Geneva drops sales tax hike push, will pursue dining tax instead
Geneva voters won't be asked to increase the city's sales tax after all.
Aldermen reversed themselves Monday, voting unanimously against an ordinance that would have put the question on the April ballot.
A week earlier, they had voted 9-1 to seek a one-half percentage point increase in the sales tax, bringing it up to 8 percent, the same as Batavia's. St. Charles' is 7.5 percent.
Alderman Tom Simonian said he changed his mind after speaking to representatives of the Geneva Library board and learning that board plans to conduct a referendum in April. The library will be asking for money to construct a new building, President Bob Shiffler told the council.
"It's difficult enough to swallow one (tax increase)," Simonian said, of the likelihood voters would approve both requests.
The sales tax increase would have applied to general merchandise, not to food. It would have lasted through December 2020.
Instead of the sales tax increase the council voted 9-1 to have the city staff write up an ordinance implementing a places-for-eating tax.
City officials estimated earlier this year that a 2 percent tax on food and beverages at restaurants could generate $500,000 annually.
Simonian said if the city implements such a tax, he wants the money earmarked for special expenditures, not routine purchases or day-to-day operations.
Several other suburbs recently enacted places-for-eating taxes, including Lombard and Libertyville.