EVANSTON CHAMBER EVENTS FOR FEBRUARY

 

A).  HOME-BASED BUSINESS NETWORK– February 11

B.   EVANSTON RESTAURANT COMMITTEE – February 17

C).  February Business After Hours-- February 18

D).  LEGISLATIVE ALERT:  Proposed Increase in Natural Gas Tax!   Please Read Below!

 

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A).  HOME-BASED BUSINESS NETWORK

Wednesday,  February 11

12:00 Noon

at The Chamber's Offices

in One Rotary Center

 

Learn the latest in health insurance and HSAs for the self-employed.  The Home - Based Business Network will present the facts of newly legislated Health Savings  Accounts (HSA’s) and Health Insurance options and costs for the self - employed.  As of 01/01/2004, the IRS has made it possible for the self-employed to deduct 100% of their out of pocket medical expenses, including co-pays and insurance deductible up to $5,000.  Find out what type of health insurance qualifies for this benefit.  Join us as Daniel Mennemeyer of the Daniel Mennemeyer Agency educates you on this important topic.  Bring your lunch and your insurance  policy:  Dan will stay after the meeting and can provide on the spot quotes from a few carriers.

 

As always, bring your lunch and we supply the drinks

 

 

B).  EVANSTON RESTAURANT COMMITTEE

Sponsored by The Evanston Chamber and Illinois Restaurant Association

Tuesday, February 17

10:00 – 11:30 a.m. at

Prairie Moon, 1502 Sherman Avenue

 

Discussion Topic:  Proposed Anti-Smoking Ordinance and March 1 Hearing.

 

 

C).  February Business After Hours

Wednesday, February 18

5:00 - 7:00 pm

Sponsored by Kendall College

2408 Orrington Avenue

Terra Hall, first floor

 

You won’t want to miss this food festival prepared by the world famous Culinary School at Kendall College.  Eat your way through a network of hor d’oeuvres, and desserts.  Join us as Kendall cooks up culinary delights and serves fine wine at this elegant Business After Hours.  Founded in 1934, this private four-year college’s career-oriented curriculum includes day and evening classes in early childhood, education, information technology, hospitality, human services, and business programs.

 

On campus parking is available after 5:00 pm on a first - come, first - serve basis.

  

$5.00   Members     $8.00  Guests  (Includes food and drink)!

 

 

D). LEGISLATIVE ALERT!   Evanston City Council To Consider Doubling the Tax on Your Natural Gas Purchases

This will impact Condominium Associations, Buildin`g/Property Managers, Residents, and Business Owners of Evanston, and Religious Institutions

 

Background:  Since 1993, when natural gas was fully decontrolled, consumers have made choices, based largely on price, for the purchase of their natural gas.  NICOR still delivers all natural gas, for which buyers from other suppliers pay a small fee.  Many commercial and industrial consumers (and a small number of shrewd Evanston residents) have switched from NICOR because the “per therm” difference in price can be as much as 16 percent.

 

Under the current tax system, buyers of natural gas from NICOR are taxed at a five percent City Utility Tax, based on the total charge for their gas use.  Buyers of gas from brokers, however, pay a City Gas Use Tax of $0.0095 per therm used, plus a small City Utility Tax for NICOR to deliver their gas.  The combined effect of:  the tax system plus consumers making the choice to save money, is the City of Evanston is collecting less tax on gas usage than it once did.

 

Now the City of Evanston is proposing to raise the City Gas Use Tax from $0.0095 per therm to $0.025 per therm, an increase in the rate of more than two and one-half times.  The City’s rationale is that wholesale buyers will now pay the same amount of tax as those who buy directly from NICOR.  But the reality is this is not tax “equalization”, it is tax “augmentation”.  Buyers of gas from NICOR will save no money yet wholesale buyers will see their tax liability more than double.

This is bad policy for small business, bad policy for residents, bad economic policy, and bad public policy

 

 

Top Ten Reasons Why This Tax Increase Must Be Defeated…

 

  • The proposed tax increase penalizes consumers because they happened to find a “good deal” on their gas – the same deal that any residential consumer may also take advantage of.

