Schaumburg Business Association comes out against property tax plan

The Schaumburg Business Association understands the village's budget predicament, which is leading to the enactment of it's first-ever property tax. But the group also wants Schaumburg officials to understand the potential crippling effect to its members.

"Every business located in the village will bear some of the cost, whether they are a property owner or if they lease the property and the cost is passed through to them," said SBA President Laurie Stone.

The SBA on Friday announced it opposed the proposed property tax, which at this point appears to be a fait accompli. After plans for the tax were announced, the group created a task force to review the issue, taking an official position only after the task force scrutinized the matter.

Stone pointed to the village freezing salaries for nonunion workers and cutting staff as signs that the property tax was a last resort to eliminate a $17.6 million deficit in Schaumburg's general fund.

"The facts speak for themselves," Stone said.

SBA members met with Schaumburg Mayor Al Larsen and Village Manager Ken Fritz earlier this week to share their views on the proposed property tax levy, coming after one of the worst years for businesses in the village's history. A public hearing is scheduled for Tuesday and the village board could adopt the tax on Dec. 22.

Village officials said the property tax would bring in $23.7 million in 2010, producing 25 percent of the general fund's revenues. A resident owning a home worth $250,000 would pay about $252 per year. The village portion of the property tax bill will be 8 percent, officials estimate.

Declining sales-tax receipts and rising payments to the village's pension funds have been responsible for the deficit, village officials have said.

Fritz said the conversation was productive, but blames Cook County for putting businesses at a disadvantage. Fritz said more than 60 percent of Schaumburg's property tax base comes from businesses. Businesses in Cook County are assessed at a higher percentage of their value than homes are, where in other counties the percentages are the same, shifting costs to business.

"We appreciate the support of the business community, and the village knows these are difficult times for everybody," he said. "We believe it's important to continue to provide the services everyone relies on," he added.

While the village is offering relief for residents by eliminating fees for garbage pickup and the $20 vehicle sticker charge, Stone points out that those actions won't help businesses, which contract for garbage pickup from private companies.

Stone wants the village to give businesses a break. She wasn't specific but said reducing red tape when it comes to compliance and regulatory issues were ways the village could help. She said the group and the village agreed to work more closely together on such issues.