HomeMy WebLinkAboutORDINANCE - 2094 - 3/27/1990 - RETAILER'S & SERVICE OCCUPATION TAXORDINANCE NO. 2094
AN ORDINANCE RESCINDING CHAPTER 18, ARTICLES XLV AND XLVI,
MUNICIPAL RETAILER'S AND SERVICE OCCUPATION TAX, OF THE MUNICIPAL
CODE OF THE VILLAGE OF ELK GROVE VILLAGE
NOW, THEREFORE, BE IT ORDAINED by the President and Board of
Trustees of the Village of Elk Grove Village, Counties of Cook
and Du Page, Illinois as follows:
Section 1: That House Bill 1859 (PA 85-1135), Sales Tax
Reform Act, was adopted in 1988 by the Illinois General Assembly
amending the Illinois Municipal Code (Chapter 24, Illinois
Revised Statutes); and
Section 2: That effective January 1, 1990 said amendments
provide for one statewide sales tax rate to include the one
percent Municipal Retailers and Service Occupation Taxes to be
collected and distributed to municipalities by the Illinois
Department of Revenue; and
Section 3: That effective January 1, 1990 said amendments
provide that certain manufacturing machinery and equipment is
exempt from the Retailers Occupation and the Service Occupation
Tax and may not be reimposed by local governments.
Section 4: That Chapter 18 of the Municipal Code of the
Village of Elk Grove Village be and the same is hereby amended by
rescinding Articles XLV and XLVI as it relates to the Municipal
Retailer's and Service Occupation Taxes.
Section 5: That this ordinance shall be in full force and
effect from and after its passage and approval according to law.
VOTES: AYES 5 NAYS 0 ABSENT 1
ATTEST:
PASSED this 27th day of March , 1990.
APPROVED this 27th day of March , 1990.
Ilafern R. Snick
Deputy Village Clerk
Charles J. Zettek
Village President
March 13, 1990
TO: George C. Coney, Director of Finance
FROM: c "—
--------------------------------
Hilda Ingebrigtsen, Assistant Dir. of Finance
SUBJECT: Amendment to Municipal Code/State Sales Taxes
Sales tax reform legislation was passed last year by the Illinois
General Assembly to provide one basic statewide tax rate and one
common tax base, effective January 1, 1990. Payments to local
governments will continue to reflect tax collections based on
sales made in each local jurisdiction.
The new law increased the state sales tax rate to include the 1
percent municipal rate. The amounts received by local
municipalities are approximately the same as under the old system
with the exception of communities having reimposed the 1 percent
on farm and manufacturing machinery and equipment. As of January
1, 1990 these are fully exempt from all sales taxes. Local
governments no longer have the ability to reimpose these taxes.
Attached is a proposed ordinance amending the Municipal Code to
remove Articles XLV and XLVI which refer to sales taxes for
retail and service occupations and the reinstatement of the
manufacturing machinery and equipment approved by the Village
Board January 23, 1979. These articles are superceded by
Illinois Statutes as a result of the sales tax reform
legislation.
I recommend Village Board consideration and approval of the
attached ordinance.
c:
George Knickerbocker, Village Attorney