Sales tax in Deer Park may stay 8% for a while longer

Empowered by a change in state law, Deer Park officials are considering leaving the overall sales tax on goods purchased in town at 8% until 2031 rather than letting it drop to 7.5% in two years.

Voters approved a temporary half-percentage-point sales tax increase in 2021 and renewed it for four years in 2024 as it was set to expire.

The tax initially was proposed to offset some of the economic damage created by the COVID-19 pandemic. Deer Park doesn’t assess a municipal property tax, so sales taxes are its largest source of revenue.

The tax generates 50 cents for every $100 spent, which resulted in more than $900,000 of extra revenue for Deer Park last year, Village Administrator Beth McAndrews said.

The tax now is set to expire in 2028.

Deer Park isn’t a home-rule community and thus is more limited than other villages and cities when it comes to self-governance. But, as part of the 2024 state law that eliminated the state grocery tax starting this month, Deer Park now is allowed to implement a municipal sales tax without going to voters, McAndrews said.

If the board votes in favor of the proposal, the tax would remain active until at least Jan. 1, 2031.

“It will remain consistent,” McAndrews said.

The change in state law also gives village officials more flexibility in how they can use the funds, McAndrews said. No changes are expected, however.

The village board will meet Thursday night to discuss the plan. The session will begin at 7 p.m. at the Vehe Barn, 23570 W. Cuba Road.