Newton Illinois Hidden taxes
I would like to make all of the city of Newton utility users aware of the fact that the
reasons for the increases In electric, water and sewer rates that will go into effect
starting May 1, 2010 and automatically every May 1st in the future are not just for
increased revenue to operate these utilities but also include the largest tax
increase that has ever been imposed on the residents of Newton.
If the equivalent increase had been done on property taxes it would have been
How this works is resolution 8-3 takes an annually adjusted percentage of the
gross revenues of the water, sewer and electric utilities and moves it to the
general fund for “city obligations”.
The reason this was done this way was to avoid a referenda that a property tax
increase of this size requires and also so that you can be told that this is not a tax
This is a very bad way to tax citizens as it avoids all the statutory restrictions on
it is deceptive and also it is a regressive tax that hits those who can least afford it
The only way to stop this is to let the Mayor and council know that you understand
what they are doing and do not approve.
If this does not happen you can be sure of expanded use of this form of taxation.
There will be those who will tell you that you are not being subjected to unfair
hidden taxes and in fact there are no hidden taxes in your utility bill at all.
When this happens I suggest that you find out for yourself. Just go to city hall and
ask for a copy of resolution 08-3 and read it for yourself.
From Newton Illinois City Code
"(B) The electric utility shall pay to the City Capital Development Fund a fee in lieu
of taxes. Such fee shall be three percent (3%) of the gross operating revenues of
The City Of Newton Uses the Utilities that it owns as a way
to collect tax from citizens and then claim that it is not a tax.
7% of the total amount of your monthly electric bill and 4% of
your water and sewer bill are hidden taxes. These are above
any tax that is listed on your utility bill.
Resolution 08-03 along with automatic yearly utility rate
increases means that the city council can easily take
however much of your money that they want and there is
very little that you can do about it.