Wheaton considers sales tax changes

Wheaton officials someday would like to repeal a half-cent-on-the-dollar sales tax increase that took effect last year.

It just doesn't look like that day is going to be in December.

With Wheaton continuing to face financial challenges similar to the ones that prompted the city to boost its share of the sales tax from .5 percent to 1 percent, council members are expected to remove or push back the tax increase's Dec. 31, 2010, expiration date.

The council originally established the deadline for repealing the sales tax increase when Wheaton's total sales tax went from 7.75 percent to 8.25 percent.

"The reality is if we repealed that today, it would result in a dramatic reduction in city services or higher property tax rates," said Councilman Phil Suess, who was the council's lone objector when the sales tax hike was approved in September 2008.

Suess said he opposed raising the tax because he thought it was a bad idea to impose extra costs on business owners.

Now Suess concedes the sales tax is a needed source of revenue. The increase - which took effect Jan. 1, 2009 - generated about $1.65 million last year for the city.

"These revenues are certainly critical to having a balanced budget," City Manager Don Rose said.

In order to avoid a $1.5 million budget shortfall, city officials increased the local taxes on electricity and natural gas and, in January, eliminated 17 staff positions.

While the city needs the revenue now, Mayor Michael Gresk said the council could vote to lower the sales tax later when finances improve.

That's why the mayor is suggesting the expiration date be moved to December 2012.

"You could always bring it up for discussion," Gresk said. "But this (keeping an expiration date) will legally bring it up."

A vote on the proposed amendment to the sales tax is scheduled for May 17.