The tax, which would be applicable to most purchases, excluding food, groceries, prescription drugs, titled property (cars, mobile homes), would go into effect July 1, and is expected to generate generate $5.4 million in additional revenue for the Village. Trustees Feb. 18 approved an ordinance giving it preliminary approval, with final approval expected March 4.
"The new Home Rule Sales Tax, which will grow proportionally with inflation, will help stabilize the property tax base," said Mayor Ed Zabrocki. "This new tax is the most fiscally responsible way to generate new revenue streams for the Village without having to raise property taxes."
Monies brought in from the tax will be used to fund Emerald Ash Borer removal and replacement, street repairs, and inflationary expense increases. The biggest appeal for Trustee Greg Hannon, though, is the shift in the Village's dependence on property taxes.
"We believe our reliance on property taxes will go down to 36 percent, instead of 42 percent," Hannon said. "The part of it that got me going is that we're going to be less reliant on property taxes."
The tax is projected to cost the average household $123 annually. It bumps the sales tax in the Cook County portion of Tinley Park to 8.75 percent; 7.75 percent in Will County areas. Roughly half of the projected revenue is expected to come from residents, the other half from nonresidents who shop in Tinley Park, according to village officials.The tax is expected to be ongoing for the foreseeable future, but can be adjusted over time as circumstances warrant.
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