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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. BH/caf 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 2 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. 3 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 4