Tax confusion widespread in Peoria

The local media started looking into (and publicizing) the story I posted a couple days ago about Peoria businesses charging too much tax. The Journal Star has two articles here and here, and WMBD Channel 31 did a piece on the 6:00 news tonight (the web version is here).

I just want to reiterate that you should really check your receipts. My mother-in-law took our family out to eat tonight at Chili’s (Glen and University) and they charged her 11% sales tax (it should be 10%). We told the manager, but there was nothing he could do because it has to go through the corporate office.

After reading the article in the paper, my dad checked his receipt from Best Buy — he bought a new HDTV earlier this month — and sure enough, they charged him 9% sales tax. Best Buy has since corrected the issue, and they refunded him the overcharge with no fuss.

Chili’s doesn’t appear on the official list (Exhibit B) that was released by the city today. Neither is CJ Banks (Northwoods Mall), which is charging 9% on clothing. I hear tell that someone’s keeping a list of businesses about whom residents are complaining overcharged them for tax — and it’s getting pretty long. Plus the Journal Star says the city’s Finance Department has received “hundreds” of calls.

It’s easy to see how these big corporations got confused. Take a look at Exhibit A on this memo. That’s the notice that the state sent to all businesses in Peoria letting them know that a small strip of land downtown was going to have a higher tax rate beginning July 1. To those of us who know what the Hospitality Improvement Zone (HIZ) is, this is easy as pie to follow. But suppose your company’s headquarters are in Minnesota. They would have no idea where the HIZ area was, and they would probably figure that if it didn’t affect them, the state wouldn’t be dumb enough to pay the postage to send them a notice that it’s changing.

That appears to be what is happening all over Peoria. So, double-check those receipts!

46 thoughts on “Tax confusion widespread in Peoria”

  1. I checked ours at Chili’s in Ep. It was ok.
    Like I said buy outside the city,then Peoria might get a clue to fix this ASAP.

  2. Martin,

    If you haven’t followed the story, this isn’t a City of Peoria problem. Its a problem for certain stores within Peoria. I don’t know why you want to blame Peoria. Blame these companies, or maybe blame the state for their blanket approach. You can even blame Peoria for creating the 1% extra tax in downtown, but it isn’t the city’s fault that these companies did not read the memo.

    And Diane, oddly enough, this sounds like it is more a case of too much Big Corporate. Other than the MacDonalds’ Shell, how many of the stores on the list are locally owned?

  3. diane sez: “We need more big government!”

    I say: Odd? Didn’t you promote and vote for the Facility Tax for the great new museum?

  4. Check the gas pumps too… routinely off as much as 6 cents per gallon. I once pumped 15 gallons into a 10 gallon tank…???? Was told the pumps were supposed to be inspected once a week or so and this particular one hadn’t been for quite awhile.

  5. Precinct Guy — I believe Emtronics is implying that she supported big government by voting for that tax, and now she is trying to make it sound like she’s against big government.

  6. ArtsPartners faces uncertain future……………………….

    This is an interesting poll the JStar is taking.

    $75,000.00?

  7. How can we divine anything but for what is typed in the blog entry. Those with mind reading abilities are much better suited to make that kind of entry.

    I certainly do not have those abilities.

    Or Diane was being facetious, I do not know for sure.

  8. PC: CJ was correct in my reasoning for my comment. As for your quote; “Or Diane was being facetious…” I seriously doubt that, I don’t think she owns a dictionary so I doubt she knows the meaning of the word. I could be wrong. 🙂

  9. PC — What Emtronics “actually typed into the blog entry” was not ambiguous in any way. He quoted the part of Diane’s comment upon which he wanted to comment further. Then he commented on it. Neither the quote from Diane nor his comment had anything to do with the HIZ tax, hence there’s no reason for you to assume or conclude — based on what Emtronics “actually typed into the blog entry” — that it should have.

    That’s how I was able to discern what he meant — by reading what he wrote, not by reading his mind. You should try it sometime.

  10. CJ, is your point that it is not possible to, on one hand, support the Peoria Regional Museum but on the other hand, NOT support a massive expansion of the federal government? I thought we recently conceded on this issue.

