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Home My WebLink About3260_001Village of Mount aospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: Terrance L. Burghard, Village Manager FROM: John A. Hedstrom, Director of Management Service SUBJECT: Possible Sources of Additional Revenue DATE: July 9, 1982 Food and Beverage Tax During the twelve months ended March -1982 the State of Illinois collected $1,218,015 for sales taxes from Drinking and Eating establish- ments located within the Village limits. At the current tax rate of 6%, an additional 1% tax on sales in drinking and eating establishments would yield $203,000 in new revenues annually. There are 85 establishments that would be subject to collecting this tax and they are broken down as follows: Description Number - Restaurants, Carry -outs, Banquet Halls Grills, Cafeteria within department store 67 Mini Marts (selling ready made sandwiches) 6 Delicatessens within yLucery stores 3 Delicatessens. 4 Organizations (Moose & VFW) 2 - Alcohol only 2 Concession 1 Excluded from this count are the three bakeries, three theatres, two ice cream stores and three candy stores that are located within the Village. These establishments were excluded because they are not classi- fied as drinking and eating establishments by the state and are not part of the $1,218,015 mentioned above. They are however considered "food" retailers and in the case of the theatres, ice cream and candy stores do collect the 6% tax. If this tax is enacted, Management Services would develop a checklist of those establishments subject to the tax and do a follow-up on those retailers that did not make remittances on a timely basis. Each retailer would be required to submit a copy of their state sales tax return along with a form developed by the Village. I have attached - 2 - a brief flow -chart outlining the procedure that would be followed in administering enforcement and collection of this tax. Cigarette Tax The City of Evanston enacted an ordinance effective April 1, 1982 that requires a five cents a package tax on cigarettes. Evanston's method of collecting this tax is by sale of stamps that combines the County and City Tax for a total of ten cents. The stamps are then attached to each package of cigarettes sold within the City. A Commission of five percent is allowed the agent affixing stamps for their services. Although the City has the right to inspect retailers records, enforcement of the tax is through periodic inspection of inventories. Gasoline Tax The Village of Rosemont levies a two cents per gallon tax on sales of gasoline made by the seven gas stations located within the Village. This tax was enacted as one cent per gallon in 1975 and in November 1981 was increased to two cents which officials project will generate $120,000 annually in revenue. Mount Prospect has twenty-two stations located within the Village that pump gasoline. Rosemont collects the revenue quarterly and uses the honor system in making collections. The Village does have the right to in- spect each retailer's records and so far they have not experienced any difficulty in administering this system. I have copies of ordinances and other documents from Evanston and Rosemont available for further discussion. W_- 5Ta rE �, -T AX <r -o er�1 V ► S ALAS �A�C �C�elr{ mASTE pr' C4— h" F2os PEST VIL--PGL 5f Ti4 orJ pCLlatd-trJG . � CATt aG Est-A� �1S t� r"CC•.�T 1peTA1 t Pew Pr�S� Vlc.r`AGE SALE s "1 A,c V:70 kj-, X Z, ��"P�"� GtiECs� Mc NES pRt,E2 Cor-,.{ pie c.T I c SPC --S k {roZ-M GHEC V I L�-PtC�C P, LES 'T F� Y- 2,q VI��C�c V I c_c_ PG r- -S a 'S"p",C- Iro K.r-1 —t -o V 1 v C.P�G E ram V►L-(-AGE, SA' r- e RNI MAN �EME��-SEx��lC.Er h"1f�N ,:�rcM�TJi S�ZVIGE� 1. ou�cwzl!F t.=- P k A�e_ St rte,' s r C--- p, I Win, - LY C o**T t tea e 6 c u c LA ST a K " ° I rL 0 CA_ M Q, k.t l =�T ►" "'+= VIC-LACrC- ST�Trc S S SA Lr—,s 'I`A� LN G—CSG v C—f"5 P n � ECS I F-r� C rLoccs S!cyC� Village of Mt. Prospect Mt. Prospect, Illinois To Whom It May Concern: C -C June 21, 1982 JUN 2 1 106 In response to the article on Taxi Deregulation, I would like to give my opinion as to why I am opposed to it. If a vote were to be taken by all taxi operators in the Northwest suburbs, deregulation would be voted down by a wide margin. The only cab company who is for it is American Taxi from the North Shore who are on the Board of Advisors of the Northwest Municipal Transportation Study for their bene- fits. I understand why they would be for it as their method of operation is to have drivers with their own cabs join their fleet. Thus the more auto- mobiles, the more money they make, which in turn does not mean better service as they cannot control their drivers. Other reasons are as follows: a. Deluting all drivers' incomes, which are already too low. b. Delution of taxi service in our Village. Additional companies and taxi cabs do not mean additional service. It will mean excessive lucrative out-of-town trips with the local short term trips being diminished. c. Community service transportation, such as Senior Citizens, will be extremely limited due to lack of central dispatching and centralized fleet size. Prospect Cab cannot have 18 vehicles doing community service while other companies are turning it down for better and longer runs. d. The end result of taxi cab deregulation will be the constant see -saw of taxi company growth and decline until such time as they merge or a larger company, such as Chicago Yellow, dominates the Village. e. Adjacent Village cooperation in regard to vehicle inspections, ordinances, variations, meter rates, etc. can be achieved without deregulation. Remember, we do not have the money the airlines do. If you would like to discuss this in more detail, please call. Sincerely, Robert Birks 9 NORTH HICKORY STREET, ARLINGTON HEIGHTS, ILLINOIS 60004, PHONE C312) 253-0745 z PACf(qO a CL C� CO o 0 THEgn m Village of Mt. Prospect Mt. Prospect, Illinois To Whom It May Concern: C -C June 21, 1982 JUN 2 1 106 In response to the article on Taxi Deregulation, I would like to give my opinion as to why I am opposed to it. If a vote were to be taken by all taxi operators in the Northwest suburbs, deregulation would be voted down by a wide margin. The only cab company who is for it is American Taxi from the North Shore who are on the Board of Advisors of the Northwest Municipal Transportation Study for their bene- fits. I understand why they would be for it as their method of operation is to have drivers with their own cabs join their fleet. Thus the more auto- mobiles, the more money they make, which in turn does not mean better service as they cannot control their drivers. Other reasons are as follows: a. Deluting all drivers' incomes, which are already too low. b. Delution of taxi service in our Village. Additional companies and taxi cabs do not mean additional service. It will mean excessive lucrative out-of-town trips with the local short term trips being diminished. c. Community service transportation, such as Senior Citizens, will be extremely limited due to lack of central dispatching and centralized fleet size. Prospect Cab cannot have 18 vehicles doing community service while other companies are turning it down for better and longer runs. d. The end result of taxi cab deregulation will be the constant see -saw of taxi company growth and decline until such time as they merge or a larger company, such as Chicago Yellow, dominates the Village. e. Adjacent Village cooperation in regard to vehicle inspections, ordinances, variations, meter rates, etc. can be achieved without deregulation. Remember, we do not have the money the airlines do. If you would like to discuss this in more detail, please call. Sincerely, Robert Birks 9 NORTH HICKORY STREET, ARLINGTON HEIGHTS, ILLINOIS 60004, PHONE C312) 253-0745