Sales tax increase not causing stir in Kildeer
With only two shopping malls filled largely with chain stores and less than a dozen other businesses scattered throughout it's 3.5 square miles, it's safe to say Kildeer doesn't have a big business community.
That may be one reason why an active movement for or against a proposed sales tax increase of 0.5 percentage points, which voters will rule on in the March election, still hasn't spawned.
“Kildeer is rather small,” said village administrator Michael Talbett. “I haven't heard of anyone who's opposed to this.”
Talbett said the village trustees have started meeting with homeowners' associations to talk about the merits of the referendum, which would bring the village's sales tax on items such as clothing, restaurant food and household goods up to 7.5 percent.
Overall, business owners are not expressing much concern over the potential tax increase, and they say they haven't heard customers talk much about the referendum.
Cathi Volante, owner of Couture Cupcakes, said the current sales tax rate in Kildeer “didn't play a part at all” in her decision to open up her new shop in the Quentin Collection, a shopping mall near the corner of Rand and Quentin Roads.
“We just really like the area and the neighborhood,” she said.
She said if the referendum passes she doesn't think a higher sales tax rate will have a negative affect on her business.
“A half a percent is really trivial,” she said. “If they were going up significantly around the area then I'd be concerned.”
She added that while she is “never in favor of a tax hike that will cost my customers more” she would “leave (the decision to increase it) up to taxpayers.”
Talbett said the village “can't urge (residents to vote) one way or another,” and that distributing a fact sheet on the referendum is “the extent of the village's campaign.” By law, public bodies aren't allowed to electioneer for or against an issue.
The extra $500,000 the village says it could gain annually if the referendum is passed is slated to be used for behind schedule road resurfacing and restructuring, and to keep street maintenance up to date.
John Wilen is owner of The Great Frame Up, a custom framing store that is also located in the Quentin Collection.
He said when choosing a location for his store about three and a half years ago he wanted to find a place in Lake County rather than Cook County, where the sales tax is significant higher.
“Any way to keep the cost down would definitely be beneficial,” Wilen said in response to the potential sales tax increase in Kildeer.
But overall he isn't very worried his business will be hurt by the referendum if it passes.
“Yes, there's always a little bit of concern (with raising taxes), but on the other hand, how many people notice?” he said. “It sounds like (if the increase passes) it just makes Kildeer competitive with some of the other villages.”
Jerry Seyffert is the chief financial officer of Erehwon Mountain Outfitters, which has a store located in the village's other shopping mall, Shops at Kildeer, near the intersection of Rand and Long Grove Roads. He said he was not aware of the referendum but also said he didn't think it “would have a big impact” on his business.
Seyffert said he opened the store in Kildeer more than 10 years ago strictly because of the demographics, and like Wilen, concluded that even if the sales tax is increased it would still be a competitive rate for the area.
Officials from nearby Lake Zurich and Long Grove confirmed their sales tax rates are at 7.5 percent and 8.0 percent, respectively.
Neighboring Deer Park has a 7.25 percent sales tax, which means it would a quarter percentage point less than Kildeer if the increase passes on March 20.
Deer Park went through a similar referendum in 2010, when residents voted 654 to 332 in favor of raising the share of local sales tax by 0.25 percentage points. That increase was said to bring in about $400,000 more per year, and the village is using the money toward $11 million in road repairs.