Chapter 3-34
EXCISE TAX ON THE SALE OF LIQUOR
Sections:
Article I. Excise Tax on Liquor by the Drink
3-34-020 Imposition—Rate of tax.
3-34-040 Determination generally—Returns—Payments.
3-34-050 Deficiency determinations.
3-34-060 Determination if no return is made.
3-34-070 Collection of unpaid tax.
3-34-080 Credits for overpayments.
3-34-090 Administration generally—Recordkeeping.
Article II. Liquor Tax
3-34-130 Payment on purchase for retail, resale or wholesale.
3-34-150 Registration—Return—Filing.
3-34-170 Commission on tax paid when due.
3-34-180 Failure to pay or file —Penalties and interest.
3-34-200 Sales and uses presumed taxable—Burden of proof.
Article I. Excise Tax on Liquor by the Drink
3-34-010 Definitions.
The following words, terms and phrases shall, for the purposes of this article and except where the context clearly indicates a different meaning, be defined as follows:
“City” means the city of Harvey and, variously, the incorporated territory of the city, wherein the city of Harvey is empowered to impose this tax by Article VII, Section 6(a) of the Illinois Constitution (1970), which provides that any municipality which has a population of more than twenty-five thousand (25,000) is a home rule unit, and the city of Harvey, county of Cook, Illinois, with a population of more than twenty-five thousand (25,000) is a home rule unit and as such may exercise any power and perform any function pertaining to its government and affairs.
“Due date” means the thirtieth day after the close of the monthly period for which the tax is to be computed.
“Licensee” means any person who holds a license or permit from the city of Harvey to sell liquor on the premises.
“Liquor” or “distilled spirits” means any alcoholic beverage obtained by distillation or containing alcohol.
“Monthly period” means the calendar months of the year.
“Person” means an individual, firm, partnership, joint adventure, social club, fraternal organization, joint stock company, corporation, cooperative, estate, trust, receiver, trustee, nonprofit corporation, syndicate, or any other group or combination acting as a unit, the plural as well as the singular number, excepting the United States of America, the state of Illinois, and any political subdivision of either thereof upon which the city is without power to impose the tax herein provided.
“Purchase price” means the consideration received for the sale of liquor or distilled spirits valued in money, whether received in cash or otherwise, including all receipts, cash, credits and property or services of any kind or nature and also the amount for which credit is allowed by the licensee to the purchaser, without any deduction therefrom whatsoever.
“Purchaser” means any person who orders and gives present or future consideration for any liquor or distilled spirits dispensed by the drink.
“Return” means any return filed or required to be filed by this article.
“Tax” means any tax imposed by this article. (Ord. 3215 § 1, 2008: Ord. 3211 § 1, 2008)
3-34-020 Imposition—Rate of tax.
A. In addition to any and all other taxes authorized by law, a tax is hereby imposed on the retail sale of alcoholic beverages in the city. This tax shall be paid by the purchaser and nothing in this article shall be construed to impose a tax on the occupation of retail or wholesale alcoholic beverage dealer. The tax shall be levied according to the following schedule:
1. Beer, a tax at the rate of twenty-nine cents ($0.29) per gallon;
2. Alcoholic liquor, other than beer, containing fourteen (14) percent or less of alcohol by volume, a tax at the rate of thirty-six cents ($0.36) per gallon;
3. Alcoholic liquor containing more than fourteen (14) percent and less than twenty (20) percent of alcohol by volume, a tax at the rate of eighty-nine cents ($0.89) per gallon;
4. Alcoholic liquor containing twenty (20) percent or more of alcohol by volume, a tax at the rate of two dollars sixty-eight cents ($2.68) per gallon.
B. The tax rate stated above shall be apportioned in sales involving a fraction of a gallon, and shall be rounded down to the nearest cent when less than one-half a cent ($0.005) is due and rounded up to the nearest cent when one-half cent ($0.005) or more is due. (Ord. 3215 § 2, 2008: Ord. 3211 § 2, 2008)
3-34-030 Collection of tax.
Every licensee holding a license to sell liquor or distilled spirits is authorized and required to collect the tax imposed under this article from the purchasers of liquor sold within the licensed premises. (Ord. 3215 § 3, 2008: Ord. 3211 § 3, 2008)
3-34-040 Determination generally—Returns—Payments.
A. Due Date Taxes. All amounts of such taxes collected by the licensee shall be due and payable to the clerk of the city of Harvey on or before the thirtieth day of every month next succeeding each respective monthly period.
B. Return—Persons Required to File—Contents. The remittance of the taxes collected under this article shall be made and a return shall be filed by every licensee with the city clerk showing the gross sales of liquor and the amount of tax collected or otherwise due for the period, along with such other information as may be required by the city clerk.
