Tax Reduction Announcement
The sales tax on general merchandise purchased in DuPage County drops by a quarter cent as of June 1. Consumers will pay 7 cents in tax on every dollar spent effective Wednesday, down from 7.25 cents, in a reduction that’s estimated by county officials to put $36 million back into taxpayer pockets.
The quarter-cent sales tax, in place since voters approved it in 1985, was implemented to help the DuPage Water Commission become a self-sustaining utility.
Sales Tax Breakdown in DuPage County
Of the 7 percent sales tax paid on goods purchased in DuPage County:
- 5 percent goes to the state of Illinois
- 1 percent to local unincorporated areas
- 0.75 percent to the Regional Transportation Authority
- 0.25 percent to DuPage County
Legislative and Fiscal Reforms
Cronin said he pushed for the sales tax reduction and water commission reform six years ago when, as an Illinois senator, he was one of 11 co-sponsors of Senate Bill 580. The legislation called for numerous reforms after it was found the DuPage Water Commission had misspent almost $69 million in reserve funds.
County Budget Savings and Tax Policy
Since 2010, when Cronin was elected county board chairman, more than $33 million has been cut from the DuPage County budget.
The current 2016 budget includes no property tax increase for the eighth consecutive year.
Frequently Asked Questions
What is the new sales tax rate in DuPage County?
Starting June 1, the sales tax on general merchandise in DuPage County has been reduced from 7.25% to 7%. This means consumers now pay 7 cents in tax for every dollar spent.
Why was the sales tax in DuPage County reduced?
The reduction is part of a broader initiative by county officials to return money to taxpayers. It follows reforms and budgetary cuts that aimed to improve fiscal responsibility within the county government.
How much will taxpayers save due to this tax cut?
County officials estimate that the tax reduction will return approximately $36 million annually to taxpayers across DuPage County.
Where did the original quarter-cent sales tax go?
The quarter-cent tax, in place since 1985, was used to support the DuPage Water Commission, helping it become a self-sustaining utility.
Has DuPage County taken other steps to manage its finances?
Yes. Since 2010, the county has cut over $33 million from its budget. Notably, the 2016 budget includes no property tax increase for the eighth year in a row, reflecting a strong commitment to fiscal discipline.