PRESIDENTS MESSAGE

CONTINUING APPROPRIATIONS NEEDED NOW FOR NEW ILLINOIS SALES TAX

The Illinois Municipal League, along with all local elected city, village and county officials must press the Illinois Legislature to correct the new Sales Tax Reform Law H.B. 1859, P.A. 85-1135 and provide for continuing (automatic) appropriations. The new law makes local sales tax revenues subject to annual appropriations of the Illinois General Assembly. Local sales tax revenues are currently made by continuing (automatic) appropriations, the new sales tax will be effective January 1, 1990.

Delaying action to correct the new sales tax law, the Illinois Legislature will cause municipal officials many headaches. The sales tax revenue is often a municipality's largest source of revenue. If the change passed last year goes into effect as scheduled, local government's share will be subject to the year to year appropriation by the Legislature. Future Illinois Legislatures could use this annual appropriation to reduce local government revenues in times when state fiscal emergencies occur.

The Illinois Municipal League will be introducing legislation to correct the problems in the spring session. Therefore, I am urging all municipal officials to contact their State Representative or Senator to get this matter resolved immediately. •

February 1989 / Illinois Municipal Review / Page 5