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Sales Tax Referendum

Sales Tax Referendum Header Graphic

The Village’s current 0.5% non-home rule sales tax is a primary source of funding for the Village’s capital projects fund,  which includes projects such as roads, sidewalks, sewers and other public improvements. An increase in the non-home rule sales tax will provide additional funding for annual capital programs and future projects, such as a new Public Works Facility which is currently being designed and is expected to cost approximately $17.6 million. An increase in the non-home rule sales tax is intended to allow the Village to continue with its current long-term capital improvement plan without any major reductions or delays and without increases in other taxes or fees.

The Village will be asking residents to consider a sales tax referendum during the March 2024 election that would increase the current non-home rule sales tax from 0.5% to 1.0%.  Since non-residents utilize the Village’s infrastructure to shop, visit and work in North Aurora, a sales tax avoids placing the full burden on the Village’s residents and local businesses. 

The Referendum Question 

The Village Board has been discussing a referendum question to send to Kane County for certification to place on the upcoming Spring 2024 election ballot.  The question is:

“For the purpose of expenditures on public improvements and infrastructure, expenditures on municipal operations, and/or for property tax relief, shall the Village of North Aurora increase its Non-Home Rule Municipal Retailers’ Occupation Tax and Non-Home Rule Municipal Service Occupation Tax (i.e., local municipal sales tax) from 0.5% to a rate of 1.0%?”

FAQ

Click each Frequently Asked Question below to reveal the answer.

The Village currently utilizes it’s 0.5% non-home rule sales tax for funding capital improvements.  An increase in the non-home rule sales tax will provide additional funding for annual capital programs and future projects, such as a new Public Works Facility which is currently being designed and is expected to cost approximately $17.6 million.  The additional 0.5% tax is expected to cover a substantial amount, if not all, of the annual debt payment of the new Public Works facility. An increase in the non-home rule sales tax is intended to allow the Village to continue with its current long-term capital improvement plan without any major reductions or delays and without imposing other taxes or fees that would apply only to residents of the village.

Unlike utility taxes or property taxes that only affect residents and local businesses, the non-home rule sales tax is also paid by non-residents who also utilize the Village’s infrastructure.  Increasing the sales tax is intended to include non-residents in sharing the cost of maintaining the Village’s public infrastructure and reducing the potential burden on residents and local businesses.

The Village has reviewed multiple funding options for a new Public Works Facility and has chosen to increase sales tax for the reasons stated.  If the referendum fails, the Village may consider other revenues to raise money for capital funding and projects such as a new Public Works Facility.  These funding sources may include raising the utility tax and telecommunication tax that is included on natural gas, electric and/or cell phone bills.  The Village can also consider a property tax referendum that, if approved, would collect money via property tax bills to fund the Public Works Facility.

The Village is classified as a non-home rule municipality in Illinois.  A non-home rule sales tax is a local sales tax that can be implemented by non-home rule communities if approved by voters.  Currently, the Village has a 0.5% non-home rule sales tax rate.  The Village is proposing to increase the non-home rule sales tax rate by 0.5% to 1.0%, which is the maximum allowed.

The non-home sales tax does not apply to many common items, such as:

  • Vehicles and other items required to be titled or registered with the State.
  • Food sold at grocery stores that is not prepared for immediate consumption.
  • Prescription medicines and nonprescription items claimed to have medicinal value, such as aspirin, cough medicine, and medicated hand lotion.
  • Prescription and nonprescription medical appliances that directly replace a malfunctioning part of the human body, such as corrective eyewear, contact lenses, prostheses, insulin syringes, and dentures.

If approved, the non-home rule sales tax rate would increase on July 1, 2024.

50 cents

If approved, this referendum will cost an extra 50 cents for every $100 purchases of an item that is subject to non-home rule sales tax.

The non-home sales tax does not apply to items such as:

  • Vehicles and other items required to be titled or registered with the State.
  • Food sold at grocery stores that is not prepared for immediate consumption.
  • Prescription medicines and nonprescription items claimed to have medicinal value, such as aspirin, cough medicine, and medicated hand lotion.
  • Prescription and nonprescription medical appliances that directly replace a malfunctioning part of the human body, such as corrective eyewear, contact lenses, prostheses, insulin syringes, and dentures.

If approved, the non-home rule sales tax rate would increase on July 1, 2024.

Currently, the general merchandise sales tax rate in North Aurora is 7.5% (consisting of local sales tax and state sales tax).  If the non-home rule sales tax rate is increased by 0.5% to 1.0%, the general merchandise sales tax rate in North Aurora would be 8.0%.  For comparison, the sales tax rates of our local communities are:

  • Aurora = 8.25%
  • Batavia = 8.0%
  • Geneva = 8.0%
  • Montgomery = 8.0%
  • St. Charles = 8.5%
  • Sugar Grove = 8.0%

A North Aurora resident typically pays 4-6% of their total property tax bill (subject to the taxing bodies on an individual’s tax bill) to the Village.  Money received from property taxes are utilized for general operations, employee compensation, police protection, police pension contributions, and other core services.  The property tax levy is not a dedicated funding source for the Village’s Capital Projects fund. The Village uses sales tax revenue as a primary source of funding for the Village’s Capital Projects fund.

 

Future Projects

As we mentioned above, funds generated by the increased sales tax from the referendum would go to capital plans and projects. Click each graphic to learn more about some of these projects!

Public information meetings

The Village will be hosting a series of meetings to discuss the local municipal sales tax referendum at Village Hall (25 East State Street). The purpose of these meetings is to provide factual information to the residents about how the Village prepares the annual budget including the funding of capital projects.  The meetings will also provide information about the upcoming referendum, including the purpose of the referendum and the voting schedule.  

  • Tuesday, January 23 at 6pm
  • Tuesday, February 20 at 6pm
  • Tuesday, March 12 at 6pm

Public works open houses

We also invite you to join us at our Public Works Facility (314 Butterfield Road) for open houses to learn more about Public Works operations and why the Village is pursuing a new Public Works Facility. If approved, the referendum could help pay for the debt of a new Public Works Facility. 

  • Wednesday, January 24 from 5pm – 7pm
  • Wednesday, February 21 from 5pm – 7pm
  • Wednesday, March 13 from 5pm – 7pm

 

Voting Information

The election will be held on Tuesday March 19, 2024. You can find your polling place by visiting this link and entering your address information.

Vote By Mail: You can request a vote by mail ballot from the Kane County Clerk’s website here starting on December 20, 2023. Ballots will not be sent until Thursday, February 8, 2024.

Early Voting: Early voting will take place at the Kane County Elections Main Office (719 S. Batavia Ave., Bldg. B, Geneva, IL 60134) and the Aurora Satellite Office (5 E. Downer Pl., Suite F, Aurora, IL 60505 from Wednesday, February 21, 2024 – Monday, March 18, 2024.

For more information on the 2024 General Primary election, please visit the Kane County Clerk at https://clerk.kanecountyil.gov/Elections.

 

This website is intended for informational purposes only.


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