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Effingham council weighs 1% sales tax, possible grocery tax reinstatement and repeal of amusement tax
Summary
City staff briefed council on three linked tax ordinances: a proposed 1% local sales tax (estimated $6.5M), possible local reinstatement of a grocery tax (≈$650K–$700K) and repeal of a 5% amusement tax (≈$165K). Council asked staff to refine options and return for vote in September.
City officials on Monday laid out three linked tax measures that would shift how Effingham raises revenue and could let the city reduce the property‑tax levy.
The city administrator presented Ordinance 55‑2025, a potential non‑home‑rule 1% sales tax that staff estimated would have generated about $6.5 million on last year’s sales base; Ordinance 64‑2025 would allow the city to reimpose a grocery tax (staff estimate: roughly $650,000–$700,000), and Ordinance 63‑2025 would repeal the city’s 5% amusement tax, which yielded about…
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