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Motor Fuel, Sales Tax Hike Vote Could Come Tuesday

Apr 27, 2014 06:56PM, Published by Steven Jack, Categories: Today, News




Oswego Village Board trustees Tuesday may be eyeing votes on two possible local tax increases.

Though the 2014-15 village budget will operate at a projected $50,000 surplus, trustees and staff have discussed in recent months finding alternate revenue sources to fund large long-range infrastructure improvement projects and fixes to crumbling village streets. 

According to budget documents, the village could come up about $5 million short through 2018 in its road maintenance fund. To shore up the funding, village staff have recommended a half percent increase to the village’s Home Rule sales tax and a possible 4-cent per gallon increase in the village’s motor fuel tax.

The sales tax increase would bring in an estimated $1.8 million to the village annually, while the motor fuel sales tax hike would bring in about $700,000.

Trustees were not originally scheduled to vote on any tax increase at Tuesday's meeting; however, both items were added to the agenda late Friday afternoon, said Village President Brian LeClercq.

According to village documents, "The Village President has indicated that three elected officials have requested the April 29 meeting agenda include consideration of a .5 cent increase in the existing home rule sales tax, and a new 4 cent per gallon local fuel tax."

Oswego's current sales tax rate is 7.75 percent. By comparison, Aurora sits at 8.25 percent, Montgomery 7.25 percent, Plainfield 8.75 percent and Yorkville 8.25 percent.

In terms of a local motor fuel tax, Plainfield is the only other local municipality to levy such a tax at 4 cents per gallon. 

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