C. Collection Fee Allowed Licensees. Licensees collecting the tax shall be allowed a percentage of the tax due and accounted for and shall be reimbursed in the form of a deduction in submitting, reporting and paying the amount due, if the amount is not delinquent at the time of payment. The rate of the deduction shall be the same rate authorized for deductions from state sales and use tax as provided for in the “Illinois Retailers’ and Consumers’ Sales and Use Tax Act.”
D. Penalty and Interest for Failure to Pay Tax by Due Date. A penalty of one (1) percent is imposed for failure to pay any amount of tax when due and payable to the city, with a minimum amount of penalty due of twenty-five dollars ($25.00). Delinquent amounts shall bear interest at the rate of one (1) percent per month, or fraction thereof, until paid. (Ord. 3215 § 4, 2008: Ord. 3211 § 4, 2008)
3-34-050 Deficiency determinations.
A. Recomputation of Tax—Authority to Make—Basis of Recomputation. If the city clerk is not satisfied with the return or returns of the tax or the amount of the tax required to be paid to the city by any person, he may compute and determine the amount required to be paid upon the basis of any information within his possession or that may come into his possession. One (1) or more deficiency determinations may be made of the amount due for one (1) or more monthly periods.
B. Penalty and Interest for Failure to Pay Tax. A specific penalty of one (1) percent is imposed upon the amount of any determination. Additionally, the amount of any determination shall bear interest at the rate of one (1) percent per month, or fraction thereof, from the due date of taxes until the date of payment.
C. Notice of Determination—Service Of. The city clerk shall give to the licensee written notice of his determination. The notice may be served personally or by mail; if by mail such service shall be addressed to the licensee at his business address as it appears in the records of the city. Service by mail is complete when it is delivered by certified mail with a receipt signed by addressee.
D. Time Within Which Notice of Deficiency Determination to Be Mailed. Except in case of failure to make a return, every notice of a deficiency determination shall be mailed within three (3) years after the thirtieth day of the calendar month following the monthly period for which the amount is proposed to be determined or within three (3) years after the return is filed, whichever shall last expire. (Ord. 3215 § 5, 2008: Ord. 3211 § 5, 2008)
3-34-060 Determination if no return is made.
A. Estimate of Gross Receipts. If any person fails to make a return, the city clerk shall make an estimate of the amount of the gross receipts of the licensee from the sale of liquor by the drink, or as the case may be, of the amount of total such receipts in this city which are subject to the tax. The estimate shall be made for the period or periods in respect to which the person failed to make the return and shall be based upon any information which is or may come into the possession of the city clerk. Written notice shall be given in the manner prescribed in Section 3-34-050(C) of this code.
B. Penalty and Interest for Failure to Pay Tax. Penalty and interest shall be applied to the estimated taxes due in the manner prescribed in Section 3-34-050(B) of this code. (Ord. 3215 § 6, 2008: Ord. 3211 § 6, 2008)
3-34-070 Collection of unpaid tax.
A. Alcohol License to Sell Alcohol Conditioned upon Payment and Remittance of Tax. As a condition for holding a license to sell liquor, a licensee must comply with this article and collect and remit the tax imposed in the manner prescribed. Failure to comply will subject the licensee to suspension of alcohol selling privileges as provided in Chapter 5-06 of this code.
B. Action for Delinquent Tax. At any time within three (3) years after any tax or any amount of tax required to be collected becomes due and payable and at any time within three (3) years after the delinquency of any tax or any amount of tax required to be collected, the city clerk may bring an action in a court of competent jurisdiction in the name of the city to collect the amount delinquent together with penalty, interest, court fees, filing fees, and other legal fees incident thereto.
C. Duty of Successors or Assignees of Licensee to Withhold Tax from Purchase Price. If any licensee liable for any amount under this article sells out his business or quits the business, his successors or assigns shall withhold sufficiently from the purchase price to cover such amount until the former owner produces a receipt issued by the city clerk reflecting payment in full of the amount due or a certificate stating that no amount is due.
D. Liability for Failure to Withhold. If the purchaser of a business fails to withhold from the purchase price as required, he shall be personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price. (Ord. 3215 § 7, 2008: Ord. 3211 § 7, 2008)
3-34-080 Credits for overpayments.
If it is determined that a licensee has overpaid the tax imposed under this article, overpaid penalties or interest, or has paid the tax more than once, the city clerk may, upon filing of a claim by the licensee and audit of the claim, authorize credit of the overpayment toward the current amount of tax due and payable from the licensee. All claims for overpayments must be made by the licensee, his administrators or executors, and must be in writing three (3) years from the date of payment stating the specific grounds upon which the claim is founded. (Ord. 3215 § 8, 2008: Ord. 3211 § 8, 2008)
3-34-090 Administration generally—Recordkeeping.
