West Dundee will take tax question to voters

West Dundee voters will decide Nov. 4 the fate of a proposed real estate transfer tax aimed at offsetting anticipated budget shortfalls, village trustees decided this week.

The question will ask voters whether village should impose a new tax on the purchaser of a home or commercial property in West Dundee.

The tax would be set at $5 per $1,000 of the property's sale price, meaning the buyer of a $250,000 home would pay $1,250.

Village officials say the tax would recover part of the village's anticipated $350,000 budget shortfall created by dwindling sales tax revenue and development inactivity.

Over the last five years, village revenues from commercial and residential development have tumbled almost half a million dollars per year, said Village Manager Joe Cavallaro.

Cavallaro said general sales tax revenues also fell from a high of $3.5 million in 2002 to $2.92 million for the 2007-2008 fiscal year. If voters support the measure, village staff estimate the real estate transfer tax would generate about $200,000 annually.

Though other options were floated, such as increased property taxes, food and beverage taxes and a refuse collection fee, village officials considered the real estate transfer tax the most fair.

Trustee Joe Motyl said over the years existing residents have paid for the village's infrastructure and those moving into the village should also pay a fee to utilize the facilities and services already in place.

Since the village is a home-rule community, the real estate tax is the only increase officials discussed that requires voter approval to enact.