Proposed new Du Quoin business district promises help & higher sales tax
The Du Quoin City Council Monday continued to work toward the establishment of a special taxing district for the purpose of business redevelopment that would begin at East Franklin Street and run south to the intersection of Rt. 14 and 51.
The concept is that a sales tax hike in increments of .25 cents (a quarter of a penny) would be added to the current sales tax rate of 8.25 cents.
Consultants Gene Norber and Julian Jacquin explained Monday the Du Quoin district would take in over 400 acres and 211 parcels of property, many of them containing businesses, including Walmart, the Southtowne Shopping Center and others.
Only work on the plan--not the district itself--was approved.
An Illinois Business District is a legally defined contiguous area of a municipality that has certain powers and authorities different from other parts of the municipality. A municipality can elect by ordinance--without voter approval--to impose increased sales or hotel taxes in 0.25 percent increments up to 1.0 percent within the district. Sales and hotel taxes can be used within the district for any costs allowable under the Business District Act.
A Business District remains in place for 23 years following designation. During that time, all retail sales taxes are collected by the Illinois Department of Revenue and paid to the State Treasurer, who disperses a check to the Du Quoin. In a Business District, hotel taxes must be collected directly by the municipality. Any revenues generated within the district are placed in the Business District Tax Allocation Fund.
A home rule or non-home rule municipality can designate an area as a Business District if it meets at least one, or any combination, of the following factors:
•Predominance of defective, non-existent or inadequate street layout; unsanitary or unsafe conditions; deterioration of site improvements; improper subdivision or obsolete platting; and/or existence of conditions that endanger life or property by fire or other causes.
Generally, the guideline is that the the Business District on the whole has "not been subject to growth and development through investment by private enterprises" or would not reasonably be anticipated to be developed or redeveloped without the adoption of the Business District Development or Redevelopment Plan. Consultants with a vested interest in continuing their work judged the area "blighted" even throwing in the piles of dirt from the recent water line replacement for good measure.
Public hearings would have to be held before the council can go forward with the plan, but the council is trying to win approval before the fourth quarter of this year. In other action: The council approved Shannon Harris to the Park Board and postponed until later a presentation on the Pinckneyville-Du Quoin Airport. The town was reminded of tonight's concert in the park and the August 10 "Family Night Out in the Park."