HomeMy WebLinkAbout02-188 Resolution No. 02-188
RESOLUTION
CONCERNING PROPOSALS BEFORE THE ILLINOIS GENERAL ASSEMBLY
CONCERNING THE LOCAL SHARE OF THE ILLINOIS INCOME TAX AND
MUNICIPAL SHARING OF THE PHOTOPROCESSING TAX
WHEREAS, the Local Share of the Illinois Income Tax is one
tenth of 0 . 3% of the 3% individual income tax and 0 . 48% of the 4 . 8%
regular corporate income tax; and
WHEREAS, there is currently pending before the Illinois
General Assembly a proposal which would change the Local Share of
the Illinois Income Tax to one-eleventh; and
WHEREAS, a change to one-eleventh will reduce each and every
Illinois municipality' s revenue by approximately $6 . 75 per person,
per year; and
WHEREAS, a change to one-eleventh will mean a loss of revenue
in the amount of $637, 787 . 25 to the City of Elgin; and
WHEREAS, the $84 million per year received by the State of
Illinois from this raid on the historic Local Share of the State
Income Tax will not significantly solve or ameliorate a state
budgetary hole of at least one billion, two hundred million
($1, 200, 000, 000) which is over fourteen times the eighty-four
million ($84 , 000, 000) local government takeaway; and
WHEREAS, municipalities since the adoption of sales tax reform
in 1986 have received money from the state sales tax raised from
photoprocessing; and
WHEREAS, such photoprocessing revenue is distributed to
municipalities at the rate of approximately $2 . 10 per person, per
year, or about $26 million per year; and
WHEREAS, there is currently pending before the Illinois
General Assembly a proposal that the photoprocessing tax sharing
with municipalities be abolished; and
WHEREAS, the elimination of the state shared photoprocessing
tax would mean an annual loss of approximately $198, 422 . 70 to the
City of Elgin; and
WHEREAS, municipalities have suffered just as severe a loss of
income tax revenue from the faltering economy and the recently
enacted Federal Economic Stimulus Package; and
WHEREAS, municipalities have already been required to make
budgetary cuts to accommodate lowered revenues from income tax,
sales tax, motor fuel tax and utility tax; and
WHEREAS, the proposed changes that the local one-tenth share
of the state income tax be reduced to a one-eleventh share and that
the photoprocessing tax sharing with municipalities be abolished
would reduce local revenues by a total of $8 . 85 per person, per
year, for a total loss of $110 million per year; and
WHEREAS, Illinois municipal officials feel the General
Assembly, by taking this action, would be reneging on a
longstanding, mutually beneficial partnership with Illinois
municipalities .
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS, that the City Council of the City of Elgin,
Illinois urges the Illinois General Assembly, all its individual
members and officers and Governor George Ryan to oppose efforts to
reduce the local government share of the Illinois Income Tax to
less than the current one-tenth of net receipts and to oppose
efforts to abolish the sharing of State Photoprocessing Tax with
municipalities.
BE IT FURTHER RESOLVED that the proposal now pending in the
Illinois General Assembly which would reduce the local government
share of the State Income Tax from one-tenth (10%) to one-eleventh
(9 . 0909%) , thus reducing annual revenues to the City of Elgin, is
not supported by the City of Elgin.
BE IT FURTHER RESOLVED that the proposal now pending in the
Illinois General Assembly which would eliminate the state-shared
photoprocessing tax, thus reducing annual revenues to the City of
Elgin, is not supported by the City of Elgin.
s/ Ed Schock
Ed Schock, Mayor
Presented: May 22 , 2002
Adopted: May 22 , 2002
Omnibus Vote: Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk