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Supplemental Information – distributed 9/5/25
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Agenda Item Number
Mayor’s Report #6
Tracking Number
CC 2025-69
Sales Tax Citation Clean Up – Ordinance Amending Title 3, Chapter 2 of Yorkville City Code
City Council – September 9, 2025
Majority
Approval
Please see the attached memo.
Bart Olson Administration
Name Department
Summary
Consideration of an ordinance amending the City Code regarding state statute
authorization for the City’s local sales taxes.
Background
In April, the City Council approved an ordinance authorizing a local grocery tax to offset
the state’s elimination of an equivalent statewide grocery tax. This local grocery tax ordinance
was required to be approved by the City Council before October 2025 in order to be effective on
January 1, 2026. As part of the implementation of the local ordinance, the City sent the
ordinance to the Illinois Department of Revenue (IDOR) who has acknowledged the receipt and
validity of the local ordinance. In reviewing the ordinance’s statutory authority, the IDOR noted
that the City’s statutory references to the normal, local sales taxes were outdated and asked us to
modernize the underlying sales tax citations. Accordingly, Attorney Orr has drafted an
ordinance amending the City Code that updates the terminology and state statute citation for the
City’s local sales taxes.
Recommendation
Staff recommends approval of the ordinance. Reiterating, the locally imposed grocery
tax is valid as approved by the City Council and this ordinance is only a cleanup for the City’s
normal, local sales tax in City Code. As a general reminder, the locally imposed grocery tax as
already authorized by the City Council in April is a direct replacement for the state’s elimination
of a statewide grocery tax on January 1, 2026. Any local or non-local shoppers to Yorkville’s
grocery stores will pay the same tax rate on January 1, 2026 as they would have on December
31, 2025.
Memorandum
To: City Council
From: Bart Olson, City Administrator
CC:
Date: September 5, 2025
Subject: Sales Tax citation clean up
Ordinance No. 2025-____
Page 1
Ordinance No. 2025-_____
AN ORDINANCE OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY,
ILLINOIS AMENDING TITLE 3, CHAPTER 2 OF THE YORKVILLE CITY CODE
WHEREAS, the United City of Yorkville, Kendall County, Illinois (the “City”), is a duly
organized and validly existing non-home rule municipal corporation created under the provisions
of Article VII, Section 7 of the Illinois Constitution of 1970 and the provisions of the Illinois
Municipal Code 65 ILCS 5/1-1-1 et seq. (the “Illinois Municipal Code”) as from time to time
supplemented and amended; and,
WHEREAS, the Illinois Municipal Code provides that the corporate authorities of each
municipality may pass all ordinances and make all rules and regulations proper or necessary, to
carry into effect the powers granted to municipalities, with such fines or penalties as may be
deemed proper; and,
WHEREAS, pursuant to Section 8-11 -24 of the Illinois Municipal Code (65 ILCS 5/8-11 -
24) on April 22, 2025, the City imposed a tax “upon all persons engaged in the business of selling
groceries at retail in the municipality” (the “Municipal Grocery Tax”) (65 ILCS 5/8-11-24)
beginning on January 1, 2026; and,
WHEREAS, 8-11 -24 of the Illinois Municipal Code (65 ILCS 5/8-11 -24) requires any
municipality imposing a Municipal Grocery Retailers’ Occupation Tax under Section 8-11-24 of
the Illinois Municipal Code (65 ILCS 5/8-11-24) to also impose a Service Occupation Tax at the
same rate, “upon all persons engaged, in the municipality, in the business of making sales of
service, who, as an incident to making those sales of service, transfer groceries” as “an incident to
a sale of service” which Service Occupation Tax the City imposed as required by Section 8-11 -24
of the Municipal Code on April 22, 2025; and,
WHEREAS, the City has been advised by the Illinois Department of Revenue (“IDOR”)
that the Municipal Retailers Occupation Tax and the Municipal Service Occupation Tax, as
included in Title 3, Chapter 2 of the Yorkville City Code, have been obsolete and all provisions
referring to such taxes should be deleted therefrom.
