OFFICE OF THE MAYOR
CITY OF CHICAGO
LORI E. LIGHTFOOT
MAYOR
February 19, 2020
TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO
Ladies and Gentlemen:
At the request of the City Comptroller, I transmit herewith an ordinance amending Chapter 4-156 ofthe Municipal Code regarding the amusement tax.
Your favorable consideration of this ordinance will be appreciated.
Very truly yours,
ORDINANCE
WHEREAS, The City of Chicago ("City") is a home rule unit of government as defined in Article VII, Section 6(a) ofthe Illinois Constitution; and
"WHEREAS, As a home rule unit of government, the City may exercise any power and perform any function pertaining to its government and affairs; and
WHEREAS, The City also has statutory authority to tax amusements and sellers of tickets to amusements; and
WHEREAS, The Illinois courts have held that Section 5(b) ofthe federal Maritime Transportation Security Act of 2002, 33 U.S.C. § 5(b), prohibits the City from imposing a tax on the patrons of tour boat operators; and
WHEREAS, The tax imposed by Section 4-156-020 ofthe Municipal Code of Chicago ("Code") is imposed on patrons; and
WHEREAS, By contrast, the tax imposed by Section 4-156-032 ofthe Code is imposed on tour boat operators; and
WHEREAS, The intent of Section 4-156-032 is to ensure that tour boat operators pay the same amount of amusement tax that providers of other amusements are required to collect from their patrons and remit to the City under Section 4-156-020; and
WHEREAS, The City Council wishes to amend Section 4-156-032 to confirm its intent;
and
WHEREAS, The City Council also wishes to make other amendments to Chapter 4-156 ofthe Code; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Section 4-156-020 ofthe Municipal Code of Chicago is amended by inserting the language underscored, as follows:
4-156-020 Tax imposed.
(Omitted text is unaffected by this ordinance)
FI. For the purpose of determining the amount ofthe amusement tax due under Section 4-156-020, admission fees or other charges shall be computed exclusive ofthis tax. any federal, state or county taxes imposed upon the amusement patron for amusement services and any separately stated optional charges for nonamusement services or for the sale or use of tangible personal property. The fact that the patron could have avoided the charge by obtaining the privilege from or through a different owner, manager or operator, pursuant to different terms.
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or through a course of performance that would have avoided the obligation to pay the charge, does not make the charge "optional''.
(Omitted text is unaffected hy this ordinance)
SECTION 2. Section 4-156-032 ofthe Municipal Code of Chicago is amended by deleting the language stricken through and by inserting the language underscored, as follows:
4-156-032 Additional Alternative tax imposed on tour boat operators.
A. In addition to the tax imposed by Section 1 156 020, a A tax is imposed upon all persons engaged in the business of operating tour boats in the City. The rate ofthis tax shall be nine percent ofthe charges paid to the tour boat operator for amusements provided by the tour boat operator in the City. For the purposes ofthis Section 4-156-032, the term "tour boat" shall mean any vessel or other water craft watercraft on which amusements take place, as the term "amusement" is defined in Section 4-156-010. Charges that are excluded, or that are fully or partially exempt, from the tax imposed by Section 4-156-020 shall also be excluded, or fully or partially exempt, from the tax imposed by this Section 4-156-032.
(Omitted text is unaffected hy this ordinance)
E. The intent ofthis Section 4-156-032 is that the total amount of amusement tax paid by a tour boat operator will be the same as it would have been had the tour boat operator collected and remitted the tax imposed by Section 4-156-020. As used in subsection A of this Section 4-156-032, the terms "exempt" and "excluded" refer to those exemptions and exclusions set forth in Section 4-156-020 and do not include preemption by federal or state law. The intent ofthis subsection E is to confirm rather than change the intent of Section 4-156-032 since it was added to the Code effective January 1. 2017.
SECTION 3. Section 4-156-125 ofthe Municipal Code of Chicago is amended by deleting the language stricken through and by inserting the language underscored, as follows;
4-156-125 Intcrtrack Inter-track wagering.
(a) Whenever As used in this section, the word;
"Act" shall mean means the "Illinois Illinois Horse Racing Act of+97^ 1975. 230 ILCS 5/1 et al. as amended. Whenever used in this section, the words "board" and "intcrtrack wagering location licensee shall have the meaning;; specified in Sections 3.01 and 3.073, respectively, of the Act.
"Board" has the meaning ascribed to that term in Section 3.01 ofthe Act.
"Inter-track wagering location licensee" has the meaning ascribed to that term in Section 3.073 ofthe Act.
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(b) • A one-dollar admission fee is imposed upon each patron of an intertrack
inter-track wagering location facility located wholly within the corporate boundaries ofthe eity
City. It shall be the duty of each such intertrack wagering location licensee to collect such
admission fee and, within 48 hours of collection, to remit the fees to the board. As provided in
Section 27 of the Act, the board shall cause such fees to be distributed to the city. The
comptroller is authorized and directed to collect such fees as shall be distributed by the board to
It shall be the duty of each inter-track wagering location licensee at a facility located wholly within the corporate boundaries of the City to collect the fee imposed under subsection (b) of this section and to remit the fee to the Department of Finance no later than the 20th day of each calendar month for all admission fees collected during the immediately preceding calendar month. A verified statement of admission fees in a form prescribed by the Comptroller shall accompany each such remittance.
Notwithstanding any other provision of this Chapter 4-156, for all periods beginning on or after January 1, 2020, all remittance returns shall be filed with the Department of Finance on an annual basis on or before August 20 of each year.
Pursuant to Section 26(10(10.1) of the Act, it shall be the duty of each inter-track wagering location licensee at a facility located wholly within the corporate boundaries ofthe City to pay to the Citv the percentage ofthe pari-mutuel handle required under Section 26flf)( 10.1) of the Act, or its successor provision, no later than the 20th of the month following the month such handle was generated. Payment ofthe required percentage of the pari-mutuel handle shall be made to the Department of Finance separately and apart from remittance ofthe fee imposed under subsection (b) ofthis section.
SECTION 4. This ordinance shall take full force and effect upon its passage and approval.
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