  11. Subject of article: Tax confusion, over charging of sales tax in city, HIZ tax.

    links to other blog entries and documents of COP refer to HIZ Business District

    Quote in blog entry “To those of us who know what the Hospitality Improvement Zone (HIZ) is, this is easy as pie to follow.”

    Diane :We need more big government! ( does this refer to previous text in article?) (assumed) If not what reference is used?
    diane sez: “We need more big government!”

    I say: Odd? Didn’t you promote and vote for the “Facility Tax” for the great new museum? (facility tax was not mentioned in article or links) ( clearly it appears to be aimed at the Facility Tax support by Diane)

    “Facility tax” does not take effect until 1 January 2010. This article is about the “HIZ tax.”

    I believe Emtronics is implying that she supported big government by voting for that “tax”,(assumed to be the Facility tax) and now she is trying to make it sound like she’s against big government.(assumed to be big county government)

    CJ was correct in my reasoning for my comment.

    I understand that the base article is the focus on the blog entry and comments are to be focused on the base article. I have as have others, departed from some of the issues raised on some entries. When comments on comments progress it will drift off of the main topic. I will endeavor to be more clear in my comments on other poster’s comments. If referring to an issue not addressed in the main article I would try to be more informative as to the topic or issue and how I arrived at a particular comment.

  12. Diane — Your question should be directed at Emtronics. He’s the one who made the comment; I just explained it to Precinct Committeeman.

    PC — Thanks for the advice. And by “advice,” I’m referring to your comment (not the main article) where you state, “If referring to an issue not addressed in the main article I would try to be more informative as to the topic or issue and how I arrived at a particular comment.” I arrived at my expression of gratitude by reading your comment and thinking it was good advice. I hope my comment (meaning the words I’m typing right now) is sufficiently informative and doesn’t cause any confusion.

  13. Diane — Your question should be directed at Emtronics. He’s the one who made the comment; I just explained it to Precinct Committeeman.

    CJ had you not jumped into the fray by offering Emtronics your impartial *cough* translation of my comment then I would agree with you.

  14. Are you trying to pick a fight with me, Diane? 😉 Emtronics just said that my interpretation of his comment was correct.

    But hey, if you want me to pick on you, too, so be it. I agree with Emtronics. I think it’s incongruous of you to decry “big government” while at the same time you support giving forty million tax dollars to a private museum, and at a time when the city and county are experiencing structural deficits. If you want to support the museum, that’s fine, we can agree to disagree. But don’t position yourself as a small-government fiscal conservative. That’s just dishonest.

  15. I do not support massive government spending complete with stimulus, pork and bailouts for poor decision makers. Thank you very much. I also strongly support the creation of the Peoria Regional Museum for our future generations. If you want to call me dishonest, CJ, go right ahead. I will personally refrain, however, from making any personally disparaging remarks about you.

  16. I also strongly support the creation of the Peoria Regional Museum for our future generations.

    should have added… a museum that is being funded through a tax that was approved through a VOTER REFERENDUM!

  17. “I do not support massive government spending complete with stimulus, pork and bailouts”

    “being funded through a tax”

    uh… ???

  18. I buy a particular item at Dunkin Donuts on Western Ave., and it is $2.32. the exact same item at Dunkin Donuts on Sterling is $2.40. When I asked about this today I was told that it is because of the tax difference and its been that way for years. I don’t see where the two shops are in a different tax zone. If I am wrong someone please correct me. I am going to call the city in the morning and see what they say.

  19. I do not support massive government spending complete with stimulus, pork and bailouts for poor decision makers. Thank you very much. I also strongly support the creation of the Peoria Regional Museum for our future generations [. . .] that is being funded through a tax that was approved through a VOTER REFERENDUM!

    Diane — Let me see if I understand your argument. You’re saying that you don’t support trillions of dollars being spent at the national level, but you do support millions being spent at the local level. Trillions of dollars equals big government. Millions are less than trillions. Thus you are not in favor of big government. Is that accurate?

  20. Dunkin Donuts at 613 N. Western Ave. is indeed in West Peoria, and the sales tax is 6.5%. Dunkin Donuts on Sterling is in Peoria and would be subject to 10% tax. That’s the reason for the disparity, and this is one of the reasons West Peoria incorporated.

