Johnsburg Approves Urgent Sales Tax Hike to 1% Starting 2026

BREAKING: The Village of Johnsburg has just approved a critical increase in its sales tax, set to rise by half a percent starting January 1, 2026. This decision, made on October 1, 2023, brings the local sales tax to a total of 1% and raises the overall tax for non-food purchases to 8.25%.

In a heated Village Board meeting, the tie-breaking vote was cast by Village President Ed Hettermann, who emphasized the need for additional revenue to support essential projects. “We know we have projects we want to do,” Hettermann said, highlighting plans for parking lots and road repaving. He warned that delaying the tax approval could cost the village between $300,000 to $600,000 in potential revenue.

The board’s decision comes amid concerns about the future of non-home-rule sales tax exemptions in Illinois. A new law effective August 2024 allows small municipalities to raise sales tax rates by up to 1% without voter approval, a change that has led to urgent conversations in Johnsburg.

The vote was contentious, with a 3-3 split among trustees. Supporters, including Trustees Jamie Morris, Mike Fouke, and Scott Letzter, argued that the funds are necessary for the village’s immediate needs. In contrast, opponents like Josh Hagen and James “J.D.” Sylvanus expressed their desire for a clearer plan on how the new tax revenue would be allocated before implementing the hike. “Without a plan, it is a tough pill for me to swallow,” Hagen stated.

This tax increase is particularly significant for local businesses, especially the Walmart on 3801 Running Brook Farm Blvd, which accounts for a substantial portion of the village’s sales tax revenue. A Walmart employee attending the meeting raised concerns that shoppers might take their business elsewhere due to higher tax rates. However, Letzter dismissed these worries, asserting, “I can’t believe … 50 cents on 100 bucks will turn people away.”

If the Village Board had missed today’s deadline, the next opportunity to implement the tax increase would have been April 1, 2024, delaying collection until July 1, 2024. Hettermann stressed the importance of acting swiftly, warning that the state could eliminate the exemption before then.

The board’s discussions have centered around various financial strategies, including a proposed fund to assist local businesses. Yet, critics continue to call for transparency regarding the allocation of future revenues. This tax hike follows a previous decision in July when Johnsburg voted to maintain a 1% grocery tax, generating $405,000 annually, again primarily from Walmart sales.

Residents of Johnsburg are encouraged to stay informed as the board navigates these fiscal changes. The urgency of this tax increase reflects broader financial pressures and the need for immediate investment in community infrastructure. As discussions evolve, the village’s commitment to transparency and planning will be critical in gaining public support.

Stay tuned for the latest developments on this unfolding story as Johnsburg prepares to adjust its tax structure for the future.