What They Suy . . .

Reverse Twist—Contrary to expectations of a hard bitten opposition, Illinois cities adopting a municipal sales tax are spending new cash "wisely" to improve working conditions of public employes and strengthen long neglected services.

That is the studied opinion of A. L. "Lon" Sargent, executive secretary of the Illinois Municipal league.

Sargent says 666 big and little communities, including Chicago, that have put the one-half cent levy on the books are not abusing an estimated $42,000,000 windfall.

"They are not going hog wild," he says.

And he adds:

"Opponents of permissive legislation which gave cities the right to impose the tax by ordinance and thus bypass a public referendum at the polls, are pretty well convinced every municipality adopting it is following a pennywise and sensible program. "For the first time in years they can pull themselves out of a deep quagmire of debt and I think the average taxpayer senses the difference one way or the other on the local scene.

"The effects are visible in many forms, such as improved worker morale, new fire and police equipment, street lighting and scores of other added facilities and services."

Booming Total—He predicts at least 800 cities and incorporated areas will be on the tax bandwagon by the end of the present year. Actually, Sargent's estimate is well ahead of the official total reported by State Revenue Director Richard J. Lyons, who indicated 494 communities received $3,143,824 in sales tax revenue in November.

He believes four out of every five Illinois residents are now paying local sales taxes. This estimate might be on the conservative side since most rural residents trade regularly in community markets closest to their farm homes. A basic argument against the tax which was hammered hard by opponents in the recent legislative session, particularly by highly disturbed retailers, dealt with the point that customers would be inclined to favor suburban stores right across the street from establishments bisected by local boundaries.

But such situations failed to materialize.

Wholesale Adoptions—So many suburban communities have gotten into the act that there are few merging or "bounded areas."

Consequently, tax conscious buyers soon discovered the tax covered a lot of territory.

The list of communities now on the rolls is impressive.

It includes not only most big cities but also tiny incorporated areas that stand to net annual yields of less than $1000 from two or three little stores.

But such revenue, Sargent and league officials point out, will be used to make improvements vitally important to residents of fast growing neighborhoods and residential "developments."

Utility Tax Picture—At the same time they are "convinced" only a few cities will take advantage of another newly enacted law giving them power to tax utility users up to 5 per cent of their gross monthly bills.

Thus far, Chicago and four downstate communities have adopted such referendum free ordinances.

And only Chicago and Zion are collecting new revenue from both sales and utility taxes.

Carmi, East Moline and Crossville are levying the utility tax but—and this is important—they have not imposed the city sales tax on their residents.

In Chicago the utility tax is expected to bring in an additional $9,800,000 in new municipal revenue.

Sargent says a statewide survey conducted by

(Continued on page 37)

* Illinois State Register, Springfield, Thursday, Jan. 5, 1956.

WHAT THEY SAY . . .
(Continued from page 25)

the league, an organization comprised of more than 800 municipalities, discloses opposition to local sales taxes has virtually vanished.

He explained:

"Early last year retailers and others in practically every large community, including Chicago, was predicting dire results such as a sharp decline in local sales, if the city tax proposal became a law.

"Strange as it seems, such organized opposition has faded altogether and editorial comment in leading newspapers reflects a complete about face.

The bulk of opinion really shows city officials everywhere are being complimented for improving working conditions of public employes and also strengthening weakened and long neglected services."