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County Board overrides Stroger, halves sales-tax hikeTuesday, December 01, 2009 Crain's Chicago Business by Greg Hinz Capping a campaign that lasted half a year and required a special
change in state law, the Cook County Board has taken final action to
repeal half of the penny-on-the-dollar sales tax pushed through last
year by board President Todd Stroger.
The action came early
Tuesday afternoon, when the bitterly split board voted 12-5 to override
Mr. Stroger's veto of the half-penny cut. As a result, the county's
portion of the sales tax will drop from 1.75% to 1.25%, with the
combined rate for all governments to drop to 9.75% within most of
Chicago.
Mr. Stroger repeatedly blocked earlier steps by the
board to repeal all or a portion of the tax hike, relying on a
century-old state law that required an extraordinary fourth-fifths vote
of the board for an override.
But Mr. Stroger's foes recently
convinced the Legislature to lower the override requirement to the
60% level more that's more common in government. That means they needed
only 11 votes to override this time -- not the prior 14 votes -- and on
Tuesday repeal advocates had one to spare.
The repeal came
over the intense opposition of Mr. Stroger, who has hinted at a legal
challenge to the repeal and predicted it would cripple the county's
ability to treat the poor at its network of hospitals and health
clinics.
But other commissioners were equally vehement in
asserting that the budget can be balanced by reasonable spending cuts
-- and in arguing that the sales tax hike has put county stores and
shops at a major competitive disadvantage to those located in nearby
areas outside of Cook County.
Pending any legal challenge,
the reduced tax will go into effect on July 1 -- the soonest that the
Illinois Department of Revenue, which actually collects the tax, can
update its computers.
Though a majority of the board
apparently wanted to repeal the entire penny-on-the-dollar increase,
Mr. Stroger retained enough backing to sustain a veto of that move.
Voting for the override were Commissioners Forrest Claypool, Earlean
Collins, John Daley, Bridget Gainer, Elizabeth Gorman, Gregg Goslin,
Tony Peraica, Edwin Reyes, Timothy Schneider, Peter Silvestri, Robert
Steele and Lawrence Suffredin.
Voting to sustain Mr.
Stroger's veto were Commissioners William Beavers, Jerry Butler, Joseph
Moreno, John Murphy and Deborah Sims.
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