'Administrative fee' is poor tax policy

I write about the story, "Why state's fee on local sales taxes is generating more money than it expected" on March 28. This siphoning by state government of sales tax revenue from local governments across Illinois is poor tax policy because it puts pressure to raise property taxes and triggered a requirement to raise mass transit fares.

In a time where local municipalities are facing fiscal challenges and uncertainties, this "administrative fee" is only intensifying the pressure on local budgets. As the Daily Herald reported, local governments in the Chicago metropolitan area are being hit hardest, since 75 percent of the revenue collected by Springfield from these administrative fees are generated in our six-county Northeastern Illinois region.

This includes an estimated $25 million hit to the sales tax revenue of the Regional Transportation Authority (RTA), money that is supposed to be used to move 2 million workday riders - one-sixth of Illinois' population. Last year, the 2 percent fee was the major contributor in the need for fare increases.

The Illinois Municipal League has called for a reduction of the 2 percent administrative fee, and there's currently a proposed bill in Springfield that would restore half of the revenue taken from local governments. I encourage the General Assembly to pass this legislation and help to restore fiscal stability to our municipalities across the state to avoid further pressure to raise property taxes or transit fares!

Kirk Dillard, Chair

Regional Transportation Authority