Finance committee discusses building permit shortfalls and shift from local use tax to destination-based sales tax

Finance staff and trustees discussed building-permit revenue shortfalls and a permanent tax-shift during the Oct. 27 Finance Committee meeting.

Trustee asked about the department's building-permit revenue goals for the year; Finance staff (identified in the transcript as Rachel) said timing of large projects affects collections and that the department is monitoring receipts closely. Rachel said planners are trying to be conservative when setting targets for 2025 because project timing is uncertain.

Staff also explained a permanent shift in the way online sales are taxed. Rachel said online purchases that previously flowed through a local use tax are now taxed by destination; that change shifts some receipts from a local-use category into destination-based sales tax. She said Hoffman Estates is currently "netting positive" between the city’s revenue streams as a result of local shopping patterns but that other municipalities have lost revenue because of the shift.

The transcript did not record a proposed change to the tax rate or a formal budget revision; trustees noted the issue for the next budget and staff said adjustments will be reflected in the coming budget season.