HomeMy WebLinkAboutOrd 4946 07/14/1998 ORDINANCE NO. 4946
AN ORDINANCE AMENDING CHAPTER 8, ARTICLE XIX,
ENTITLED 'NATURAL GAS USE TAX' OF THE VILLAGE CODE
OF MOUNT PROSPECT
Passed and approved by
the President and Board of Trustees
the 14th dayof July, 1998
Published in pamphlet form by
authority of the corporate
authorities of the Village of
Mount Prospect, Illinois, the
15"' day of July ,1998.
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5/22/98
vw1\6/30/98
ORDINANCE NO. 4946
AN ORDINANCE AMENDING CHAPTER 8 VILLAGE GOVERNMENT
MISCELLANEOUS PROVISIONS BY CREATING ARTICLE XIX ENTITLED
NATURAL GAS USE TAX
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: That Article XIV entitled Natural Gas Use Tax be added to Chapter 8
of the Village Code, said Article XIV shall be and read as follows:
ARTICLE XIX
NATURAL GAS USE TAX
SECTION:
8.1901. Tax Imposed
8.1902. Collection of Tax
8.1903. Books and Records
8.1904. Rules and Regulations
Sec. 8.190'1. Tax Imposed.
A. Except as otherwise provided in this Article XIX, a tax is imposed on the privilege
of using or consuming in the Village natural gas that is purchased at retail.
1. Effective for all bills issued on or after October 1, 1998, through and
including September 30, 2004, the tax shall be at the rate of $0.0147 per
therm.
2. Effective for all bills issued on or after October 1, 2004, through and
continuing until further order by the Board of Trustees, the tax shall be at
the rate of $0.0090 per therm.
B. The ultimate incidence of and liability for payment of the tax is upon the retail
pumhaser, and nothing in this Article XIX shall be construed to impose a tax on
the occupation or distributing, supplying, furnishing, selling or transporting of
natural gas.
C. The retail purchaser shall pay the tax:
1. To the public utility designated to collect the tax pursuant to Section
8.1902 of this Article XlX on or before the payment due date of the public
utility s bill first reflecting the tax; or
2. If no public utility has been designated to collect the tax pursuant to
Section 8.1902 or if the gas is delivered by a person other than a public
utility so designated, then directly to the Village on or before the fifteenth
day of the second month in which the gas is delivered to the retail
purchaser. The tax shall be measured by the number of the therms of gas
delivered to the retail purchasers premises.
D. The tax shall not apply to the use or consumption of gas by a person purchasing
the gas for use in operating or propelling a vehicle.
E. The tax shall not apply to the use or consumption of gas by any unit of local
government and/or local public body, including but not limited to municipalities,
school districts, park districts, library districts, and fire protection districts.
F. Any natural gas used by a retail purchaser that also is subject to taxation
pursuant to Section 8.1601 of the Village Code of Mount Prospect (the natural
gas retailers occupation tax) shall be exempt from the tax imposed by this Article
XIX.
G. A purchaser who purchases natural gas for resale and therefore does not pay
the tax imposed by this Article XIX 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 Village on or before the fifteenth day of the second month following
the month in which the gas is used or consumed.
H. Nothing in this Article XIX 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 Village.
I. The tax shall apply to natural gas for which the delivery to the customer is billed
by a public utility on or after October 1, 1998.
Sec. 8.1903. Collection of Tax.
A. The Finance Director is authorized to enter into a contract for collection of the tax
imposed by this Article XIX with any public utility providing natural gas service in
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the Village. The contract shall include and substantially conform with the
following provisions:
1. The public utility will collect the tax with respect to natural gas delivered by
it to its customers as an independent contractor.
2. The public utility will remit collected taxes to the Village no more often
than once each month.
3. The public utility will be entitled to withhold from tax collections a service
fee equal to three percent (3%) of the amounts collected and timely
remitted to the department.
4. The public will treat partial payments received from a customer as
payments made pro rata for each item or charge billed to the customer,
including the tax imposed by this Article XIX.
5. The public utility shall not be liable to the Village for any tax not actually
collected from a retail purchaser.
6. Such additional terms upon which the parties may agree.
B. A public utility designated to collect the tax imposed by this Article XIX from its
customers shall bill each customer for the tax on all gas delivered to the
customer unless:
1. The customer s use or consumption is exempt from the tax pursuant to
Section 8.'1901.F; or
2. The public utility has received a written certificate issued by the Village
authorizing the public utility not to collect tax on deliveries to the customer.
Sec. 8.1903. Books and Records.
Every person, firm or corporation that delivers natural gas within the corporate limits of
the Village shall furnish to the Village, upon the Village s request, the names,
addresses, therms delivered and gross receipts with respect to such deliveries, and
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 Article XIX. All such books and records shall
be kept in the English language and, at all times during business hours of the day, shall
be subject to and available for inspection by the Village.
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ec. 8.t 904. Rules and Regulations.
The Finance Director is authorized to adopt, promulgate and enfome reasonable rules
and regulations pertaining to the administration and enforcement of this Article
SECTION TWO: That this Ordinance shall be in full force and effect from and after its
passage, approval and publication in pamphlet form in the manner provided by law.
AYES: CIowes, Corcoran, Hoefert, Lohrstorfer, Nocchi, Wilks
NAYS: None
ABSENT: None
PASSED and APPROVED this 14th dayof July ,1998.
Gerald L. Farley //'
Village President
/
Velr~a W. Lowe ~
Acting Village Clerk
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