Non-Home Rule Sales Tax

Update: On November 8, Western Springs residents voted on the referendum question regarding the 1% non-home rule infrastructure sales tax.  A total of 6,510 ballots were received, and the referendum did not pass with 53.58% (3,326) “No” votes vs. 46.42% (2,882) “Yes” votes.  The Village will continue to explore funding options and opportunities to address its infrastructure needs.

Overview:

The Village of Western Springs is a non-home rule municipality. The non-home rule sales tax is a local sales tax that can be enacted by non-home rule communities if approved by a referendum.  The non-home rule sales tax can add up to an additional 1% to the sales tax rate.  The additional tax is applied to tangible goods (excluding personal property that is registered with an Illinois state agency such as cars, trucks, snowmobiles) and prepared food purchases made within the Village, and does not apply to the sale of groceries, prescription/non-prescription drugs, and medical appliances.

Current infrastructure funding sources from the General Obligation Bonds, Series 2021, will be depleted by the FY 2024 construction season.  The need for continuous infrastructure improvements and/or replacements will not be met without additional new revenue sources.  Without new sources of revenue, the Village’s ability to fulfill its commitment to maintain the infrastructure is reduced to approximately ~20% of the required work. This shortfall each year limits the  maintenance and reconstruction progress and shifts the approach to reacting to urgent issues rather than proactively advancing capital projects.  Over time, the capital projects list has lengthened. To fully address critical capital needs, the Village must consider additional consistent funding sources. 

Tax dollars collected through this 1% sales tax would be dedicated to funding the Village’s infrastructure capital needs. The additional proposed tax is a complement to the existing 1% sales tax the Village currently collects, increasing the overall sales tax rate from 9% (1% distributed to the Village) to 10% (2% distributed to the Village). This tax revenue, along with a variety of other sources, would help fund some of the cost of infrastructure projects and could be used to service the debt incurred for any future bonds issued (also if approved by referendum) for this purpose. Other funding sources for Village infrastructure projects include bonds, grants, loans, and other municipal financing. 

 If approved by referendum, the 1% non-home rule sales tax would be added to merchandise sold in the Village and would be paid by all shoppers, including non-residents. Consumers already pay this additional tax when shopping in many neighboring communities.  

The Village remains committed to implementing required infrastructure and capital improvement projects, and to finding consistent and sustainable funding options.

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