Urgent: Utica Retail Sales Surge Amid Market on Mill Success

UPDATE: Utica, Illinois, is witnessing a remarkable surge in retail sales as the new outdoor plaza, the Market on Mill, makes waves since its launch. Mayor David Stewart reports unprecedented attendance and positive spillover effects for local businesses, with new data indicating record retail sales in just the first two months of operation.

According to data released by the Illinois Department of Revenue, Utica has collected more retail sales taxes in the past six months than in some previous years. This surge is prompting discussions about the plaza’s direct impact on local commerce, although officials express caution in attributing all the growth to the Market on Mill alone.

“I can’t say with certainty that the numbers directly reflect the impact of the Market on Mill,” said Mayor Stewart. He noted the exceptionally hot weather this summer likely played a role in maintaining high attendance levels. This increase in activity, combined with the popularity of the plaza, is creating a buzz about the local economy.

However, the surge in sales taxes is not unique to Utica. Municipalities across Illinois are reporting similar increases, raising questions about the actual state of the economy. According to the Taxpayers’ Federation of Illinois, a significant factor is a law change that took effect on January 1, 2023. Retailers shipping online orders into Illinois are now required to collect sales taxes based on the delivery address, leading to higher local tax revenues.

For example, a consumer purchasing a T-shirt from an out-of-state retailer and having it shipped to La Salle now pays a total sales tax of 7.5% instead of the previous statewide rate of 6.25%. This adjustment has opened the floodgates for local revenue.

Many municipalities in the Illinois Valley, including Peru and Ottawa, are on track to exceed $8 million in retail sales this year. “We are pleased that the sales tax revenue stream has been stable and consistently improving,” stated Don Harris, treasurer for the City of Ottawa. The growth in online shopping has contributed significantly to this positive trend, enabling local governments to benefit from an influx of tax revenue.

Despite this positive news, some officials urge caution. Tracy Mitchell, finance officer for Peru, is pleased with the increased cash receipts but warns against making hasty conclusions about the economic health of the city. “It’s impossible to decipher the exact impact due to inflation versus a broader volume of taxable transactions,” she explained. The changes in online sales tax application have noticeably affected receipts since April.

La Salle also set monthly sales records from January through May and narrowly missed breaking the June record. Sales figures show an impressive 17% increase, but John Duncan IV, finance director, emphasizes that these numbers may not accurately represent how local businesses are truly performing.

While neighboring communities like Mendota, Oglesby, and Spring Valley are also breaking records and expecting double-digit increases in retail sales, officials remain cautious. They recognize that the new figures complicate comparisons to past data, making it challenging to ascertain the real economic picture.

The latest developments present both opportunities and challenges for local economies. As the Market on Mill continues to draw attention, residents and officials alike are eager to see how this new retail model will shape the future of Utica and beyond.

Stay tuned for more updates as this story unfolds and impacts on local businesses and economies continue to develop.