Alton voters to decide on sales tax hike at the ballot box

Madison County voters have rejected a proposed 1 percent sales tax hike twice before. Will the third time be a charm?

Alton residents and voters across Madison County, Illinois will decide March 20 if they want to raise their sales tax 1 percent via the County Schools Facility Sales Tax, or CSFT.

The General Assembly passed a law in 2007 that allows local school districts to place a 1 percent sales tax hike proposal on local ballots, the revenue from which would flow to school facilities projects. Since then, about 70 counties across the state have had a question on whether to adopt the CSFT on their ballot. Madison County voters rejected the tax in 2011 and 2017. However, 2011’s margin of 81 to 19 percent not in favor became close by 2017, when 50.3 percent voted no and 49.7 percent voted yes.

If the majority votes yes on March 20, the sales tax will be raised 1 percentage point in Madison County. For Alton, that means shoppers will be charged an 8.85 percent sales tax compared to the current 7.85 percent. However, shoppers in the Alton Square Business District would see even higher rates, with sales taxes rising to 9.85 percent from 8.85 percent for shoppers at the Alton Square Mall.

Other cities in Madison County will reach sales tax rates of over 10 percent in some areas. Collinsville would see its general sales tax rate increase to 9.1 percent, but shoppers in seven local business districts would see a 10.1 percent sales tax, which rivals Chicago.

Two business districts in Granite City would also see their rates raised enough to rival the Windy City. The Nameoki Village Business District would see a 10.1 percent sales tax and the Bellemore Village Business District would see a 10.35 percent sales tax, should the proposal pass.

Chicago’s combined sales tax rate is currently 10.25 percent, which is tied with Long Beach, California for the title of highest sales tax in the nation among major cities.

Regardless of how voters fall on the sales tax hike referendum, services and items not already taxed will continue to not be taxed. These include cars, trucks, unprepared food and groceries, medications, and farm equipment. All of the revenue generated from the tax would flow exclusively to “school facility purposes” in Madison County.

Some proponents of these sales tax hike referendums have claimed it will reduce pressure on property tax bills.

However, other counties have voted yes on CSFT, but have yet to see a reduction in property taxes. In 2009, 13 school districts in Champaign passed the tax. Only one of them saw lower property taxes within the next five years.

March 20 will be an interesting day for sales taxes in other counties as well, such as Vermilion, where voters will also see the question on their ballots.