Fox River Grove announces tax reductions for residents

Fox River Grove will lower its electricity surcharge and cable television taxes for residents after passing a 1% sales tax.

Village trustees have approved a measure reducing the electricity surcharge tax from 3% to 1%. The reduction is estimated to save residents and businesses $50,000 annually, according to a news release from the village.

The reduction comes after trustees voted to enact a 1% non-home-rule sales tax last month. In August, the board also approved the continuation of the 1% grocery tax once the statewide tax sunsets at the end of this year.

The idea is that adding a sales tax — which is applied to anyone shopping in Fox River Grove — can lessen the burden for taxes that apply exclusively to residents and businesses within the village.

The new sales taxes will go into effect Jan. 1. It does not apply to groceries, prescription drugs, certain medical devices or vehicles, according to Fox River Grove village documents.

The village board also approved a measure this month to drop the local cable TV franchise fee from 5% to 1%, which is expected to save $45,000 per year for residents and businesses. The telecommunications tax will also be reduced from 6% to 1% starting Jan. 1.