HomeMy WebLinkAboutOrd 6549 12/01/2020 Amending Chapter 8 "Village Government Miscellaneous Provisions" of the Village code of Mount ProspectORDINANCE NO. 6549
AN ORDINANCE AMENDING CHAPTER 8 "VILLAGE GOVERNMENT
MISCELLANEOUS PROVISIONS" OF THE VILLAGE CODE OF MOUNT PROSPECT
WHEREAS, the Village of Mount Prospect is a home rule municipality as defined
by Article V11, § 6 of the Illinois Constitution of 1970; and
WHEREAS, Section 8-11-22 of the Illinois Municipal Code, 65 ILLS 5/8-11-22Y
authorizes the Village to impose a municipal cannabis retailers' occupation tax at a rate
not to exceed three percent (3%) of the gross receipts of cannabis sold in the Village,
starting January 1, 2020, so long as the Village permits the retail sale of cannabis in the
Village, except for retail sales made under the Illinois Compassionate Use of Medical
Cannabis Pilot Program Act, 410 ILLS 130/1, et seq.; and
WHEREAS, the President and Board of Trustees of the Village find that levying a
tax on cannabis sales pursuant to Section 8-11-22 of the Illinois Municipal Code, 65 ILLS
5/8-11-22, at a rate of three percent (3%) of the gross receipts of cannabis sold in the
Village, beginning July 1, 2021, best serves the public's health, safety and welfare; and
WHEREAS, in order to best serve the public's health, safety and welfare, the
President and Board of Trustees of the Village desire to make certain amendments to the
Village Code of Mount Prospect ("Village Code"), relative to levying the municipal
cannabis retailers' occupation tax, should the Village permit the retail sale of cannabis in
the Village under the Illinois Cannabis Regulation and Tax Act, 410 ILLS 705/1, et seq.,
as amended;
NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the
Village of Mount Prospect, Cook County, Illinois, as follows:
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SECTION 11 ,- Incorpo,ration, That the recitals above shall be and are hereby incorporated
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in this Section 1 as if restated herein.
SECTION 2: Amendments,, That Chapter 8 "Village Government Miscellaneous
Provisions of the Village Code is hereby amended as follows,
Article XXV, entitled "Municipal Cannabis Retailer's Occupation Tax," is hereby created
and shall read in its entirety as follows:
8.2501
Short Title
8.2502
Definitions
8.2503
Tax Imposed
8.2504
Liability for Payment
8.2505
Collection of Tax
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8.2506 Rules and Regulations
8.2509 Records
8.2510 Exemptions
8.2511 Suspension or Revocation of Licenses for Failure to Comply; Hearing
8.2512 Disposition of Proceeds of Tax
8.2513 Penalty
8.2501: SHORT TITLE:
The tax imposed by this chapter shall be known as the "Municipal Cannabis Tax" and is
imposed in addition to all other taxes imposed by the Village of Mount Prospect the State
of Illinois, or any other municipal corporation or political subdivision thereof.
8.2502: DEFINITIONS:
For the purposes of this chapter, whenever any of the following words, terms or definitions
are used herein, they shall have the meanings ascribed to them in this section:
CANNABIS: Shall have the meaning ascribed to it as the term is defined in section 1 -10
of the Cannabis Regulations and Tax Act.
CONSUMER: The person who seeks the privilege of purchasing cannabis at retail at any
business establishment.
FINANCE DEPARTMENT: The Finance Department of the Village of Mount. Prospect.
CANNABIS BUSINESS ESTABLISHMENT: Any premises required to obtain a retail
cannabis license pursuant to Chapter 11, Article XL1 of this Code.
OWNER: Any person or persons having a sufficient proprietary interest in conducting
the operation of a cannabis business establishment so as to entitle such a person or
persons to all or a portion of the net receipts thereof.
PERSON: Any natural person, receiver, administrator, executor, conservator, assignee,
trust in perpetuity, trust, estate, firm, co -partnership, joint venture, club, company,
business trust, domestic or foreign corporation, association, syndicate, society or any
group of individuals acting as a unit, whether mutual, cooperative, fraternal nonprofit, or
otherwise; whenever the term "person" is used in any clause prescribing and imposing a
penalty, the term as applied to associations shall mean that the owners or part owners
thereof and, as applied to corporations, the officers thereof.
RETAIL SALE OR PURCHASE.: Any transfer of the ownership, exchange or barter or
any transfer for a valuable consideration.
8.2503: TAX IMPOSED:
A. Beginning on July 1, 2021, a tax is hereby imposed upon all persons engaged in the
business of selling cannabis, other than cannabis purchased under the
Compassionate Use of Medical Cannabis Program Act, 410 ILLS 130/1, et seq.
("Medical Cannabis Act"), at retail in the CityNillage at the rate of 3 % of the gross
receipts from these sales made in the course of that business.
B. The imposition of this tax is in accordance with the provisions of Sections 8-11-22, of
the Illinois Municipal Code (65 ILLS 5/8-11-22).
8.2504: LIABILITY FOR PAYMENT:
A. The ultimate incidence of and liability for payment of the tax imposed by this chapter
shall be borne by the consumer.
