Many Chicago area suburbs with significant increases in sales tax revenues

For a number of suburbs in the Chicago region, 2022 was a good year for sales tax revenues:

Photo by Karolina Grabowska on Pexels.com

A Daily Herald analysis of 95 suburban sales tax receipts during the state’s 2021 and 2022 fiscal years shows the towns combined to average a 28.6% increase in sales tax revenues, resulting in nearly $230 million more…

First, federal and state laws that took effect in January 2021 required companies to assess sales taxes for online purchases at the rate of the buyer’s hometown…

Then, COVID-19 stimulus funds paid directly to Americans reinvigorated purchases on physical products…

And the final catalyst for sales tax revenue growth statewide has been the historic increase in the inflation rate.

The article goes on to discuss two issues I was wondering about: how will these communities spend this money and will this revenue increase last?

My guess is that there will not be too many major changes even with these increases. Because it is not clear whether the money will continue to come in at similar rates (though the online source sounds durable), the money could be limited to particular items or shorter projects.

At the same time, an increase in monies could help address important needs and build a good foundation for the next few years. Could some communities complete a project that they had been waiting on? Or, could they start something rolling for the longer-term that needed resources to get rolling?

These increases could also lead to some interesting conversations about what to prioritize and spend on. (Additionally, communities without bumps might have interesting discussions.)

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