ORDINANCE NO. 2024 -16
AN ORDINANCE AMENDING THE MUNICIPAL ELECTRIC UTILITY TAX ORDINANCE
WHEREAS, the City of Plano (hereinafter referred to as the “City”) is an Illinois Municipal Corporation organized pursuant to the laws of the State of Illinois;
WHEREAS, the City has in full force and effect a codified set of ordinances which are of a general and permanent nature, which said codified set is known and designated as the City Code of the City of Plano, as amended;
WHEREAS, the City has the authority to adopt ordinances and to promulgate rules and regulations that pertain to its government and affairs that protect the health, safety and welfare of its residents;
WHEREAS, the City continuously monitors and reviews its City Code to ensure that it is properly updated and revised to coincide with any current developments;
WHEREAS, pursuant to the provisions of Section 8-11-2 of the Illinois Municipal Code (65 ILCS 5/8-11-2), hereinafter referred to as the “Code”, the corporate authorities of any municipality are authorized to tax the privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the municipality at rates not to exceed the following maximum rates, calculated on a monthly basis for each purchaser;
WHEREAS, the City Council of the City of Plano, Kendall County, Illinois passed a Municipal Electric Utility Tax Ordinance (Ordinance No. 2008-5) on January 28, 2008;
WHEREAS, the City Council finds it to be in the best interests of the City and its citizens to continue to impose a tax on the privilege of using or consuming electricity within the City limits pursuant to the provisions of Section 8-11-2 of the Code;
WHEREAS, this updated ordinance is intended to impose the tax authorized by Section 8-11-2 of the Code.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the City of Plano, Kendall County, Illinois in open meeting assembled as follows:
Section One – Recitals
The Corporate Authorities hereby find that all of the recitals hereinbefore stated as contained in the preamble to this ordinance are full, true and correct and do hereby, by reference, incorporate and make them part of this ordinance as legislative findings.
That Title 3, Business and License Regulations, Chapter 16, Municipal Electric Utility Tax, be amended and added as follows:
TITLE 3, BUSINESS AND LICENSE REGULATIONS
CHAPTER 16, Municipal Electric Utility Tax
3-16-1: DEFINITIONS:
Unless the context otherwise requires, the following terms as used in this chapter shall be construed according to the definitions given below:
CITY: The City of Plano, Kendall County, Illinois.
PERSON: Any natural, individual, firm, trust, estate, partnership, association, joint stock company, joint adventure, corporation, limited liability company, municipal corporation, the State or any of its political subdivisions, any State university created by statute, or a receiver, trustee, conservator or other representative appointed by order of any court.
PERSON MAINTAINING A PLACE OF BUSINESS IN THIS STATE: Any person having or maintaining within this State, directly or by a subsidiary or other affiliate, an office, generation, facility, distribution facility, transmission facility, sales office or other place of business, or any employee, agent, or other representative operating within this State under the authority of the person or its subsidiary or other affiliate, irrespective of whether such place of business or agent or other representative is located in this State permanently or temporarily, or whether such person, subsidiary or other affiliate is licensed or qualified to do business in this State.
PURCHASE AT RETAIL: Any acquisition of electricity by a purchaser for purposes of use or consumption, and not for resale, but shall not include the use of electricity by a public utility, as defined in Section 8-11-2 of the Illinois Municipal Code (65 ILCS 5/8-11-2), directly in the generation, production, transmission, delivery or sale of electricity.
PURCHASER: Any person who uses or consumes, within the corporate limits of the City of Plano, Kendall County, Illinois, electricity acquired in a purchase at retail, other than an exempt purchaser.
TAX COLLECTOR: The person delivering electricity to the purchaser.
3-16-2: MUNICIPAL UTILITY TAX IMPOSED ON USE OR CONSUMPTION OF ELECTRICITY:
A. Pursuant to Section 8-11-2 of the Illinois Municipal Code (65 ILCS 5/8-11-2) and any and all other applicable authority, a tax is imposed upon the privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the City at the following rates, calculated on a monthly basis for each purchaser:
1. For the first 2,000 kilowatt-hours used or consumed in a month; 0.61 cents per kilowatt-hour;
2. For the next 48,000 kilowatt-hours used or consumed in a month; 0.40 cents per kilowatt-hour;
3. For the next 50,000 kilowatt-hours used or consumed in a month; 0.36 cents per kilowatt-hour;
4. For the next 400,000 kilowatt-hours used or consumed in a month; 0.35 cents per kilowatt-hour;
5. For the next 500,000 kilowatt-hours used or consumed in a month; 0.34 cents per kilowatt-hour;
6. For the next 2,000,000 kilowatt-hours used or consumed in a month; 0.32 cents per kilowatt-hour;
7. For the next 2,000,000 kilowatt-hours used or consumed in a month; 0.315 cents per kilowatt-hour;
8. For the next 5,000,000 kilowatt-hours used or consumed in a month; 0.31 cents per kilowatt-hour;
9. For the next 10,000,000 kilowatt-hours used or consumed in a month; 0.305 cents per kilowatt-hour; and
10. For all electricity used or consumed in excess of 20,000,000 kilowatt-hours in a month, 0.30 cents per kilowatt-hour.
