Also approved by the
Committee was an
Intergovernmental Agreement between Cook County and the Pension
Fund (which has already been approved). This
Agreement provides that $270,526.000 of the sales tax revenue will be
contributed by the County to the Pension Fund in November, 2016. This
approval came after consideration of an alternative “Memorandum of
Understanding” supported by Commissioners Gainer, Fritchey, Suffredin, and
Murphy which would have provided for a continuing obligation beyond 2016, though
this agreement, like the one approved, did have a termination
provision. The Administration stated that it is expected that
similar Intergovernmental Agreements will be presented as part of each future
budget if the Administration’s Pension Reform Bill before the Illinois
legislature is not enacted.
Hotel
Tax (Item 15-6468). As
passed, effective May 1, 2016, will add a new County tax of 1% on the gross
rental/room rate of all hotels, motels, and vacation stays in homes, the latter
added by an amendment in order to make sure this covers Airbnb-type
arrangements. This will increase the total tax in Chicago to 17.4%, the
4th highest in the
country.
A number of speakers
during the Public Comment portion who represent the hotel and tourist and
convention industry opposed the taxes, expressing concern that it will result in
conventions looking elsewhere where the costs are lower. The
representative from Choose Chicago, the official tourist marketing agency for
Chicago, said that while there was no lost business when Chicago raised the
hotel tax several years ago, that was done in connection with cost-cutting
reforms at McCormick Place and the creation and funding of Choose Chicago, which
currently has lost its state funding. Other
speakers, including representatives from some of the County’s employee unions,
supported this and the other taxes so that the County would not have to lay off
workers and reduce services. Commissioner Suffredin also expressed
concern that this tax was being imposed without proper planning; he questioned
whether the estimated revenues from this tax were too low.
Voting to
approve: Arroyo, Boykin, Butler, Garcia, Goslin,
Moore, Murphy, Sims, Tobolski, Daley
Voting
against: Fritchey, Gainer, Morrison, Schneider,
Silvestri, Suffredin
Absent:
Steele
Vapor Fluid Tax
(E-Cigarettes) (Item 15-6025). As
passed, effective May 1, 2016, will add a new tax of $0.20 per fluid milliliter
of nicotine liquid solution depleted as a vapor product.
During Public
Comments, speakers for and against spoke on this issue. Speakers for cited health issues. Speakers against (those in the business of selling vapor products) said
that they would move out of Cook County and the County would lose the sales
taxes, as well as not see the revenues from this new tax.
Voting to
approve:
Arroyo, Boykin, Butler, Gainer, Goslin, Moore,
Murphy, Silvestri, Sims, Suffredin, Tobolski, Daley
Voting
against:
Morrison, Schneider
Voting
present:
Fritchey
Absent:
Garcia, Steele
Tax on
Ammunition (Item 15-6469). As
passed, will impose new tax effective June 1, 2016 of $0.05 per cartridge for
centerfire ammunition and $0.01 per cartridge for rimfire ammunition, with all
proceeds to go to public safety operations.
Speakers were for
and against during the Public Comment period. Commissioners voting against this were concerned that this would again
drive out businesses, thereby losing sales taxes and jobs, but would not produce
sufficient revenues to combat the problem of gun violence. Also,
the tax on guns enacted by the County several years ago has been tied up in
litigation, and there was concern that this tax will be contested in
court.
Voting to
approve:
Arroyo, Boykin, Butler, Garcia, Moore, Murphy, Sims,
Suffredin, Daley
Voting
against:
Fritchey, Goslin, Morrison, Schneider, Silvestri,
Tobolski
Absent:
Gainer, Steele
Amusement Tax
(Item 15-6024): The
Administration had withdrawn its proposal to tax cable television, as well as
bowling and golf and other similar amusements, but this item is intended to make
the County’s ordinance consistent with Chicago’s, and it also imposes the tax on
ticket sellers and resellers who have a physical presence in the
County.
During the Public
Comment period, it was clarified that State law preempts the County from
imposing the tax on internet auction listing services, such as E-bay, Stub Hub,
etc.
The representative for the Central States Ticket
Brokers Association said that it does not impose the tax per se, but wants it to
be applied to all, but, as Commissioner Suffredin said, that would take a change
to State law.
Voting to
approve:
Arroyo, Boykin, Butler, Gainer, Moore, Murphy,
Silvestri, Sims, Suffredin, Tobolski, Daley
Voting
against:
Fritchey, Goslin, Morrison,
Schneider
Absent:
Garcia, Steele
Clerk of the Court
Automation Fee (Item 15-5775): Effective December 1, 2015, the court automation fee will increase from
$15.00 to $25.00 and be imposed on each party in all civil cases and by the
defendant in other cases.
A representative of
the Illinois Association of Defense Trial Counsel spoke against this and the
next fee.
Voting to
approve:
Arroyo, Butler, Gainer, Moore, Morrison, Murphy,
Sims, Silvestri, Tobolski
Voting
against:
Boykin, Goslin, Schneider,
Daley
Voting
present:
Fritchey, Suffredin
Absent:
Garcia, Steele
Clerk of the Court Document
Storage Fee (Item 15-5780): Effective December 1, 2015, the court document storage fee will increase
from $15.00 to $25.00 and be imposed on each party in all civil cases and by
defendants in other cases.
Voting to
approve: Arroyo, Butler, Gainer, Moore,
Morrison, Murphy, Silvestri, Sims, Tobolski
Voting
against:
Boykin, Fritchey, Goslin, Schneider,
Daley
Voting
present:
Suffredin
Absent: Garcia,
Steele
-- Priscilla Mims,
League Observer
