HomeMy WebLinkAboutOrdinances - 22-43 - 06/20/2022 - Storage Unit Tax CITY OF MCHENRY
MCHENRY COUNTY
STATE OF ILLINOIS
Ordinance 22-43
AN ORDINANCE CREATING A NEW CHAPTER 12 IMPOSING A NEW
TAX ON THE TENANT'S PRIVILEGE OF RENTING NON-RESIDENTIAL
REAL PROPERTY FOR STORAGE OF PERSONAL PROPERTY (SELF-
STORAGE FACILITY RENTAL TAX), IN TITLE 3: FINANCE AND
TAXATION OF THE MCHENRY CITY CODE
Passed by the
Mayor and City Council
Of the
City of McHenry
McHenry County
State of Illinois
June 20, 2022
Published in pamphlet form by authority of the Mayor and City Council of the City
of McHenry, McHenry County, Illinois this 21st day of June 2022.
ORDINANCE NO. 22-43
AN ORDINANCE CREATING A NEW CHAPTER 12 IMPOSING A NEW TAX ON
THE TENANT'S PRIVILEGE OF RENTING NON-RESIDENTIAL REAL PROPERTY
FOR STORAGE OF PERSONAL PROPERTY (SELF-STORAGE FACILITY RENTAL
TAX), IN TITLE 3: FINANCE AND TAXATION OF THE MCHENRY CITY CODE
WHEREAS, the City of McHenry, McHenry County, Illinois (the "City") 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, subject to said Section, a home rule unit may exercise any power and perform
any function pertaining to its government and affairs for the protection of the public health, safety,
morals, and welfare; and
WHEREAS,the rental from Self-Storage facilities within the City boundaries imposes costs
on the City associated with their operations, and unlike retail businesses in the community, Self-
Storage facilities contribute only marginal sales tax revenue to the City to help defray those costs;
and
WHEREAS,the City Council finds that it is in the interests of the health, safety and welfare
of the City and its residents to impose a tax on the privilege of leasing Self-Storage units.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of McHenry,
McHenry County, Illinois, pursuant to its home rule authority, as follows:
SECTION 1: The foregoing recitals shall be and are hereby incorporated herewith.
SECTION 2: The McHenry City Code, Title 3, be and is hereby amended by adding a new
Chapter 12 as follows:
CHAPTER 12. Self-Storage Facility Rental Tax
3-12-1: TAX IMPOSED:
There is hereby imposed upon the rental or leasing of any Self-Storage Facility
accommodations in the City of McHenry, a "Self-Storage Facility Rental Tax," at the rate of five
percent (5%) of the gross rental or leasing charge. This tax shall be in addition to all other taxes.
3-12-2: DEFINITION OF SELF-STORAGE FACILITY:
A "Self-Storage Facility" is a building or structure containing separately divided storage
rooms offered for lease or rent to members of the public for the storage of a) personal property, or
b) motor vehicles, boats, RVs and other vehicles.
3-12-3: TAX TO BE BORNE BY TENANT:
The ultimate incidence of and liability for payment of the Self-Storage Facility Rental Tax
shall be borne by the lessee or tenant of any Self-Storage Facility accommodation. Nothing herein
shall be construed to impose a tax upon the occupation of leasing or operating Self-Storage
Facilities.
3-12-4: SELF-STORAGE FACILITY TO SECURE TAX FROM TENANT:
The Self-Storage Facility Rental Tax shall be collected by the Self-Storage Facility owner,
manager or operator from the lessee or tenant when collecting the price, charge or rent for use of
the Self-Storage Facility. Every lessee or tenant shall be given a bill, invoice, receipt, or other
statement or memorandum of the price, charge or rent payable upon which the Self-Storage
Facility Rental Tax shall be stated, charged, and shown separately.
3-12-5: REGISTRATION AND RECORDS TO BE KEPT
Every owner, manager, or operator of a Self-Storage Facility in the City shall register with
the City on forms provided by the Finance Department. Each such owner, manager, or operator
shall have the duty to maintain complete and accurate books, records and accounts showing the
gross receipts for the lease or rental of any Self-Storage Facility accommodations within the City
of McHenry and showing the prices, rents or charges made or charged, and occupancies taxable
under this Self-Storage Facility Rental Tax. The City Administrator, or his/her designee, shall at
all reasonable times have full access to said books and records.
3-12-6: PAYMENT OF TAX TO CITY
(A) On or before the thirtieth day of each calendar month, using tax return forms provided
by the Finance Department, each Self-Storage Facility in the City shall file, with the Finance
Department, a tax payment and a monthly tax return showing tax receipts with respect to the Self-
Storage Facility Rental Tax from the prior month.
(B) The City, in its discretion, may request from the Self-Storage Facility evidence
documenting reported rentals. Any failure to supply documentation to substantiate correct
payment shall be deemed a violation of this Code.
(C) If any Self-Storage Facility owner, manager, or operator fails to collect the Self-
Storage Facility Rental Tax, the owner shall remain liable for the Self-Storage Facility Rental Tax
not collected and shall pay the amount of the Self-Storage Facility Rental Tax due to the City in
accordance with this Chapter.
(D) OPTIONAL: Every owner, manager or operator of a Self-Storage Facility in the
City shall be entitled to retain five percent (5%) of all tax monies collected to defray the
administrative burdens and costs associated with serving as tax collector for the City. The
retained percentage shall be shown as a debit on the tax form filed with the City with the
remainder of the tax revenues turned over to the City together with the corresponding tax
return.
3-12-7: ENFORCEMENT, PENALTIES, FINES, AND INTEREST, SUSPENSION
OF LICENSE
(A) Any Self-Storage Facility that fails to collect, to timely pay all taxes due pursuant to
this Chapter or who files a false tax return with the City shall be subject to the provisions of
Chapter 9: Local Government Taxpayers' Bill of Rights, regulating locally imposed and
administered tax rights and responsibility, including, but not limited to, those provisions related to
interests, penalties, late fees, and failure to file.
(B) Any person found guilty of violating any provision of this Chapter may, in addition to
any tax 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.
(C) The failure to comply with any obligation imposed by this Chapter shall also be
grounds for the suspension or revocation of any license or permit issued by the City to the Self-
Storage facility.
(D) The City Administrator, or his or her designee, may prescribe reasonable rules;
definitions and regulations to collect this tax.
SECTION 3: Prior to the effective date of this Ordinance, the City Administrator or his or
her designee, shall take appropriate steps to notify Self-Storage Facilities within the City of this new
ordinance.
SECTION 4: 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 5: All ordinances or parts of ordinances in conflict herewith are repealed to the
extent of such conflict.
SECTION 6: This Ordinance shall be in full force and effect January 1, 2023, following
its approval and publication in pamphlet form (which publication is hereby authorized) as
provided by law.
Passed this 20th day of June 2022.
Ayes Nays Absent Abstain
Alderman Devine X
Alderman Glab X _
Alderman Harding X _
Alderman McClatchey X
Alderwoman Miller X
Alderman Santi X
Alderman11/17.
Strac X
•. a .
Wayne Jett, Mayor Y Monte Johnso , Deputy pY rtY Clerk