Sales Tax Referendum
On March 20, 2018, the Village of Flossmoor will ask voters whether to approve a 1% local sales tax that would be equivalent to a penny per dollar on general merchandise at retailers within the Village. It does not apply to the sale of most food, prescription and non-prescription drugs, and medical appliances. The sales tax is known as a Non-Home Rule Sales Tax.
As a non-home rule government, the Village is required to obtain voter approval to implement this local sales tax. If approved, an ordinance imposing the tax would be adopted and the sales tax would go into effect in July of 2018. It will generate approximately $550,000 annually.
The 1% sales tax will generate revenue needed to help stabilize the Village’s finances for the future. The Village’s $11.4 million General Fund budget funds the provision of the day-to-day services upon which residents and businesses depend, such as Police, Fire and Public Works. The Village has also been working for many years to improve an aged infrastructure and additional improvements are needed including streets, sidewalks, water main and sewer improvements. As a small, non-home rule community, the Village’s revenues are limited, and many Illinois municipalities are seeing that their once-dependable revenues are either flat or declining. A major revenue source, the state-shared income tax, has been reduced by 10% by the State of Illinois and continues to be under threat by the State.
The Board’s top priority is maintaining its fiscal capacity to provide high quality services. The strategic plan adopted in fall of 2017 identified financial health as a critical issue facing the Village. Community feedback in surveys and in public meetings showed that residents are most concerned about property taxes, but also place a high priority on fixing the Village’s infrastructure, maintaining the condition of the village, police visibility and patrol, and fire and emergency response. The increased sales tax will help the Village capitalize on the recent Meijer-anchored economic development in the southwest area of Flossmoor, which attracts a significant portion of customers from outside Flossmoor. During its strategic planning discussions, the Village Board was sensitive to placing financial stress on our residents, recognized that this tax would be shared with a large non-resident population, and therefore, supported this revenue option above others.
The ballot question is as follows:
“Shall the Village of Flossmoor, Cook County, Illinois, impose a 1% Non-Home Rule Municipal Retailers’ Occupation Tax and a Non-Home Rule Municipal Service Occupation Tax (commonly known as local sales tax) for expenditure on Property Tax Relief, Public Infrastructure and Municipal Operations in accordance with the provisions of Sections 8-11-1.1 through 8-11-1.4 of the Illinois Municipal Code (65 ILCS 5/8-11-1.1 through 65 ILCS 5/8-11-1.4)?”
Find answers to frequently asked questions here.
Find the press release regarding the Board's approval of the question here.