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Lee County officials report sharp drop in local use-tax receipts after state reclassification
Summary
County finance staff said a state reallocation of internet sales/use tax receipts has reduced the county's monthly local use-tax receipts from about $40,000'$45,000 to roughly $6,000'$8,000, yielding an estimated $30,000'$35,000 monthly shortfall that could total about $180,000 annually and affect the upcoming budget.
Lee County finance officials told the county's finance committee that a state reclassification of local use-tax receipts beginning July 1, 2024, has substantially reduced the county's monthly local-use tax disbursements and will likely create a material shortfall in next year's revenue assumptions.
Reid, the county treasurer, explained the change to the committee: large retailers with "nexus" in Illinois now have receipts allocated to the ZIP code where an online purchase was shipped rather than pooling those receipts statewide. In prior…
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