HomeMy WebLinkAboutRes 28-02 05/07/20024/29/02
RESOLUTION NO. 28-02
A RESOLUTION CONCERNING STATE INCOME TAX
AND PHOTOPROCESSING TAX SHARED WITH MUNICIPALITIES
WHEREAS, the Local Share of the Illinois Income Tax is one tenth or 0.3% 0f the 3%
individual income tax and 0.48% of the 4.8% regular corporate income tax; an~l~
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, the $84 million per year received by the State of Illinois from this raid on the
historic local share of 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, that 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, 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, proposals before the Illinois General Assembly have suggested 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; and
WHEREAS, those changes would reduce local revenues by a total of $8.85 per person,
per year for a total loss of $110 million per year statewide or $498,000 to the Village of
Mount Prospect; and
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State Income Tax
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 MAYOR AND BOARD OF TRUSTEES
OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: That the Village of Mount Prospect assembled at its regular meeting of
May 7, 2002 urges the Illinois General Assembly 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 abolish the sharing of State Photoprocessing Tax
with municipalities.
SECTION TWO: That this Resolution shall be in full force and effect from and after its
passage and approval in the manner provided by law.
AYES: Corcoran, Hoefert, Lohrstorfer, Skowron, Wilks, Fadey
NAYS: None
ABSENT: Zadel
PASSED and APPROVED this 7th day of May, 2002.
ATTEST:
Village Clerk
H:\GEN~files~WIN~RES~In corne Tax & Photopmcessing Tax,May,02.doc