A.
Overview of Special County Retailers' Occupation Tax for Public Safety
Purposes
State's Attorney Mosser reminded the Committee of the Referendum's legal process,
and that today's presentation is informational only. She noted that on September 10,
2024, the County Board passed a Resolution for the Special County Retailers'
Occupation Tax for Public Safety to be certified for a vote in the April 1, 2025
Consolidated Election. The County may impose the Special County Retailers'
Occupation Tax upon all persons engaged in the business of selling tangible personal
property at retail in the county, if a proposition for the tax has been submitted to the
electors of that county, and approved by a majority of those voting on the question. The
Retailers' Occupation Tax can be used for five specific purposes including public
safety, public facility, mental health, substance abuse, or transportation. If imposed,
this tax shall be imposed only in one-quarter percent increments. The County has
currently elected .75 percent, which is 75 cents for every 100 dollars. Mosser noted that
if this passes with a majority vote, .75 percent is not necessary to assess, but cannot
be assessed higher than .75 percent. After the election, if Kane County has filed
certified election results and a certified copy of a proper ordinance with the Department
of Revenue on or before May 1, the tax rate will take affect July 1 of the same year. For
taxes imposed effective July 1, the first disbursement will be made to the County during
the following October. Much discussion ensued.
Fin. Exec. Dir. Hopkinson reviewed the revenue options for Kane County's budget.
(Committee Member Young left at 1:45 p.m.) She reviewed the FY2025 Budget Total
General Fund Expenditures funded by general revenues. A general revenue is an
unrestricted form of revenue, such as property tax revenue, sales tax revenue, and
income tax. All of the departments that are specifically for public safety include
Emergency Management Services, Coroner, Court Services, KaneComm, Merit
Commission, Sheriff, Public Defender, State's Attorney, Circuit Clerk, and Judiciary and
Courts. Almost 75% of the general fund budget is from public safety expenses.
Hopkinson explained the total Property Tax Levies since 2013 was at $52.8M. For year
2025, $60.8M will be levied. She noted that if property taxes had been raised from
2013 to 2024, the County General Fund would have at least $22M more in revenue by
2025. She provided an overview of all fund transfers, and the General Fund forecast.
The General Fund is the primary source of funding for capital projects. There will be a
fund balance of $73M for 2025. Hopkinson stated that if .75% of the Special County
Retailers' Occupation Tax was applied to the General Fund, it would bring in $51M per
year. The ordinance filing deadline is May 1, 2025 for the tax to effect July 1, 2025. The
first disbursement will be on October 1st. The Special County Retailers' Occupation
Tax would tax general merchandise, and 100 percent would be allocated to the County.
The RTA sales tax is available to Kane County and other counties. Kane County
receives 33 percent of the RTA sales tax collected in our area. The county's Local
Motor Fuel Tax is 100 percent distributed to local government, and the tax rate is
charged on gallons pumped. Hopkinson reviewed the Special County Retailers'
Occupation Tax by County. Kane County's local motor fuel tax rate is currently $.049
per gallon. She highlighted the comparable taxes in surrounding counties based on
total taxes per capita. The tax revenue per capita for Kane County is $288.54. Much
discussion ensued.
