Letter: Information on sales tax referendum

Posted

(Paid letter)

Dear editor,

As our community prepares for the upcoming March 19 ballot, local Boards of Education in Ogle County, representing over 50% of the student population, have proposed a 1% Sales Tax for schools. Community leaders, including myself, are urging residents to be well-informed about this initiative. This FAQ is provided to assist with general questions and answers. Please visit www.fvdistrict221.org for additional information. 

What is the 1% sales tax?

A way for all schools in Ogle County to generate revenue. Outside of property taxes and state/federal funds, districts are limited in how they generate revenue. In 2007 this law went into effect, allowing the voters to determine if an additional 1% of sales could go directly to the schools. Should this pass, Forrestville Valley is estimated to receive just over $300,000 PER YEAR. 

What is taxed?

Everything in the municipal and county sales tax base with some EXCEPTIONS such as cars, trucks, ATVs, unprepared foods (groceries), medicine, farm equipment and parts, and farm inputs. Services are not taxed and if it is NOT currently taxed it will NOT be taxed. The tax includes 1% on eligible online sales.

How do the schools benefit?

The tax follows the student. The total number of students attending Forrestville Valley would be divided by the total number of students attending Ogle County schools to determine our percentage. The district would receive this percent of the total tax generated. Based on current estimates, the revenue for Forreston schools is projected at just over $300,000 PER YEAR. It is a TOTAL tax generated from all Ogle county - so Forreston schools could benefit from sales tax generated in Forreston, Byron, Oregon, and Rochelle. 

How can school districts use the funds?

Each district determines how to spend the revenue. Funds can be used for mental health professionals (counselors, social workers, psychologists), school safety/security, and facility improvements or projects. Funds cannot be used for teacher salaries, textbooks, buses, or other common expenses that would come from the education or transportation funds.

What counties in our area have a County School Facility Tax?

Jo Daviess, Whiteside, Lee, and Boone

What would Forrestville Valley do with funds if received?

The first priority would be to ensure our school counselors and mental health professionals remain in place. The district would also review school security/safety needs and facility needs.

How would the 1% sales tax affect area businesses?

The sales tax is a percentage added to the final purchase price of taxable goods and services. There is no additional paperwork for consumers or local businesses, and data indicates that passing this tax does not adversely affect sales in any given county.

Is there a way to suspend or eliminate the tax once it is approved?

If approved, there is no sunset clause or expiration date. The goal is to provide a consistent revenue stream for all Ogle County schools.

What can I expect on the March 19th Ballot?

Language on the ballot will read:

Shall a retailer’s occupation tax and a service occupation tax (commonly referred to as a “Sales Tax”) be imposed in Ogle County at a rate of 1% to be used exclusively for school facility purposes, school resource officers, and mental health professionals?

How are funds generated if the 1% sales tax is approved?

Any spending occurring in Ogle County that generates the 1% sales tax is collected and channeled through the Illinois Department of Revenue and the Regional Office of Education. Revenue does not flow through the General Assembly budget process.

How would the payments work?

The Regional Office of Education would issue payments to the districts. The first payment is anticipated as early as October 2024 with monthly payments to follow.

-Superintendent Sheri Smith, Forrestville Valley School District