Westmont, Illinois – Date Issued: April 17, 2023
Tax season is a common subject of discussion at this time of year. As Tax Day approaches on April 18, the Village of Westmont is partnering with the DuPage Mayors & Managers Conference (DMMC) and communities across Illinois to urge state lawmakers to invest in communities by returning a greater portion of your State-collected tax dollars to local government.
Several decades ago, the State income tax was established and it was agreed that a portion of it should be returned to each community based on population. In the State budget, this funding is known as the Local Government Distributive Fund (LGDF). This is an important revenue source for local governments because it is stable and reliable year after year and communities can use it wherever it is most needed in their community.
Unfortunately, in 2011, the State decreased the portion of income taxes that is returned to our community from LGDF. Rather than receiving 10% of income taxes, Illinois lawmakers have allocated just over 6% to local governments in recent years.
It is estimated that Illinois municipalities and counties have lost out on more than $8 billion that could be used in lieu of property taxes or other revenues to fund our local government programs and services.
With the improvement of the State’s financial status, the DMMC urges the Illinois General Assembly to prioritize funding for local government projects by restoring LGDF.
As Illinois lawmakers prepare this year’s State Budget, the members of the DMMC and other local government leaders are urging the General Assembly to invest in communities and restore the Local Government Distributive Fund to 10%. Visit InvestInCommunities.org to learn more about this initiative.
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