Deer Park voters to decide on request to boost sales tax for infrastructure
Deer Park voters will decide March 20 whether the village should collect more local sales tax to help pay for stormwater drainage improvements and other infrastructure projects.
If the ballot measure is approved, the village's portion of the sales tax rate would increase on July 1 by a quarter percentage point, to a half percent, meaning it would cost a consumer an extra 25 cents for every $100 purchased, excluding pharmaceutics, qualified groceries and vehicles. Deer Park's overall sales tax rate would become 7.5 percent.
About $400,000 in extra annual revenue is expected if the sales tax rate is raised, which would help pay for drainage, street resurfacing and other infrastructure needs, officials said. Fifteen projects in the public right of way that would cost an estimated $2.3 million were identified in the village's first stormwater plan commissioned in 2017.
"The additional funds will be generated by Deer Park shoppers, not just Deer Park residents, and they will be dedicated to infrastructure improvement projects," Village President Dale Sands told residents in a letter.
Village Administrator Beth McAndrews said officials hosted a presentation for residents and others on the referendum question. She said there has been no objection from main sales tax generators, including Deer Park Town Center and Town Center Promenade.
If Deer Park's total sales tax rate moves from 7.25 percent to 7.5 percent, the village would be the same as or below other area suburbs. Village research shows Kildeer and Lake Zurich are at 7.5 percent, South Barrington 10 percent, Schaumburg 10 percent and Palatine 10 percent.
Barrington's overall sales tax is 9 percent on the Cook County side and 7 percent in Lake County. Long Grove's sales tax is 9 percent in its business district and 8 percent elsewhere.
Deer Park over the past nine months has received $2.3 million in revenue, with 56 percent coming from local sales tax, according to the village presentation. Deer Park officials stress the village does not levy a property tax, unlike most other towns.
Voters approved an identical quarter percentage point sales tax increase in 2010.