Freeport considering 1% sales tax hike. Here's why
Freeport Ald. Cecelia Stacy doesn't question city roads are in need of repair, but she does question if now is the time to raise taxes to fix them.
"I just think that with the water bill rising this month, I'm not for it," she said. "I just think it is wrong to put this on the people."
City Council members are expected to vote this month whether or not to increase the city's sales tax from 1.25% to 2.25%.
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The 1% tax is expected to generate about $3.5 million per year making it a viable revenue stream to help repair the city's aging infrastructure.
Officials said the city's Motor Fuel Tax, which is also used to repair roads, has decreased by almost 15% in the first half of 2023 due in part to a proliferation of hybrid and EV vehicles.
In an August memo addressed to the mayor and city council, City Manager Rob Boyer said the money would help the city restore 139 miles of road to a 25-year replacement schedule.
He said the money would go toward paving materials, manpower, curb and gutter, American with Disabilities Act-approved ramps, contracted paving work and utility improvements such as water mains, sanitary lining and manhole rehabilitation.
Still, Stacy said she opposes the tax increase particularly after learning the city is considering housing its police department in a new police station and may need to raise taxes to do so.
Joining Stacy in opposition to the tax is the Stephenson County Republican Central Committee.
In a statement sent to the Freeport Journal-Standard, State Sen. Andrew Chesney, the committee's chairperson, said the proposed increase would make Freeport's sales tax rate one of the highest in the state.
“While northwest Illinois is struggling with high inflation, high interest rates, and the high cost of gas, the burden is too great to expect the taxpayers to pay more," Chesney said. "Right now, government at all levels should be focused on tax relief, not tax increases."
Ald. Tom Klemm said if the city is to generate a sustainable revenue stream, it has no choice but to increase the sales tax.
"Everybody, as we all know, is opposed to taxes," he said. "No ifs, ands or buts about that, but our number one problem is roads. So, if you want to solve them, you're going to have to do something to get the money to it."
He said Freeport is trying to do what many other communities such as Rockford, Loves Park and Machesney Park, have already successfully done, which is collect a 1% sales tax for road maintenance.
"The sales tax will affect the least amount of people because people come from out of town to drive on our roads to buy stuff here," he said. "They'll pay the sales tax, too. And the tax doesn't go on everything. It doesn't go on medication, groceries, cars. So, this is the most effective away."
Unlike other communities, Freeport is a home rule municipality and can implement the tax without a referendum.
The pending sales tax was expected to be discussed at Monday's Committee of the Whole meeting and could be up for passage at the Sept. 18 City Council meeting.
If approved, the tax would go into effect immediately and the city would begin receiving funds in April.
Chris Green: 815-987-1241; cgreen@rrstar.com; @chrisfgreen
This article originally appeared on Rockford Register Star: Some Freeport officials say its time to raise city's sales tax rate
