The implications of HB0991 are notable as it effectively enhances the financial capabilities of non-home rule municipalities. It allows these municipalities to fund vital public safety equipment and other infrastructure projects more adequately by increasing their taxation options. By broadening the definition of 'public infrastructure' to include public safety equipment, the bill acknowledges the crucial needs of municipalities, helping them sustain and improve community services. This legislative move is expected to generate additional revenue for local governments, empowering them to invest in local projects that could yield long-term benefits for public safety and infrastructure.
House Bill 0991 is a legislative measure introduced by Representative Anthony DeLuca that amends various sections of the Illinois Municipal Code. The bill primarily focuses on the taxation powers of non-home rule municipalities by providing them the authority to impose a tax under specific conditions. One of the significant changes is the increase in the maximum allowable tax rate under the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act from 1% to 2%. Furthermore, it states that the tax imposed on municipal operations may not surpass 1% of the applicable transactions, ensuring that municipalities have a cap on their operational tax revenue.
While there is support for HB0991 among local officials who view the increased tax authority as a necessary tool for governance, there may also be contention among constituents wary of potential increases in local taxation. Opponents might argue that allowing municipalities to impose higher taxes could lead to financial burdens on residents, particularly in economically sensitive areas. The measure requires public approval via referenda for implementation, ensuring that any tax increase receives community backing; however, the fear of rising taxes could result in pushback from various community groups or residents focused on fiscal conservatism. Ultimately, HB0991 presents a delicate balance between empowering local governance and addressing the concerns of taxpayers.