B. The tax herein levied shall be paid in addition to any and all other taxes and charges.
It shall be the duty of the owner, manager or operator of every cannabis business
establishment to collect said tax from the consumer and remit to the village said tax
under the rules and regulations prescribed by the local liquor control commissioner
and as otherwise provided in this chapter.
8.2505: COLLECTION OF TAX:
A. The tax imposed by this Ordinance shall be remitted by such retailer to the Illinois
Department of Revenue (Department). Any tax required to be collected pursuant to or as
authorized by this Ordinance 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 may reimburse themselves for their seller's tax liability hereunder by separately
stating that tax as an additional charge, which charge may be stated in combination, in a
single amount, with any State tax that sellers are required to collect.
B. The taxes hereby imposed, and all civil penalties that may be assessed as an incident
thereto, shall be collected and enforced by the Department. The Department shall have
full power to administer and enforce the provisions of this article.
8.2506: RULES AND REGULATIONS:
The Department of Agriculture and Department of Financial and Professional Regulation
may promulgate rules and regulations not inconsistent with the provisions of this chapter
concerning the enforcement and application of this chapter. The term "rules and
regulations" includes, but is not limited to, a case by case determination whether or not
the tax imposed by this chapter applies.
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8.2509: RECORDS:
A. Every owner, manager or operator of a cannabis business establishment in the village
shall keep books and records for a period of at least forty-eight (48) months, which, at
a minimum should include a daily sheet showing:
1. The amount of taxable receipts within the twenty four (24) hour period; and
2. The actual cannabis business establishment tax receipts collected for the date
in question.
B. The Department of Agriculture, the Department of Financial and Professional
Regulation, and the Department of Revenue or their designee shall at all reasonable
times have full access to said books and records.
C. The financial records of any cannabis business establishment submitted pursuant to
this chapter or any rule and regulation promulgated thereunder shall not be available
for public inspection in order to protect the owner's right to privacy, except when
necessary in any action to enforce collection of tax under this chapter or as otherwise
provided by law.
8.2510: EXEMPTIONS:
The tax imposed under this chapter shall not apply or be imposed upon a person
organized and operated exclusively for charitable, religious or educational purposes to
the extent cannabis is purchased by such person and used solely for the charitable,
religious or educational purposes of such person and is not resold for profit.
8.2511: SUSPENSION OR REVOCATION OF LICENSES FOR FAILURE TO COMPLY;
HEARING:
The Department of Agriculture and the Department of Financial and Professional
Regulation may, in accordance with law, revoke or suspend any license issued by him or
her if he or she determines that the owner of a licensed establishment has violated any
of the provisions of this chapter. No suspension or revocation hereunder shall release or
discharge said person from his civil liability for the payment or collection and remittance
of the tax, nor from prosecution for such offense. Any suspension or revocation of a
cannabis business establishment license shall follow the procedures set forth in, and
otherwise comply with, the provisions of chapter XX, article X of this code.
8.2512: DISPOSITION OF PROCEEDS OF TAX:
All proceeds resulting from the imposition of the tax under this chapter, including
penalties, shall be revenues of the general corporate fund of the village and shall be paid
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into the treasury of the village and shall be credited to and deposited in the general
corporate fund of the village and can be used for the following purposes.
a. Capital Projects within the Village of Mount Prospect
b. Law Enforcement training, travelling, registrations, airfare and other costs
for the Drug interdiction and Addiction Programs
c. Property Tax Abatements for the Public Safety Pensions
d. Additional Law Enforcement and Public Safety (EMS) staffing
e. Human Services Programs
Funds may be transferred/appropriated from the General Corporate Fund to the
appropriate program pool/funds to execute the above-mentioned programs.
8.2513: PENALTY:
In addition to the suspension or revocation of licenses as hereinabove provided, 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 chapter,
except when otherwise specifically provided, upon conviction thereof, shall be punished
by a fine of not less than one hundred dollars ($100.00) nor more than one thousand five
hundred dollars ($1,500.00). Each day of violation shall constitute a separate and distinct
offense.
SECTION 2:
Those sections, paragraphs, and provisions of the Village Code of Mount Prospect which
are not expressly amended or repealed by this Ordinance are hereby re-enacted, and it
is expressly declared to be the intention of this Ordinance not to repeal or amend any
portions of the Village Code of Mount Prospect other than those expressly amended or
repealed in Section 1 of this Ordinance.
SECTION 3:
The invalidity of any section or provision of this Ordinance hereby passed and approved
shall not invalidate other sections or provisions thereof.
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SECTION 4:
This Ordinance shall be in full force and effect from and after its passage and approval
and publication as required by law, provided, however, that the tax provided for herein
shall take effect for all sales on or after the first day of July, 2021. Copies of this Ordinance
shall be certified and sent to the Illinois Department of Revenue prior to April 1, 2021.
ADOPTED this 1 st day of December, 2020, pursuant to a roll call vote as follows:
NAYS: None
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Arlene A. Juracek, Village President
ATTEST,
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