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The Putnam County
Volume 146 No. 22
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Wednesday, January 29, 2014
Hartney and the Illinois Department of Revenue By Ken Schroeder kschroeder@putnamcountyrecord.com
MARK – The Illinois Department of Revenue has not taken the lost revenue from Hartney Oil in Mark very well. In an effort to close the loophole that allowed the company to be subject to lower tax laws, the department has set new guidelines on the collection of local sales taxes.
The emergency regulations set up Jan. 22 are a response to the Illinois Supreme Court in November ruling which tossed out tax-collection rules that applied sales tax to where a purchase offer is accepted. The court found the “order acceptance” factor, which was in place for years, a too narrow interpretation of the state statutes governing sales taxes.
Some companies in Illinois rely on those guidelines to develop a tax strategy to reduce their sales tax burden, and in some cases led to large rebates from local governments. The tax practice became controversial in recent years, with Chicago and other high-tax municipalities arguing that millions of tax dollars were being diverted. The road to the new
regulations started in 2008, when the Revenue Department challenged Hartney Fuel Oil, whose headquarters were once in Cook County, after the company moved its sales office to Mark. Starting in 2003, Hartney had a phone and space rented in the office of Putnam County Painting, enabling it to claim it as the point of sale for its fuel business. Since Mark
has no local sales tax, its tax rate is the same as the state’s — 6.25 percent. The case finally went to the Illinois Supreme Court, whose November opinion took a dim view of Hartney’s tax practice. Though the court invalidated the tax-collection rules, it didn’t penalize Hartney Fuel for following the regulations as they were written. Hart-
ney Fuel did not have to pay the estimated $23 million in back taxes, interest and penalties that the state revenue department claimed was owed. Hartney has since closed its office in Mark. Under the new regulations proposed Jan. 22 which take effect immediately, the department will still consider the
See Hartney Page 3
PC Schools holding to budget State still owes district $223,088 By Ken Schroeder kschroeder@putnamcountyrecord.com
GRANVILLE – The Putnam County School Board received the latest budget news concerning payments from the state at its regular board meeting on Jan. 21. And while the news was not good, it was also not unexpected. Illinois state funding is still very much behind its obligations, being over $223,000 in arrears in school funding. Transportation and special education funding is most affected, with the accounts being $94,830 and $88,536 behind, respectively. “It’s about the same as we see at this time,” Jay McCracken, Putnam County School superintendent said. “Eventually, we should see that paid in full.” The school district is holding close to its proposed budget for the school year. As of the end of 2013, most of the funds had been between 45 and 50 percent spent. That amount is actually slightly less than was expected at this time. In other action, the board: • Heard a presentation from the Putnam County chapter of the Future
See PC Board Page 3 Vol. 146 No. 22 One Section - 12 Pages The Putnam County
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Putnam County Record photo/Dixie Schroeder
Red Cross Blood Drive held in Magnolia Bertie Soeder of Varna donates blood for her 51st time as Red Cross collection specialist Candy McClain of Peru assists her at the American Red Cross Blood Drive, held at the Magnolia United Methodist Church. The drive collected 27 units from area donors.
Kalman is new library director By Dixie Schroeder dschroeder@putnamcountyrecord.com
HENNEPIN — The Putnam County Library District has a new addition to their library staff: A new library director. Jay Kalman is a former area resident who assumed his position on Jan. 14. He replaces former Director Bobbi Morgan who left at the end of December. “I was raised in Spring Valley, so I am local basically,” Kalman said. “I went to Hall; I went to IVCC. I went to Western Illinois University for my undergraduate degree in
music education, then went to Northern Illinois University for my master’s degree in library science.” Kalman had previously been employed with the Harvey Library District for close to 25 years. Kalman said when he saw the news Putnam County was looking for a new library director, he knew it was time to come home. Kalman has settled in LaSalle with his wife and two dogs. His brother lives just outside of Hennepin, so he feels he knows a little bit about the community as he starts his position. He brings a strong technology
background to his position. “I was one of the first people in the state of Illinois to bring all this technology back in the day into the library when it first started,” he said. “Most of the libraries at the time didn’t have computers and technology back them. I have been doing that for years. Harvey was one of the leaders in the whole country basically for bringing technology into libraries.” Technology is not only about the computer, but also the programs the computer can access. With eReaders being popular, Kalman has some ideas of where Put-
nam County patrons can access books to enjoy. “We have what is called eRead Illinois which is a program for eReaders coming out,” he said. “We will be bringing that out in a couple of weeks I think.” With the libraries at different sites as well as the amount of patrons he will serve through the Putnam County Library District being unique, Kalman feels he wants to help potential patrons learn about all the library can do for them.
See Kalman Page 3