A. Authority of City Clerk. The city clerk or his/her authorized representative shall administer and enforce the provisions of this article for the levy and collection of the tax herein imposed. The city clerk shall have the authority to make and publish reasonable rules and regulations not inconsistent with this article or other laws of the city of Harvey and the state of Illinois, for the administration and enforcement of the provisions of this article and the collection of the taxes provided herein.
B. Records Required. Every licensee for the sale of liquor by the drink in the city of Harvey shall preserve, for a minimum of three (3) years, all records, receipts, invoices and other pertinent papers as the city clerk may require.
C. Examination of Records—Audits. The city clerk or any person authorized in writing by her may examine the books, papers, records, financial reports, inventory, equipment and other facilities of any licensee liable for the tax, in order to verify the accuracy of any return made, or, if no return is made, to ascertain and determine the amount required to be paid.
D. Authority to Require Reports, Contents. In administering the provisions of this article, the city clerk may require the filing of reports by any person or class of persons having in their possession or custody information relating to the sale of liquor by the drink. The reports shall be filed with the city clerk when required and shall set forth the gross sales from the sale of liquor by the drink, the amount of tax collected thereon, or such other information as the city clerk may require. (Ord. 3215 § 9, 2008: Ord. 3211 § 9, 2008)
Article II. Liquor Tax
3-34-110 Title—Definitions.
A. This article shall be known and cited as the “city of Harvey liquor tax ordinance,” and the tax imposed herein shall be known and cited as the “Harvey liquor tax.”
B. Whenever used in this article, the following words and phrases shall have the following meanings:
1. “Distributor” or “liquor distributor” means any person who produces, refines, blends, compounds or manufactures liquor in the city, or transports or has transported liquor to any location in the city, or receives in the city liquor, on which the Harvey liquor tax has not been paid; or sells liquor to a retail dealer for resale in the city. “Distributor” shall include any person who transports liquor into the city or receives liquor in the city for his own use and consumption, and not for sale or resale.
2. “Person” means any individual, firm, trust, estate, partnership, association, corporation, joint venture, joint stock company, receiver, alderman, conservator, legal representative, or other legally recognized entity.
3. “Retail deal” or “retail liquor dealer” means any person who is engaged in the business of selling liquor in the city to a purchaser for the purchaser’s use or consumption, and not for resale in any form.
4 “Sale,” “resale,” or “purchase” means any transfer of ownership or title or both, any exchange or any barter, whether conditional or otherwise, in any manner or by any means whatsoever for consideration.
5. “Sale at retail” means any sale to a person for that person’s use or consumption and not for resale to another.
6. “Tax” means Harvey liquor tax.
7. “Use” means the exercise of any right to or power over liquor incident to the ownership thereof, including but not limited to the receipt of liquor by any person for the sole purpose of resale, retail or wholesale within the city.
8. “Liquor” is any alcoholic beverage obtained by distillation or containing alcohol. (Ord. 3291 § 1(1), 2013)
3-34-120 Tax imposed.
In addition to any and all other taxes authorized by law, a tax is hereby imposed on the retail sale of alcoholic beverages in the city. This tax shall be paid by the distributor and nothing in this article shall be construed to impose a tax on the purchaser. The tax shall be levied according to the following schedule:
A. Beer, a tax at the rate of twenty-five cents ($0.25) per gallon;
B. Alcoholic liquor, other than beer, containing fourteen (14) percent or less of alcohol by volume, a tax at the rate of forty cents ($0.40) per gallon;
C. Alcoholic liquor containing more than fourteen (14) percent and less than twenty (20) percent of alcohol by volume, a tax at the rate of one dollar and ten cents ($1.10) per gallon;
D. Alcoholic liquor containing twenty (20) percent or more of alcohol by volume, a tax at the rate of three dollars and fifteen cents ($3.15) per gallon.
The tax rate stated above shall be apportioned in sales involving a fraction of a gallon, and shall be rounded down to the nearest cent when less than one-half cent ($0.005) is due and rounded up to the nearest cent when one-half cent ($0.005) or more is due. (Ord. 3291 § 1(2), 2013)
3-34-130 Payment on purchase for retail, resale or wholesale.
“Use in the city” shall be deemed to occur only at the place in the city where the liquor is purchased, transported, delivered and/or received by a person who has a liquor license for retail, resale or wholesale purposes. To the extent that a person has paid the tax imposed herein on the retail purchase of liquor, he shall be exempt from the payment of and liability for said tax on the use of such alcoholic beverages. (Ord. 3291 § 1(3), 2013)
3-34-140 Collection.
The Harvey liquor tax shall be collected by each liquor distributor who sells such liquor to a retail liquor dealer doing business in the city. Any distributor who shall pay the tax to the city shall collect the tax from any retail dealer to whom the distributor sells liquor. The retail dealer shall in turn collect the tax from the purchaser of the liquor. Any distributor who sells liquor directly to a purchaser or user, for delivery in the city, and not for resale, shall collect the tax from the purchaser or user.
