It appears Momahey‘s comments for caution regarding revenue receipts have some support, in a revised report released last week by the Illinois Municipal League.
In this report, Estimates for State Shared Municipal Revenue Fiscal Year 2009 By Anne Masters, Chief Financial Officer IML; and Larry Frang, Executive Director IML, several key state shared tax revenues are looked at, with 2009 estimates given.
Each year the state shares with every municipality various tax receipts, based on our number of residents (per capita). This years 2008 receipts shows slowing tax receipts for some categories, and the authors indicate for 2009 the picture gets a bit more dismal.
– Motor Fuel Tax receipts are projected to decline 1.1% due to lower consumption as prices skyrocket.
– State Sales Tax for in state purchases is projected to rise within the villages projections, around 2.7%. This is one category that will fund our stormwater projects.
– State Use Tax receipts will be flat. The Use Tax is assessed against all persons who store, use, or otherwise consume tangible personal property in Illinois that was purchased out of state.
– The Corporate Personal Property Replacement Tax is projected to drop like a stone. Most of this tax comes from the Corporate Income Tax. Legal eagles at companies work out ways for taxable corporate incomes to drop to zero, or very close, in the first year of a recession. Although caused by housing, we’re in a recession nonetheless.
To the best of my knowledge, Momahey is not a public figure, and any comments should not be directed towards him. Thanks.