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HomeMy WebLinkAboutRESOLUTION - 66-74 - 8/13/1974 - OPPOSING DIST SALES TAX REV RESOLUTION NO. 66-74 A RESOLUTION AUTHORIZING PRESENTATION OF A FORMAL STATEMENT OPPOSING DISTRIBUTION OF MUNICIPAL SALES TAX REVENUE ON AN AREA-WIDE BASIS NOW, THEREFORE,BE IT RESOLVED* by the President and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois: Section 1 : That the President and Board of Trustees do hereby adopt this resolution authorizing piresentation of a formal statement opposing distribution of Municipal Sales Tax Revenue on an area-wide basis, a copy of which statement is attached hereto and made a part hereof as if fully set forth. Section 2: That this resolution shall be in full force and effect from and after its passage and approval according to law. PASSED this l3th day o-F August 1974. APPROVED this 13th day of August 19714. �4 ',irl-Ilage Pres,�#nt; ATTEST: Village Cler U Sales lax Redistribution Position Paper to be 'Presented to a Joint Meeting of the Runi ci pa I and Count i es Probl ems Co-'mi ss ions , August 20 , 1974 , at Pheas ant Run Thank you for this ' opportunity to appear before your Commissions and your forcsight in conducting this meeting on such an important fiscal subject . The Village of Elk Grove Village is unalterably opposed to legislation which would provide for -an areawide distribution' of sales tax receipts collected in Regional Shopping Centers . Alternate methods - of providing for such revenue distribution have been introduced in the Illinois General Assembly in recent sessions . Our opposition to such legislation is based on the following rationale : 1 . This practice would di scriminate against those municipalities which through extensive efforts have attracted -regional shopping centers to develop within their corporate limits ; 2 . Full return to the municipality of sales tax receipts is imperative if the community is to adequately provi,de much needed services to these regional developments . 3 . A certain degree of com,,2tition among munici - palities - for regional commercial outlets and the revenue produced from them is essential if such future developments are to be viable establishments 4. With adoption of this type legislation , there will be no regional shopping centers as we know them today. 5. Those municipalities which have sustained -2- considerable debt to attract such establish- ments will be financially hardpressed . 1 6 . It is unpredictable as to what further erosion of wunicipal financing powers might occur should such legislation be adopted . 7 . The legislation proposed thus far has been both vague and confusing and could be inter- preted as including downtown areas of large municipalities as regional shopping ,centers . 8. Enforcement of such legislation and the administrative problems related thereto would be severe . Why should sales tax receipts be shared with areawide cities? No compelling reasons exist nor have any been advanced to support the redistribution of sales tax receipts . Have non-shopping center cities incurred higher costs for police , fire , public works , public health , licensing , water & sewer services because shopping centers are not in their city? No. What losses in sales tax revenue have occurred because of shopping center developments in other locations? No one really knows . Furthermore , there are too many variables such. as mobility , inflation , energy crises , employment changes , development of resources in outlying areas such as residential subdivisivns , entertainment facilities , industrial complexes , .commercial centers . Within reasonable limits , and subject to the influences nf major highways , undeveloped or redevelopable land , and individual community attitudes , cities can improve their economic status if th'ey are prepared als.o to shoulder the burden of non-residential taxpayers . -3- Local land use decisio ns clearly determine a city ' s opportunity to attract diverse economic v,entures into a city . While individual cities may wish not to diversify their tax base for their own rpasons , they might find that joint action with neighboring communities could provide a broader revenue base for their cities or stimulate increased sales at existing facilities . Consider for examples the emerging experiences being shared by Naperville-Aurora and by Carpentersville -Elgin-Dundee . Communities don ' t just happen to have individual characteristics ; they have them because the community has over a period of time made local decisions concerning zoning , building codes , utility systems , transportation facilities , annexations and redevelopment matters . Such local decisions do determine the amount and mix of churches , commercial developrents , industrial developments , recreational facilities , and entertainment facilities in the very same way as local decisions determine the number and kinds of liquor establishments in a city . A city ' s public posture is telegraphed by decisions and actions of its Plan Commission , Zoning Board of Appeals , City Council , Police Department , Fire Department and utility service department. A city ' s posture cannot be kept under " a bushe.1 basket" . Ample latitude remains under existing State Statutes for cities to reshape their image , to redefine their economic base without siphoning off the economic gains made by other cities . If they wish to share in the economic potential of shopping centers , downtown businesses , industrial complexes , then they should change their attitudes and become active competitors for future' developments . - 4- We hope they succeed not only for potential economic gain but also to become acquainted with the real burdens which accompany -such resources . Surely , in the long run , their city will benefit by ar. increased capability of their governmental services to respond quickly and pro- ficiently with the most modern equipment available within given rosources . We suggest that there is no justifiable reason to alter the present State Statutes in the direction advocated by those who seek a share .of sales tax- revenue without having sales tax production resources within their cities . If they wish to reap such benefits , they can , without charging the State Statutes , take steps to attract revenue pro- ducing land uses to their cities . We cannot. condone efforts to redistribute sales tax proceeds any more than we could condone the redistribution of liquor license revenue with cities which prefer to remain dry. Based on the foregoing objections , the Village of Elk Grove Village respect�ully urges the " Illinois Municipal and Counties Problems. Commissions to oppose areawide distri - bution of sales tax receipts collected by individual municipalities . We appreciate y6ur consideration , understanding - and support of our position . Thank you . President & Board of Trustees Villa9p of Elk Grove Village August 13 , 1974