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 If Illinois shoppers are
experiencing sticker shock in store checkout lines, it’s because dozens of
Illinois taxing districts across the state passed sales tax increases that took
effect July 1. Twelve counties, 20 municipalities and 20 business districts
within 15 cities have hiked their rates, according to the Illinois Department of
Revenue.
Coles, Cumberland, Edgar, Iroquois, Jackson, Lee, Macon, McDonough, Montgomery,
Peoria, Rock Island and Wabash counties have all passed sales tax rate increases
effective as of July 1. The county rate increases range from 0.25 percent in
Iroquois and Macon counties, to 1.5 percent in Lee County.
Among the municipalities that will
see increased sales tax rates, the part of Sandwich that lies within DeKalb
County has the relatively greatest increase in its combined sales tax rate,
rising to 7.25 percent from 6.25 percent, a 16 percent increase. Olympia Fields
and Orland Hills, both in Cook County, will have new combined sales tax rates of
10 percent.
Some of the business districts are
strikingly narrow. Fox River Grove in McHenry County will charge an extra 1
percent sales tax to customers of a new banquet hall. The Avante Banquets and
Conference Center is the only building within the newly created business
district.
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Illinoisans already suffer under the highest
combined sales tax rate in the Midwest, and residents are also
forced to pay sky-high property taxes, both of which contribute to
one of the heaviest tax burdens in the nation. And with the 32
percent income tax hike just enacted by the Illinois General
Assembly, that burden will only grow heavier.
Through local sales tax hikes, officials are pushing policy in the
wrong direction. Polling from the Paul Simon Public Policy Institute
lists Illinois’ high taxes as the primary reason people want to
leave the state. And people are leaving – at a quickening pace in
some areas of Illinois such as Cook County.
Illinois taxpayers need relief, and local governments are missing an
opportunity to compete for more residents and businesses if they
continue to follow the state’s trend of ever-higher taxes.
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