Effingham, Ill – Todd Hull & co. will present on the proposed South Banker Business District and associated 1% sales tax that businesses within the district will pay, along with the benefits of those tax revenues for those businesses.
Our group met recently to discuss concerns and develop a list of questions/concerns for the City reps:
• Can it fund the Interstate Interchange in under 15 years?
• Are Situational Exemptions a possibility for businesses like Bahrns: High-dollar items taxed at 1% will seriously impact businesses with local competition. If someone goes out of town for a Kubota, Effingham gets 0 tax revenue. This could drive implement business to T-town. This could make moving outside of town very attractive to high-dollar item businesses. Similar story with smaller businesses—cigarettes, booze, etc.
• Huge impact to this side of town when tax is higher here than elsewhere
• Adding a 1% tax could potentially make this side of town even more unsavory to new businesses
• Is there a specific purpose for each dollar, or is it under the discretion of someone with the City
• Does any of the tax money get filtered through Springfield? Are we getting the full benefit of the tax?
• What could be done to prevent this? Anything?
• Why create such a small area with a 1% tax? What about a larger area with a smaller tax? Why is the map drawn like it is?
• How do the other Business Districts work? Is one of them voluntary?
• What about a city-wide map?
• Businesses that generate the most revenue are the least likely to need the infrastructure assistance—they’re going to fund the improvements for those who generate less revenue.
• How do we know that the funds will be used in an efficient manner that meets our needs and provides benefit to our businesses? How would City personnel “bill” the fund for infrastructure work?
• We feel that the 1% tax is the opposite of what should be happening—something with little benefit to most businesses in question, rather than something to attract new business to the South side of town.