Harrisburg passes sales tax measure

HARRISBURG - The city of Harrisburg approved a sales tax increase Thursday slated to make improvements in the city in the hope of revitalizing the community.

The tax increase is .75 of 1 percent, raising the city sales tax from 8 percent to 8.75 percent. Once in effect, that means a purchase of $100 will have $8.75 in sales tax added, or an increase of 75 cents per $100 spent. It goes into effect Jan. 1.

The tax funds the new Harrisburg Business District, which is intended to create additional infrastructure improvements, encourage economic and industrial development and provide resources and support for existing businesses.

Commissioner Raymond Gunning said while he didn't like the idea of a new sales tax, if the money is used as intended, he supported the measure.

"No one wants a new tax, but if this money will be used first and foremost to tear down the old Malan Junior High Building, then I'll vote for it," Gunning said.

Gunning said he has received numerous comments from neighbors of the old junior high building who want to see the building demolished and the property improved.

Harrisburg Mayor John McPeek pledged that the junior high will be the first project tackled from funds from the sales tax increase.

"That's what we're going to do," McPeek said. "It's first on the list."

The city estimates at least $350,000 will be needed to demolish the building and prepare the site for future plans.

Harrisburg businessman Terry Maynard, who co-owns The Appliance Store with his son Michael, said he and other business owners were opposed to the sales tax increase.

"At 8 percent, it made us more competitive with businesses in other towns," Maynard said. "If you're looking at an order of $10,000, that three-quarters of a percent can make a difference."

He said he was disappointed with passage of the tax. At an earlier council meeting, he had encouraged commissioners to put the matter to a referendum.

"It doesn't seem like it matters what the people want," Maynard said.

The Illinois Municipal Code states that funds raised by the sales tax increase for a business district may only be used for specific items and projects.

In addition to the junior high, other projects slated currently are acquisition and rehabilitation of a vacant commercial property at an estimated cost of $600,000, acquisition, demolition and site preparation for a hazardous commercial site at $150,000, acquisition, demolition and site preparation for a separate hazardous commercial site at $100,000, incorporation of an economic gardening and engagement grant fund for $55,000 (in annual grants), and proration of city employee staff salaries, which is estimated to save the city $50,000 a year.

McPeek said that Harrisburg's sales tax will remain lower than many surrounding communities.

By comparison, Carbondale's sales tax is 9.75 percent, while Marion's is 9.50 and Du Quoin's sales tax is 9.25.

Items not impacted by the sales tax increase include unprepared food items/groceries, pharmaceuticals and durable medical equipment and items licensed by the state.

The four council members present, McPeek, Gunning, Rupert Johnson and Ron Morse, voted to pass the sales tax increase. Commissioner Roger Angelly was not in attendance due to a death in the family.

McPeek said the sales tax increase will produce tangible results for the city.

"The money from this tax is going to provide a lot of improvements for our city," he said. "This is something that will help the city of Harrisburg stand out to people and businesses looking to relocate."