BUSINESSMAN SEEKS PROPERTY TAX REVISION

CAPE GIRARDEAU -- Property tax relief is expected to be one of the hottest issues during the 1991 Illinois legislative session says John R. Davis.

"Many small business owners feel that property taxes are the most unfair taxes of all," said Davis, state director of the Illinois/National Federation of Independent Business (NFIB), during a visit here recently.

Davis added that new governor Jim Edgar has proposed property tax reform.

"We (NFIB members) feel the tax reform would be a great way for Gov. Edgar to show leadership in his new position," added Davis. "A lot of small-business owners voted for Edgar."

NFIB/Illinois has almost 19,000 members in the Springfield-based business organization.

"Each year the organization polls its membership on a variety of issues," said Davis. "The association uses this poll to form its legislative agenda, aggressively lobbying in support of positions approved by majority votes."

One of the questions on the 1991 survey asked which tax relief measure businesses would favor, income tax reduction, or a reduction in property tax. Sixty-eight percent of the members prefer reducing the property taxes.

The Illinois property tax has been increasing every year, according to Davis.

"From 1981 to 1987, the property tax has increased 38 percent on residential homes, 53 percent for commercial property, and 57 percent for industrial property," he said. "We want to see a `cap' put on it."

Another big issue facing the legislature this year is a state government privatization issue.

"More than 72 percent of NFIB members responding to the survey want the Illinois state government to privatize assets and activities that could be managed by the private sector," said Davis.

He added that NFIB feels privatization will restore the spirit of competition, and help shift jobs from government to the private sector, generating more taxes and saving the taxpayers the cost of civil services, wages and benefits.

"Privatization is good for government and the economy," said Davis. "It will create new business, expanding the state's revenue bass and generate a more efficient way to provide some of the need services now performed by government."

Small business owners are also worried that fewer jobs, less productivity and higher operating costs will be inevitable if the legislature passes a mandatory family leave proposal into law.

"Mandating family leave will destroy the flexibility small businesses need to adapt a highly competitive labor market," said Davis, who added that small business owners do not oppose the concept of family leave, but they are strongly against the government forcing them to offer such benefits.

Ninety-two percent of NFIB members are against the state enacting the legislating. A family leave legislation was passed during the past two session, but was vetoed by former Gov. James Thompson. Under the plan that is before the House and senate, employers would be required by law to provide employees up to eight weeks of unpaid leave following the birth or adoption of a child, or to care for an ill family members. The law would apply to both male and female employees of companies with 50 or more employees.