Another school board supports a countywide sales tax for school construction and capital projects.
The Rantoul Township High School board would like to reduce school real estate taxes next year. And the board would like to have folks shopping at the big box stores on North Prospect in Champaign to pick up the tab.
The high school board voted 7-0 Monday to approve an initiative to establish a 1 percent county school facility occupation sales tax in Champaign County.
Notice that the resolution specifically requests one percent, rather than a smaller increase.
Property tax relief is explicitly promised:
If the sales tax goes into effect, the school district would abate its bond property tax, according to school board President Marla Deem.
"This is actually going to mean a decrease in your property taxes," Deem said.
The bond pays off the debt to construct the school's west wing, Requa said. The bond would be paid off instead from sales tax revenue.
According to school records, the bond fund tax rate is 18.12 cents per $100 equalized assessed valuation.
So if the sales tax is approved and the school board agrees to abate the bond tax, the owner of a $100,000 home in Rantoul with standard exemptions theoretically could see his or her real estate tax bill decrease by $36.15 a year.
I can’t believe that this sales tax proposal has so much traction. Sales tax is one of the most regressive taxes government can impose. Both parties should be wholly against it. Increasing the sales tax hurts those who have to spend their income on survival more than it does those who use their income as investment, savings or otherwise.
I know we all like to complain about property taxes but the solution is not to raise taxes disproportionately on the poor.
Wow $36.15 a year! Now add 1% to everything you buy that full sales tax is applied to. Which # is greater?
Of course the school districts support this tax.Champaign Unit 4 already has their cut of the new tax money spent. A new school here, a new school there. Forget about a property tax abatement.
We have enough taxes. I'm not voting to raise my sales tax just to see it thrown down a rat hole like all the other money the school boards waste.
"Wow $36.15 a year! Now add 1% to everything you buy that full sales tax is applied to. Which # is greater?"
This additional sales tax would not apply to automobiles/boats/motorcycles, farm implements, or groceries/medicine, IIRC.
Does it apply to gasoline?
$300 a month for gas at 1% is $3 in tax - times 12 months - $36.
Decent trade if you have a big house - not so good if you don't.
Accepting IP's IIRC, I assume it applies to clothing, school supplies, bicycles, toys, books, textbooks, car parts, tires, household supplies, non-food grocery items (paper products, cleaning supplies, pet food etc), hardware, tools, lumber, televisions, computers, appliances, air conditioners, paint, furniture, baby strollers, cribs, and lots more stuff I can't think of right now.
A good deal if you have a big house and (just) buy gasoline like redstatewannabe says, a bad deal if you buy anything else.
I'm not supporting an increase in sales taxes.
You left out burgers and beer :-)
I didn't mention beer because that is entirely discretionary. Ground beef is food. Hamburgers may or may not be covered being retaurant food.
This is a major tax hit on people that spend their money. Maybe not for you, but for most of us it will be a major hit. A lot of people are squeaking by with the price of food and gas skyrocketing and no end in sight. If you aren't squeaking by and have and spend more money, it's an even bigger hit in the wallet. Fixed income folks will be hardest hit.
But your beer and burgers answer was cute. No, it wasn't.
Philosophically, I have a problem passing a tax that will tax others to pay for Champaign's needs. Is there a gurantee that the property taxes will be reduced? And if so, won't we see other entities raise their own taxes or user fees because we're now paying less in property taxes if this passes? We need to demand that our government do a better job of living within its means, as it expects most of us to do.
But your beer and burgers answer was cute. No, it wasn't.
More tax on burgers, at a restaurant, and beer will hit college kids. I was trying to be cute, yes, but also making a point, anon.
I don't disagree with you - this is a tax increase. It just won't look like much to a lot of people. Hey, what's $10 per month, in $.25 increments? That is why the school boards love it. People freak out when they write checks for $1,000's for their property taxes, but will vote for this because they think (rightly so for many) that they are sticking it to somebody else.