HomeMy WebLinkAbout12/12/2000 COW agenda COMMITTEE OF THE WHOLE
AGENDA
Meeting Location: Meeting Date and Time:
Mount Prospect Senior Center Tuesday, December 12, 2000
50 South Emerson Street 7:30 p.m.
I. CALL TO ORDER - ROLL CALL
Mayor Gerald L. Farley
Trustee Timothy Corcoran Trustee Dennis Prikkel
Trustee Paul Hoefert Trustee Michaele Skowron
Trustee Richard Lohrstorfer Trustee Irvana Wilks
II. ACCEPTANCE OF MINUTES OF NOVEMBER 28, 2000
III. CITIZENS TO BE HEARD
IV. AMENDMENTS TO REAL ESTATE TRANSFER TAX
At the October 10, 2000 Committee of the Whole meeting, the Village Board undertook a
discussion regarding Amendments to the Village's existing Real Estate Transfer Tax
Ordinance. The main focus of discussion was shifting the responsibility for payment of the
Tax from the buyer to the seller. Additionally, staff took the opportunity to recommend a
number of drafting revisions designed to make the Ordinance more readable as well as
adding a provision that would require the payment of the Tax on long-term business lease
transactions.
As part of the Board's deliberations, there was considerable discussion regarding the need
to provide a "rebate" mechanism by which persons who paid the Tax as buyer would be
given an opportunity for relief should they find themselves now having to pay the Tax again
as seller. It was determined that an open-ended rebate could cost the Village several million
dollars in lost revenue over an extended period. Some consideration was given to a short
"rebate window" in order to limit potential revenue loss while still providing an opportunity for
current sellers to obtain relief from the prospect of double taxation. Ultimately, a majority of
the Village Board determined that the responsibility for payment of the Tax remain with the
buyer due to the complexity of coming up with a workable rebate mechanism. The other
recommended changes to the Code were approved as presented by staff.
An Ordinance amending the Real Estate Transfer Tax (sans a shift from buyer to seller) was
presented at its November 8 meeting. At the first reading, Trustee Wilks asked that the
Board reconsider the question of who is responsible the payment of the Tax. A majority of
the Board indicated they were willing to revisit the topic.
NOTE: ANY INDIVIDUAL WHO WOULD LIKE TO ATTEND THIS MEETING BUT BECAUSE OF A
DISABILITY NEEDS SOME ACCOMMODATION TO PARTICIPATE, SHOULD CONTACT THE VILLAGE
MANAGER'S OFFICE A T '100 SOUTH EMERSON, MOUNT PROSPECT, ILLINOIS 60056, 847/392-6000,
EXTENSION 5327, TDD #847/392-6064.
As part of the October 10 discussion, staff surveyed Northwest Municipal Conference
communities to determine those that had a Real Estate Transfer Tax and who was
responsible for paying same. Of the 15 respondents, only Mount Prospect and Niles listed
the buyer as responsible. In the interim, staff secured, through the assistance of a local
attorney, a much more comprehensive list of municipalities that impose the Tax and who is
responsible for paying same. This list (included) is produced by Chicago Title and Trust and
I believe represents the most comprehensive and up-to-date listing on the topic. Of the 70
municipalities listed, 18 (approximately 26%) place the responsibility for payment of the Tax
on the buyer.
Assuming that the focus of further discussion is limited to who is responsible for payment of
the Tax, a decision to switch from buyer to seller raises the concomitant question of whether
a "rebate window" should be established whereby homeowners who paid the Tax as buyer
and now find they are again responsible for paying the Tax as seller have the opportunity to
limit their Tax burden through a credit against the amount of Tax they originally paid as
buyer. Included in the information package is a memorandum from Finance Director Douglas
EIIsworth highlighting pertinent information critical to any discussion of this topic.
V. VILLAGE MANAGER'S REPORT
VI. ANY OTHER BUSINESS
VII. ADJOURNMENT
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