B. The tax is addition to all taxes, fees and other revenue measures imposed by the City of Plano, the State of Illinois, or any other political subdivision of the State.
C. Notwithstanding any other provision of this chapter, the tax shall not be imposed if and to the extent that imposition or collection of the tax would violate the Constitution or statutes of the United States or the Constitution of the State of Illinois.
D. The tax shall be imposed with respect to the use or consumption of electricity by customers beginning with the first bill issued on or after May 1, 2024.
E. The use or consumption of electricity within the City by units of local government or school districts shall be exempt from the tax imposed under this chapter.
F. If Section 3-16-2 E. of this chapter or the application thereof is held unconstitutional or otherwise invalid, the amount of tax due as a consequence of such holding shall be limited to the amount that the taxpayer is authorized to charge and collect from school districts and units of local government located within the corporate limits of this municipality pursuant to the provisions of Section 9-221 of the Public Utilities Act (220 ILCS 5/9-221), or any successor thereof.
3-16-3: COLLECTION OF TAX:
A. Subject to the provisions of Section 3-16-5 of this chapter regarding the delivery of electricity to resellers, the tax imposed under this chapter shall be collected from purchasers by the person maintaining a place of business in this State who delivers electricity to such purchasers. This tax shall constitute a debt of the purchaser to the person who delivers the electricity to the purchaser and is recoverable at the same time and in the same manner as the original charge for delivering the electricity.
B. Any tax required to be collected by this chapter, and any tax in fact collected, shall constitute a debt owed to the City of Plano, Kendall County, Illinois, by the person delivering the electricity, provided, that the person delivering electricity shall be allowed credit for such tax related to deliveries of electricity the charges for which are written off as uncollectible, and provided further, that if such charges are thereafter collected, the delivering supplier shall be obligated to remit such tax.
C. Persons delivering electricity shall collect the tax from the purchaser by adding such tax to the gross charge for delivering the electricity. Persons delivering electricity shall also be authorized to add to such gross charge an amount equal to 3% of the tax they collect to reimburse them for their expenses incurred in keeping records, billing customers, preparing and filing returns, remitting the tax and supplying data to the City of Plano, Kendall County, Illinois, upon request. For purposes of this chapter, any partial payment of a billed amount not specifically identified by the purchaser shall be deemed to be for the delivery of electricity.
3-16-4: TAX REMITTANCE AND RETURN:
A. Every tax collector shall on a monthly basis file a return in a form prescribed by the City Treasurer of the City of Plano, Kendall County, Illinois. The return and accompanying remittance shall be due on or before the last day of the month following the month during which the tax is collected or is required to be collected under Sections 3-16-3 and 3-16-4 of this chapter.
B. If the person delivering electricity fails to collect the tax from the purchaser or is excused from collecting the tax under Section 3-16-5 of this chapter, then the purchaser shall file a return in a form prescribed by the City Treasurer of the City of Plano, Kendall County, Illinois, and pay the tax directly to the City Collector of the City of Plano, Kendall County, Illinois, on or before the last day of the month following the month during which the electricity is used or consumed.
3-16-5: RESALES:
A. Electricity that is delivered to a person in the City of Plano, Kendall County, Illinois, shall be considered to be for use and consumption by that person unless the person receiving the electricity has an active resale number issued by the City Treasurer of the City of Plano, Kendall County, Illinois, and furnishes that number to the person who delivers the electricity, and certifies to that person that the sale is either entirely or partially nontaxable as a sale for resale.
B. If a person who receives electricity in the City of Plano, Kendall County, Illinois, claims to be an authorized reseller of electricity, that person shall apply to the City Treasurer, of the City of Plano, Kendall County, Illinois, for a resale number. The applicant shall state facts showing why it is not liable for the tax imposed by this chapter on any purchases of electricity and shall furnish such additional information as the City Treasurer of the City of Plano, Kendall County, Illinois, may reasonably require.
C. Upon approval of the application the City Treasurer, of the City of Plano, Kendall County, Illinois, shall assign a resale number to the applicant and shall certify the number to the applicant.
D. The City Treasurer, of the City of Plano, Kendall County, Illinois, may cancel the resale number of any person if the person fails to pay any tax payable under this chapter for electricity used or consumed by the person, or if the number: (1) was obtained through misrepresentation, or (2) is no longer necessary because the person has discontinued making resales.
E. If a reseller has acquired electricity partly for use or consumption and partly for resale, the reseller shall pay the tax imposed by this chapter directly to the City Collector of the City of Plano, Kendall County, Illinois, pursuant to Section 3-16-4 B. of this chapter on the amount of electricity that the reseller uses or consumes, and shall collect the tax pursuant to Section 3-16-4 of this chapter and remit the tax pursuant to Section 3-16-4 A. of this chapter on the amount of electricity delivered by the reseller to a purchaser.
