New Illinois Business District Proposed
- Sales Tax News
- Feb 12, 2016 | Gail Cole
About 20 miles southwest of Chicago sits the town of Willowbrook, Illinois, home to a 10.5-acre Kmart property that has long been vacant. If all goes according to plan, that land could one day be home to The Willows, a proposed development of restaurants, a supermarket, and several small retail stores.
The Willowbrook Village Board recently approved a plan to gauge the eligibility of the site for a business district designation. If a business district designation is secured, a master plan for the new district will be created. Business districts often impose a special district sales tax to generate revenue for the district.
Proponents of the plan point out that Willowbrook is well-positioned for a business district. Sales tax rates in surrounding areas are currently higher than the 7.25% Willowbrook rate: Darien, Downers Grove and Hinsdale all have a rate of 8.25%; in Western Springs it is 9% (Chicago Tribune).
Business districts in Illinois are permitted to gradually increase the sales tax rate by up to 1%. If the proposed Willows applied the maximum, its sales tax rate would be equal to or less than rates in surrounding areas.
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