IL mayors and village presidents protest stealth tax from state

Municipal officials have been on the road protesting as the Illinois legislature enters its final week of action in Springfield. In deep fiscal trouble, the state of Illinois has indicated that it will retain local muncipal tax revenues collected by the state rather than remit the funds – a change from the procedure followed since 1969. These revenues are part of planned budgets, and to balance their budgets the muncipalities already have taken various steps; they have reduced spending, cut staff and persuaded unions to accept changes. With towns still left with significant deficits, the assumption is that the state is using the withheld funds to pressure the governor to raise more taxes.

Home rule communties (such as Winnetka and Wilmette) should know that home rule status allows municipalities to levy additional taxes, such as village sales taxes, to meet budget shortfalls. As Winnetka is learning the hard way, home rule does not protect a village from the affordable housing movement. It just empowers local officials to raise more taxes. Welcome to the reality that is Illinois.

Wilmette Village President Chris Canning appears in the video on the far right of the row of officials.

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One response to this post.

  1. Posted by Andrew on May 28, 2011 at 11:10 pm

    It is out-and-out stealing of local tax revenues by the State of Illinois that I find absolutely appalling! This governor is a crook! How can the state legislature back this thievery? My God! It is not bad enough this Governor has killed ANY CHANCE of economic recovery for Illinois by raising the state income tax 67% or the state corporate tax to second highest the country? What about the highest gas taxes? Massive property taxes? Who is God’s name would move their business here? No one. Everyone will move out and the tax base will go down, just the opposite effect the Governor wants. Springfield politicians are world-class idiots.

    Reply

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