Wabash CUSD #348 Allendale #17 * The purpose of this presentation is to present the facts so that you can make an informed decision.

The County Schools Facility Sales Tax represents the first shift away from relying on property taxes for local school district capital project funding in Illinois. The law went into effect in 2007 allowing voters to approve a sales tax up to 1% to fund facility needs. Nontraditional Approach for funding capital improvements in Illinois Public Schools 2

Sales Tax Base: Everything in the municipal and county sales tax base is included in the tax base except:  - Cars, Trucks, ATVs  - Boats and RVs  - Mobile Homes  - Unprepared Food (groceries)  - Prescription Medication (over-the-counter and vitamins)  - Farm Equipment, Parts, and Inputs  - Services 3 If it is not currently taxed, it will not be taxed.

“How much more would I actually be paying if this passed?”  $ of unprepared food =  $50.00 of gas =  $20,000 car/truck =  $7.00 of fast food =  $ TV =  $40.00 of medicine =  $70.00 pair of shoes = NO INCREASE 50 cents NO INCREASE 7 cents $4.50 NO INCREASE 70 cents 4

Safety and Security Improvements Energy Efficiency Additions and Renovations Pay off Building Bonds Ongoing Maintenance New School Facilities Durable Equipment Fire Prevention and Life Safety Land Acquisition Parking Lots Demolition Architectural Planning 5

Salaries and Benefits Instructional Costs Operating Costs Buses Textbooks and Computers Movable Equipment 6

Two Ways to Decrease Property Taxes: 1. Reduce: A district can abate or decrease existing property taxes by using sales tax funds to pay off outstanding building bonds. (Property taxes reduced on residential, farm, commercial and industrial properties.) 2. Avoidance: A district can avoid levying property taxes by using sales tax funds to pay for facility projects that would have been paid for with property taxes. 7

All individuals would pay this tax (currently only property owners support schools through the annual tax levy). Any individual shopping in Wabash County will contribute. Estimated that 15% - 30% of revenues would come from individuals living outside of Wabash County. Considered a “fairer” tax than property tax. 8

 Sales Tax-General Merchandise ◦ Wabash County 6.25% (would go to 7.25%) ◦ Lawrence County 7.25% ◦ Edwards County 7.25% ◦ White County 7.25% ◦ Wayne County 7.00% ◦ Richland County 6.75% ◦ Chicago (Cook County)10.25% ◦ Champaign County 9.00% ◦ Mt. Vernon (Jefferson County) 8.25% ◦ Harrisburg (Saline County) 8.00% ◦ Marion (Williamson County) 8.50% ◦ All Indiana Counties – Flat rate of 7.00% 9

PROPOSED USES OF NEW FUNDING STREAM Upgrade existing facilities and grounds (HVAC, technology infrastructure, plumbing, electrical, playgrounds, parking areas, etc.) Enhance security at existing buildings Pay for future projects with sales tax rather than property taxes, thus reducing property tax rates once existing bonds are repaid New construction………long range 10

PROPOSED USES OF NEW FUNDING STREAM Upgrade and Maintain Existing Facilities Continue to enhance security at existing buildings Fund Future Projects with Sales Tax instead of Property Taxes Fund New Projects/Improvements 11

12 Sales Taxes Generated for Each District

Ballot Language (cannot change): ◦ Shall a retailer’s occupation tax and a service occupation tax (commonly referred to as a “Sales Tax”) be imposed in Wabash County at a rate of 1% to be used exclusively for school facility purposes? 13

Sales Tax 2% withheld by IL Dept. of Revenue Same as all sales taxes R.O.E Distributed by R.O.E on a per resident-pupil basis The money follows the student. Schools benefit 14

 COMMENTS/QUESTIONS?  15