The retail dealer shall in turn then collect the tax from the purchaser of the liquor. Any distributor who sells liquor directly to a purchaser or user, for delivery in the city, and not for resale, shall collect the tax from the purchaser or user.
If any retail liquor dealer receives liquor upon which Harvey liquor tax has not been collected by the distributor, the retail dealer shall remit such tax directly to the finance director by the last day of the month following the month in which he received such liquor, and shall collect such tax from his purchasers.
If any distributor, purchaser, retailer or wholesaler receives liquor upon which the Harvey liquor tax has not been collected by the distributor or retail dealer, such purchaser or user shall pay the tax directly to the city by the last day of the month following the month in which such purchaser or user made the taxable purchase or use of the liquor.
Any tax remittance required to be made directly to the city shall be made to the finance director and shall be accompanied by a remittance form prescribed by the finance director.
Any person who collects the Harvey liquor tax shall do so as a trustee for and on account of the city of Harvey. (Ord. 3291 § 1(4), 2013)
3-34-150 Registration—Return—Filing.
Every liquor distributor doing business on July 31, 2013, shall register with the finance director by August 30, 2013. Every person becoming a distributor after that date shall register with the finance director within thirty (30) days after the commencement of such business. Every distributor shall file each month with the finance director a remittance return, containing a report of his sales of liquor to retail dealers or users in the city occurring in the prior month. The return shall be in a form prescribed and furnished by the finance director. If mailed, the return must be postmarked on or before the last day of the month following the month for which the report is due. Each such return shall be accompanied by a remittance of the appropriate amount of tax applicable to the sales reported. Payment shall be made to the finance director. (Ord. 3291 § 1(5), 2013)
3-34-160 Inventory report.
By August 30, 2013, every retail liquor distributor and dealer shall file with the finance director, on forms supplied by the finance director for that purpose, an inventory of all liquor in the retail dealer’s possession on July 13, 2013, at 12:01 a.m. The owner or chief executive officer of the retail dealer shall sign the inventory report and attest under oath to its accuracy. With the inventory report, the retail dealer shall pay to the city the Harvey liquor tax due on the sale of all liquor in the retail dealer’s possession on July 31, 2013, at 12:01 a.m. and for which such tax has not been collected on behalf of the city by a liquor distributor. (Ord. 3291 § 1(6), 2013)
3-34-170 Commission on tax paid when due.
A distributor or retail dealer remitting the tax to the city shall be entitled to a commission of one (1) percent of the amount remitted, to compensate him for the cost of collection, filing returns, and supplying information to the finance director, but in no event shall any commission be allowed on any tax not remitted when due. (Ord. 3291 § 1(7), 2013)
3-34-180 Failure to pay or file —Penalties and interest.
Failure to pay or remit the tax or to file the remittance return required by this article shall be subject to the following penalties and interest:
A. Any tax not paid or remitted when due shall bear interest at the rate of two (2) percent per month, or fraction thereof, until the tax is paid or remitted;
B. In addition to any interest charged, any person who fails to pay or to remit the tax when due shall be subject to a late penalty of ten (10) percent of such tax;
C. In addition to any interest or penalty charged above, any person who fails to file a remittance return when due shall be subject to a late filing penalty of ten (10) percent of the total tax liability due for the reporting period.
Where the failure to pay or to remit the tax or to file the remittance return in a timely manner is due to reasonable cause beyond the control of the person charged with filing and paying the tax, the penalties described in subsections B and C of this section may be waived by the finance director. (Ord. 3291 § 1(8), 2013)
3-34-190 Recordkeeping.
Every distributor and every retail dealer required to collect and remit the tax imposed herein shall keep accurate and complete books and records of his business of selling liquor, including the maintenance of all invoices and other source documents. Every purchaser or user shall keep accurate and complete books and records of his purchases and uses of liquor in the city. (Ord. 3291 § 1(9), 2013)
3-34-200 Sales and uses presumed taxable—Burden of proof.
It shall be presumed that all sales and uses of liquor in the city are subject to tax under this article until the contrary is established. The burden of proving that a sale or use is not taxable hereunder shall be upon the distributor, retail dealer, purchase or user so claiming. (Ord. 3291 § 1(10), 2013)
3-34-210 Exemptions.
The tax imposed by this article shall not apply to the following sales or uses of liquor:
A. Sale by a distributor to another distributor holding a valid registration certificate whose place of business is outside the city;
B. Sale by a distributor to a retailer of liquor whose place of business is outside the city;
C. Sale or use to the extent the tax imposed by this article would violate the Illinois or United States Constitution;
D. Sale to or use by the federal government or any state or local governmental body. (Ord. 3291 § 1(11), 2013)