PRESSURE’S ON FOR COOK COUNTY UTILITY TAXES

After the Cook County Board failed this week to find enough votes to pass a sales tax increase, Cook County Commissioner John Daley said he expects the Stroger administration to switch its focus to the proposed new county utility taxes, including a 5.2 cents per therm tax on natural gas used in the county, a 7-8% tax on electricity used in the county.

Cook County Board President Todd Stroger says that the proposals to increase natural gas and electricity bills to cover county government spending are "sound ideas" that deserve consideration.  

If you haven’t done so already, it’s absolutely vital that you contact your Cook County Commissioner and urge them to either vote against the proposed taxes on natural gas and electricity or create an exemption for all natural gas and electricity used in production/manufacturing process. 

These commissioners need to hear from you – their local employers as well as your employees – as to how devastating these proposed energy taxes will be to your company and your employees.

If you don’t already know who represents your facility in Cook County, follow this link and enter your address: http://www.civicfootprint.org/ .  Contact information for your commissioner can be found here: http://www.cookctyclerk.com/sub/elected_officials_detail.asp?TYPE_ID=1&Title=Board%20of%20Commissioners

HOUSE OVERRIDES “7% SOLUTION” BILL

The House this week voted overwhelmingly to override the governor’s Amendatory Veto (AV) of the so-called 7% property tax solution bill.  CICI and the business community have been fighting all year to permanently kill this assessment cap.  The bill, HB 664 (Currie, D-Chicago) ended up containing so many feel good property tax measures that made it virtually impossible for lawmakers to vote against it.  This cap has placed a heavy tax burden on businesses due to a greater reliance on commercial and industrial property taxes.  The bill that landed on the governor desk extended the assessment cap on residential property for three years with the maximum exemption to be $30,000.  After three years the assessment cap would expire.

As if the property tax burden on businesses in Cook County weren’t appalling enough, Governor Blagojevich tried to make the situation even worse by amendatorily vetoing the bill, increasing the assessment cap to $40,000 and making it permanent. 

While the House voted 92 “YES” to 19 “NO” to reinstate the bill as passed, the Senate’s next move is still in question. President Emil Jones (D-Chicago) has already advanced to the Senate floor a separate bill that reflects the governor’s wishes.  This was primarily done because of constitutional concerns with the AV that may have resulted in the entire law being overturned in court.  When the Senate returns next week, they will either override the governor or take their chances with trying to advance the governor’s wishes in a new bill.   

While not enamored with the original bill, CICI and the rest of the business community supported the House’s override of the Governor AV and will vehemently oppose any attempt to increase this assessment cap or make it permanent.  CICI will keep you abreast of the situation as it further develops next week.

LEGISLATIVE & REGULATORY MEETING AT PRAXAIR ON OCTOBER 18

CICI’s next Legislative & Regulatory Affairs Committee meeting will be held at Praxair in Burr Ridge, IL, on October 18, 2007.  The meeting will start at 9:00 am.  All CICI members are invited and encouraged to attend.  Topics will include relevant discussions on the state budget, proposed taxes and fees, air emissions rules, and many other regulations affecting the industry.  If you wish to attend, please contact Lisa Frede with your RSVP at lfrede@cicil.net no later than October 16, 2007.

Please note that the Chemical Industry Council of Illinois Legislator is not intended to convey legal advice or set forth all legal requirements applicable to particular circumstances.

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