Some owners unhappy with downtown tax

GENEVA -- While the city is clarifying which properties should be paying a special downtown business tax, some Geneva property owners are unhappy with their status.

Several complained to aldermen this week about property they think should be exempt from the tax in special service area number one, established to collect money that pays mostly for downtown parking, but also for things like snow removal and Christmas decorations downtown.

Classifying properties as exempt from the tax or non-exempt depends on their use. The ordinance establishing the special service area, first passed in 1979 and reviewed several times since then, says any property that is used wholly or partly for business purposes pays the tax.

Already several property owners in the area have asked to be exempted because there is residential use there. But there also are businesses on the property, so the city has said for purposes of the special service area, they are considered businesses.

"Even if a property is only partially used for business, it does benefit from commercial zoning," said Ellen Divita, Geneva's economic development director.

The city has been reviewing the downtown special service area for months now, identifying properties that once were residential and are now businesses, adding them to the tax roll. There was a discussion about the review at this week's Committee of the Whole meeting.

In the latest review, the city also identified 17 properties that once were business and are now residential, saying they should be exempted from the tax.

One of the most interesting of those is Elfriede Karsch, who lives at 215 S. Third St., and also owns the parcel next door at 213 S. Third St.

The city recommended exempting Karsch, who lives in a house that is the only purely residential property along the Third Street shopping area. Her house is surrounded by stores or offices.

"Most people don't know I'm there," Karsch told aldermen this week.

The 213 parcel has no building on it, but it does have commercial zoning, and it contains an easement for other businesses. For that reason, city officials recommended keeping the special tax on that parcel, while exempting the 215 parcel.

Roger Bielinski told aldermen he lives in one of the residences recommended for exemption.

He wondered if he had been paying the tax, and if the city now says he shouldn't pay the tax, would he get a refund for past payments.

"Yes, you have been assessed the tax, and no, there will be no back credit," said Mary McKittrick, city administrator.