Geneva may ask voters in November about sales tax hike
Geneva aldermen may ask voters in November to raise the city's sales tax by one-half of a percentage point.
Wednesday night, they informally directed the city administrator to prepare the necessary resolution for an Aug. 8 city council vote, and they debated whether to postpone a referendum until April. If a sales tax increase is approved in November or in April, it doesn't matter, according to City Administrator Stephanie Dawkins, because the Illinois Revenue Department would not begin collecting it for the city until mid-2017.
Aldermen speculated that waiting until April could be beneficial to the city because there may be fewer voters at the polls than in November, due to the presidential election.
But the Geneva Public Library may also have a referendum on the April ballot, seeking to borrow money to build a new library, according to library officials. Mayor Kevin Burns said having a city tax question on that ballot could hurt the library's chances for approval, and Alderman Tom Simonian pointed out the library question could hurt the city's chances.
A sales-tax increase would not apply to most groceries, medicines and some medical-care supplies and goods. It also would not apply to titled personal property, like vehicles. It would apply to general merchandise and high-tax food items, as well as restaurant bills.
The proposed increase would make Geneva's tax rate 8 percent, the same as Batavia's. St. Charles is 7.5 percent.
Several alderman, including Richard Marks, worried about a short time to discuss a sales-tax increase with voters before November.
What seems to be mollifying other aldermen, however, is the prospect that the council has another option if a sales-tax increase is not approved - and it does not require residents' approval.
It could institute a places-for-eating tax anytime it wants.
Aldermen first discussed increasing sales tax and the places-for-eating tax during a budget workshop in February.
At that time, city administrators estimated charging a 2-percent tax would raise a minimum of $500,000 a year.
St. Charles and Batavia are allowed to have liquor taxes because they have home-rule power, unlike Geneva.