Chicago, IL Bottled Water Tax Ordinance
REVENUE ORDINANCE FOR 2008
This chapter shall be known and cited as the "Chicago Bottled Water Tax Ordinance," and the tax herein imposed shall be known and cited as the "Chicago Bottled Water Tax."
Whenever any of the following words, terms or phrases are used in this chapter, they shall have the following meanings:
“Bottle” means any closed container which is labeled by a manufacturer of bottled water and used to contain or convey bottled water.
"Bottled water" means all water which is sealed in bottles offered for sale for human consumption. The term does not include any beverage defined as a “soft drink” under Section 3-45-020 of the Chicago Soft Drink Tax Ordinance, Chapter 3-45 of this Code.
"Department" or "department of revenue" means the department of revenue of the City.
"Director" or "director of revenue" means the director of revenue of the City.
"Manufacturer" means any processor, bottler or other person who fills or refills a bottle with bottled water and others engaged in purifying, filtrating or any other alteration of water for the purpose of selling or reselling bottled water.
"Person" is defined as provided in Section 1-4-090 of this Code.
“Purchaser” means any person who purchases in a retail sale.
"Sale" or "purchase" means any transfer of ownership or title or both, any exchange or barter, in any manner or by any means whatsoever for a valuable consideration.
“Retail bottled water dealer" or "retailer" means any person who engages in the business of the retail sale of bottled water in the City.
"Retail sale" means any sale to a person for use or consumption, and not for resale.
"Wholesale bottled water dealer" or "wholesaler" means any person who engages in the business of selling or supplying bottled water to any person for resale in the City.
3-43-030 Tax imposed.
A tax is hereby imposed on the retail sale of bottled water in the City. This tax shall be paid by the purchaser, and nothing in this chapter shall be construed to impose a tax on the occupation of retail or wholesale bottled water dealer. The tax shall be levied at the rate of $0.05 per bottle.
3-43-040 Liability for payment.
The ultimate incidence and liability for payment of the tax herein levied is to be borne by the purchaser of bottled water. It shall be a violation of this chapter for a retail bottled water dealer to fail to include the tax imposed herein in the sale price of the bottled water, or to otherwise absorb such tax.
A. Except as otherwise provided herein, the tax levied herein shall be collected by each wholesale bottled water dealer who sells bottles of water to a retail bottled water dealer located in the City. The wholesale bottled water dealer shall remit the tax and file returns in accordance with Section 3-43-060 of this chapter.
B. Any wholesale bottled water dealer who shall pay the tax levied by this chapter shall collect the tax from each retail bottled water dealer in the city to whom the sale of said bottled water is made, and any such retail bottled water dealer shall in turn then collect the tax from the retail purchaser of said bottled water.
C. If any retailer located in the City shall receive or otherwise obtain bottled water upon which the tax imposed herein has not been collected by any wholesale bottled water dealer, then the retailer shall collect such tax and remit it directly to the department of revenue in accordance with Section 3-43-060 of this chapter.
D. If a wholesale bottled water dealer sells bottled water to a purchaser for use or consumption and not for resale, such wholesale bottled water dealer shall collect the tax imposed herein from such purchaser and remit it to the department in the same manner as sales to retail bottled water dealers.
3-43-060 Tax payments and returns.
A. All tax payments and remittances shall be made in accordance with either Section 3-4-187 (payment of actual tax liabilities) or Section 3-4-188 (payment of estimated taxes).
B. All tax returns shall be filed with the department on an annual basis on or before August 15 of each year in accordance with Sections 3-4-186 and 3-4-189 of this Code.
3-43-070 Returns and payments required upon implementation of the tax and after future tax rate increases.
A. On or before January 25, 2008, every retail bottled water dealer shall file with the department, on a form prescribed by the director, a tax return reporting the inventory of bottled water in the retail dealer’s possession or control on the effective date of this section. The retail dealer shall include with the tax return any tax due on the inventory of bottled water in its control and possession for which all applicable tax has not been collected. The retail dealer shall in turn collect the tax from its retail purchasers.
