LeClercq: smaller Home Rule sales tax hike suggested : News : Oswego Ledger-Sentinel : Hometown Newspaper for Oswego and Montgomery, Illinois
LeClercq: smaller Home Rule sales tax hike suggested
Oswego village president says officials will not consider a full one percent increase
by John Etheredge
Oswego Village President Brian LeClercq said Tuesday evening village staff has asked the village board to consider either a one-quarter or one half of a percent increase in the village's Home Rule sales tax to help pay for the village's annual street maintenance program.
The village's current Home Rule sales tax is .50 percent and was approved by the board 2010.
The passage of the Home Rule sales tax four years served to increase the village's total current sales tax from 7.25 percent to its current 7.75 percent.
LeClercq said a report in last week's Ledger-Sentinel that village staff had proposed a full one percent increase in the village's Home Rule portion of the sales tax was incorrect.
He noted that a full one percent increase in the Home Rule sales tax would put the village's total sales tax percent at 8.75 percent-higher than the 8.25 percent charged in neighboring Aurora and Yorkville.
"People called and said 'Way to go Oswego, you're going to have the highest sales tax rate around'-but we aren't proposing that and we don't want to do that," he said.
A one-quarter of a percent increase in Home Rule sales tax suggested by village staff would serve to increase the village's 7.75 percent sales tax to eight percent, while a .50 percent would serve to increase it to 8.25 percent-the same as Aurora and Yorkville.
But whether or not the village board will use its Home Rule authority and vote to increase the sales tax remains uncertain. During a committee meeting Tuesday evening, board members continued their discussions on the funding of the village's street maintenance and Capital Improvement Program (CIP) as they reviewed the village's proposed 2014-15 fiscal year budget with village staff. (The budget can be viewed on the village's website at oswegoil.org)
The board is expected to adopt the budget later this month, prior to the start of the new fiscal year May 1.
Mark Horton, the village's finance director, told the board last month he believes increasing the village's Home Rule sales tax "would be a logical choice" to provide the additional funds the village requires to maintain local streets.
Horton noted that a study completed for the village last year found that 51 percent of all the sales taxes paid in the village are paid by people who live outside of the village.