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.
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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.
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