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Quid Pro Quo Sales Tax Increases in Illinois


 Home rule sales tax rate increases coming to Illinois.

Updated, 10.29.2015

In an unusual case of quid pro quo, councils in both Normal and Bloomington, Illinois, decided to increase home rule sales taxes from 1.5% to 2.5%, which will bring the combined local rates to 8.75%. Adjacent Bloomington and Normal comprise the Bloomington-Normal metropolitan area.

During a summer retreat, the Normal Town Council proposed a 1% sales tax rate increase that “would be contingent on Bloomington also raising its sales tax.” Given the close proximity of the two localities, there are obvious benefits to increasing and reducing sales tax rates simultaneously. The rate increase was further discussed and approved during a September 8 meeting (see Agenda), and the rate change is now posted on the Bloomington website.

Earlier this week, the Bloomington City Council approved a similar rate increase. According to Alderman David Sage, who chairs the Budget Task Force, “This is not an 11th hour that we’ve made. This is an 11th hour that Normal has made for us.” Exactly how the Bloomington sales tax revenue will be distributed has yet to be decided.

If both Normal and Bloomington can file the required paperwork with the state by October 1, the rate increases will take effect on January 1, 2016. If not, they’ll be pushed back to July 1, 2016. Together, the additional taxes are expected to raise as much as $15.5 million annually.

Find accurate local sales tax rates in every state with this free sales tax rate map.

photo credit: 02a.HomeRule.1807.14thStreet.NW.WDC.7February2012 via photopin (license)


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.