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HomeMy WebLinkAboutOpt-In Taxation OrdinanceORDINANCE NO. 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 VII, § 6 of the Illinois Constitution of 1970; and WHEREAS, Section 8-11-22 of the Illinois Municipal Code, 65 ILCS 5/8-11-22, 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 July 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 ILCS 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 ILCS 5/8-11-22, at a rate of three percent (3%) of the gross receipts of cannabis sold in the Village, beginning July 1, 2020, 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 ILCS 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: SECTION 1: Incorporation. That the recitals above shall be and are hereby incorporated 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 415168_2 8.2502 Definitions 8.2503 Tax Imposed 8.2504 Liability for Payment 8.2505 Collection of Tax 8.2506 Rules and Regulations 8.2507 Filing of Return and Payment of Tax 8.2508 Failure to File Return or Pay Tax when Due 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 establishment. FINANCE DEPARTMENT: The Finance Department of the Village of Mount Prospect. CANNABIS ESTABLISHMENT: Any premises required to obtain a retail cannabis license pursuant to Chapter 11, Article XLI of this Code. OWNER: Any person or persons having a sufficient proprietary interest in conducting the operation of a cannabis 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. 4151682 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, 2020, 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 Pilot Program Act, at retail in the City/Village 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 ILCS 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 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 4151682 and regulations" includes, but is not limited to, a case by case determination whether or not the tax imposed by this chapter applies. 8.2507: FILING OF RETURN AND PAYMENT OF TAX: The owner(s) of each cannabis establishment within the village shall file with the finance department, sworn tax returns showing tax receipts received during each calendar month reporting period on forms prescribed by the Department of Agriculture and the Department of Financial and Professional Regulation. The returns and related payment of taxes collected shall be due on or before the last calendar day of the month following the month for which the sales of cannabis occurred. At the time of filing such returns, the owner shall pay to the village all taxes due for the period to which the tax return applies, less a commission of one percent (1.00%) of the amount of the tax, which is allowed to reimburse the owner for the expenses incurred in keeping records, billing, preparing and filing returns, remitting the tax and supplying data to the village upon request. No commission may be claimed by an owner for taxes not timely remitted to the village. Payment of the tax imposed shall be made to the finance department. 8.2508: FAILURE TO FILE RETURN OR PAY TAX WHEN DUE: A. If for any reason a tax imposed under this chapter is not paid when due, a late fee shall be added and collected as follows. For the first late payment, $50.00 or two percent (2.00%) of the amount of tax which remains unpaid, whichever is greater; for the second late payment, $100.00 or two percent (2.00%) of the amount of tax which remains unpaid, whichever is greater; and for the third and subsequent late payments, $150.00 or two percent (2.00%) of the amount tax which remains unpaid, whichever is greater. In addition to the above late fee, beginning on the 1st day of the month following the month in which a late fee is assessed, interest will accrue on all unpaid taxes at the rate of 1.00% per month for any portion of the month taxes remain due but unpaid. B. Whenever any person shall fail to pay any tax as provided in this chapter, the village may bring or cause to be brought an action to enforce the payment of the tax on behalf of the village and reasonable attorney's fees incurred in bringing such action in any court of competent jurisdiction. 8.2509: RECORDS: A. Every owner, manager or operator of a cannabis 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 establishment tax receipts collected for the date in question. 4151682 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 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 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 into the treasury of the village and shall be credited to and deposited in the general corporate fund of the village. 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 fifty dollars ($1,500.00). Each day of violation shall constitute a separate and distinct offense. 4151682 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. RFCTION An The invalidity of any section or provision of this Ordinance hereby passed and approved shall not invalidate other sections or provisions thereof. 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, 2020. Copies of this Ordinance shall be certified and sent to the Illinois Department of Revenue prior to April 1, 2020. ADOPTED this day of vote as follows: AYES: NAYS: PASSED AND APPROVED this day of ATTEST: Village Clerk 4151682 ) 2019, pursuant to a roll call Arlene A. Juracek, Village President .2019