Chapter 5.19
VIDEO GAMING PUSH TAX
Sections:
5.19.040 Registration required.
5.19.050 Collection – Payment – Accounting.
5.19.060 Promulgation of rules and regulations.
5.19.010 Definitions.
“Gaming establishment” means any location within the village that offers for play a video gaming terminal as authorized by the state of Illinois Video Gaming Act.
“Person” means any natural individual, including a firm, organization, society, foundation, institution, partnership, association, joint stock company, joint venture, limited liability company, public or private corporation, receiver, executor, trustee or other representative appointed by order of any court, or any other entity recognized by law.
“Play” means each individual push of the video gaming terminal which initiates the simulation provided by the video gaming terminal. “Play” shall not include the push of individual wager amounts, selection of types of games on the video gaming terminal or entry of any information or printing of winning receipts.
“Terminal operator” means any individual, partnership, corporation, or limited liability company that is licensed under the Video Gaming Act, 230 ILCS 40/1 et seq., and that owns, services, and maintains video gaming terminals for placement in gaming establishments.
“Video gaming terminal” (hereinafter referred to as “VGT”) means any electronic video game machine licensed and authorized under the state of Illinois Video Gaming Act, that upon insertion of cash, electronic cards or vouchers, or any combination thereof, is available to play or simulate the play of a video game, including but not limited to video poker, line up, and blackjack, as authorized by the Illinois Gaming Board utilizing a video display and microprocessors in which the player may receive free games or credits that can be redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or tokens or is for amusement purposes only. (Ord. 2021-32 § 2, 2021)
5.19.020 Push tax imposed.
Effective October 31, 2021, and except as otherwise provided by this section, an amusement tax is imposed upon any person who participates in the play of VGTs that takes place in the jurisdictional boundaries of the village. The rate of that tax shall be equal to one cent per play on a VGT. The provisions of this section, except as otherwise provided, shall apply to all VGT, whether specifically licensed or regulated under other provisions of this code or other ordinances, or not. (Ord. 2021-32 § 2, 2021)
5.19.030 Tax additional.
The tax imposed in this chapter is in addition to all other taxes imposed by the state of Illinois or any municipal corporation or political subdivision thereof. (Ord. 2021-32 § 2, 2021)
5.19.040 Registration required.
Every terminal operator of a VGT located in the village shall apply for registration as a tax collector with the village no later than thirty days after commencing such business or thirty days after the effective date of the ordinance codified in this chapter imposing the push tax, whichever occurs later. The application shall be submitted to the village on the forms provided by the village and contain such information as reasonably required by the village to impose, collect, and audit all amounts related to the push tax. (Ord. 2021-32 § 2, 2021)
5.19.050 Collection – Payment – Accounting.
It shall be the joint and several duty of every terminal operator and gaming establishment to secure from each person participating in the play of a VGT the push tax imposed by RMC 5.19.020. For purposes of this chapter, it shall be presumed that the amount of the push tax imposed on each person, unless the taxpayer or tax collector provides otherwise with books, records, or other documentary evidence, has been collected from the person by the terminal operator or gaming establishment.
A. Push tax payments accompanied by tax returns prescribed by the village shall be remitted to the village on or before the twentieth day of the month following the month in which payment for the push tax is made.
B. Every terminal operator of a VGT who is required to collect the push tax by this chapter shall be considered a tax collector for the village. The terminal operator of a VGT may separately itemize and charge each person who plays a VGT. All push tax amounts collected shall be held by the terminal operator as trustee for, and on behalf of, the village. The failure of the operator to collect the tax shall not excuse or release the person from the obligation to pay the tax. The ultimate obligation of the push tax shall remain on the individual person playing the VGT and shall never be shifted to the terminal operator.
C. The terminal operator of a VGT may separately itemize and charge each person who plays a VGT.
D. Notwithstanding any other provision of this chapter, in order to permit sound fiscal planning and budgeting by the village, no person shall be entitled to a refund of, or credit for, the push tax imposed by this chapter unless the person files a claim for a refund or credit within one year after the date on which the push tax was paid or remitted to the village.
E. The terminal operator of any VGT played in the village shall be subject to audit, inspection, and record keeping provisions of this code. It shall be unlawful for any terminal operator and/or person to prevent, hinder, or interfere with the village’s officials, employees, and/or agents designated to discharge their respective duties in the performance and enforcement of the provisions of this chapter. It is the duty of every terminal operator of a VGT to keep accurate and complete books and records to which the village’s officials, employees, and/or agents will at all times have full and complete access. (Ord. 2021-32 § 2, 2021)
5.19.060 Promulgation of rules and regulations.
The village is authorized to adopt, promulgate, and enforce any additional rules and regulations pertaining to the interpretation, collection, administration, and enforcement of this section. Any citation under this section may be in addition to any other citations issued by the village under any and all applicable sections of this code. (Ord. 2021-32 § 2, 2021)
5.19.070 Violations.
A. It shall be a violation of this section for a terminal operator to fail to file a report within the time prescribed in this chapter. A terminal operator who falsely reports or fails to report the amount of push tax due as required by this chapter shall be in violation of this section and is subject to the suspension and/or revocation of their terminal operator license. All payments not remitted when due shall be paid together with a penalty assessment on the unpaid balance at a rate of one and one-half percent per month.
B. The local liquor commissioner or his or her designee shall have the power to suspend for not more than thirty days or revoke any video gaming license issued under the provisions of this chapter for cause, or if he/she determines that a terminal operator shall have violated any of the provisions of this chapter, any of the statutes of the state or any other valid ordinance or resolution enacted by the corporate authorities of the village. However, no such license shall be revoked or suspended except after the holding of a public hearing by the local liquor commissioner or his or her designee. Ten days’ notice of the hearing shall be given to the terminal operator. Alternatively, the terminal operator shall have the opportunity to engage in a prehearing conference and agree to negotiated penalties rather than proceed to a hearing.
C. In addition, any terminal operator violating the provisions of this chapter shall be subject to a fine of two hundred fifty dollars for the first offense, and five hundred dollars for the second offense and seven hundred fifty dollars for a third offense and subject to a revocation of any license to operate a VGT for the third offense.
D. Each day a violation continues shall constitute a separate violation.
E. It shall be deemed a violation of this chapter for any person to knowingly furnish false or inaccurate information to the village.
F. Whenever any person obligated to pay or collect the push tax fails to remit any tax as provided in this section, the village attorney may bring, or may cause to be brought, an action to enforce the payment of such tax on behalf of the village in any court of competent jurisdiction.
G. Any citations issued under this section may be in addition to any other citations or enforcement mechanisms authorized by or issued under this code under any and all applicable sections of this code. (Ord. 2021-32 § 2, 2021)