NIBAC has learned
that there are three proposed ordinances that will be will be formally
introduced before the Cook County Board this week.
1. COOK COUNTY ELECTRICITY TAX ORDINANCE.
It is our understanding that this Ordinance will enact a tax on
electricity that will result in an increase in costs of between 6% and
12%. A.3-.6 Cent KWH tax on electricity.
Over the last two years electric rates for commercial and industrial
customers have risen by approximately 20% and higher, while residential
customers have experienced a 25% increase. The Illinois General Assembly
just experienced a brutal battle forcing ComEd to reduce the increases on
residential and small business user rates by 20%. NOW does not appear to
be the time for the Cook County Board to consider taxing electricity by
between 6 and 12%. This is the most
regressive tax imaginable!!
Cook
County consumers, whether individuals or businesses, are already saddled
with higher taxes and fees than any other county in the State and nearly
any other place in this nation. Isn’t it time to think about making Cook
County a more inviting place to live, work and do business?? Raising
taxes on a necessity, such as electricity, seems like a rather cruel way
to treat the residents and job creators in Cook County, particularly, when
already faced with significant increases in electric costs
2. COOK COUNTY GAS TAX ORDINANCE.
It is our understanding that a 5.3Cent/therm tax on natural gas is being
proposed.
3. COOK COUNTY RETAIL TAX ORDINANCE.
The Cook County Board is considering a proposal to increase the sales tax
from the current .75% to 3%. This would conservatively raise an additional
$960 million. The county wants to use $720 million to eliminate the County
Real Estate Property Tax and the remainder to fund County operations.
TALKING POINTS:
Makes Cook County a non-development zone.
Increases the Cook County sales tax rate by 300% and makes the effective
sales tax rate in the City of Chicago 11.25%.
Dooms under-and-undeveloped communities to permanent
poverty. No company wants to invest in
such a high tax area when they can access the customers from border areas
with much lower tax rates. This will make the food deserts permanent.
Shifts sales. Cook County
residents already flee the City and County for the suburbs in order to
make purchases and pay a much lower sales tax. This provides extra
incentive to leave. For example, a City of Chicago resident could pay
11.25% for their goods or they could pay: 7% in Deerfield, 6.75% in Oak
Brook, 7.25% in Bloomingdale or 6% in Lake County, Indiana. All extremely
accessible to Cook County residents.
Cook County retailers can’t compete.
This would give non-Cook County retailers nearly a 2-1 advantage on sales
tax let alone other taxes which only make the situation worse. Retailers
would face even more competition from Internet sellers who do not pay any
tax thereby giving the Internet sellers close to a 12% advantage.
In order to stop the decline of the Cook
County economic base, please vote against any effort to increase the Cook
County Sales Tax.
Please
contact the Cook County Board members and urge them to vote “NO” on any
effort to tax electricity& gas, and impose a retail tax in Cook County.