 

  • Wholesale buyers are engaging in the same practices the City uses to always find the “lowest responsive and responsible bid” for purchases.

 

  • This is not a residential vs. commercial/industrial issue because nearly all condominium and apartment buildings also buy their gas from a broker.  With over 1/3 of all residents living in multi-family dwellings, this tax increase will have a far-reaching impact on condo assessments and rent costs.

 

  • The proposed tax increase bears no relation to city services.  Greater gas use costs the City no additional monies.  This is simply a purchase from a third party.

 

  • Wholesale buyers have chosen to switch gas suppliers not to avoid a tax (a relatively small portion of their total bill) but because they can save up to 16 percent on one of their major expenses.

 

  • There are other examples of tax rates that are different based on the type of user.  For instance, under Cook County’s classification system, commercial and industrial property owners are assessed at a rate that is more than double that of residential property owners.

 

  • If it were not for large users of natural gas, the smaller users’ rates would be even higher.  That is one reason why states and cities want a healthy manufacturing sector because those users (who also pay the highest property taxes), help to subsidize the cost of all residential utilities.  Now the City of Evanston wants to tax higher the very customers that help keep residential utility rates lower.

 

  • It’s one thing to have fiscal policy that taxes those who make more money at marginally higher tax rates (ie:  the graduated federal income tax).  The rationale here is that those in higher income brackets can afford to pay higher taxes.  But it is quite another thing to suggest that those who consume more volume of a utility can afford and should pay at a higher tax rate.  That consumption is not based on their ability to pay (or their wealth) but is tied to the cost of their goods in production.

 

  • The State of Illinois just added a $0.025 tax per therm to natural gas purchases at the wholesale level.  So the very users of gas the City of Evanston wants to increase the tax upon were just hit with an increase from the State.  City tax policy cannot be developed in isolation but must recognize the tax burden that comes from other governmental bodies.

 

  • This is simply a grab for new money ($600,000) by the City of Evanston.

 

 

 

Immediate Action Needed:  This proposed tax increase was first introduced on October 13, 2003.  At that City Council meeting and subsequent meetings on October 27 and November 10, The Evanston Chamber has spoken out against this outrageous proposal. 

 

The proposed increase was tabled on a voice vote at the November 24, 2003 City Council Meeting.

 

Now, the proposal has been introduced as part of the 2004 City of Evanston Budget.

 

While some City Council members (namely Eb Moran-6th, Lionel Jean-Baptiste-2nd, Steven Bernstein-4th, and Art Newman-1st) seem to be leaning against the tax increase, other Council members may be ready to vote for it in February as part of the City’s 2004 Budget.

 

All City Council members need to hear from you now that this tax increase will have a deleterious impact on your business and/or your home.   However, before you make your calls, it would be extremely helpful if you could accurately determine just what this increase in taxes will cost you and/or your building.  Please check your gas bills for all of 2003 or check with the company from whom you purchase gas.  Please call The Chamber and report to us what increase would have been (in $) in 2003, if the tax increase had been in effect.  Let us also know the number of therms purchased in 2003.

 

With this information in hand, we can gauge more precisely what the impact will be on Evanston residents and businesses.  Also, your calls to members of the City Council will be much more effective. 

 

Please make your calls today.

 

For more information, please call Jonathan Perman at: 847-328-1500, x3 or

e-mail:  jperman@evchamber.com

 

 

Evanston City Council Members

 

 

Alderman Art Newman (1st Ward):                              312-726-9235

Alderman Lionel Jean-Baptiste (2nd Ward)  847-424-0400

Alderwoman Melissa Wynne (3rd Ward)                    847-329-5651

Alderman Steven Bernstein (4th Ward)                     847-328-1181

Alderman Joe Kent (5th Ward)                          847-869-3091

Alderman Eb Moran (6th Ward)                         312-408-1544

Alderwoman Liz Tisdahl (7th Ward)                 847-922-3792

Alderwoman Ann Rainey (8th Ward)               847-475-2949

Alderman Gene Feldman (9th Ward)               847-475-7306        

 

To RSVP to Chamber events   call 847-328-1500 x22 or e - mail us at info@evchamber.com

 

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