Fox River Grove sales tax hike may not face challenge

Success rates for referendums involving tax increases were split across the Northwest suburbs in Tuesday's election and none were closer than in Fox River Grove where voters approved a sales tax increase by a margin of just two votes.

The ballot measure sure, which was approved by 460 to 458 votes, will allow the village to increase its sales tax rate to 7.25 percent from 7 percent. That means for every $100 a shopper spends in the village, the tax will increase 25 cents.

The tax does not apply to food and drugs.

The village will now collect 1.25 of that 7.25 percent to complete infrastructure improvements downtown, from water mains to sidewalks. Village officials said the increase will generate about $100,000 each year.

Fox River Grove Village President Robert Nunamaker said the key to getting the increase approved was communication. The village held an informational session and posted information on the village website. He said the results of the election would be official in two weeks and that the village is not anticipating a recount or challenge of the numbers.

“There was a lot of communication from village trustees and community groups about it,” Nunamaker said. “It was taken as an investment in the community, a priming the pump. We spend a little bit of money on redevelopment downtown and that will bring in new development.”

While the village has a robust commercial area near the intersection of routes 14 and 22, Nunamaker said, the village's old town center across from the railroad station has fallen into neglect. The village recently approved a tax increment financing (TIF) district to help spur development in the area. In a TIF District, property tax rates remain frozen for up to 23 years as far as local taxing bodies go. As property values rise, the additional taxes collected are funneled into improvements in the area, rather than sent to local taxing bodies.

To accommodate the potential new businesses, the village needs to make improvements to the water delivery system, storm and sewers systems, sidewalks and street lighting, Nunamaker said.