Local News
Holiday applies only to state taxes
Consumers will still have to pay city, county taxes during 10-day holiday
EFFINGHAM —
The state may be able to take a tax holiday next month for back-to-school shopping, but local governments can’t, according to the Illinois Department of Revenue.
Gov. Pat Quinn signed legislation earlier this month eliminating the state’s 5 percent tax Aug. 6 through 15 on eligible school supplies, clothing and footwear with a retail price of less than $100, but prevented local governments from doing the same.
Effingham County Board decided last week to join the state by waiving its .5 percent tax, comprised of .25 percent sales tax and .25 public safety tax. However, proponents pushing for both the county and city to eliminate their taxes were unaware the legislation barred local governments from reducing their portion of the sales tax. Likewise, county officials also did not know the statute didn’t allow it.
“I had no idea the county couldn’t do this on their own,” said county board Chairwoman Carolyn Willenburg, who was approached by Greater Effingham Chamber of Commerce & Industry President Norma Lansing a couple of days before the board’s regular meeting about a waiver.
Lansing became aware the city and county were prohibited from having a tax holiday Wednesday morning when she was contacted by the Illinois Department of Revenue after a local retailer had notified them.
Lansing said the chamber had been approached with the idea the city and county join the state by some retail members who had been in other states that have tax holidays. This is the first year Illinois has implemented the holiday, which excludes such items as computers and computer supplies.
“It seems strange to me local governments can’t choose that option,” she said.
Lansing and JC Penney General Manager Ken Murray also approached city council members at a meeting last week about eliminating the city’s portion. Members, some of whom vocally opposed the proposal, didn’t vote on the issue.
“The council didn’t agree with it,” said Interim City Administrator Rick Goeckner Wednesday.
Murray said he, too, was unaware local waivers weren’t allowed, but believes the event will be successful anyway.
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