HomeMy WebLinkAboutRESOLUTIONS-2002-041-R-0205/15/2002
41-R-02
• A RESOLUTION
Concerning State Income Tax and
Photoprocessing Tax Shared With Municipalities
WHEREAS, the Local Share of the Illinois Income Tax is one tenth or 0.3% of the
3% individual income tax and 0.48% of the 4.8% regular corporate income tax; and
WHEREAS, a change to one -eleventh will reduce each and every Illinois
municipality's revenue by approximately $6.75 per person, per year; and
WHEREAS, the $84 million per year received by the State of Illinois from this raid
on the historic local share of state income tax will not significantly solve or ameliorate a
state budgetary hole of at least one billion, two hundred million ($1,200,000,000) which
is over fourteen times the eighty-four million ($84,000,000) local government takeaway;
and
WHEREAS, municipalities since the adoption of sales tax reform in 1986 have
received money from the state sales tax raised from photoprocessing; and
WHEREAS, that photoprocessing revenue is distributed to municipalities at the
rate of approximately $2.10 per person, per year or about $26 million per year; and
WHEREAS, municipalities have suffered just as severe a loss of income tax
revenue from the faltering economy and the recently enacted Federal Economic
Stimulus Package; and
WHEREAS, municipalities have already been required to make budgetary cuts to
accommodate lowered revenues from income tax, sales tax, motor fuel tax and utility
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tax; and
41-R-02
WHEREAS, proposals before the Illinois General Assembly have suggested that
the local one -tenth share of the state income tax be reduced to one -eleventh share and
that the photoprocessing tax sharing with municipalities be abolished; and
WHEREAS, those changes would reduce local revenues by a total of $8.85 per
person, per year for a total loss of $110 million per year; and
WHEREAS, these changes would reduce Evanston's state shared revenue by
$650,000 per year; and
WHEREAS, Evanston City officials feel the General Assembly, by taking this
action, would be reneging on a longstanding, mutually beneficial partnership with Illinois
municipalities,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That the Mayor and City Council assembled at its regular meeting
of May 20, 2002 urges the Illinois General Assembly, all its individual members and
officers, and Governor George Ryan to oppose efforts to reduce the local government
share of the Illinois Income Tax to less than the current one -tenth of net receipts and to
abolish the sharing of State Photoprocessing Tax with municipalities.
SECTION 2: That this Resolution shall be in full force and effect from and after
its passage and approval in the manner provided by law.
L�rraine H. Morton, Mayor
ATTE T:
`G y Clerk
Adopted:
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