Ordinance No. 2025-____
Page 2
WHEREAS, in response to the direction of IDOR, the Mayor and City Council hereby
amend the Yorkville City Code as follows:
NOW THEREFORE, BE IT ORDAINED, by the Mayor and City Council of the United
City of Yorkville, Kendall County, Illinois as follows:
Section 1. Incorporation of Recitals. The foregoing recitals shall be and are hereby
incorporated as findings of fact as if said recitals were fully set forth herein.
Section 2. Section 3-2-1 of Title 3, Chapter 2 of the Yorkville City Code is hereby
deleted in its entirety.
Section 3. Section 3-2-2 of Title 3, Chapter 2 of the Yorkville City Code is hereby
deleted in its entirety.
Section 4. Section 3-2-2.3 of Title 3, Chapter 2 of the Yorkville City Code is hereby
deleted in its entirety and replaced with the following:
3-2-2.3: Municipal Grocery Service Occupation Tax.
A. A tax is hereby imposed upon all persons engaged in this City in the business of making
sales of service, who, as an incident to making those sales of service, transfer groceries
as an incident to a sale of service. The rate of this tax shall be the same rate identified
in Section 3-2-1.2, above. The imposition of this tax shall commence January 1, 2026
in accordance with and subject to the provisions of Section 8-11 -24 of the Illinois
Municipal Code (65 ILCS 5/8-11-24) .
B. The taxes hereby imposed, and all civil penalties that may be assessed as an incident
thereto, shall be collected and enforced by the Department of Revenue of the State of
Illinois. The Illinois Department of Revenue shall have full power to administer and
enforce the provisions of this Code.
Section 5. Clerk to File Ordinance with Illinois Department of Revenue. As required
under Section 8-11 -24 of the Illinois Municipal Code (65 ILCS 5/8-11 -24), the City Clerk is hereby
directed to file a certified copy of this Ordinance with the Illinois Department of Revenue on or
before October 1, 2025.
Section 6. This Ordinance shall be in full force and effect upon its passage, approval
and publication as provided by law; provided, however, that the tax imposed under Section 4 takes
effect on January 1, 2026.
Ordinance No. 2025-____
Page 3
Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this
____ day of __________________, A.D. 2025.
______________________________
CITY CLERK
KEN KOCH _________ DAN TRANSIER _________
ARDEN JOE PLOCHER _________ CRAIG SOLING _________
CHRIS FUNKHOUSER _________ MATT MAREK _________
RUSTY CORNEILS _________ RUSTY HYETT _________
APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois
this ____ day of __________________, A.D. 2025.
______________________________
MAYOR
Attest:
______________________________
CITY CLERK
o Illinois Department of Revenue
Legal Services Office
m
101 W. Jefferson St. MC 5-500
Springfield, IL 62794
August 25, 2025
Jodi Behland
City Clerk
City of Yorkville
651 Prairie Point Dr.
United City of Yorkville, IL 60560
Re: Ordinance No. 2025-37
Municipal Grocery Occupation Tax
Dear Ms. Behland:
This is to acknowledge receipt of United City of Yorkville's Ordinance No. 2025-37
imposing a Municipal Grocery Retailers' Occupation Tax and Municipal Grocery Service
Occupation Tax at the rate of 1%.
The Illinois Department of Revenue shall collect, administer, and enforce the Municipal
Grocery Retailers' Occupation Tax and Municipal Grocery Service Occupation Tax effective
January 1,2026, in accordance with the provisions of 65 ILCS 5/8-11-24.
While we are accepting this ordinance for purposes of meeting the October 1, 2025 filing
deadline for implementation on January 1, 2026, we must ask Yorkville to amend or replace the
ordinance to address the following issue(s):
Sections 3-2-1 and 3-2-2 of the Yorkville Code amended in this Ordinance consist of
the Municipal Retailers' Occupation Tax and Municipal Service Occupation Tax,
respectively. These provisions were rendered obsolete with the passage of sales tax
reform in the early 1990's (See P.A. 85-1135) and are of no effect. As a result, we
recommend that Yorkville repeal these obsolete provisions. Yorkville's current
operative general local sales tax consists of its Non-Home Rule Municipal Retailers'
Occupation Tax (Section 3-2-1.1) and its Non-Home Rule Municipal Service
Occupation Tax(Section 3-2-2.1).
In Paragraph A of Section 3-2-2.3 of the Code, replace "Section 2, above" with
Section 3-2-1.2, above".
and file a certified co with the Department on or beforePleaseadoptaconformingordinancepyp
October 1,2025 at the following address:
Local Tax Allocation Division (3-500)
Illinois Department of Revenue
United City of Yorkville—Grocery Occupation Tax
Page 2
August 25, 2025
101 W.Jefferson St.
Springfield,IL 62702
If you have any questions regarding this letter, please contact our office at the number
listed below. If you have questions concerning the distribution of the tax, please contact the
Department's Local Tax Allocation Division at(217) 785-6518 or rev.localtax6011inois.gov.
Very truly yours,
ij/ Am"
Samuel J. Moore
Associate Counsel
217) 782-7055
SJM:slc
Cc: Aaron Allen, Local Tax Allocation Division
UNITED CITY OF YORKVILLE
KENDALL COUNTY, ILLINOIS
ORDINANCE NO. 2025-37
AN ORDINANCE OF THE UNITED CITY OF YORKVILLE,
KENDALL COUNTY, ILLINOIS AMENDING TITLE 3,
CHAPTER 2 OF THE YORKVILLE CITY CODE
Passed by the City Council of the
United City of Yorkville,Kendall County, Illinois
This 22°d day of April, 2025
Published in pamphlet form by the
authority of the Mayor and City Council
of the United City of Yorkville,Kendall
County,Illinois on April 24, 2025.
Ordinance No. 2025-37
AN ORDINANCE OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY,
ILLINOIS AMENDING TITLE 3, CHAPTER 2 OF THE YORKVILLE CITY CODE
Ci is a dulytheUnitedCityofYorkville, Kendall County, Illinois the "City"),
organized and validly existing non-home rule municipal corporation created under the provisions
of Article VII, Section 7 of the Illinois Constitution of 1970 and the provisions of the Illinois
Municipal Code 65 ILCS 5/1-1-1 et seq. (the "Illinois Municipal Code") as from time to time
supplemented and amended; and,
WHEREAS, the Illinois Municipal Code provides that the corporate authorities of each
municipality may pass all ordinances and make all rules and regulations proper or necessary, to
carry into effect the powers granted to municipalities, with such fines or penalties as may be
deemed proper; and,
WHEREAS,pursuant to Section 8-11-24 of the Illinois Municipal Code(65 ILCS 5/8-11-
24) beginning on January 1, 2026, all Illinois municipalities may impose a tax "upon all persons
engaged in the business of selling groceries at retail in the municipality"(the"Municipal Grocery
Tax") (65 ILCS 5/8-11-24); and,
WHEREAS, Section 8-11-24 of the Illinois Municipal Code(65 ILCS 5/8-11-24)requires
any municipality imposing a Municipal Grocery Retailers' Occupation Tax under said Section 8-
11-24 (65 ILCS 5/8-11-24) to also impose a Municipal Service Occupation Tax at the same rate,
upon all persons engaged, in the municipality, in the business of making sales of service, who, as
an incident to making those sales of service,transfer groceries"as"an incident to a sale of service";
and,
Ordinance No.2025-37
Page 2
WHEREAS, any Municipal Grocery Service Occupation Tax and the Municipal Service
Occupation Tax shall be administered, collected and enforced by the Illinois Department of
Revenue; and,
WHEREAS, the Mayor and City Council believe that it is appropriate, necessary and in
the best interests of the City and its residents, that the City levy a Municipal Grocery Retailers'
Occupation Tax and a Municipal Grocery Service Occupation Tax as permitted by Section 8-11-
24 024oftheIllinoisMunicipalCodeattherateof1 /o of thegross receipts of sales bygroceryretailerspp
as hereinafter provided.
NOW THEREFORE,BE IT ORDAINED,by the Mayor and City Council of the United
City of Yorkville, Kendall County, Illinois as follows:
Section 1. Incorporation of Recitals. The foregoing recitals shall be and are hereby
incorporated as findings of fact as if said recitals were fully set forth herein.