B. Every retail bottled water dealer who possesses bottled water purchased prior to the effective date of a Chicago bottled water tax increase shall file with the department, on a form prescribed by the director, a tax return attesting to the quantities of bottled water in its possession as of the last day prior to the tax increase and pay to the department the amount of tax due as a result of each rate increase. The retail dealer shall in turn collect the tax from its retail purchasers. Each such tax return and payment due under this subsection shall be filed and received by the department by the 24th day following the effective date of each tax increase.
C. Every retail bottled water dealer required to file a tax return under subsection A or B of this section who does not file such tax return by its due date, or alternatively does not provide all required information on such tax return, or fails to pay all required tax due computed thereon, shall be subject to a penalty of $100.00 per business location required to be reported on the tax return, in addition to all other penalties and interest that may be due under the provisions of the Uniform Revenue Procedures Ordinance, Chapter 3-4 of this Code.
D. If the director determines that a party to whom the penalty in subsection C of this section has accrued had reasonable cause for paying late, underpaying the applicable tax, or filing a late or incomplete tax return, then the applicable penalty shall be waived.
E. The director, or his or her designee, may at any time during the statute of limitations outlined in Section 3-4-120 of this Code, examine the books and records of any party required to file a tax return under this section and may issue a tax determination and assessment to the party as per Section 3-4-160 of this Code if a determination is made that any amount of tax, penalty or interest is due.
F. Every party required to file a tax return under subsection A or B of this section who files a complete tax return by its due date and makes timely payment of the amount computed thereon shall be eligible to retain a commission in the amount of one percent of the tax computed due thereon.
3-43-080 Books and records.
Every person required to collect the tax imposed by this Chapter shall keep accurate books and records of its business or activity, including original source documents and books of entry denoting the transaction that gave rise, or may have given rise, to the tax liability or any exemption that may be claimed. All such books and records shall be kept in the English language and, at all times during business hours of the day, shall be subject to and available for inspection by the department.
3-43-090 Payment of tax required.
The failure of the wholesale or retail bottled water dealer to collect the tax herein imposed shall not relieve the purchaser of his duty to pay it. If the wholesale and retail bottled water dealers fail to collect the tax, the purchaser shall be required to pay it directly to the department in the same manner and form as a retail bottled water dealer.
3-43-100 Commission for collection agents and dealers remitting tax when due.
Except as otherwise provided in this chapter, any wholesale or retail bottled water dealer remitting a tax under this chapter shall, at the time of remitting such tax, remit to the department the amount of tax imposed by this chapter less a commission of one percent of the tax remitted which is allowed to reimburse the bottled water dealer for the expenses incurred in collecting the tax, keeping records, preparing and filing returns, remitting the tax, and supplying data to the department upon request. The commission shall not be allowed, however, on any taxes not remitted when due. The director may also appoint one or more persons within or without the City as collection agents for the tax herein levied. The commission for said collection agents shall be the same as that provided wholesale or retail bottled water dealers.
A. This tax shall not apply to purchases of bottled water wherein the purchaser is a passenger on an interstate carrier; nor shall this tax apply to the extent it would violate the United States Constitution or the Constitution of the State of Illinois.
B. It shall be presumed that all sales of bottled water from wholesale or retail bottled water dealers are subject to tax under this chapter until the contrary is established. The burden of proving that such is not taxable hereunder shall be upon the person so claiming.
Every wholesale bottled water dealer in existence on January 1, 2008, shall register with the department before February 1, 2008. Every wholesale bottled water dealer commencing business after January 1, 2008 shall register with the department within 30 days after the date of commencing such business.
3-43-130 Supplementary provisions.
Whenever not inconsistent with the provisions of this chapter, or whenever this chapter is silent, the provisions of the Uniform Revenue Procedures Ordinance, Chapter 3-4 of this Code, as amended, shall apply and supplement this chapter.
3-43-140 Deposit of funds.
All proceeds resulting from the imposition of this tax, including interest and penalties, shall be deposited in the City's corporate fund.