The Tinley Park Village Board voted to implement a new 0.75% Home Rule Sales Tax as a way to help generate new revenue streams for the Village and rebalance its revenue portfolio in the coming years without having to increase property taxes. The tax became effective on July 1, 2014.
“The new Home Rule Sales Tax, which will grow proportionally with inflation, will help stabilize the property tax base,” Tinley Park Mayor Edward J. Zabrocki said. “This new tax is the most fiscally responsibly way to generate new revenue streams for the Village without having to raise property taxes.”
The tax is expected to generate additional monies for the Village that will be used to help fund Emerald Ash Borer removal and replacement; the Pavement Management Program (street and utility maintenance) and inflationary expense increases. Additionally, it will provide a safety net for an uncertain financial future for both the State of Illinois and Cook County and their impact on the Village.
The Home Rule Sales Tax will not affect certain purchases. Items such as titled property (vehicles, mobile homes, etc.), food, groceries and drugs would be exempt.
Based on data from the Illinois Department of Revenue, each 0.25% tax will have an annual impact of $41 on the average household in Tinley Park.
“With a Home Rule Sales Tax of 0.75%, this translates to a $123 yearly impact on the average household,” said Trustee Dave Seaman, who is also Chairman of the Finance and Economic Development Committee. “It is estimated that roughly half of the additional revenue will come from residents, and the other half will come from nonresidents who shop in Tinley Park.”
The Village’s 0.75% Home Rule Sales Tax is comparable to those implemented by other area towns, both in Will and Cook counties.