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Trustees debate replacing state grocery tax with local sales-tax option; estimate $10K–$15K annual revenue
Summary
Attorney Rolland Cross said a local sales-tax replacement must be adopted in 0.25% increments; Treasurer Mindy Olson said the state change is procedural and not a new consumer tax, while trustees weighed the optics and necessity of adopting up to a 1% local rate.
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Attorney Rolland Cross told trustees that any local sales-tax implementation intended to replace the grocery-tax facilitation would need to be adopted in quarter-percent steps. "You can only implement the tax is .25% increments," he said, describing the Department of Revenue's administration and the mechanics trustees must follow.
Treasurer Mindy Olson said the state budget removed the grocery tax and that municipalities must implement a local replacement to preserve revenue streams for local services; she estimated the Village would receive "$10-$15K a year" from the change and stressed "it is not a new tax that people are going to experience. It is a change in how it is facilitated." Trustee J.W. Coleman questioned the optics and impact on residents, noting broad state and local tax burdens and saying he is even "looking at homes in Missouri because of the tax burden in Illinois." No formal ordinance or final percent was adopted at the meeting; trustees agreed to continue discussion and consider timing for any local implementation.
