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COOK COUNTY IL SALES TAXES HEADING BACK DOWN? Likely . . . YES . . . Next July 1!

By
Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

In Cook County IL, the county which includes the City of Chicago, general sales taxes could be on the way down.  That will happen next July 1st - unless Cook County Board President Todd Stroger mounts a successful court challenge to keep the sales tax at it's current, USA-highest 10.25% level. 

The change, if not challenged, would reduce the General Sales Tax within Chicago to 9.75% - one-half percent below the current level.  The story was reported last week in the Chicago Tribune, by Reporter Hal Dardick.

Last year, in order to keep funding for county services at a high level, the Cook County Board increased the county portion of the state sales tax by 1%.  The increase made the sales tax within Chicago the highest in the nation, and nearly immediately put legislators and their constituents up in arms.

Some consumers in suburbs near the Cook County border began doing their routine shopping out of county, to save as much as $10 for every $1,000 of most purchases.  Some buyers increased their Internet purchases, while others ventured to the neighboring states of Wisconsin or Indiana, where Sales Taxes, in some areas, are near 6% or lower.

Mayors in Cook County suburbs near bordering counties threatened legal action - the Mayor of the Chicago Suburb of Palatine IL even discussed seceding from the county!

But County Board President Stroger was steadfast. vetoing four previous attempts to partially override the tax increase.  He cited the need to keep the tax high in order to fund County Services, primarily health care.  But the high-tax detractors pointed to years of wasteful Cook County spending, and a very controversial incident involving President Stroger improperly hiring and highly paying one of his relatives.

A new state law signed last month by IL Governor Pat Quinn reduced the number of County Board votes necessary to override Stroger's tax rollback veto.  Prior to the new law, a vote of 4/5 of the Cook County Commissioners were needed for override of the Board President's veto.  Now, only a 3/5 vote is required.  So, on December 1st, 12 out of 17 Cook County Commissioners voted for tax rollback - and the veto was killed.

Under the old rules, 14 out of 17 votes were needed - and never obtained!

County Commissioners complained of the regressive nature of a Sales Tax.  One commissioner, Bridget Gainer of Chicago, opined that poor city residents lacked the means to travel outside of the county for their day-to-day purchases, while those more well off found such inter-county purchase trips easier.  

Commissioner John Daley, also from Chicago, said the rollback would force needed frugality in county spending.

Stroger claims the rollback is politically motivated, as a February County Election Date for County Board Members, including President Stroger himself, is drawing closer.  He contends a change in the number of votes needed for veto override should not have been enacted between election cycles. 

Will Stroger succeed in a possible court challenge?  Many feel that is not likely, and the Cook County Sales Tax, still, after the reduction, high, but not the highest in the U.S., will fall back next July.

See our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

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