the City Finance Director is hereby authorized and directed to send a certified copy of this
Ordinance to any Public Utility providing gas service in the City along with a list indicating the
properties that will be exempt from the provisions of Section 6 of this Ordinance.
SECTION 3: If any section, paragraph, subdivision, clause, sentence or provision of this
Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment
shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain
and continue in full force and effect.
SECTION 4: All ordinances or parts of ordinances in conflict herewith are hereby repealed
to the extent of such conflict.
An Ordinance Amending the McHenry City Code to Create a
New Title 3, Chapter 9, Imposing a New Gas Use Tax, Page 4
SECTION 5: Effective Date. This Ordinance shall be in full force and effect upon its
passage, approval and publication in pamphlet form (which publication is hereby authorized) as
provided by law.
Ayes Nays Absent Abstain
Alderman Devine X
Alderman Glab X
Alderman Harding X
Alderman Strach X
Alder-woman Miller X
Alderman Santi X
Alderman McClatchey X
APPROVED:
Mayor W y e Jett
(SEAL) p '
ATTEST: City Clerk Clerk Trisha Ramel 404 4f
Passed: February 22, 2022
Approved: February 22, 2022
Z•IMIMcHenryCityoflOrdinanceslGas Use Tax Ordinance.CLEAN21722.docx
An Ordinance Amending the McHenry City Code to Create a
New Title 3, Chapter 9, Imposing a New Gas Use Tax, Page 5
CERTIFICATION
I, Monte Johnson, do hereby certify that I am the duly appointed, acting and qualified
Deputy Clerk of the City of McHenry, McHenry County, Illinois, and that as such Clerk, I am the
keeper of the records and minutes and proceedings of the Mayor and Aldermen of said City of
McHenry.
I do hereby further certify that at a regular meeting of the Mayor and Aldermen of the City
of McHenry, held on the 22"d day of February, 2022, the foregoing Ordinance entitled An
Ordinance Amending the McHenry City Code to Create a New Title 3, Chapter 9, Imposing a New
Gas Use Tax, was duly passed by the City Council of the City of McHenry.
The pamphlet form of Ordinance No.22-131 including the Ordinance and a cover sheet
thereof, was prepared, and a copy of such Ordinance was posted in the City Hall, commencing on
the 23rd day of February 2022, and will continue for at least 10 days thereafter. Copies of such
Ordinance are also available for public inspection upon request in the office of the City Clerk.
I do further certify that the original, of which the attached is a true and correct copy, is
entrusted to me as the Clerk of said City for safekeeping, and that I am the lawful custodian and
keeper of the same.
GIVEN under my hand and seal this 23rd day of February 2022.
a .
Monte Johnson, Deputy Clerk
City of McHenry,
McHenry County, Illinois
(SEAL)
An Ordinance Amending the McHenry City Code to Create a
New Title 3, Chapter 9, Imposing a New Gas Use Tax, Page 6