Since we have now built the Ackerman complexity, are we going to check everyone's residency at the door?

It seems that, since the Glen Ellyn Children's Chorus changed its name to attract more singers to a Glen Ellyn based non-profit organization, it has paid the price in lost funding. Now the Park District....

"Dear Anima Parents,

As you and your choristers are Anima’s most important constituents, we wanted to make you aware of a potential change in the Anima program.

For the last several months, Anima has been negotiating with the Glen Ellyn Park District regarding our rate structure for rehearsal space at 501 Hill Ave. Historically we have rented space by the hour at the resident rate. This year we were informed that as only 40% of our choristers are Glen Ellyn residents, we would be required to pay non-resident rates. They do not determine rates based on the residency of our business (Glen Ellyn); instead they only give resident rates to groups whose participants are at least 60% Glen Ellyn residents. The result of this change would be a 22% increase to rent rehearsal space at the Park District.

Although we continue to negotiate, after two sessions in front of the GEPD board, we are not optimistic. Over the past several months, we have evaluated a few other options but we are now actively pursuing alternatives. We already have at least one good lead.

We felt you should be aware of this situation, as it directly affects all of you. If you know of space that would accommodate our needs in a desirable location for our families, we would love to hear from you."

That's ridiculous. If the company is registered in GE, it should be provided with resident rates.

Have they looked into churches? I know a few (though not in GE) that allow local choirs and other non-profits use of their facilities at little to no charge.

Not sure I agree with you, there, GESM2. The resident/non-resident line has to be drawn somewhere. Sounds like Anima stepped over it.

The rooms at the Civic Center are similarly regulated.

I realize that the resident rate has to be drawn somewhere, but should it be determined by the participant's residency, or the company's? I mean, taxes are regulated by the state that a company is registered in, not the state where most of its employees live.

But the PD is primarily funded by residential property taxes.

I take that back. By taxes and usage fees. See Page 6

And the budget

quote:

But the PD is primarily funded by residential property taxes

Don't forget the 20% the PD takes off the top of all who register for a program. Money which they can do whatever they want with.

Is there not commercial taxes that go to the PD at all?

If you mean sales tax, I don't think so. The taxes they get are almost all property taxes.

Do businesses not pay property taxes?

quote:

Originally posted by GESingleMom2:
I mean, taxes are regulated by the state that a company is registered in, not the state where most of its employees live.

Actually, taxes are not regulated by the state that a company is registered in (for the most part). In most states, income taxes are based on the proportion of where it owns property, employs people, and makes sales. Property taxes are based on where the property is located, payroll and unemployement taxes are based on the employees' locations, sales taxes are based on where the sale is made, etc. Only in a very few cases does it ever matter where a company is registered.

So then please explain to me the attraction for firms to be incorporated in Delaware....I was always under the impression that was for tax reasons, given the state's ranking of first tax haven in the world according to Tax Justice Network....

Ahem. Back on point.

You have an organization based in Glen Ellyn, with the largest bloc of parents being from Glen Ellyn. It's not like this organization just started. Been around for decades. They guarantee the usage of space that would go unused for the majority of that time.

But I guess a line must be drawn. Because there can't be any leeway. They crossed the line.

quote:

Originally posted by RMK:
Since we have now built the Ackerman complexity, are we going to check everyone's residency at the door?

I would assume so. The special deal for locking in the Ackerman membership fee is for Glen Ellyn residents -- see page 1 of the Ackerman brochure. The SARC fitness center also charges a higher fee for non-residents.

I think you would be better off arguing that the percentage threshold for the resident rate is too high.

Anima is one of the highest regarded children's choruses in THE WORLD. Maybe the best in the world. Certainly on everyone's top five list in the world. And it has been for many, many years.

You would be hard pressed to find another Glen Ellyn based institution, of any kind, with that reputation. It is awesome that so many kids from our Village can be part of this group and no surprise at all that kids from all over Chicagoland make the effort to be part of the Chorus. For most of us, we will never be part of a group that is the best in the world at something. Anima offers Glen Ellyn kids, and others, an amazing opportunity. I hope that they can find what they need in Glen Ellyn.

Is there such demand for the space that Anima would use that the PD will find another renter? I think Anima has been rehearsing in Glen Ellyn for 30 years.

quote:

Originally posted by GESingleMom2:
So then please explain to me the attraction for firms to be incorporated in Delaware....I was always under the impression that was for tax reasons, given the state's ranking of first tax haven in the world according to Tax Justice Network....

Partly... Delaware actually imposes a fairly steep corporate income tax. The catch is that there is an exemption for holding companies (a company that owns the stock or other intangible property of an operating company but has no other activities of its own). This saves some tax but not all that much. What it mostly does is provide flexibility for being able to restructure your consolidated group with less risk of triggering a big tax. If you actually run a business out of Delaware you pay 8.7% which is very high by state standards. It looks like the Tax Justice Network's big issue with Delaware is more secrecy than actual tax sheltering.

The other reason so many companies incorporate in Delaware is that they have a highly developed body of corporate law. This is good for attorneys because they have more certainty about what the rules are and what the likely outcome of any dispute is so they can give more reliable advice. And, more often than not it is the attorney who are making the technical decisions when organizing new companies since they handle most of the paperwork.

quote:

Originally posted by Paul:
I think you would be better off arguing that the percentage threshold for the resident rate is too high.

Thanks for making my argument. It's not only, too high, it's ridiculous. We are talking about a group of children rehearsing. 40% are Glen Ellyn residents. 60% come to our town 2 or 3 times a week from surrounding communities. The organization also rents office space in Glen Ellyn.

Thanks, Bastiat. I forgot about the legal aspect of it all. Here's a question, though....if the Tax Justice Network's big issue is secrecy, how are they aware that it's not tax sheltering?

I'm afraid I'm not sure what you're asking. I assumed you were referring to an article like this in your earlier post. I was simply pointing out that the Tax Justice Network wasn't stating that Delaware was full of tax shelters, it was stating that is was secretive. Their methodology for establishing their rankings seems to be something like a "secrecy score" x the dollar value of their international activity. Delaware is somewhat business friendly so they probably are not much more open than other places, so simply by being so big they jump to the top of the tax secrecy index.

Right, but what I'm asking is that if Delaware is so full of secrecy, how do they know whether or not tax shelters aren't a part of that secrecy?

Doesn't the Chorus get money from the village. I believe before they increased the sales tax last year that was one thing that they were considering eliminating.

Also I believe they get funds from the NEH/NEA.

I wonder what the costs to the PD would be if they rose the residency requirements to say fifty percent.