F. Any person who delivers electricity to a reseller having an active resale number and complying with all other conditions of the section shall be excused from collecting and remitting the tax on any portion of the electricity delivered to the reseller, provided that the person reports to the City Collector the total amount of electricity delivered to the reseller, and such other information that the City Treasurer of the City of Plano, Kendall County, Illinois, may reasonably require.
3-16-6: BOOKS AND RECORDS:
Every tax collector, and every taxpayer required to pay the tax imposed by this chapter, shall keep accurate books and records of its business or activity, including contemporaneous books and records denoting the transactions that gave rise, or may have given rise, to any tax liability under this chapter. The books and records shall be subject to and available for inspection at all times during business hours of the day.
3-16-7: CREDITS AND REFUNDS:
Notwithstanding any other provisions of this chapter in order to permit sound fiscal planning and budgeting by the City, no person shall be entitled to a refund of, or credit for, a tax imposed under this chapter unless the person files a claim for refund or credit within one year after the date on which the tax was paid or remitted.
3-16-8: PENALTY:
Any taxpayer who fails to make a return or who makes a fraudulent return or who willfully violates any other provision of this chapter is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $100.00 nor more than $500.00 per offense and in addition thereto, shall be liable in a civil action for the amount of the tax due.
Section Three – Codification
The title, chapter(s) and section(s) adopted and amended by this ordinance shall be numbered and placed in an appropriate title, chapter(s), and sections(s) when and during the codification of the Plano Municipal Code.
Section Four – Conflict Clause
That all ordinances, parts of ordinances or board actions in conflict with the terms of this ordinance shall be repealed to the extent of said conflict.
Section Five – Passage Clause
That this ordinance shall take full force and effect from and after its passage, approval and publication as provided by law.
Section Six – Copies to Utility Companies
The City Clerk of the City of Plano, Kendall County, Illinois, is hereby authorized and directed to send a certified copy of this ordinance to each utility company affected by this ordinance.
Section Seven – Constitutionality Clause
Any part or parts of this ordinance declared by a court of law to be invalid or unconstitutional shall not affect the validity of the remaining provisions of this ordinance or the City of Plano Municipal Code.
Section Eight – Publication
This ordinance shall be published in book or pamphlet form as provided by the Illinois Municipal Code.
Section Nine – Recording
This ordinance shall be entered into the minutes and upon the journals of the City Council of the City of Plano.
DECIDED pursuant to a Roll Call Vote as follows:
YES | NO | ABSENT | PRESENT | |
Barbara Nadeau, Ward 1 | ||||
Mark Swoboda, Ward 1 | ||||
Jamal Williams, Ward 2 | ||||
John Fawver, Ward 2 | ||||
Stephen DeBolt, Ward 3 | ||||
Katherine Wickens, Ward 3 | ||||
Thomas Johns, Ward 4 | ||||
Scott Mulliner, Ward 4 | ||||
Michael Rennels, Mayor | ||||
TOTAL | ||||
PASSED AND APPROVED by the City of Plano City Council on the 8th day of April 2024.
___________________________________
Michael Rennels
Mayor
ATTEST :
___________________________________
Carin Martin
Deputy City Clerk
STATE OF ILLINOIS )
) SS
COUNTY OF KENDALL )
CLERK’S CERTIFICATION
I, Carin Martin, do hereby certify that I am the qualified Deputy City Clerk in and for the City of Plano, Kendall County, Illinois; that I am the keeper of the files, records, and seal of said City, and that the following is a true and correct copy of Ordinance No. 2024-____
AN ORDINANCE AMENDING THE
MUNICIPAL ELECTRIC UTILITY TAX ORDINANCE
adopted and approved by the Mayor and City Council at an official meeting held on April 8th, 2024, and that the vote on the motion for adoption was as follows:
YES | NO | ABSENT | PRESENT | |
Barbara Nadeau, Ward 1 | ||||
Mark Swoboda, Ward 1 | ||||
Jamal Williams, Ward 2 | ||||
John Fawver, Ward 2 | ||||
Stephen DeBolt, Ward 3 | ||||
Katherine Wickens, Ward 3 | ||||
Thomas Johns, Ward 4 | ||||
Scott Mulliner, Ward 4 | ||||
Michael Rennels (if necessary) | ||||
TOTAL | ||||
I do further certify that the deliberations of the Council on the adoption of said ordinance were conducted openly, that the vote on the adoption of said ordinance was taken openly, that said meeting was called and held at a specified time and place convenient to the public, that notice of said meeting was duly given to all of the news media requesting such notice, that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and with the provisions of the City Code of the City of Plano, as amended, and that the Council has complied with all of the provisions of said Act and said Code and with all of the procedural rules of the Council.
I further state that this Certification is issued under my hand and the seal of the City of Plano as required in the Illinois Compiled Statues 65 ILCS 5/1-2-4.
IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed the Corporate Seal of said City of Plano, Kendall County, Illinois on the date set forth herein.
_______________________________ (SEAL)
Carin Martin, Deputy City Clerk