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3.64 – Video Gaming Terminal Municipal Push Tax

3.64.010 – Title

This chapter shall be known and cited as the “Video Gaming Terminal Municipal Push Tax.”  The tax imposed in this chapter shall be known and cited as the “Municipal Push Tax.”

(2021-M-45: § 2)

3.64.020 – Definitions

  1. “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 licensed establishments, licensed truck stop establishments, licensed large truck stop establishments, licensed fraternal establishments, or licensed veterans establishments.
  2. “Person” means any natural individual that participates in an amusement, 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.
  3. “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.
  4. “Video Gaming Terminal” means any electronic video game machine 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.
(2021-M-45: § 2)

3.64.030 – Municipal Push Tax imposed

  1. Municipal Push Tax. Except as otherwise provided by this chapter, an amusement tax is imposed upon any Person who participates in the play of a Video Gaming Terminal that takes place within the jurisdictional boundaries of the City. The rate of the tax shall be equal to one cent ($0.01) per play on a Video Gaming Terminal.

The Terminal Operator of a Video Gaming Terminal may separately itemize and charge each Person who plays a Video Gaming Terminal.

  1. Tax Additional. The Municipal Push Tax imposed in this chapter is in addition to all other taxes.
  2. Registration. Every Terminal Operator of a Video Gaming Terminal(s) located in the City shall apply for registration as a tax collector with the City no later than thirty (30) days after commencing such business or thirty (30) days after the effective date of the ordinance codified in this chapter imposing the Municipal Push Tax, whichever occurs later. The application shall be submitted to the City on the forms provided by the City and contain such information as reasonably required by the City to impose, collect, and audit all amounts related to the Municipal Push Tax.
(2021-M-45: § 2)

3.64.040 – Collection, payment and accounting

It shall be the joint and several duty of every Terminal Operator of a Video Gaming Terminal(s) to secure from each Person participating in the play of a Video Gaming Terminal the Municipal Push Tax imposed by this chapter. For purposes of this chapter, it shall be presumed that the amount of the Municipal 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. Municipal Push Tax payments accompanied by tax returns prescribed by the City shall be remitted to the City on or before the twentieth day of the month following the month in which payment for the Municipal Push Tax is made.

Every Terminal Operator of a Video Gaming Terminal who is required to collect the Municipal Push Tax by this chapter shall be considered a tax collector for the City. All Municipal Push Tax amounts collected shall be held by the Terminal Operator as trustee for and on behalf of the City. The failure of the Terminal Operator to collect the Municipal Push Tax shall not excuse or release the Person from the obligation to pay the Municipal Push Tax. The ultimate incidence of the Municipal Push Tax shall remain on the Person and shall never be shifted to the Terminal Operator.

Notwithstanding any other provision of this chapter, in order to permit sound fiscal planning and budgeting by the City, no Person shall be entitled to a refund of, or credit for, the Municipal Push Tax imposed by this chapter unless the Person files a claim for a refund or credit within one (1) year after the date on which the Municipal Push Tax was paid or remitted to the City.

The Terminal Operator of any Video Gaming Terminal(s) shall be subject to audit, inspection, and recordkeeping provisions of this chapter. It shall be unlawful for any Terminal Operator and/or Person to prevent, hinder, or interfere with the City’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 Video Gaming Terminal(s) to keep accurate and complete books and records to which the City’s officials, employees, and/or agents will at all times have full access.

(2021-M-45: § 2)

3.64.050 – Rules and regulations—Authorized.

The City is authorized to adopt, promulgate, and enforce any additional rules and regulations pertaining to the interpretation, collection, administration, and enforcement of this chapter.

(2021-M-45: § 2)

3.64.060 – Application of the City Code

Any citation under this chapter may be in addition to any other citations issued by the City under any and all applicable sections of the City Code.

(2021-M-45: § 2)

3.64.070 – Violations—Penalties

It shall be a violation of this chapter for a Terminal Operator to fail to file a report within the time prescribed in this chapter.

  1. A Terminal Operator who falsely reports or fails to report the amount of Municipal Push Tax due required by this chapter shall be in violation of chapter and is subject to 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 (1 1/2) percent per month.
  2. Suspension or Revocation of License. The Mayor/local liquor commissioner or his or her designee shall have the power to suspend for not more than thirty (30) days or revoke any video gaming license issued under the provisions of the City Code 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 mayor and City Council of the City. However, no such license shall be revoked or suspended except after the holding of a public hearing by the mayor/local liquor commissioner or his or her designee. Ten (10) days’ notice of the hearing shall be given to the Terminal Operator. Alternatively, Terminal Operator shall have the opportunity to engage in a prehearing conference and agree to negotiated penalties rather than proceed to a hearing.
  3. Fine Imposed. In addition, any Terminal Operator violating the provisions of this chapter shall be subject to a fine of five hundred dollars ($500.00) for the first offense, and seven hundred fifty dollars ($750.00) for the second offense, and one thousand dollars ($1,000) for a third offense and subject to a revocation of any license to operate a Video Gaming Terminal for the third offense. It shall be deemed a violation of this chapter for any owner to knowingly furnish false or inaccurate information to the City. Each day a violation continues shall constitute a separate violation. It shall be deemed a violation of this chapter for any Person to knowingly furnish false or inaccurate information to the City.
(2021-M-45: § 2)

3.64.080 – Seizure for unlawful use

If the City determines that the City shall have a reasonable basis for believing any owner is using a Video Gaming Terminal in an illegal manner contrary to the provisions of this chapter or any other federal, state, or municipal law and/or regulation, said Video Gaming Terminal may be seized by the City, followed by an administrative hearing with notice to the owner within seven (7) days of seizure to determine the appropriateness of the seizure, and held until such time as the owner of such Video Gaming Terminal pays any delinquent Municipal Push Tax amount, reimburses the City for actual cartage costs incurred in the seizure and pays the City twenty dollars ($20.00) for each day the Video Gaming Terminal has been in storage.

(2021-M-45: § 2)