Trustees debate 1% non-home-rule sales tax and approve seeking a 3.4% levy increase

Trustees discussed a finance-committee recommendation to pursue a non-home-rule local sales tax of up to 1% and moved to seek a 3.4% increase in the village tax levy.

Finance committee members said the non-home-rule sales tax is a newly available tool that could be implemented without a referendum and could be adopted in quarter-percent increments; the committee recommended seeking the full 1% to fund operations if the board chooses to proceed. "We have a very small opportunity to fund millage operations with the small business sector that we have," the finance committee member said, noting the levy would not take effect until Jan. 1, 2026, and would require administrative steps earlier in 2025.

Several trustees expressed caution about adopting the full 1% immediately, asking whether that would be too aggressive for residents and how it would affect prepared-food purchases. The board compared Sleepy Hollow's current sales-tax rate with neighboring municipalities and noted that even with a 1% increase the village would remain below some nearby rates.

Separately, trustees voted to seek the full 3.4% increase in the 2024 tax levy under PTELL limits. The motion passed in recorded votes with the majority of trustees in favor and the village president casting a supporting vote; staff said the final levy figure will depend on county assessment (EAV) numbers and must be submitted by the county deadline later this year.

The discussion did not finalize adoption of the sales-tax ordinance; members agreed to return with more details on implementation timing and public outreach before any ordinance vote.