WASHINGTON, Ill. – Washington has a new tool to help with economic development.
The city council unanimously approved the second reading Monday night to create a new business development district, effective January 1st, 2027.
The district would impose a 0.25% sales tax on eligible merchandise within the boundary. Food, drug, and titled items would not be subject to the new tax.
The new tax is expected to raise more than $700,000 annually for eligible economic development and infrastructure activities. Those could include addressing vacant properties, recruiting businesses and new commercial development, and partner with existing businesses on their needs.
Before the vote, a few councilmen expressed concerns about wanting to shrink taxes elsewhere.
“I’m voting ‘yes’ under the idea that we either are, one, going to lower the sales tax rate in kind, or take the difference in money we do make and reduce the property tax levy,” said Ward III’s Bobby Martin.
Ward IV’s Michael McIntyre expressed similar desires to lower taxes as part of the creation of the district.
City Administrator Jeff Fiegenschuh suggested a lowering of the property tax, if the council wanted to go in that direction. He stated that the city should have more numbers in the next month to see how much of a property tax can be reduced.
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