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Friday, September 25, 2009 8:59 PM CDT
Coles school officials hear about sales tax
Champaign County voters approved referendum for 1-percent tax
By ROB STROUD, Staff Writer rstroud@jg-tc.com
ARTHUR — The area around North Prospect Avenue of Champaign is a retail hub that draws countless shoppers and diners.
After Jan. 1, each of the 14 school districts in Champaign County will start receiving a percentage of the sales tax revenue from purchases along North Prospect as well as other retail outlets in the county.
Champaign County voters approved a referendum in April calling for a 1-percent sales tax increase countywide with the goal of raising revenue earmarked for school facility projects and property tax relief within the individual school districts.
“How else can you get people from outside your county to pay for your school district,” said Jeff Suits, a member of the Prairieview-Ogden school district.
Suits and two other school officials from Champaign County shared their experiences with the 1-percent sales tax for schools during a panel discussion Thursday evening at the Illinois Association of School Boards’ Illini Division meeting in Arthur. Officials from Coles County school districts attended this panel discussion.
The Charleston, Mattoon and Oakland boards all have requested that the Coles County Board place a referendum on a 1-percent sales tax on the Feb. 2 primary election ballot. The resulting revenue would be distributed to the districts on an enrollment basis, and school officials have pledged to use part of the revenue for property tax relief.
Terry Green, president of the Mahomet-Seymour school board, said this district has pledged to use a third of its sales tax revenue for infrastructure projects, a third for the relief of debt from past infrastructure projects, and a third for property tax relief.
Green said Mahomet-Seymour has high property taxes, so the prospect for $200-$400 in property tax relief per year for some individual home owners was a good selling point for the referendum.
Suits said he is a farmer and knows that farmers want property tax relief, but added farmers will see the sales tax as just “another tax” if they do not understand it. He encouraged Coles County officials to note that the revenue does not go to salaries, but instead goes to creating a better working environment for teachers and students.
Mattoon school board member Bill Standerfer asked about voters’ concerns regarding what the school districts will do with the sales tax revenue earmarked for facility projects or debt relief for past projects once these tasks are completed.
Green said the unused sales tax revenue could be switched over to property tax relief, and Charleston financial consultant David Kuetemeyer added that other facility maintenance projects would come up over the years that would need funding.
Jane Quinlan, regional superintendent for Area 9, which includes Champaign County, said Iowa has a “sunset clause” for the expiration of sales taxes for schools, but Illinois does not. She said districts can establish citizen committees to monitor the use of the sales tax revenue and make sure the districts keep the pledges they have made.
“It’s a process and it does not end on election day,” Quinlan said.
The 1-percent sales tax for schools referendum requires approval by a majority of those voting on the question. Quinlan said the Champaign County referendum failed by a narrow margin of less than 300 votes in November during its first try at the ballot.
If a referendum is approved by voters, Quinlan said a county board can opt to not adopt the 1-percent sales tax increase or to adopt a smaller percentage increase. The county board also has the ability to reduce or eliminate the tax at any time, unless doing so would inhibit a school board’s ability to pay bonds backed by the tax revenue.
Contact Rob Stroud at rstroud@jg-tc.com or 238-6861.
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elbert wrote on Sep 26, 2009 9:33 AM:
According to Mr. Suits, How else can you get people from outside your county to pay for your school district? In other words, he wants someone else to pay for the things that he should be paying for. I suggest that is a major problem in the United States, wanting someone else to pay. If people and taxing agencies cant live within their means, they will go broke; and we are!
Second, I recall that Illinois promoted the lottery as a means of paying for schools with the implication that taxes would go down. What happened was that OUR government then spent the money that it saved from paying for schools on other things and the cost of government did not go down.
Finally, there appears to be no sunset provision on this proposed tax like there is in Iowa. I conclude that means that my grandchild will still be paying the tax when he is as old as I am.
Thus, because, we want someone else to pay our bill, because there is no assurance that other taxes will be reduced and there is no assurance of a sunset provision, I think this is a bad proposal. "