Some business owners and churches in south suburban Harvey are taking legal action against the city, alleging that they’re being unfairly targeted with improper fees to help raise revenue.
Among those impacted is Benecia Gonzalez, who inherited her late grandfather’s auto shop, which came with years of late property tax bills.
When Gonzalez applied to renew the business license, she was denied due to outstanding taxes. The business has now racked up a $2,500 daily fine, with the entrance to the building blocked.
“I even paid a large tax bill…I am embarrassed to say the amount…to show them I’m taking care of taxes,” Gonzalez said. “Even though we are the owners of the property, they made sure we could not get in or out. I’m fighting for myself and other businesses to stay open.”
Gonzalez is now part of a federal lawsuit with other business owners who allege this is a scheme by the city to extort money from business owners.
“The city of Harvey has never gone to court and never asked a judge with due notice and an opportunity to be heard by any of these businesses,” attorney Robert Hanlon said. “They just expect the World to take it as if he (the mayor) is a king.”
Some churches also say they plan on taking legal action after being told they must purchase a business license to operate or face a $2,500 daily fine.
“I knew it was not right because we have never heard of that,” pastor Johnathan Johnson said. “We are not a business, we are a church. This is extortion. They are reaching for any form of funds that they can get. Our land is exempt from taxes. They are choosing to ignore things and instead focus on people who are helping to keep this place alive.”
A spokesperson for the city told NBC Chicago that the business license mandate for churches was put in place earlier this year, in part to ensure public safety and timely property inspections.
According to the Illinois Department of Revenue, churches do not need a business license unless they are selling personal property.
In a statement, a spokesperson for Harvey called the allegations named in the federal lawsuit baseless.
The statement goes on to say that as of Jan. 15, 2023, 465 commercial properties in Harvey were delinquent on a total of more than $12,217,517 in commercial property taxes.
“The city is financially strapped, and we cannot do this to the business owners, churches and the people by increasing everything around them,” Ald. Colby Chapman said. “It is just not fair, and we really need some oversight and accountability to come here to Harvey and support the people.”
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