  21. There are business on Western Avenue that are in Peoria–the zoning is crazy. I believe that the old Jumer’s and McDonalds are Peoria, not West Peoria. If the tax is lower at Dunkin Donuts then I would assume it is in West Peoria.

  22. Sharon Crews: Yes, it’s true that the border zigs and zags along Western. However, I checked Peoria County’s GIS system and confirmed that Dunkin Donuts is in West Peoria.

  23. Glad to hear it–I wish West Peoria could regain some of the other businesses on Western. All of that is somehow related to West Peoria’s decision to become a city.

  24. “Dishonest?” Wow. It is not dishonest to disagree with the federal stimulus while agreeing with the Peoria museum project. You focus solely on the source, i.e., tax dollars, rather than what really matters, which is how the money is spent. You may disagree with one’s view of that, but it certainly isn’t dishonest.

  25. “what really matters, which is how the money is spent.”

    And for the past (what?) 10 years, how has the money been spent?

  26. Diane wrote,

    “…massive government spending complete with stimulus, pork and bailouts for poor decision makers.”

    Stimulus? Pork and bailouts for poor decision makers…?

    Sounds like the Museum group/Peoria City/County to me. I remember when promises were made, you know, about the museum NEVER needing tax money, etc.

    Like I wrote earlier, ‘facility’ tax is just another name for TAX!

    I agree with Diane on one point. Doing something for “future” generations is a worthy cause.

    The museum? I guess when we are all old and gray, and our future generations are cursing us for sticking them with another useless, public funds draining, monstrosity that can’t support itself downtown, we can all look back to this post and think of happier times.

  27. Another Pulitzer from the Journal Star. Did the Star editors wake up with a hangover? When did they decide to give a damn about the ‘people?’ This was their latest rant in their “Our View” section:
    ———————————————————————————–

    “Graphs showing how much stimulus is going to each state agency and program, and how many people are benefitting;

    – What contractors are working on projects with stimulus dollars, and what their winning bids were;

    – How many jobs were created with each project;

    – Interactive maps that break down spending category by category and county by county and that allow citizens to search by address to find out what’s being built in their own neighborhoods.

    Like it or not – granted, the stimulus bill was far from perfect – this money is still being spent. If it’s being used in our names, we ought to be able to see how, for accountability’s sake.”
    ———————————————————————————

    Did the JStar bother asking any of these questions when the facility/museum tax was being proposed?

    “Accountability’s sake?”

    HA!

  28. C.J.: You labeled “incongruous” someone opposing big government while supporting the museum. In the next breath, you said it was “dishonest” to claim to be a small-government fiscal conservative while supporting the museum. You then attempt to disclaim your clear intent.

    That reminds me of the guy in the FedEx commercial who said the same thing as the other guy but claimed he didn’t because his hands went like this while the other guy’s went like that.

    kcdad: I’ll give you a holler when I need a vocabulary lesson from you (though the mere thought of that just made me puke in my mouth a little).

  29. “Are there two different dianes who post on here?”

    Sure… one who is for taxes and one who is against.

  30. Nontimendum,

    What the hell did you just say? Wasn’t a promise made that tax dollars would never be needed to build the museum? Now look…………..

    I call THAT dishonest.

    I call anyone outside the museum group who supported the museum DUPED.

    Maybe ignorant [of the facts].

  31. CL: “you support giving forty million tax dollars to a private museum,”
    “But don’t position yourself as a small-government fiscal conservative. That’s just dishonest.”

    nontimedum: “you said it was “dishonest” to claim to be a small-government fiscal conservative while supporting the museum”

    Yes… that is what he wrote. What are you disagreeing with? Are you suggesting the support of city government spending 40 million dollars for a private museum is good “small government fiscal conservative” policy? Or are conservatives only small government when it comes to the Feds?

    Maybe it isn’t vocabulary lessons you need, but literacy?

  32. The City updated its Finance Department webpage with some details concerning sales taxes. I called them for some clarifications but the lady who answered didn’t have the answers. The basic question I had was… what taxes apply to buying a new car. Also asked… what comprises ‘General Merchandise’, ‘Titled Registered Items’, and likewise about the other categories. What is there is a good start but a more thorough ‘Sales Taxes for Dummies’ would be welcomed to ease the confusion.

    Linkage: http://www.ci.peoria.il.us/finance-department-administration

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