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Ordinance: No. 21 - 162
Amending the County Cannabis Retailers' Occupation Tax in the Incorporated Areas of Kane County
Committee Flow: Finance and Budget Committee, Executive Committee, County Board
Contact: Joseph Onzick, 630.208.5113
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This Ordinance amends the County Cannabis Retailers' Occupation Tax in the incorporated areas of Kane County.
STATE OF ILLINOIS
COUNTY OF KANE
ORDINANCE: NO. 21 - 162
AMENDING THE COUNTY CANNABIS RETAILERS' OCCUPATION TAX IN THE INCORPORATED AREAS OF KANE COUNTY
WHEREAS, the County of Kane, a body politic and corporate of the state of Illinois (“Kane County”) is a non-home rule unit of local government pursuant to Article VII, § 8 of the 1970 Illinois Constitution; and
WHEREAS, Public Act 101-0027, which is a comprehensive revision of State statutes regulating the adult use of cannabis in Illinois, was signed into law on June 25, 2019, with many of its provisions effective January 1, 2020; and
WHEREAS, the County Cannabis Retailers’ Occupation Tax Law, at 55 ILCS 5/5-1006.8 (the “Act”), permits the corporate authorities of any county to enact an ordinance imposing a tax upon the sale of cannabis, other than cannabis purchased under the Compassionate Use of Medical Cannabis Program Act, at retail on the gross receipts of sales made in a municipality located in the county; and
WHEREAS, the County has the authority to adopt ordinances and to promulgate rules and regulations that protect the public health, safety and welfare of its citizens; and
WHEREAS, this Ordinance is adopted pursuant to the provisions of the Act; and
WHEREAS, pursuant to the Act, Kane County has previously established an ordinance to impose a tax rate for recreational cannabis sales within municipalities located in Kane County by Ordinance 19-365; and
WHEREAS, the Kane County Board seeks to amend that tax rate to 3.00% of the gross receipts of sales of cannabis made within municipalities located in Kane County, other than sales pursuant to the Compassionate use of Medical Cannabis Program Act.
NOW, THEREFORE, BE IT ORDAINED by the Kane County Board that this Ordinance amending the County Cannabis Retailers’ Occupation Tax within municipalities located in Kane County be and hereby is adopted as follows:
SECTION I: Recitals.
The facts and statements contained in the preamble to this Ordinance are found to be true and correct and are hereby adopted as part of this Ordinance
SECTION II: Tax imposed; Rate.
(a) 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, at retail in the County on the gross receipts from these sales at the following rates:
(i) 3.00% of the gross receipts from these sales made in a municipality located in Kane County.
(b) The imposition of this tax is in accordance with the provisions of the County Cannabis Retailers’ Occupation Tax Law (55 ILCS 5/5-1006.8).
SECTION III: Collection of tax by retailers.
(a) The tax imposed by this Ordinance shall be remitted by such retailer to the Illinois Department of Revenue (the “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.
SECTION IX: Severability. The provisions and sections of this Ordinance shall be deemed separable, and the invalidity of any portion of this Ordinance shall not affect the validity of the remainder.
SECTION V: Effective Date. 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 as soon as permitted by law. Copies of this Ordinance shall be certified and sent by the Kane County Clerk to the Illinois Department of Revenue immediately upon its passage.
Passed by the Kane County Board on March 9, 2021.
John A. Cunningham Corinne M. Pierog MA, MBA
Clerk, County Board Chairman, County Board
Kane County, Illinois Kane County, Illinois