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The original item was published from 11/4/2015 2:02:12 PM to 11/19/2015 12:00:02 AM.

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Posted on: October 30, 2015

[ARCHIVED] Village Seeks Feedback on Proposed Gas Tax

As a home rule community, the Village has the authority to impose a local vehicle tax with the passing of an ordinance.

Local vehicle tax is considered an excise tax because it is imposed on the delivery of fuel into gas stations and calculated on a fixed rate per gallon. This would not be considered an additional sales tax, which is imposed on the sale to the end user calculated as a percent of the selling price.

The Village currently has seven operating filling stations within the Village incorporated boundaries. Preliminary projections for total gallons delivered into the seven filling stations during a twelve month period are between 30 million gallons and 31 million gallons. Based on the preliminary projection, the Village would realize approximately $900,000 annually.

As a Village located adjacent to a County border line, the sale of fuel within the Village is quite high. Many of the filling stations customers are passing through and purchasing gas at cheaper prices than in Cook County. Consequently, a portion of the fuel tax, designated for Village Recreation and Park Fund activities, would be paid by non-residents.

The Mayor & Board are requesting that you send your feedback on this issue to village@homerglen.org

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