R. J. Lehnhausen

$8 Million Available to Replace Lost Tax Revenue By Robert J. Lehnhausen

STATE VOUCHERS TOTALLING more than a quarter million dollars already have been issued for park districts which have lost tax base due to the personal property tax exemption.

Our department is responsible for handling this program, which was created by Senate Bill 1476 which the 1970 session of the 76th General Assembly passed as recommended by Governor Richard B. Ogilvie.

The need it was designed to meet resulted when the General Assembly earlier passed the bill exempting one private pleasure car and a household of furniture per family from the personal property tax.

This revenue loss was more than compensated for by revenue sharing with counties and municipalities and by aid formula increases in the case of school districts. There was, however, no specific make-up money for special districts—including park districts.

The administration therefore recommended the creation of a special $8 million fund to compensate these districts for taxes lost as a result of reduced tax base between 1969 and 1970. Any such loss is first being felt in the tax collections now taking place in the counties.

Of the 258 park districts in the state, we have sent completed application forms to 87 districts for their signatures and return to us. These applications represent a total tax loss of $459,072.

Our department has checked the tax base of an additional 117 districts and found increases, thus rendering the districts ineligible for the program. Of these 117 districts, 85 are in Cook County, 20 in DuPage and the rest scattered throughout the other 100 counties of the state.

We still are awaiting sufficient data from the county clerks to determine the eligibility or ineligibility of 54 districts.

As soon as we receive the correct documentation for these districts, we will check for eligibility. If any payment is due, we will send an application for approval and signature.

In the case of the 57 districts on whose behalf we have already prepared vouchers for $262,104, we have received the returned applications appropriately signed, and have been able to start the payment process.

As with all other claims under this program, we are making an initial payment for 75% of the amount to which the district is entitled. After we determine the entire amount of valid claims on the fund, and assuming there is an amount in the fund to cover the balance, we will complete the payments.

Robert J. Lehnhausen is Director, Illinois Department of Local Government Affairs.

Illinois Parks and Recreation 8 November/December, 1971