Madison County Schools Facility Sales Tax April 2017

Madison County Schools Facility Sales Tax April 2017

Funding Public Schools While Reducing the Burden on Property Owners • The County Schools Facility Tax allows Madison County voters to approve a 1% (maximum) sales tax. • Local school boards determine what percentage of revenue from the sales tax will be used to reduce property taxes with the remaining percentage used to improve school facilities. • Public Act 97 -0542 was enacted in October 2007 to create another potential funding stream for schools and reduce the overreliance on property owners.

A “Shared Tax” that Reduces the Burden on Property Owners • Currently, 100% of school facility maintenance and upgrades are funded through property taxes. • Now, property owners can get relief with the purchases made by other county residents and visitors who commute through/frequent our stores, gas stations, restaurants and more. • The new county-wide sales tax would shift the sole responsibility of paying for school facilities FROM just the property owner TO all consumers through an equal contribution on applicable goods.

The 1% sales tax equates to one penny for every dollar spent on eligible items.

What is subject to the 1% Tax? Taxed Items: *Any items currently in the municipal and county sales tax base are included in the tax. Items NOT Taxed: *Services *Groceries (unprepared foods) *Cars, trucks, ATVs, boats, RVs, motorcyles *Mobile homes *Prescription drugs including over-the-counter medicine and vitamins. *Farm equipment, implements and parts *Other items (if it is not currently subject to sales tax, it will not be included)

What Are the Allowable Uses of County Schools Facility Tax Revenue? • • Roof Repairs Ongoing Maintenance Energy Efficiency Parking Lots/Repair Security, Safety and ADA Compliance Durable Equipment Additions, Renovations and New Facilities

What Are the Non-Allowable Uses of the County Schools Facility Tax? • • Movable equipment Textbooks and other instructional costs Furniture and fixtures (detached) Computers, laptops, tablets and printers Salaries and benefits Utility and other operational costs Buses and transportation Custodial and cleaning expenses

Madison County Tax Rates (Illinois Sales Tax is 6. 25% and local government tax accounts for the additional. ) Community: Alton Bethalto Collinsville East Alton Edwardsville Godfrey Granite City Highland Madison Roxana Troy Venice Current Tax Rate: 7. 85% 6. 85% 8. 10% 6. 85% 7. 10% 6. 85% 8. 35% 7. 85% 6. 85%

County Visitor and Commuter Impact It is estimated that 30 -40% of sales tax revenue generated in Madison County comes from those that live outside of our county. In other words, people visiting and traveling through Madison County would contribute to improving our schools. Likewise, when you travel to one of the 47 other counties in Illinois that have a CSFT, you are helping to pay for their schools (through your purchases, such as gas, in those communities).

How is the County Schools Facility Tax distributed and then used? • Local school boards can use tax revenue to: pay for capital improvements, issue new bonds for schools needs, restructure current debt and/or retire existing debt from other capital projects (abating taxes and/or refund qualifying debt). • The Illinois Department of Revenue will withhold the tax and then distribute the funds to the Madison County Regional Office of Education based on the number of resident students. The Alton School District would then receive tax revenue proportionate to the number of students enrolled (the money follows the student and increases/decreases with enrollment).

How much of the revenue will be used to offset property taxes within the Alton School District? In February 2017, the Alton School District Board of Education approved a resolution certifying the following: *50% of the sales tax revenue will be used to reduce/offset property taxes. *50% of the sales tax revenue will be used to renovate/repair Alton schools.

What type of property tax savings does this mean based on my home’s value? Home Value Amount of Annual Property Tax Reduction $100, 000 Home $150, 000 Home $200, 000 Home $300, 000 Home $86 $130 $173 $260

How is the County Schools Facility Sales Tax brought to voters? 50% + Participating local school boards from around Madison County adopt resolutions. Madison County schools boards, representing 50% or more of the resident students, adopt resolutions and the regional superintendent certifies the ballot question with the county clerk. The County Schools Facility Sales Tax is placed on the ballot for the April 4, 2017 election.

What is the ballot question? • The following language is required by law and voters must select “Yes” or “No” in response. “Shall a retailer’s occupation tax and a service occupation tax (commonly referred to as a “Sales Tax”) be imposed in Madison County at a rate of one (1) percent to be used exclusively for school facility purposes? ”

Have other counties across the state approved the County Schools Facility Sales Tax and reduced property taxes as a result? Yes – 47 counties in Illinois have already approved the sales tax. In the November 2016 election, eight counties had it on their ballot and it PASSED in all eight.

Timeline • April 4, 2017 – Election • July 1, 2017 – Sales Tax Takes Effect • October 2017 – Receipt of Revenue Begins at School Districts

The following photos provide examples of some needed projects across Alton schools. While the district does an excellent job of maintaining schools, the age of some schools will require extensive work very soon (roofs, parking lots, floors, security, HVAC, windows, asbestos abatement and other).