La Grange council to discuss proposed compensation tax Monday

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By Tracy Harris

If you work in La Grange, you may soon find yourself paying a compensation tax to the city government.

La Grange City Council is considering adding a 1 percent occupational tax to help pay down the city's bond used to purchase Oldham Reserve.

The $6 million bond is now $8.2 million including interest, and payment is due in two years.

The tax will be levied on each person working inside city limits. Under state law, some businesses are exempt, including banks, election workers and life insurance companies.

Some forms of temporary workers will also pay a compensation fee, including carnivals, door-to-door salesmen, farm workers and peddlers. 

Mayor Bill Lammlein said the tax could generate $600,000 to $1 million annually.

City council members voted last week to keep current real and personal property taxes at 20 cents and 26.5 cents respectively, per $100 of value.

However, Lammlein said many people who work in La Grange don't live inside city limits and don't pay those taxes.

The city's ordinance committee will meet at 6:45 tonight (Monday) at La Grange City Hall, and the public is invited to attend.

 City council could vote on the measure at its next meeting Sept. 4.