Fiscal authority to determine revenue sources, set tax rates, borrow funds and other related financial activities. Chicago has been the first to institute several home rule taxes: a cigarette tax, an employers' expense tax ("head tax"), a parking tax, a transaction tax on real and personal property, and a wheel tax (also imposed by Cook County). Reed joins Chicago Tonight to further discuss home rule and what that could mean for Illinois communities. These include collection of garbage, return of rent deposit, prevention of fraud, licensing and regulation of cats, inspection of automobiles, and bingo. All municipalities have the authority to levy a variety of local taxes, including property taxes, and issue different types of bonds, depending on their home rule status. major reasons for the voters' rejection of home rule. Bruce Rauner unable to agree on an annual budget, local communities fear the loss of money traditionally distributed to them by the state. Then there are outside opponents both big and small. The courts, by their generally liberal series of decisions upholding local actions, have served to strengthen home rule. "Lockhart's remarks are both consistent with and serve to reinforce our respondents' assessment of campaign activities. Once an ordinance or resolution has been adopted, the municipality must file a certified copy of the ordinance with the Illinois Department of Revenue's (IDOR) Local Tax Allocation Division (LTAD). Home rule municipalities have departed from the act by omitting the statutory seven per cent interest rate limit on bonds and by financing projects unauthorized under the state law. Were not asking lawmakers to take a position. In Stickney where home rule was defeated on the first try, voters approved the measure several years later. Home rule has brought about a new, more open, relationship between state and local governments in Illinois. Amusement taxes are in effect in Cicero and Villa Park; Oak Park has instituted a utility tax separate from the utility tax permitted municipalities under state law, and Evanston and Stone Park have imposed gasoline taxes. Cities may adopt home rule once their population exceeds 5,000 and the voters adopt a city charter (the provisions of which cannot be inconsistent with either the. A movement is underway to have the Illinois legislature expand what's called "home rule authority, according to a new report from the Better Government Association. Home rule is just one tool in the package for municipalities.". [2] Each state defines for itself what powers it will grant to local governments. was widespread among potentially influential individuals and organized groups. April 7: State Republican leaders unveiled a $1.3 billion spending plan Thursday that they say will be a lifeline for social services and other programs that have struggled financially in the ongoing budget impasse. to be tailored to the demands May 1975, pp. This tax is now the subject of a suit filed recently in the Illinois Appellate Court, First District (Williams v. City of Chicago, Docket No. For taxes imposed effective July 1, the first disbursement will be made to the municipality during the following October. However, legislation has been enacted in recent years that also allows certain non-home rule municipalities to levy additional local taxes. All of these possible revenue losses are why its important for local governments to have more control over their finances, Cole said. The Municipal Motor Fuel Tax does not apply to wholesale sales of motor fuel for resale. All municipalities are either villages, cities or towns.[1]. List of unincorporated communities in Illinois, List of census-designated places in Illinois, "Domestic Names | U.S. Geological Survey", "Name Index to Illinois Local Governments", https://en.wikipedia.org/w/index.php?title=List_of_municipalities_in_Illinois&oldid=1161867803, Largest municipalities in Illinois by population, This page was last edited on 25 June 2023, at 14:22. Fearing a loss of crucial state funds, municipalities are pushing lawmakers to expand local taxing powers and fees. Other municipalities may elect by referendum to become home rule units. Click here to read the full issue brief. Few "model" ordinances have been developed. This document was developed to help community members understand Illinois Home Rule and how Illinois Home Rule can play a part in creating local alcohol ordinances that are enforceable and sustainable. According to the U.S. Census Bureaus 2017 Census of Governments, there are 1,297 municipalities in Illinois. All counties with a chief executive officer elected by the people and any municipality with a population of more than 25,000 residents are automatically home rule units of government. Most of these actions could probably not have been taken under existing state statutes. Also upheld by the Supreme Court was the referendum procedure used by Arlington Heights to gain voter approval to appoint rather than elect municipal clerks and to increase the number of members of municipal governing bodies. Home rule specifically granted in Article IX of Georgia Constitution. There are only 8 municipalities in Illinois that have more than 100,000 residents. In most of the 18 municipalities which voted to become home rule units there has been some special problem or set of problems which local officials felt could best be dealt with under home rule. An Inventory of Local Governments in Illinois, An Inventory of Local Governments in Illinois: Differences Among Reporting Agencies, An Inventory of Local Governments in Illinois: Counties, An Inventory of Local Governments in Illinois: Townships, The Multiplicity of Local Governments in Northeastern Illinois, School Districts and Property Taxes in Illinois. Most have earned that designation by exceeding the 25,000-population threshold. Stickney's racetrack admission tax and Rosemont's hotel-motel tax are two good examples. A number of home rule municipalities have passed ordinances creating new boards, commissions, and departments. A home-rule community, for example, is not bound by a state law that caps annual municipal property tax increases to 5 percent or the rate of inflation, whichever is lower. Cook County also acquired home rule status automatically because it had an elected chief executive officer. Dillon's Rule applies only to non-home rule municipalities. Municipalities with a population less than 25,000 residents can become home rule if approved by referendum. In regard to county home rule, the "Con Con" Local Government Committee was mindful of the traditional weakness of Illinois county government. In other states, only limited authority has been granted to local governments by passage of statutes in the state legislature. John D. and Catherine T. MacArthur Foundation. Home rule became effective on July 1, 1971. In March 1972 the counties of DeKalb, DuPage, Fulton, Kane, Lake. Has the state chosen to regulate in this area? A number of home rule municipalities have used the Industrial Project Revenue Bond Act (Ill. Rev. This is something that is going to require some heavy lifting. Home rule means home ruin, said Jim Tobin, president of the Taxpayers United of America, a Chicago-based tax watchdog. The Federations list included in the report is purposefully as inclusive as possible so as to provide a comprehensive view of the totality of local governments in Illinois. 