WIUM Local
10:53 pm
Mon January 9, 2006

Aldermen Review Tax Hike Proposal

Macomb, IL – Macomb City Administrator Mike Hays is recommending a hike in the telecommunications tax. Right now, the tax is 2%, but Hays believes it should be increased to 6%, which is the maximum allowed by the state. Hays says the city has made budget cuts for at least a decade. He thinks Macomb now needs to find more money in order to remain competitive with similar cities. Hays says Macomb faces rising costs for salaries, health insurance, and a host of other expenses. A 6% tax would generate $465,000 per year. The current 2% tax brings in $155,000. Aldermen will consider the proposal as they begin their budget discussions. The city's new budget goes into effect May 1.