HomeMy WebLinkAboutORDINANCE - 3833 - 9/26/2023 - OCCUPATION TAX SELLING ADULT USE CANNABIS AT RETAILORDINANCE NO.3833
AN ORDINANCE AMENDING CHAPTER 2 OCCUPATION AND OTHER BUSINESS
TAXES OF TITLE 3 BUSINESS AND LICENSE REGULATIONS OF THE VILLAGE
CODE OF THE VILLAGE OF ELK GROVE VILLAGE WITH REGARD TO THE
IMPOSITION OF A LOCAL RETAILERS OCCUPATION TAX ON ESTABLISHMENTS
SELLING ADULT USE CANNABIS AT RETAIL
WHEREAS, the Village of Elk Gove Village (the "Village") is a home rule municipal
corporation in accordance with Article VII, Section 6(a) of the Constitution of the State of
Illinois of 1970; and
WHEREAS, the Village has the authority to adopt ordinances and to promulgate rules
and regulations that pertain to its government and affairs, and to review, interpret and amend its
ordinances, rules and regulations; and
WHEREAS, the Illinois General Assembly recently adopted the Cannabis Regulation
and Tax Act (the "Act"), which legalizes the possession, sale and distribution of cannabis
beginning January 1, 2020, in accordance with the Act (410 ILCS 705/1-1 et seq.); and
WHEREAS, the Illinois Generally Assembly also recently adopted the Municipal
Cannabis Retailers' Occupation Tax Law, which authorizes the corporate authorities of local
municipalities to impose, by ordinance, a tax 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 municipality on the gross receipts from these sales made in the
course of that business, in an amount not to exceed three percent (3%) of the gross receipts from
these sales (65 ILCS 5/8-11-23); and
WHEREAS, the Mayor and Board of Trustees, in exercise of the power and authority
reserved to them under the Municipal Cannabis Retailers' Occupation Tax Law, have determined
that it is in the interest of the public health and public safety to impose a tax 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 within the corporate limits of the
Village on the gross receipts from these sales made in the course of that business, in an amount
equal to three percent (3%) of the gross receipts from such sales; and
NOW, THEREFORE, BE IT ORDAINED by the Mayor and Board of Trustees of
the Village of Elk Grove Village, Counties of Cook and DuPage, Illinois as follows:
Section 1: The recitals above shall be and are hereby incorporated in this Section 1 as
if restated herein.
Section 2: That Chapter 2, Occupation and Other Business Taxes of Title 3 of the
Village Code is hereby amended by adding thereto a new section entitled Municipal Cannabis
Retailers Occupation Tax which shall read as follows:
3-2-15 MUNUICPAL CANNABIS RETAILERS OCCUPATION TAX
A. TAX IMPOSED:
A tax is hereby imposed, in accordance with the Municipal Cannabis Retailers'
Occupation Tax Law (65 ILCS 5/8-11-23), 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 corporate limits of the village at the rate of 3% of
the gross receipts from these sales made in the course of that business.
B. COLLECTION AND ENDORCEMENT:
The tax imposed by this chapter, and all civil penalties that may be assessed as an
incident thereto, shall be collected and enforced by the Illinois Department of Revenue.
The Illinois Department of Revenue shall have full power to administer and enforce the
provisions of this article. Any tax required to be collected pursuant to or as authorized by
this article and any such tax collected by such retailer and required to be remitted to the
Illinois Department of Revenue shall constitute a debt owed by the retailer to the State of
Illinois. 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, as
provided in 65 ILCS 5/8-11-23.
C. EFFECTIVE DATE:
The tax provided for herein shall take effect for sales on or after the first day of
January 2024.
Section 3: The Village Clerk is authorized to publish the Ordinance in pamphlet
form.
Section 4: This Ordinance shall be in full force and effect from and after January 1,
2024.
VOTE: AYES: 6 NAYS: 0 ABSENT: 0
PASSED this 261h day of September 2023
APPROVED this 261h day of September 2023
APPROVED:
Mayor Craig B. Johnson
Village of Elk Grove Village
ATTEST:
Loretta M. Murphy, Village Clerk
PUBLISHED in pamphlet form this 281h day of September 2023.