The villages of Homewood and Flossmoor may see a return of state income tax payments to 10 percent, thanks to legislation sponsored by Rep. Anthony DeLuca, D-Chicago Heights.
The villages of Homewood and Flossmoor may see a return of state income tax payments to 10 percent, thanks to legislation sponsored by Rep. Anthony DeLuca, D-Chicago Heights.
The Illinois Legislature is set to act on House Bill 158, which would bring the level of Local Government Distributive Fund payments to municipalities back up to 10 percent. Payments were reduced in 2011 to 6 percent.
According to the Illinois Government Finance Officers Association, Illinois local governments share in the income tax revenue collected by the state. The Local Government Distributive Fund (LGDF) is where the local government portion of the income tax collections are deposited and then disbursed.
DeLuca said restoring the amount of funding “will make it easier for communities to fund the necessary services and amenities for residents.”
The bill is co-sponsored by Rep. Debbie Meyers-Martin, D-Olympia Fields.
The bill passed out of the House Cities and Villages Committee with unanimous bipartisan support on Feb. 13.
“The result of this legislation will be that local governments will be less reliant on homeowners to fund important services, like police and fire protection, street repairs and snow removal,” DeLuca said. “My hope is that this common sense measure helps local units of governments reduce everyone’s property tax bills in the future.”
The bill awaits a vote in the full House before it will be acted upon by the Illinois Senate.