Loves Park city leaders consider a sales tax increase they say could generate $1.1 million in revenue each year. City staff members want to increase sales tax by one percentage point, from 7.25% to 8.25%. Voters will have the final say, but first, the issue needs to make it to the ballot.
"The city's looking at funding some road improvements through an added sales tax and they're going to put that on for referendum most likely for next year." -says City of Loves Park Attorney Gino Galluzzo.
If voters approve the referendum, city leaders say you'll see this tax hike at places like bars and restaurants and on items like fuel, but some purchases are left alone.
"The 1% would not be applicable to groceries, prescription medication, titled vehicles and there's a list of other things that it would not apply to." -Galluzzo explains.
The resolution that was up for discussion in Monday night's committee meeting has been tabled for now.
"Committee decided that it wants to have more time to consider what type of sunset provision they'd like to see on that." -Galluzzo says.
Supporters say the increase takes some of the burden off Loves Park residents.
"The City of Loves Park does not have a property tax component on people's real estate tax bills, so we fund things through sales tax and through local shared tax revenues come from the state, so I think the consensus is that we'd rather see property tax at a 0 and instead see the sales tax go into effect, which would be paid a lot by people coming into our city and use those dollars for our road improvements." -Galluzzo adds.
Galluzzo says aldermen should bring this issue back up in committee next month. He says they need to pass the resolution for the referendum out of full council by the end of December in order to put it on the March 18th, 2014 ballot.
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