SALES TAX INCREASE ON THE BALLOT FOR WINNEBAGO COUNTY

Last month, the Government Affairs Committee of the Greater Rockford Chamber of Commerce (GRCC) announced its opposition to the countywide school facility sales tax on the ballot for March 17. Recognizing that Winnebago County residents and visitors already pay some of the highest combined sales tax rates in the region, the Rockford Chamber PAC (ROPAC) voted to launch a campaign to raise awareness of the negative impact of this new tax and convince citizens to vote “no.”

Simultaneously, the government affairs committee of the NorthWest Illinois Alliance of REALTORS® (NWIAR), of which I serve as CEO, has taken a similar position in opposition of the 1% increase to the sales tax in Winnebago County. To leverage the strength of our two organizations, NWIAR is supporting ROCPAC’s opposition campaign.

Here’s why we oppose another sales tax increase:

It’s not the only option. A countywide 1% sales tax increase represents one policy choice among several available financing tools, including phased bonding, debt service extensions, and hybrid approaches that could distribute costs over time rather than concentrating costs in a single permanent sales tax increase with no guardrails.

Higher sales taxes strain business operations. If businesses struggle, downsize, or leave properties vacant, it causes a shift in the property tax burden to residential homeowners. And job losses or reduced employment further compound housing instability.

There’s no end date. The proposed 1% increase includes no defined end date, meaning the tax would likely remain in place indefinitely. Without a sunset clause, voters lose the opportunity to periodically reassess whether the tax is still necessary, effective, or appropriately managed.
The plan lacks clarity and accountability. There is currently no detailed public plan explaining how money will be spent, how projects would be prioritized, or how outcomes would be measured. This lack of clarity and accountability makes it difficult to evaluate equity, fiscal impact, or long-term effectiveness.

Families and small businesses carry the burden. Winnebago County already faces some of the highest combined sales tax rates in the region. Increasing the sales tax places additional pressure on working families and small businesses, risks reducing consumer spending, and weakens retail competitiveness at a time when affordability is already strained.

It makes us less competitive with surrounding states. A countywide sales tax disproportionately impacts lower- and middle-income households and local employers, regardless of their ability to absorb higher costs and compete with other businesses in nearby states. A blunt approach does not align tax burden with direct benefit and creates unintended ripple effects across the local economy.

ROCPAC is using various methods to inform voters on this new tax. Visit the website at ROCPAC.vote to learn more about:

• Why this tax increase is not the best option for school facility funding.
• How this proposition doesn’t allow voters to periodically reassess the tax’s necessity, effectiveness, and revenue management.
• Why this tax negatively affects working families and small businesses.

Most of all, I encourage you to vote “no” on the Proposition to Impose County School Sales Tax.