At the dawn of 2000, many Illinois counties and cities are now wielding new taxing powers that are likely to make the sales tax the fund-raiser of choice for building projects. Throughout the 1990s, communities with limited revenue sources looked to sales taxes as a reliable money maker when property tax increases looked doubtful and utility taxes were coolly received. The law allows taxes to increase by either 0.5 percent or 0.25 percent. A binding referendum would be required. The earliest any sales taxes could increased would be Jan. 1, 2002.
Sales taxes are more stable.
Property taxes rise steadily year after year, in part, because they are paid by a smaller group of taxpayers. Sales taxes are implemented at a specified level and stay there. A number of other area mayors backed the bill, including Arcola Mayor Linda Fishel, Mahomet Mayor Jeff Courson, Tuscola Mayor Dan Kleiss, Villa Grove Mayor Ron Hunt and St. Joseph Mayor B.J. Hackler. The tax wouldn't cover groceries, prescription drugs or titled vehicles. In 1997, Champaign County played the leading role in urging lawmakers to give counties of less than 180,000 residents the power to enact a quarter-cent sales tax for public safety needs, provided that voters approved the new tax in a vote.