1999). Liquor, business regulations Limited home rule granted to cities and towns in Article XII, Sections 220-28 of the Alabama constitution. However, the Illinois Municipal Code does distinguish rules of incorporation and governance for cities and villages. Until a home rule unit enacts an ordinance which differs from a state law or which deals with a subject not covered in the statutes, it has the same relation to the state as a non-home rule unit. For more information, see Sales & Use Taxes. One component of the enterprise zone program is the ability for the increase in assessed value related to improvements made to properties within the enterprise zone to be abated (reduced) by a certain amount. The following chart indicates which of the 50 U.S. states are home rule states and which states obey the legal principle of Dillon's Rule for determining local government authority. Local actions, The three previous articles in this series have described the innovative home rule provisions contained in Article VII, section 6, of the 1970 Illinois Constitution, the Illinois Supreme Court decisions affecting home rule, and the General Assembly actions. If you currently impose a motor fuel tax under your general home rule authority, the Municipal Motor Fuel Tax authorized to be imposed under the Municipal Motor Fuel Tax Law does not affect that tax. Excluding the City of Chicago and municipalities delinquent in filing their financial reports with the Illinois Comptroller, municipalities in Illinois collected $10.4 billion in revenue in FY2018. 101 W JEFFERSON. Whenever a community has home-rule powers, youll see new inspections and fees and transfer taxes. Article 8 - FINANCE. Stretching the point? There are 220 municipalities with a population between 1,000 and 2,499 residents. 235 ILCS 5/4-1 Jurisdiction over Retail Selling in City Councils, Boards of Trustees and County Boards Minors, 235 ILCS 5/6-18 Home Rule Units Powers. [3] A state in this chart with "Limited" home rule may grant home rule to particular cities and municipalities individually but has no constitutional amendment guaranteeing home rule. Dillon's Rule applies to municipalities not individually granted home rule. It may not happen right away, but it could happen over time.. Home rule status is not granted to every community in Illinois. These include the Government Master Address File (GMAF) from the U.S. Census Bureaus 2017 Census of Governments, the Illinois State Comptrollers registry of local governments, and information provided to the Civic Federation by the Illinois Department of Revenue. Brad Cole, executive director of the Illinois Municipal League, said the focus of the home-rule measure shouldnt entirely be on raising revenue. A series of preemptive bills passed by the 78th General Assembly which are intended to correct these technical flaws was discussed in the third of this series of articles (July 1975, pp. Sales and use tax Illinois implements occupation taxes on top of the state sales tax. Home rule specifically granted in Section 166.021(1) of Florida Statutes. Municipalities with populations over 25,000 are automatically granted 'Home Rule' status, while smaller communities can put the question on a ballot and let voters decide. The Illinois Constitution allows any home rule community to "exercise any power and perform any function pertaining to its government and affairs including, but not limited to, the power to regulate for the protection of the public health, safety, morals and welfare; to license; to tax; and to incur debt." 1 Because of the adoption of home rule,. The action was taken because the village wished to assume, by municipal ordinance, community development authority in order to apply for a grant under the federal Housing and Community Development Act of 1974. A variety of actions have been taken by home rule units since that time. Defeated in counties But all this financial uncertainty has made local communities edgy, prompting the Illinois Municipal league to float the home rule expansion measure this legislative session. Prevention First, Inc. All rights reserved. . Municipalities provide basic services such as police and fire, zoning and business regulation. The data included in this chart was obtained from the Illinois Comptrollers FY2018 Fiscal Responsibility Report Card. Article VII of the Illinois Constitution designates a home rule unit of government as any municipality with a population greater than 25,000 residents. Article VII of the Illinois Constitution designates a home rule unit of government as any municipality with a population greater than 25,000 residents. Voter approval is not required to implement this tax. In 1970, the Illinois constitution was adopted, which also created home rule for certain municipalities and counties. In addition, six of these municipalities (Addison, Alton, Danville, Decatur, Granite City, and Joliet) allow "any economic development project" which "will create or retain employment opportunities in [or near] the municipality." . Among the big: the Illinois Retail Merchants Association and the Illinois Association of Realtors. The General Assembly has, however, acted with restraint. There are currently 221 home rule municipalities in Illinois. School districts property tax extensions of $18.5 billion accounted for 58.3% of the total taxes levied. If imposed, the tax must be imposed municipality-wide and cannot be imposed in only a portion of the municipality. As expressed by Chicago attorneys Louis Ancel and Stewart Diamond: Discussing this point, the Local Government Committee of the Illinois Constitutional Convention stated in its report: Automatic by population State revenues contributed $3.2 billion or 30.8%. Please e-mail[emailprotected]with your query. Generally, trustee elections do not include primary elections, yet this can be altered by referendum as well. Of the 2,826 general purpose governments identified by the Civic Federation, which include counties, townships and municipalities, 1,298, or 45.9%, of those units are municipalities. According to Reed, out of 1,297 municipalities in Illinois, 211 currently operate under home rule,which was first introduced in Illinois in 1970 as an amendment to the state constitution. And why was the home rule question defeated so overwhelmingly in the nine counties where the proposition has been on the ballot? Impact of home rule Status gives power At least nine municipalities have enacted comprehensive provisions which cover all businesses not specifically listed in other ordinances. On the other extreme, there are 49 municipalities in Illinois that have fewer than 100 residents. The largest municipality by population is Chicago with 2,746,388 residents while the smallest by population is Valley City with 14 residents. Let the voters decide.. 11-74-Iff) in ways not conforming with state law. Counties need elected executive //