 In this segment of city briefs:
-
Les Plotner, city treasurer,
discussed current tax revenues as well as money owed to the city by
the state for sewer bills.
-
Mayor Keith Snyder discussed the
proposed hotel-motel tax levy and a related situation that has arisen.
Plotner and Alderman Buzz Busby have contacted state officials
regarding prison sewer bills.
Plotner told the council that in the last week he has written
letters to Sen. Larry Bomke, Rep. Rich Brauer and Rep. Bill Mitchell
regarding delinquent sewer bills for the prisons and Lincoln
Developmental Center. He said that currently the state of Illinois
owes $107,000 in sewer fees.
In his letter Plotner told the three that "we charge overdue
people in the community a penalty on their bill that we don't put on
the state, but we could start doing that."
He noted that the last time he wrote letters, he did hear from
Mitchell, and the city did receive a payment.
Busby said that he had also contacted Larry Bomke's office via
telephone but has not heard back from him.
Tax revenues up and down
Plotner said the city had received a payment in May for sales tax
collected in February, and the payment was approximately $16,000
more than expected. He noted it was a 9.7 percent increase over last
year.
The collection of non-home-rule tax is also up for the first part
of the year, by approximately 9.2 percent.
Plotner said those were the bright spots in what he had to say, as
he moved on to the replacement tax funds. He said the city had hoped
for $147,000 from this tax. However, based on information provided
by the Illinois Municipal League, he now feels that the sum
collected could be only $129,000 for the year.
He also noted that last year the first payment the city received
on replacement tax came to over $68,000, but the first payment this
year was less than $40,000, a 38 percent decrease. He said that if
this continues, the city won't even collect the $129,000.
Plotner also reported heavy decreases in revenues from the use
tax, saying that the February earnings had been received in May, and
the amount was approximately 25 percent less than for the same period
last year.
[to top of second column]
 |
The state is also still running way behind in disbursing
payments. Plotner said that the last income tax payment the city
received arrived in January and was for the month of November 2009.
And finally, another small bright spot, the telecommunications
tax revenues are showing a $5,000 increase over this time
period last year.
Problems arise with passing a hotel-motel tax
Snyder talked to the council about the proposal he's been working
on for a 1 to 2
percent hotel-motel tax levy.
He said that in investigating what he would like to do, he has
found that according to Illinois Municipal Code, Section 8-3-14, a
motel occupation tax can be levied by either the county or the city,
but not by both.
Currently the county is taking advantage of that tax law and
imposing a 5 percent tax. Breaking down the 5 percent, Snyder said
that the first 4 percent goes to tourism, 0.5 percent goes to the
Main Street Lincoln program, and the other 0.5 percent goes to the
county discretionary fund for tourism.
If the city were to pass a motel occupational tax, the county
would be forced to drop their tax. Snyder said that he didn't
believe the city should "knock the legs out from under the county,"
so passing this kind of tax really isn't the answer.
However, there is possibly another answer. In doing their
research, Snyder and Bates have realized that there is another tax
that apparently is not being used by the county.
Snyder said the motel use tax is relatively new, passed by the
state of Illinois only last year. In the state code, there is no
provision for counties to levy this tax.
Snyder said they are not done investigating this, but he is
hopeful that the city can take advantage of the use tax and leave
the occupation tax with the county. He said that as more information
becomes available, he will report back to the council.
[By NILA SMITH] |
