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An Important Decision is Placed before the
Residents of Wood Dale
On September 1, 2005 the Wood Dale City Council voted unanimously to place a referendum question on the March 21, 2006 election ballot. The referendum question will ask Wood Dale residents if a 0.5% sales tax should be implemented on taxable goods and services purchased in Wood Dale (food that is not prepared for immediate consumption and prescription/non prescription items are not taxable). If passed, Wood Dale’s sales tax rate would be 7.25%, the same as the Village of Itasca, but lower than Addison and Elk Grove Village.
Illinois law allows a municipality with non-home rule status, like Wood Dale, to ask residents if a “non-home rule sales tax” should be implemented. The law also states that the sales tax revenue can only be used for public infrastructure projects and to also provide property tax relief.
The City Council feels strongly about maintaining and upgrading the roads and other areas of infrastructure. Everyone benefits from having our public infrastructure in excellent working condition.
On a per capita basis, Wood Dale has a relatively high level of retail sales when compared to its neighbors and to DuPage County overall. This indicates that more people are coming in from other communities to shop in Wood Dale. Wood Dale’s per capita sales exceed the countrywide average in general merchandise; food; furniture; household, lumber, building and hardware.
Wood Dale’s resident-based retail sales potential totals $146.3 million for all retail categories; this is only half of the total retail sales in the City. This means that Wood Dale is attracting shoppers from outside of the community. The City also generates more sales in the eating and drinking category than its resident-driven store potential due to the large number of day-time employees.
Renewing the City’s infrastructure requires additional resources that the City does not have. Due to the poor economy, the revenue the City usually receives from the state sales tax has lagged.
The City has weathered these hard economic times without any deterioration of its services. The City needs to continue its work on our infrastructure and the Council is looking at the ”non-home rule sales tax” as a revenue source for our future.
The March 21, 2006 referendum will ask: “Shall the City of Wood Dale, for the purpose of funding public infrastructure and to avoid the imposition of other taxes and fees, impose a one-half of one percent (0.5%) sales tax beginning July 1, 2006?”
If the voters approve the referendum, everyone will benefit because the money will be reinvested back into our community.
What does a non-home rule sales tax mean to City residents?
Renewing public infrastructure has always topped the list of City Council priorities. Equally important was the discussion on how to fund it. The Council is very conscious of the growing property tax burden on residents.
The impact on residents is a major reason why the Council is proposing a non-home rule sales tax. This revenue source has the lowest impact on residents. Sales taxes are imposed on the sales of goods or services purchased within the City. As a resident of Wood Dale, ask yourself, “How much do I buy in the City?” We don’t have a Wal-Mart, a movie theater or an abundant restaurant district. In fact, our research shows that most of the sales tax revenue within the City comes from non-residents buying from companies in our healthy business and industrial parks.
Most goods and services bought by Wood Dale residents are from other municipalities with sales tax rates higher than Wood Dale’s. At Woodfield Mall in Schaumburg, the sales tax is 8.75%, and the rate at Stratford Square Mall in Bloomingdale is 7.25%. The sales tax rates for our neighbors, Addison, Itasca and Elk Grove Village, are 7.5%, 7.25% and 8.75% respectively.
The City Council has considered other revenue sources. They could increase property taxes, which have dropped each year for the past six years. Since we are not a home rule community we cannot impose any other taxes such as Addison and Elk Grove Village.
This is why the Council favors the one option that impacts the residents the least and generates revenue to assist with our infrastructure needs.
Renewing our infrastructure now makes more economic sense. Many municipalities have not reinvested in their own infrastructure and they are now incurring higher costs to pay for it. It’s like the old adage which reads, “You can pay me now or you can pay me later.” The later price is always much larger.
On March 21, 2006 your election ballot will have the following referendum: “Shall the City of Wood Dale,for the purpose of funding public infrastructure and to avoid the imposition of other taxes and fees, impose a one-half of one percent (0.5%) sales tax beginning July 1, 2006?”
On March 21, 2006 please consider what is best for Wood Dale and its residents.
Residential Fees in Other Communities |
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Addison |
Elk Grove |
Itasca |
Roselle |
Wood Dale |
| Community Type |
Home Rule |
Home Rule |
Non-Home Rule |
Non-Home Rule |
Non-Home Rule |
| Vehicle Sticker (cars) - Annual Fee |
$20.00 |
$20.00 |
Added to property tax |
$30.00 |
$15.00 |
| Garbage (average monthly) |
$35.00 |
$25.00 |
Added to property tax |
Pay BFI Direct |
Unlimited $17.58 |
| Yard Waste |
Included in Garbage Fee |
$1.25 Sticker |
Added to property tax |
$1.58 Sticker |
Included |
| Sidewalks |
50/50 Resident/Village |
Village 100% - Owner 100% over driveway |
Village pays 100% |
50/50 Resident/Village |
50/50 Resident/Village |
| Property Tax Rate |
0.004042 |
0.00512 |
0.004612 |
0.006031 |
0.00451 |
| Real Estate Transfer Tax |
$2.50/$1000.00 |
$3.00/$1000.00 |
No |
No |
No |
| Amusement Tax |
No |
No |
No |
1% |
No |
| Sales Tax |
7.5% |
8.75% |
6.75% |
6.75% |
6.75% |
| |
|
Restaurant 9.75% |
|
|
|
| Telecom Tax -Cell Phone |
5% |
5% |
1% |
6% |
6% |
| Animal Control |
No |
Police |
No |
Yes |
Yes |
| Animal License |
Dog & Cat license required no charge - limit 2 of each |
Dog & Cat license required $4.00 each - no limit |
$3.00/dog - limit 3 dogs |
$5.00/dog - limit 3 dogs |
No licenses |
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Know the Facts: Non-Home Rule Sales Tax Referendum
Test your knowledge on the most important vote facing Wood Dale voters this election. What do you lose? Maybe a lot…..
Statement 1: The voters of Wood Dale get to decide if the City should increase its sales tax by one-half of one percent.
TRUE:Illinois State Law allows the voters of Wood Dale to decide if the City should increase its sales tax by one half of one percent. The question will be on the March 21, 2006election ballot.
Statement 2: The law allows the revenue raised by the sales tax increase to be used for infrastructure renewal and property tax relief.
TRUE: Illinois State Law only allows the new revenue to go towards infrastructure projects and property tax relief.
Statement 3: The City of Wood Dale has ongoing infrastructure needs.
TRUE:The City has accomplished a good deal of infrastructure renewal, but more needs to be done.
Statement 4: Residents will pay less than businesses and non-residents.
TRUE:More than half of the sales tax revenue generated in Wood Dale is paid by non-residents doing business in our town. To further support this fact; just ask yourself, “How much do I buy in Wood Dale?” No doubt you spend more in other towns where you end up paying the sales tax.
Statement 5: The one-half of one percent sales tax increase will cost you a lot of money.
FALSE:Is $25.00 a lot? That’s how much extra a resident pays when he/she spends $5,000.00 in Wood Dale. A $20.00 dinner bill is raised by a nickel if the sales tax increase is approved.
Statement 6: Most of my sales tax goes to the City now.
FALSE:The 6.75% sales tax is divided up as follows: 5% to the State of Illinois, 1% to the City of Wood Dale, 0.25% to DuPage Water Commission, 0.25% to DuPage County, and 0.25% to the RTA.
Statement 7: The sales tax increase is good for Wood Dale.
Voters Will Decide! The individual members of the City Council think it is, but the real answer will come from the Voters on March 21, 2006.
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