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.
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',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
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considerable debt to attract such establish-
ments will be financially hardpressed .
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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 .
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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 .
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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