State angling to take a big chunk of city coffers
Call to
citizens to contact legislators
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[May 17, 2012]
At Tuesday evening's committee of the
whole meeting of the Lincoln City Council, Mayor Keith Snyder and
Chuck Conzo, city treasurer, talked about another blow the state of
Illinois may deliver to municipalities.
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Snyder said that Illinois House Speaker Michael Madigan has
introduced
House Bill 3637, which would eliminate payments to
municipalities from the corporate personal property tax collected by
the state. Snyder said the plan was to take the money away from
municipalities statewide and give it to the state's Teachers'
Retirement System.
If this were to pass, Conzo has estimated it will cost the city
of Lincoln approximately $247,000 in revenues.
Conzo offered a little history on the tax, which is more commonly
called "replacement tax."
Up until 1970, businesses and public utilities were required to
pay property taxes to the county. However, in 1970 the state did
away with that requirement and established the replacement tax.
With the replacement tax, the businesses pay a tax to the state,
and the state in turn pays a portion of the tax to municipalities.
The payments issued by the state are required to be used in a
certain manner. The first 50 percent has to go to the city's fire
and police pension funds. The other half can go into the general
fund for the city.
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Conzo said that in the last fiscal year the city had received
$305,000 in replacement tax. The year before, it received $341,000.
This year he has estimated the receipts at $246,000 because, among
other things, this is the tax that was reduced last year so the
state could pay the regional superintendents of schools.
Snyder said if this bill passes, it will leave a large hole in
the city's budget, and the council will have to make some
"significant changes" in the spending plans for the new fiscal year.
He said what needs to be done right away is for everyone to
contact their local legislators and express to them that this bill
should not be passed.
Anyone wishing to support Snyder's request can find addresses for
state legislators here:
http://www.lincolndailynews.com/
Features/legislators.shtml
[By NILA SMITH] |