Galesburg passes increased sales tax

GALESBURG, Unwell. (KWQC) – In a good 4 to 3 vote, the Galesburg Metropolis Council authorized a brand new gross sales tax to fund infrastructure and a brand new group heart on Monday.

Council chambers, as soon as once more full of residents talking their minds on a .25% improve in gross sales tax. This strikes the home-rule gross sales tax within the metropolis from 1% to 1.25%.

The full city-wide gross sales tax will now go as much as 9% and 11% for bars and eating places.

Some residents felt 1 / 4 for each $100 spent is value it for metropolis enhancements.

“I say sure to the group heart, and to the tax,” one resident mentioned.

Nevertheless, others felt this was purely political.

“The aggressive push for this group heart is solely pushed to fulfill marketing campaign guarantees,” one other resident mentioned.

Placing Galesburg’s new gross sales tax into context, down I-74 in a barely smaller metropolis, East Peoria’s gross sales tax ranges from 8.5% to 9.5% relying on the gross sales district.

Within the Metro Quad Cities, East Moline has a 7.75% gross sales tax. In the meantime, Moline and Rock Island have an 8.5% gross sales tax.

The brand new tax is predicted to herald $950 thousand yearly,

Galesburg Mayor Peter Schwartzman mentioned the town council will now have to find out how one can break up that income between infrastructure and a brand new group heart.

“We are going to start planning … how one can handle these two points instantly,” Schwartzman mentioned. “That’s essential as a result of it’s clearly necessary within the minds of the residents and residents of our group.”

Opposing metropolis council members argued now could be simply not the best time for a brand new gross sales tax, amid inflation.

Bradley Hix cites an area Chamber of Commerce survey on enterprise house owners who agree.

“Should you go the tax improve, the place 88% of the those that personal companies on this group are towards it, I believe that form of goes to why that quantity was there,” Hix mentioned.

Additionally on the agenda Monday, a decision that will have put the gross sales tax improve on the poll, for Galesburg residents to vote on come April’s city-wide election. That measure failed in a 3 to 4 vote.

The brand new gross sales tax will go into impact on July 1, 2023. The town can count on to gather income from the tax beginning in October 2023.

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