An effort to lower the 5 percent utility tax in Algonquin was defeated by the Village Board. In a 4-2 vote, with one trustee abstaining, the board Tuesday voted to retain the full tax, meaning residents, not the village, will have to pay an unexpected surcharge to utility companies for administrative fees.
Trustee Ted Spella last month asked the board to lower the tax to 4.85 percent, with the village paying all collection charges, because residents were told the tax would be only 5 percent and not the 5.15 percent or 5.16 percent stated on their first month`s bills.
At a public hearing in April, residents spoke out against a 5 percent tax on gas, electric and telephone utilities to make up for the village`s drop of sales tax revenues, building permits and income tax surcharge funds.
