Edwardsville's Proposed Home Rule Sales Tax Increase

by Ed/Glen Chamber on March 24th, 2014

At the Tuesday, March 18 Edwardsville City Council meeting, the Council considered an ordinance to implement a Home Rule Municipal Retailers’ Occupation Tax and Home Rule Service Occupation Tax (collectively known as the “Home Rule Sales Tax”). The Home Rule Sales Tax would be imposed at a rate of one quarter of one percent (0.25% ) on the gross sales receipts.
The City of Edwardsvillle will consider adopting the tax to help construct, maintain and operate public safety facilities. The additional sales tax would impact only those businesses located in the City of Edwardsville. 
The ordinance adopting a Home Rule Sales Tax and amending Chapter 106, Articles III and V of the Codified Ordinances of Edwardsville, Illinois will again be presented at the Thursday, March 27 Administrative & Community Services (ACS) meeting , which will be held at 5pm.
Edwardsville City Council will conduct a special City Council meeting Thursday, March 27 at 7pm , at which time the Council will make its final consideration to implement the Home Rule Sales Tax. 
The Edwardsville/Glen Carbon Chamber of Commerce Government Affairs Committee (GAC) has reviewed the proposed ordinance and appeared before city council last Tuesday to voice concerns of the business community. 
The Ed/Glen Chamber is not against the needs of the community to improve and expand its fire and police facilities, and we fully support the Mayor’s and Council’s efforts to provide essential services. 
However, we are opposed to the utilization of sales tax, over reliance on implementing additional sales tax, and little opportunity for public dialogue prior to implementing something as important as a Home Rule Sales Tax. We are also concerned about the precedent this sets.
The City expects an estimated $1.2 million in sales tax revenue generation resulting from the proposed Home Rule Sales Tax , thus diverting that money from the local economy to be utilized for taxes rather than goods and services. It is the cumulative impact of taxing at the local, county, state and federal levels that negatively affect the business climate. 
CLICK HERE to read a recent St. Louis Business Journal article ranking Illinois as 31st (50 being the most unfavorable for business) when looking at corporate, individual income, sales, insurance and property taxes. Missouri ranks 16th.
We have heard directly from a number of Ed/Glen Chamber members voicing concerns. We encourage the business community to get involved by contacting elected officials and attending the ACS/City Council meetings on March 27. 
Mayor Hal Patton
Business Phone:
Email: mayor@cityofedwardsville.com 
1st Ward Alderman: Barb Jurgena-Stamer
Business Phone:
Home Phone: 618-692-0991
Email: ward1alderman@cityofedwardsville.com 
2nd Ward Alderman: Tom Butts
Business Phone:
Home Phone: 618-656-1967
Email:  ward2alderman@cityofedwardsville.com 
3rd Ward Alderman: Janet Stack
Business Phone:
Home Phone: 618-656-2888
Email: ward3alderman@cityofedwardsville.com 
4th Ward Alderman: Jeanette Mallon
Business Phone:
Home Phone: 618-656-1977
Email: ward4alderman@cityofedwardsville.com 
5th Ward Alderman: Keith Short
Business Phone:
Home Phone: 618-806-6921
Email: ward5alderman@cityofedwardsville.com 
6th Ward Alderman: Craig Louer
Business Phone:
Home Phone: 618-656-6048
Email: ward6alderman@cityofedwardsville.com 
7th Ward Alderman: Art Risavy
Business Phone:
Home Phone: 618-655-0709
Email: ward7alderman@cityofedwardsville.com 
5pm Thursday, March 27
Wildey Theatre, 3rd floor
252 North Main Street in Edwardsville 

7pm Thursday, March 27
Council Chambers, City Hall
118 Hillsboro Avenue in Edwardsville 

* Arrive at least 15 minutes early and add your name to the list of citizens wishing to address the Council. 
The Ed/Glen Chamber’s Government Affairs Committee will be in attendance at both meetings.
Attached you will find PowerPoint slides from last Tuesday’s informational City Council presentation. The slides are a helpful educational tool and outline the City’s very real need for fire protection and proposed funding source of the sales tax. Again, we fully support the community’s fire and emergency protection needs; our concern is solely with regard to the use of sales tax as a funding source.
While there are many points and counterpoints to this issue, we emphasize the importance of establishing open lines of communication. We welcome the opportunity to better educate elected officials on the impact of legislation on the business community.

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