City Moves to Stop Utility Tax Loophole

Highland Park’s City Council has moved a step closer to ending a loophole that enables citizens who purchase natural gas from outside Illinois to avoid paying a utility tax.

The issue was tackled at its Committee of the Whole gathering Monday before the regularly scheduled council meeting. 

Closing the loophole is expected to bring an additional $360,000 into the city’s general fund. This will affect residential, commercial and industrial users, according to

The move has no effect on people already paying the tax through their utility bill, she said.

Members of the council unanimously directed the city staff to prepare an ordinance that would require all natural gas users to pay a required 5 percent tax to Highland Park regardless of the purchase's origin. 

Up to now, only those people getting their gas directly from Northern Illinois Gas or within Illinois were liable for the tax. The new law would require those purchasing gas from an out-of-state source and then having it delivered by Northern Illinois Gas to pay the tax as well.

“This is much fairer,” said. “We need to tax everyone equally. This [importing out-of-state gas] is tax avoidance.” 

Councilwomen and , who are running in the April 5 election to replace Belsky as mayor, took the same position on the issue. Belsky is not seeking  

“We need to equalize our approach to tax those who so far have avoided tax through purchases from out-of-state sources,” Rotering said. 

Olian also wants to see a more egalitarian approach to taxing the use of natural gas in Highland Park. 

“It [the tax] will apply equally to all Highland Park customers,” Olian said. “This is a reasonable conclusion to reach.” 

Electricity tax debated

Rotering and Olian are currently taking different approaches to the application of a utility tax on electricity. The revised electricity levy could provide the city an additional $126,000 in revenue, according to Holleb. 

Holleb explained new regulations by state regulators allow home rule cities like Highland Park to restructure the 5 percent tax it receives from electrical use. The change would affect the average residential user $9 a year, she said. 

Rotering, along with Councilmen Scott Levenfeld and Steve Mandel, oppose any kind of legislation that imposes an additional tax burden on citizens. 

“I’m not in agreement with any increase in electrical use taxes,” Rotering said. 

Olian agreed with the mayor and two of her colleagues—Councilmen Jim Kirsch and Larry Silberman—to have staff gather more information on the electric utility tax. None of them said they favor a tax increase. They want to know the breakdown between commercial and residential effects before making a decision. 

“I won’t make a decision without all the information,” Olian said. “We aren’t ready to go forward without all the facts at this time.”

Complete Streets initiative

Prior to the regularly scheduled City Council meeting, Public Works Director Mary Anderson gave council members and the public a closer look at the implementation of Highland Park’s Complete Streets initiative. 

“This [Complete Streets] is how pedestrians, bicycles and cars can safely share the same space,” Transportation Commission Vice Chairman said. 

Rheinstrom described a vision where streets would have lanes for automobiles and bicycles. Pedestrians would also feel safe. He sees benefits for the environment as well as public safety.

But Rheinstrom concedes the plan will take time.

“Not everyone understands this now,” he said. “It will take some education.” 

Anderson outlined a project where streets that fitted into the plan would be identified. She expressed a goal of incorporating roadways into the program in the 2012 budget year.

Artists, robots and library employees honored

At the City Council meeting, Belsky issued proclamations honoring Highland Park Public Library Marketing Specialist , the Highland Park High School robotics team and local artist Dr. Sam Shee. 

Keller has been instrumental implementing and promoting the city’s One Book One Highland Park program. Each year the library selects a book to be read and discussed by anyone in town who wants to participate. 

“This is an incredibly important program,” Belsky said. “We’re a better community knowing more about the world. We bring everyone together reading one book.”

This year’s selection is “Fahrenheit 451.” 

The Robotics team has won state championships in Illinois and Wisconsin. It will compete for national honors April 27-30 in St. Louis. 

Shee is a pathologist who learned to paint later in life. His work is displayed throughout the world and will be featured at a show March 4-11 at The Art Center.