Election: South Beloit hopes to collect $1 million for roads with new sales tax
South Beloit residents will be asked to approve a 1% sales tax referendum on March 19.
The question states: "Shall the City of South Beloit, Illinois, impose a 1% Retailers’ and Service Occupation Tax (commonly referred to as a “Sales Tax”) for expenditure on public roadway infrastructure in accordance with Sections 8-11-1.3 and 8-11-1.4 of the Illinois Municipal Code until December 31, 2029?"
City officials anticipate the tax would generate just over $1 million per year.
"The 1% would be designated strictly for roads, no bridges or other infrastructure," said City Administrator Sonya Hoppes.
South Beloit, a Rockford-area community of about six square miles and about 8,000 residents, lacks big box stores. Instead, the city relies on tax revenue generated from motorists exiting off Interstate 90 and traveling to one of several truck stop fueling stations such as the Flying J Travel Center, Kwik Star and Road Ranger as well as the recently added Sunnyside Cannabis Dispensary.
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"The people who are shopping in that Exit 1 shopping corridor are usually residents outside of South Beloit and even out-of-state," Hoppes said. "So, this is an opportunity to tap into new visitors to help pay for road improvements."
As of right now, the city uses primarily its motor fuel tax to repair roads. Last year, the tax generated $360,000, an amount, Hoppes said, is decreasing each year thanks in large part to more hybrid and electric vehicles on the road.
If the referendum passes, it would nearly quadruple the amount of funds the city could spend on roads. The new tax would go into effect Jan. 1 and sunset after five years.
Roads that would be addressed with the additional revenue include Dorr Road-Roscoe Avenue between Prairie Hill Road and Northwestern Avenue; Eastern Avenue between South Park Avenue and Clark Street; and South Park Avenue between Lathrop Terrace and Caswell Street as well as several roads in the Misty Meadows and Timber Grove subdivisions.
The tax would not be used to make repairs to state-owned thoroughfares such as Illinois 251, Illinois 2 and Illinois 75.
Chris Green is a Rockford Register Star general assignment reporter. He can be reached at 815-987-1241, via email at cgreen@rrstar.com and Twitter @chrisfgreen.
This article originally appeared on Rockford Register Star: South Beloit, Illinois, voters will decide on 1% sales tax increase
