Highwood treasurer: state law change will cut local-use tax about $130,000 a year, creating a roughly $390,000 three-year gap

Scott, Highwood's treasurer, told the City Council on April 7, 2026, that a recent state law known as the Level Playing Field Act changed the definition of taxable local use and will reduce the city's local-use tax revenue by roughly $130,000 per year.

The council heard the treasurer's financial report for January and February and learned the cumulative effect of the change amounts to about a $390,000 gap over three years. "We are where we expect it to be except for the local use tax," Scott said, adding that the change "opens up a $390,000 hole within our three-year budget." He described the development as the result of a legislative change in Springfield tied to the Level Playing Field Act.

Scott told the council the city had budgeted conservatively and was still on track to meet year-to-date revenue and expenditure goals, but he cautioned the new definition would affect the multiyear outlook. He said the change was enacted by the legislature and signed by the governor, which adjusted the tax definition and reduced the city's collections.

Council members did not vote on immediate corrective measures during the meeting. Instead, the treasurer's presentation served as an informational update for the council as it moves into routine budget planning and future hearings. The council also approved the warrant list and financial reports during the same meeting.

The treasurer did not specify program cuts or a timeline for corrective actions; any adjustments would appear later in the budget process or in follow-up staff recommendations.