ACTION REQUESTED:
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Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE to be Filed With the Illinois Department of Revenue to Increase the City's Home Rule RETAILER'S OCCUPATION TAX and the SERVICE OCCUPATION TAX from 1.50% to 1.75% EFFECTIVE JULY 1, 2016.
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BACKGROUND: An increase in the Home Rule Sales Tax of 0.25% was included in the 2016/2017 Biennial Budget adopted December 8, 2015. On December 8, 2016, the Council adopted an ordinance amending Chapter 27 of the Code of the City of Peoria to increase the Home Rule Sales tax from 1.50% to 1.75%. The attached ordinance, in the format suggested by the Illinois Department of Revenue, will be filed with the Illinois Department of Revenue and they will collect our Home Rule Sales Tax at the new rate of 1.75% effective July 1, 2016.
FINANCIAL IMPACT: The 0.25% increase in Home Rule Sales Tax will provide additional revenue of approximately $1.9 million in 2016 and approximately $3.8 million in 2017.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: The Ordinance will be filed with the Illinois Department of Revenue and the 0.25% increase in Home Rule Sales Tax will go into effect July 1, 2016.
IMPACT IF DENIED: The Ordinance will not be filed with the Illinois Department of Revenue, The increase in the City's Home Rule Sales Tax will not go into effect July 1, 2016 .
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Invest in our infrastructure and transportation.
3. Reinvest in neighborhoods.
DEPARTMENT: Finance
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