| |
Local Government Q&A Ancel Glink attorneys each month post a new question and answer on the website. Many of these questions have been edited and collected in a pamphlet in the Ancel Glink Library: 230 Questions that have Actual Answers. Set out below are a series of recent questions and answers. Test your knowledge of questions and answers about local governmental bodies with those listed below. Many of these questions are directed to municipalities, but others specifically deal with municipalities with some questions concern legal issues in the context of other governmental bodies. Many of these answers apply to all governments in Illinois.Click here to submit a question to Ancel Glink.
Municipal Q&A - February 2007
What Can a Municipality Do About the Proliferation of Non-Tax Generating Banks in Prime Retail Areas?
Answer: For economic reasons, banks like to establish branches in prime commercial areas of municipalities. Of course, banks do not generate sales tax, so a large number of branch banks in prime retail areas are not always a benefit to the community. Some municipalities have used zoning laws to impose a moratorium on establishment of new banks in certain areas. But this is only a temporary solution. The real answer is to find a way to make banks generate revenue for the municipality.
The Illinois Municipal Code, 65 ILCS 5/11-42-1, authorizes all municipalities to license, tax and regulate bankers-not banks, but bankers. Regulation of banks is a matter of state or federal law, and municipalities cannot get involved in that area. There are undoubtedly limits on how far a municipality could go in regulating bankers, as well. But a tax does not necessarily have to involve regulation. So a municipal tax on bankers, without licensing or other regulations, and not unreasonable in amount, would seem to be within the scope of the Municipal Code. So far as we know, no municipality in Illinois has exercised this power, and we have found no cases from any jurisdiction dealing with this precise question. The same section of the Municipal Code also authorizes municipalities to tax real estate brokers and an ordinance imposing a reasonable tax was held to be valid by the Illinois Supreme Court in 1970. (However, a section of the ordinance limiting the number of broker licenses was held invalid.) Kipperman v. City of Markham, 47 Ill.2d 285.
On the other hand, the Illinois Constitution, Article 7, Section 6(e)(2), provides that a home rule unit (and therefore, a non-home rule unit as well) does not have the authority to imposes taxes upon or measured by income or earnings. (The Constitution also prohibits municipal taxes upon occupations unless expressly authorized by State law. Section 11-42-1 is express authority for a tax on bankers.) So a municipal tax on bankers could not be based on the income or earnings of the banker. There are, however, other factors on which a banker tax could be based. For example, a banker tax might be based on the square footage of all the bank's branches in the community, or the number of employees of that bank working in the community. Or the tax could be a flat dollar amount.
The question of who is a "banker," subject to a municipal banker tax, will have to be answered clearly. Officers and directors of banks and local branch managers are certainly bankers. Tellers and clerks may not be. While a municipality has no power to tax outside its boundaries, officers and directors of a bank doing business in the municipality might be subject to the tax, even if they themselves do not reside or have their primary office within the community.
A municipal tax on bankers will not produce the same revenue as a prime retail store at the same location, but it will produce at least some revenue for the municipality.
Previous Questions
When do elected officials take office following the April, 2007, elections?
What must a municipality do to allow "electronic participation" in public meetings?
Can a municipality restrict political campaign signs on private property?
Must a municipality prohibit religious groups from using public facilities for meetings and announcements even though non-religious groups are permitted to do so?
May a local government body utilize video surveillance equipment to monitor the activities of its residents without first obtaining a warrant or providing notice to residents with a posted sign?
What are municipalities required to do to restructure firefighter pension boards in April 2006?
Does an arrest or conviction record bar hiring as a police officer or firefighter?
Are Local Governments Eligible
For Grants From Private Foundations?
What Does the New Bankruptcy Law Mean for Municipalities?
Can an Illinois governmental body either by ordinance or referendum provide for the recall of its elected officials?
Is it important for governmental bodies to obtain completion and payment bonds for public works projects?
Can a local government ban convicted sex offenders from use of public parks?
Business Development District Sales Tax:
A New Revenue Source for Municipalities
May a local government require a developer to pay the cost of review of development plans?
May a governmental body give money to a charitable or religious organization?
What is the new Illinois law regarding terms of office of elected public officials?
Are religious institutions entitled to special treatment in zoning cases?
What Must Municipal Officials Do To Comply With The New Federal and State Overtime Regulations?
What Must Municipal Officials Do To Comply With The New State Ethics Acts?
Can a special use or variance be granted only to a particular person for for a limited time?
Does charging a fee for private use of public property destroy its tax-exempt status?
Does the one-year tort statute of limitations always apply against governmental bodies?
Do fire protection district codes supercede municipal codes?
Are Courts Especially Hard On Governmental Bodies?
What Are the New Rules About Recording Closed Meetings?
What Does a Municipality Need to Know About Extending
Utility Lines?
Are Courts Especially Hard On Governmental Bodies?
How Can You Achieve Flexibilty in
Health Care Coverages in a Collective Bargaining Agreement?
Are political discussions subject to the Open Meetings Act?
What can be done about IMRF Overfunding?
How can a municipality regulate wireless internet service providers?
How can governments counter unionization?
Where can I find an outline of zoning and planning issues?
How are closed session Minutes taken, approved and reviewed?
Will insurance companies and governmental pools cover claims
for "regulatory takings?"
Who gets to choose the municipal attorney?
How are the Open Meetings Act and FOIA impacted by municipal
elections?
| |
