Lemont Approves Sales Tax Question For April Ballot

LEMONT, IL — Lemont voters will see three questions on the ballot in April, and one will be a binding referendum concerning a municipal sales tax. Since home rule was voted down on the November 2018 ballot, the village is now hoping to add a municipal sales tax of 1 percent to address a $1 million shortfall in the budget.

The village approved the municipal sales tax question at its Jan. 8 meeting. If approved, the tax would go into place on July 1. The binding question voters will see on the ballot is:

"Shall the Village of Lemont, Counties of Cook, Will, and DuPage, Illinois, impose a Non-Home Rule Municipal Retailers’ Occupation Tax and a Non-Home Rule Municipal Service Occupation Tax (commonly referred to as a “municipal sales tax”) at a rate of 1% for expenditures on public infrastructure or property tax relief in accordance with the provisions of Sections 8-11-1.3 and 8-11-1.4 of the Illinois Municipal Code (65 ILCS 5/8-11-1.3 and 65 ILCS 5/8-11-1.4)?"

In a letter on the village website, Mayor John Egofske said the budget shortfall will impact roads,alleys, utility systems and other capital projects. The $1 million shortfall is due to state shared and other revenue streams.

Egofske said the village has already reduced personnel and has deferred several capital improvement projects over the years.

"During the current fiscal year, we have further reduced personnel, reduced our road repair program and eliminated our general government capital equipment replacement program, all while continuing to pay down our debt," he said.

In the village board meeting on Jan. 8, village manager George Schaefer said several communities nearby also have implemented a similar tax. Bolingbrook has a 1 and a half percent "places to eat" tax.

Egofske said the first option to obtain needed revenue streams was the home rule referendum, which failed. Now, the village is presenting the municipal tax question. The 1 percent tax would be on most purchases in the village, excluding medicine and groceries.

If this question is voted down, Egofske said the village could ask to increase property taxes through a referendum, increase vehicle sticker prices or raise sewer/water rates.

"By focusing on an increased sales tax and not taxes borne 100 percent locally such as property taxes or significant increases in other local fees, we ensure non-village residents also contribute to the funding," Egofske said. "If the referendum in April is passed, the new revenue stream would provide enough revenue to plug our deficit without the need to drastically increase other local fees/taxes."

With the 1 percent sales tax, the village estimates that 50 percent of the tax burden would be on residents and 50 percent on non-village residents. If the sales tax question fails, 100 percent of the tax burden (either through property taxes or increase in rates) would be on residents, the village said.

The two non-binding questions, in which the village is just seeking feedback, are:

"Shall the Village of Lemont, in Counties of Cook, Will and DuPage,Illinois, dedicate resources to investment in its public infrastructure including but not limited to investment in its roads, alleys, paths and sidewalks?"

"Shall the Village of Lemont, in Counties of Cook, Will, and DuPage, Illinois, dedicate resources to investment in its public infrastructure including but not limited to investment in its water and sewer systems?"

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