T17-96 (2) Ordinance No. T17-96
AN ORDINANCE
PROVIDING FOR A REFUND TO SENIOR CITIZENS OF
MOBILE HOME LOCAL SERVICES TAXES
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS:
Section 1 . That there is hereby established a refund to
senior citizens of the mobile home local services tax of the
1997 mobile home local services taxes levied and collected on
mobile homes registered in the City of Elgin. The amount of
such refund shall equal the 1997 mobile home local services
taxes paid by qualified senior citizens up to a maximum refund
amount of $35 . 00 .
Section 2 . That to qualify for such senior citizen tax
refund the owner(s) of the subject mobile home must have
qualified and obtained for the 1997 tax year the Senior
Citizens Reduction of the Mobile Home Local Services Tax in
accordance with 35 ILCS 515/7, as amended.
Section 3 . That senior citizens qualified to receive the
mobile home local services tax refund shall be identified
through county tax records for the 1997 tax year. The
Director of Finance is directed to work with the appropriate
county officials to determine the most expeditious method for
processing the mobile home local services tax refund to the
qualified senior citizens .
Section 4 . That all ordinances or parts of ordinances in
conflict with the provisions of this ordinance be and are
hereby repealed.
Section 5 . That this ordinance shall be in full force
and effect from and after its passage and publication in the
manner provided by law.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: November 20, 1996
Passed: November 20, 1996
Omnibus Vote: Yeas 7 Nays 0
Recorded: November 21, 1996
Published: November 21, 1996
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
4
OF EtC
° City of Elgin Agenda Item No.
November 1, 1996
TO: Mayor and Members of the City Council
FROM: Robert O. Malm, Acting City Manager
SUBJECT: Senior Citizen Mobile Home Tax Rebate
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information regarding the
senior citizen mobile home tax.
BACKGROUND
Currently the Illinois Compiled Statutes (ILCS 515) provides for
eftft a mobile home local tax. This tax is similar to the ad valorem
property tax on real property and is calculated using both the
square foot area and age of the mobile home. The tax ranges
from 15 cents per square foot on a mobile home that is 1-2 years
old to 7 .5 cents per square foot a mobile home that is 15 years
old or older. Attached are three typical scenarios of the
mobile home tax paid in Elgin.
In 1995 and 1996, the City collected $9,034 .66 and $9,384 .96
respectively in the mobile home tax from Kane County (represents
657 taxpayers) . The County collects the total tax and remits a
portion back to the taxing district based on their proportionate
share of the total property tax bill . Elgin's portion of the
total property tax bill equals 22%. No dollar amounts were
available from Cook County. However, based on the number and
value of Elgin Cook County mobile home units, it is likely that
the tax collected will be comparable to Kane County collections .
The law also provides for a 20% tax reduction for those mobile
home owners who (a) actually reside in their mobile home, (b)
hold title to the mobile home, and (c) are 65 years of age or
older. An application for the reduction in tax must be filed
with the County Clerk by those individuals entitled to the
reduction.
According to the Kane County Clerk's office, 512 applications
for the 1996 tax credit have been granted totalling $1,834 .48.
Based on the number of mobile homes in both Kane and Cook Coun-
ty, it is feasible to predict that a total of 900 individuals
would be eligible for a City of Elgin senior citizen mobile home
tax rebate.
Senior Citizen Mobile Home Tax Rebate
November 1, 1996
Page 2
This program would be very similar to the Senior Citizen Proper-
ty Tax Rebate Program in terms of overall staff involvement. In
order to alleviate a portion of the administrative burden in-
volved with the rebate process, we would be requesting assis-
tance from both counties to automate the process as much as
possible.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Kane County Clerk's office, Willow Lake Estates, Bueche's Mobile
Home Park.
FINANCIAL IMPACT
Using the proposed $35 per unit rebate amount, the estimated
program costs would total $31,500. This amount could be accommo-
dated as part of the $1 million of 1996 riverboat funds ear-
marked for the previously adopted Senior Citizen Property Tax
Rebate Program.
LEGAL IMPACT
As proposed, the program appears to combine rebate of mobile
home local service tax and ad valorem real estate tax indirectly
paid as part of the occupants ' rent. Thus, the program would be
fashioned as a form of grant.
ALTERNATIVES
1) Rebate $35 to each mobile home owner.
2) Rebate Elgin's portion of the local mobile home tax.
3) Do not issue rebates to mobile home owners .
RECOMMENDATION
Staff is requesting direction from the Mayor and members of the
City Council regarding the senior citizen mobile home rebate
program.
Respectfully submitted,
15ri4h44:2
mes R. Nowicki
inance Director
eft. Robert 0. Malm
Acting City Manager
JRN/daw
SENIOR CITIZEN MOBILE HOME TAX CREDIT
•
Scenario I Scenario II Scenario III
New Mobile Home 6+ Year Mobile Home 15+ Year Mobile Home
Square Footage 1,500 1,000 840
UseTax Rate x 15 cents x 12 cents x 7.5 cents
$225.00 $120.00 $63.00
City's Portion of Property Tax x 22% x 22% x 22%
Total Elgin Use Tax $49.50 $26.40 $13.86
20% Sr. Citizen Mobile Use Tax Credit (10.89) (5.28) (2.78)
Elgin's Portion $38.61 $21.12 $11.08