American Multi-Cinema, Inc. v. City of Warrenville

State: Illinois

Court: 2nd District Appellate

Docket No: 2-00-0701 Rel

Case Date: 04/25/2001

April 25, 2001

No. 2--00--0701

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

AMERICAN MULTI-CINEMA, INC.,

Plaintiff-Appellant,

THE CITY OF WARRENVILLE,

Defendant-Appellee.

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Appeal from the Circuit Court
of Du Page County.

No. 99--MR--24

Honorable
Bonnie M. Wheaton,
Judge, Presiding.

JUSTICE RAPP delivered the opinion of the court:

Plaintiff, American Multi-Cinema, Inc. (AMC), brought anaction in the circuit court of Du Page County challenging theconstitutionality of an ordinance enacted by defendant, City ofWarrenville (City), imposing an amusement tax. AMC appeals fromthe order of the circuit court granting the City's motion forsummary judgment and denying AMC's cross-motion for summaryjudgment. We affirm.

I. FACTS

In March 1997, the City adopted Ordinance No. 1566 (ordinance)entitled "Ordinance Creating an Amusement Tax and Amending the CityCode in Accordance Therewith (City of Warrenville, Ordinance No.1566 (eff. January 1, 1998))." The ordinance was enacted pursuantto section 11--42--5 of the Illinois Municipal Code (65 ILCS 5/11--42--5 (West 1996)) and imposes a 2% tax on the gross receipts foradmission fees for "amusements," which the ordinance defines as: "Any and all spectator and exhibitive entertainment, includingbut not necessarily limited to the following activities: anymovie; theatrical, dramatic, musical or spectator performance;carnival; circus; rodeo; animal act; amusement ride; amusementattraction; game; or animal show." City of Warrenville,Ordinance No. 1566 (eff. January 1, 1998).

The ordinance took effect in January 1998. Until that time theCity did not tax amusements and had no movie theaters. The mayorand members of the city council have, on occasion, referred to theordinance as the "AMC amusement tax."

In 1996 and early in 1997, prior to adoption of the ordinance,AMC had purchased land and finalized plans to construct a 30-screentheater in the City. AMC's theater, called the AMC Cantera 30,opened in March 1998 and has been in continuous operation sincethat time. AMC has chosen to pay the tax from gross revenuesrather than increasing ticket prices. AMC has paid more than 99%of the taxes collected by the City pursuant to the ordinance.

AMC originally presented this case to the trial court in atwo-count complaint brought under section 1983 of the Civil RightsAct (42 U.S.C.