Section 2. Paragraph A of Section 3-2-1 of the Yorkville City Code is hereby amended
by deleting said paragraph A and replacing with the following:
A. Tax imposed:A tax is hereby imposed on all persons engaged in the business of selling
tangible personal property at retail in this City, other than the business of selling
groceries, at the rate of one percent(1%) of the gross receipts from such sales made in
the course of such business while this section is in effect, in accordance with the
provisions of Section 8-11-1 of the Illinois Municipal Code(65 ILCS 5/8-11-1).
Section 3. Title 3, Chapter 2 of the Yorkville City Code is hereby amended by adding
the following new Section 3-1-1.2:
Ordinance No.2025-37
Page 3
3-2-1.2 Municipal Grocery Retailers'Occupation Tax Imposed.
A. A tax is hereby imposed upon all persons engaged in the business of selling groceries
at retail in this municipality at the rate of 1%of the gross receipts from such sales made
in the course of such business. The imposition of this tax is in accordance with and
subject to the provisions of Section 8-11-24 of the Illinois Municipal Code (65 ILCS
5/8-11-24).
B. The taxes hereby imposed, and all civil penalties that may be assessed as an incident
thereto, shall be collected and enforced by the Department of Revenue of the State of
Illinois which shall have full power to administer and enforce these provisions of this
code.
Section 4. Paragraph A of Section 3-2-2 is hereby amended by deleting paragraph A
and replacing it with the following:
A. Tax imposed: A tax is hereby imposed upon all persons engaged in this City in the
business of making sales of service other than in the business of transferring groceries
as an incident to a sale of service at the rate of of one percent (1%) of the cost price of
all tangible personal property transferred by said servicemen either in the form of
tangible personal property or in the form of real estate as an incident to a sale of service,
in accordance with the provisions of 8-11-5 of the Illinois Municipal Code (65 ILCS
5/8-11-5).
Section 5. Title 3, Chapter 2 of the Yorkville City Code is hereby amended by adding
the following new Section 3-2-2.3:
3-2-2.3: Municipal Grocery Service Occupation Tax.
Ordinance No.2025-37
Page 4
A. A tax is hereby imposed upon all persons engaged in this City in the business of making
sales of service,who, as an incident to making those sales of service,transfer groceries
as an incident to a sale of service. The rate of this tax shall be the same rate identified
in Section 2, above. The imposition of this tax is in accordance with and subject to the
provisions of Section 8-11-24 of the Illinois Municipal Code(65 ILCS 5/8-11-24).
B. The taxes hereby imposed, and all civil penalties that may be assessed as an incident
thereto, shall be collected and enforced by the Department of Revenue of the State of
Illinois. The Illinois Department of Revenue shall have full power to administer and
enforce these provisions of this code.
Section 6. Effective Date. The taxes hereby imposed by Section 3-2-1.2 and 3-2-2.3
shall take effect on January 1, 2026.
Section 7. Clerk to File Ordinance with Illinois Department of Revenue. As required
under Section 8-11-24 of the Illinois Municipal Code(65 ILCS 5/8-11-24),the City Clerk is hereby
directed to file a certified copy of this Ordinance with the Illinois Department of Revenue on or
before October 1, 2025.
Section 8. This Ordinance shall be in full force and effect upon its passage, approval
and publication as provided by law.
Passed by the City Council of the United City of Yorkville, Kendall County, Illinois
this 22nd day of April,A.D. 2025.
Q
CI Y CLERK
Ordinance No.2025-37
Page 5
KEN KOCH AYE DAN TRANSIER AYE
ARDEN JOE PLOCHER AYE CRAIG SOLING AYE
CHRIS FUNKHOUSER AYE MATT MAREK AYE
SEAVER TARULIS ABSENT RUSTY CORNEILS AYE
APPROVED by me, as Mayor of the United City of Yorkv' le, Kendall County, Illinois
2
this 2.J day of A Y < ' A.D. 2025.
MAYOR
Attest:
j
Y CLERK
Ordinance No.2025-37
Page 6