HomeMy WebLinkAbout5. OLD BUSINESS 09/04/2007
Mount Prospect
INTEROFFICE MEMORANDUM
Village of Mount Prospect
Mount Prospect, Illinois
FROM:
MICHAEL E. JANONIS, VILLAGE MANAGER
DIRECTOR OF FINANCE
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TO:
DATE:
AUGUST 16, 2007
SUBJECT: HOME RULE SALES TAX INCREASE
PURPOSE:
To present for the Board's consideration an ordinance increasing the Village's home rule sales
tax rate.
BACKGROUND:
At the August 14, 2007 Committee of the Whole meeting, the Village Board was presented with
options for a permanent funding source for capital projects. It is estimated that between $750,000
and $1 million of annual funding is required to support mid-range capital projects of the Village.
There were only two viable options for this permanent funding source, a property tax increase or an
addition to the home rule sales tax. The impact of implementing a property tax increase was felt to
be too burdensome on property owner so an increase to the home rule sales tax rate was to be
given further consideration.
DISCUSSION:
As requested I have prepared the two ordinances required to implement the increase to the home
rule sales tax effective January 1, 2008. The ordinances will need Board approval and must be
filed with the Illinois Department of Revenue by October 1 , 2007 to make the proposed effective
date. If the Department of Revenue deadline is not met, the Village will have to wait until July 1,
2008 to implement the tax increase.
Please place this item on the agenda for the August 21, 2007 Village Board Meeting for further
consideration. I will be on hand to facilitate discussion and answer any questions regarding the
proposed increase.
RECOMMENDATION:
It is recommended the Village Board approve the attached ordinance increasing the Village's
home rule sales tax rate to be effective January 1, 2008.
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DAVID O. ERB
DIRECTOR OF FINANCE
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ORDINANCE NO.
AN ORDINANCE AMENDING APPENDIX A - DIVISION II OF THE
VILLAGE CODE OF MOUNT PROSPECT
PASSED AND APPROVED BY
THE PRESIDENT AND BOARD OF TRUSTEES
THE DAY OF 2007
Published in pamphlet form by
authority of the corporate authorities
of the Village of Mount Prospect,
Illinois, the _ day of
2007
ORDINANCE NO.
AN ORDINANCE AMENDING
APPENDIX A - DIVISION II OF THE
VILLAGE CODE OF MOUNT PROSPECT
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT COOK COUNTY ILLINOIS ACTING IN THE
EXERCISE OF THEIR HOME RULE POWERS:
SECTION ONE: Section 8.1102, entitled "Imposition of Tax", of Appendix A,
Division II of the Village Code of the Village of Mount Prospect shall be amended by deleting in
its entirety the current section 8.1102 and inserting in lieu thereof a new Section 8.1102 "Tax
Imposed" to be read as follows:
Section 8.1102: IMPOSITION OF TAX:
1/1/04 through 12/31/07
0.75% of gross receipts of tangible personal
property
1.00% of gross receipts of tangible personal
property
01/01/08 and thereafter
SECTION TWO: That this Ordinance shall be in full force and effect from and
after its passage, approval and publication in pamphlet form in the manner provided by
law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this _ day of
,2007.
Irvana K. Wilks, Village President
ATTEST:
M. Lisa Angell, Village Clerk
ORDINANCE NO.
AN ORDINANCE AMENDING APPENDIX A - DIVISION II OF THE
VILLAGE CODE OF MOUNT PROSPECT
PASSED AND APPROVED BY
THE PRESIDENT AND BOARD OF TRUSTEES
THE DAY OF 2007
Published in pamphlet form by
authority of the corporate authorities
of the Village of Mount Prospect,
Illinois, the _ day of
2007
ORDINANCE NO.
AN ORDINANCE AMENDING
APPENDIX A - DIVISION II OF THE
VILLAGE CODE OF MOUNT PROSPECT
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT COOK COUNTY ILLINOIS ACTING IN THE
EXERCISE OF THEIR HOME RULE POWERS:
SECTION ONE: Section 8.1202, entitled "Imposition of Tax", of Appendix A,
Division II ofthe Village Code of the Village of Mount Prospect shall be amended by deleting in
its entirety the current section 8.1202 and inserting in lieu thereof a new Section 8.1202 "Tax
Imposed" to be read as follows:
Section 8.1202: IMPOSITION OF TAX:
1/1/04 through 12/31/07 0.75% of gross receipts of sales of service
01/01/08 and thereafter
1.00% of gross receipts of sales of service
SECTION TWO: That this Ordinance shall be in full force and effect from and
after its passage, approval and publication in pamphlet form in the manner provided by
law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this _ day of
,2007.
Irvana K. Wilks, Village President
ATTEST:
M. Lisa Angell, Village Clerk