DeKalb County voters soon will make a decision regarding the future funding of local school facilities. On the upcoming ballot is a proposal for a 1% sales tax, often called the “penny tax.” If approved, the tax is projected to generate about $10 million annually for school districts within the county.
Funds would be allocated based on student enrollment, with communities having the largest student populations receiving the majority of the tax revenue, regardless of the amount of tax brought in by each community.
What is the DeKalb County School Facility Tax?
The DeKalb County School Facility Tax is a 1% sales tax on certain goods sold in DeKalb County. The tax will not apply to:
- Cars, trucks, boats, ATVs, RVs and mobile homes
- Farm equipment, parts, and farm inputs
- Groceries, prescription and over-the-counter medications
- Services
How will the funds be used?
Each district will be responsible for determining how to use its share of the revenue. Revenue from the 1% sales tax can be used for:
- New school facilities
- Additions or renovations to existing buildings
- Land acquisitions
- Energy efficiency projects
- Safety and security upgrades
- Paying off building bonds
It is important to note that the funds cannot be used for expenses such as salaries, textbooks, buses or general operational costs.
How will Sycamore School District 427 use the funds?
District 427 plans to use its portion of the funds to address facility needs throughout the district and will support facility projects on a year-to-year basis. The district aims to address both short-term and long-term needs – such as infrastructure upgrades at Sycamore High School – to ensure a safe and efficient environment for students and staff.
What could this mean for property taxes?
Proponents of the DeKalb County School Facility Tax suggest that it could ease the school districts’ reliance on property taxes. By using sales tax revenue to cover facility projects, school districts may not need to levy additional property taxes for these purposes.
The effect on local businesses
As a chamber of commerce, it would be remiss of us not to address the potential effect this tax increase could have on many of our businesses.
This potential increase in our local sales tax most certainly will raise concerns for businesses that are already managing the challenges of rising costs and competition. The additional tax might lead to higher prices for consumers, which could affect spending, particularly on larger purchases or frequent goods. However, supporters of the tax highlight that visitors from outside DeKalb County who shop in the area will contribute to the revenue, easing the tax burden on residents.
If the DeKalb County School Facility Tax passes, local businesses will surely need to evaluate how this change might influence their pricing strategies and customer behavior. At the same time, some believe that improvements in school facilities could have long-term benefits for the local economy by attracting families to the area and increasing overall community vitality.
The ballot question
Voters will be asked the following question:
“Shall a retailer’s occupation tax and a service occupation tax (commonly referred to as a ‘sales tax’) be imposed in DeKalb County at a rate of one (1) percent to be used exclusively for school facility purposes, school resource officers, and mental health professionals?”
A simple majority vote is required for the measure to pass.
Looking ahead
The decision ultimately lies with the voters of DeKalb County. Taking the time to understand the proposal and how it might affect local businesses, schools and community members will be key as residents prepare to cast their votes.
Your vote will play a vital role in shaping the future of our schools and community. Whether you support or oppose the DeKalb County School Facility Tax, make your voice heard by participating in the upcoming election. Stay informed, consider the potential impacts and, most importantly, exercise your right to vote.
Every vote counts in deciding what is best for our community’s future.
- Rose Treml is the executive director of the Sycamore Chamber of Commerce.