Tax cut for Arlington Heights residents and businesses

The Village of Arlington Heights relies heavily on real estate tax to collect operating revenues. Although, 10% of your total tax bill goes to the Village, 27% of the Village budget relies on that 10% amount. The proportion of 10% to 27% is over leveraged, a problem that many financial institutions are also experiencing today.

In 2001, 22% of the Village budget was funded by real estate tax and 22% was funded by sales tax revenue. By 2008, 27% of the Village budget is funded by real estate tax and 18% is funded by sales tax revenue. It is clear that as reliance on real estate tax increases, sales tax revenue will decline. This is a vicious spiral downward that must be reversed in order to attract business and reduce the stress on homeowners.

A tax cut is absolutely necessary to reverse the downtrend in sales tax revenue. The village has collected a surplus during better economic times, that could be partially used to subsidize a tax cut to residents and businesses. Other sources of the tax cut could come from spending cuts, actual budget surpluses that may occur and stimulus funds that may become available.

Thank you and your comments are welcome.