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Lawmaker: State fee for local tax payments 'slipped by' during budget process

Illinois Watchdog.Org

Monday, December 4, 2017  |  Article  |  By Benjamin Yount

Budget--State (8) , Local Government (60) , Taxes, sales (88) DeLuca, Anthony--State House, 80
An Illinois lawmaker who wants to roll back the fee that the state charges local governments to collect taxes says it slipped by during the summer.

State Rep. Anthony DeLuca, D-Chicago Heights, said that he knew the state was going to keep some tax dollars that used to go to local governments.  But, despite being in charge of a local government committee, he didn't know the new Illinois budget would include a two-percent fee to process tax collections.

"Somehow this fee, this Administrative Fund Fee, kind of went by unnoticed and without any opportunity for debate," DeLuca said, who voted for the budget that created this fee.

And that's part of the problem with how Illinois crafts budgets, he said.

"I knew about some of the reductions to the Local Government Distributive fund," DeLuca said. "But this issue never came up. It was never brought to my attention."

DeLuca wants to roll back the two percent fee to just one percent. That would save cities and towns across the state about $30 million a year.

Cities and counties across the state say their losses due to the fee will further hurt them fiscally.