TAX EXTENSION AND COLLECTION FEES

The 1870 Constitution of Illinois allowed counties a fee on the extension and collection of local taxes and applied to all taxing districts including park, forest preserves and conservation districts.

This, of course, provided a great deal of revenue to county government. But with the adoption of our new State Constitution of 1970, this fee program for counties was abolished.

Article 7, Paragraph 9-a, of the new State Constitution reads as follows: "Compensation of officers and employees and the office expenses of units of local government shall not be paid from fees collected. Fees may be collected as provided by law and by ordinance and shall be deposited upon receipt with the treasurer of the unit. Fees shall not be based upon funds disbursed or collected, nor upon the levy or extension of taxes."

The General Assembly tried to work out some type of legislation which would have replaced the fee schedule, but the bill did not pass, however, House Bill 1290 is still pending.

It is doubtful that this bill will be scheduled for action when the General Assembly returns on November 26, 1972.

Several inquiries have been received in the IAPD office bringing to our attention the action of some counties where a separate tax ordinance has been enacted to replace the former revenue they received for extended, collecting and disbursed property tax revenue. Some local taxing units, including school districts, have filed legal action against the counties that have enacted such ordinances on the basis that it is presently unconstitutional.

William J. Scott, Illinois Attorney General, recently ruled that the passage of such a separate tax ordinance in conjunction with extension and collection of property tax revenue could be unconstitutional. Attorney General Scott advised that this could only be done as provided by law and as of this date no such legislation has been enacted.

Certainly one of the local cases filed will be brought to the Illinois Supreme Court for a final decision and until a ruling is handed down, local government units should seek the advice of legal counsel or contact the General Counsel of the Association, Robert A. Stuart for advice and assistance.

Illinois Parks and Recreation 11 November/December, 1972.