Arlington Heights approves village tax hike

With no real protest from residents or businesses, the Arlington Heights village board approved increasing the sales tax rate by one-quarter of a percentage point Monday night, bringing the total sales tax in the village to 10 percent starting next year.

The increase will go into effect Jan. 1 and will raise only $500,000 toward the expected $6 million deficit in the current fiscal year's budget, which runs through April 30, village officials said. Proposals for more revenue and service cuts are expected yet this fall.

The real problem for local businesses is the difference in sales taxes in Cook and Lake counties, exasperated by the 1-percentage-point increase at the Cook County level last year, said David Becker, president of the Arlington Heights Chamber of Commerce.

Becker, owner of FASTSIGNS, said the quarter-point sales tax increase - bringing Arlington Heights' portion of the sales tax to an even 1 percent - will stay in Arlington Heights, while the 1-point Cook County increase "takes money out of our town and gives it to the county where we see little or no benefit."

Both he and Thomas W. Hayes, mayor pro tem, urged the state legislature to lower the number of members of the Cook County Board needed to override a veto by President Todd Stroger, who killed a partial repeal of the sales tax increase.

The Arlington Heights chamber polled its members about the local sales tax increase, and 70 percent of those responding opposed the increase, but there was not a large response, said Jon S. Ridler, executive director.

Connie Karavidas of Teddy's Liquors said Lake County is very close and the village will lose business. But she said what will cost businesses and hurt village tax revenue more is the proposed ordinance against liquor stores selling single-serving bottles. That matter is expected to be discussed by the village board again Oct. 12.

In Buffalo Grove, the sales tax for general merchandise is 8 percent in the Lake County portion of the village and 10 percent in Cook County. Long Grove, a Lake County community, is at 8 percent, and the Cook County towns of Palatine, Rolling Meadows and Mount Prospect all have 10 percent sales taxes.

Schaumburg and Rolling Meadows have sales taxes three-quarters of a percentage point higher for food and beverages than Arlington Heights does.

When all taxes and fees are considered, Arlington Heights is in the middle of 11 area communities surveyed, village Manager Bill Dixon said.