Politics & Government

Oak Forest to Consider Home-Rule Sales Tax

Oak Forest residents might pay more for certain goods, if administrators pass a 1 percent sales tax up for discussion at a March 27 city council meeting.

Oak Forest residents shopping within city limits could pay an additional 1 percent sales tax on certain goods beginning July 1.

City officials Tuesday will consider enacting the tax under its home-rule jurisdiction. The tax would apply to "tangible personal property," but not services, nonprepared food, prescription drugs or licensed vehicles, according to a press release from the city.

The tax would be the latest approach to replenishing a revenue stream that has fallen $4.2 million short in the past four years, according to a news release from the city.

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"Our mantra over the past four years has been cut, cut, cut," City Treasurer Dwayne Fox said in the release. "Despite our best cost-containment efforts, we cannot overcome a $4.2-million loss in income tax, sales tax and utility tax revenues while facing increasing costs of providing services. A home-rule sales tax would spread these costs to nonresidents and diversify our revenues."

The city has previously reduced its and over that same time period. The city delayed the purchase of new vehicles, machinery and equipment, according to the release. hours were also cut to reduce operating costs.

Find out what's happening in Oak Forestwith free, real-time updates from Patch.

The tax would go into effect July 1 of this year and would generate approximately $1.1 million annually. The money would be used to fill five full-time positions within the city: police officers, one firefighter, one maintainence worker, and one front office member.

"The city can no longer avoid hiring key personnel or postpone the purchase of essential equipment," Mayor Hank Kuspa said in the release. "Services to residents will be critically diminished without adequate levels of personnel in key departments. Our goal has always been to deliver quality services at a reasonable cost. We are finding it increasingly difficult given the revenue shortfalls we have experienced over the past several years."

Oak Forest Finance Director Colleen Julian said administrators have discussed the city's financial status and revenue stream extensively during recent finance committee meetings.

"We've had meetings on Saturdays, Sundays, during the evenings—we've been going over this in exhaustion for months," Julian said.

"...When you buy anything there's a sales tax. This would just be added to that."

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