If passed, a bill proposed to the Illinois General Assembly would take away municipalities’ power to charge a 5-percent utility tax to school districts and local governments, DeKalb Mayor Greg Sparrow said.

The bill would not include colleges or universities such as NIU, said Larry Frang of the Illinois Municipality League.

Bill 3039, which amends a revenue and public utilities act, also would prohibit municipalities from imposing utility taxes on the two institutions under home rule, Sparrow said.

Home rule is an authorization for cities with a population of more than 25,000 which allows them to impose laws not specifically authorized by the General Assembly, Frang said. DeKalb is a home rule city, he said.

Home rule, which gives cities the right to allow 19- and 20-year-olds into taverns, also allows cities to impose special sales taxes, Frang said.

Bills similar to Bill 3039 have been proposed before, Frang said. “And I can’t be sure they (bills like 3039) won’t be proposed again,” he said.

This proposed legislation would have a “dramatic” impact on cities with many school districts, Frang said.

“We (members of the municipality league) clearly do not believe the state should restrict our sources of revenue,” he said.

Public schools get municipal services to their property (such as police and fire protection), but they do not pay property taxes, Frang said.

The municipality league does not believe schools should pay property taxes, but it does believe schools should pay for the municipal services that are provided for them, he said.

Although Frang said he does not think much of the bill, he said 3039 and all other bills like it always will have support.

“Schools argue they don’t have any money, and this (being exempted from the tax) will be a way for them to get more money,” he said.

Supporters of 3039 argue “one unit shouldn’t be taxed more than another,” Frang said.

“Why should local government pay and not churches?” he said. “Churches would be in (to the house of representatives) next year trying to get exempted from the tax too,” he said.

Municipality taxes provide services for citizens’ wants and needs, Frang said.

Cities need municipal taxes to provide a certain amount of services, he said.

Also, if school districts and local governments are exempt from the taxes, property taxes might increase, Frang said.

“The question is whether or not it would occur,” he said.