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Kewanee council sends a 0.5% sales and service tax referendum to March ballot to fund streets
Summary
Council authorized placing a non-home-rule retailers and service occupation tax up to 0.5% on the March 19, 2024 ballot, with a 10-year sunset; city officials said revenue would fund roads and sidewalks and the city will run an education campaign.
On Dec. 11 the Kewanee City Council approved Bill 23-75 to direct the Henry County Clerk to certify a ballot referendum asking voters to approve a non-home-rule municipal retailers occupation tax and a non-home-rule municipal service occupation tax not to exceed 0.5%.
City Manager Gary Bradley told the council the proposed increase carries a 10-year sunset and that the city will begin an education campaign explaining the process and the streets the revenue would fund. The mayor clarified this measure "is asking for an increase in sales tax that will be placed on the ballot so that the citizens can have a say in this." Councilmember Baker moved approval and Councilmember Komnick seconded; the motion passed 5-0.
Why it matters: Bradley said existing Motor Fuel Tax (MFT) distributions, which are population-based, are insufficient to meet local street needs. The referendum would give voters the choice to authorize a local sales- and service-tax increase directed toward roads and sidewalks; if approved, the city could use revenue and/or seek bonds to accelerate projects.
What’s next: The county clerk will be asked to place the question on the March 19, 2024 ballot and the city will conduct outreach to explain the proposal and project priorities.
