McHenry County Board to decide whether to put tax hike on ballot

McHenry County voters could decide in March whether to hike the county’s sale tax to change how local mental health services are funded.

The county board is expected to vote Tuesday on placing a referendum on the March 19 primary ballot that, if approved, would allow a 0.25% retail sales tax increase. The proposed tax hike would fund the McHenry County Mental Health Board, shifting away from a property tax.

Board members weighed in last week on the proposal.

Theresa Meshes, a Democrat from Fox River Grove, had concerns with the timing of the vote, saying she supports placing the measure on the November 2024 ballot instead.

“I’m not convinced this is ... a better way to tax over property tax,” she added.

The McHenry County Mental Health Board has thrown its support behind the proposal – which would shift much of the board’s funding from property taxes to the sales tax.

County board member Terri Greeno, a Crystal Lake Republican, asked whether officials would make sure people knew the tax wouldn’t apply to food or medicine. Greeno also wants to avoid double taxing, mentioning the gas tax increase the board enacted in September and subsequent property tax levy increase.

“We want to make absolutely certain that the mental health board has the funding that it needs and doesn’t also have a levy tax on top of it,” Greeno said.

Lou Ness, a Democrat from Woodstock, agreed with Meshes that it is too soon for the referendum. Ness said she supports the tax but stressed that educating voters is important.

“This money would really only stabilize existing services,” Ness added.

County Board Chair Mike Buehler called the sales tax proposal a “win-win for everybody.”

“We owe it to the taxpayers to have a significant reduction in the county’s portion of the property tax,” the Crystal Lake Republican said.

According to proposed language included in county documents, the ballot question would make clear that the property tax levy for the mental health board would go away if the sales tax increase passes.

The proposed ballot wording also outlines how much a consumer would pay in tax, saying for every $100 of retail spending, the extra tax would be 25 cents.

If a referendum is approved in March, the increased sales tax would kick in July 1.