Elmhurst Sales Tax Income Beats Expectations: City

ELMHURST, IL – Elmhurst expects to receive $15.1 million in sales tax income this year, about 10 percent higher than was budgeted.

The increase is driven by a positive economy and inflation, the city's finance director, Christina Coyle, said in a memo this week.

Another factor is that car sales stabilized this year, reducing the drag that the sector placed on sales taxes in 2022 because of inventory shortages, Coyle said.

The city is projecting $15.1 million in sales taxes in 2024.

"Staff feels that this is a conservative estimate, rather than projecting an increase which is uncertain to occur," Coyle said. "While price inflation could continue to increase sales taxes, the pressure put on consumer spending by the increased prices may decrease overall purchases."

A separate tax, known as the "home rule sales tax," is projected to generate $8.3 million this year, nearly $600,000 more than budgeted. This tax is not charged to cars and most grocery items.