FAQs - DeKalb County School Facility Tax ("Penny Tax")
What is the DeKalb County School Facility Tax?
The DeKalb County School Facility Tax (CSFT), also known as the "Penny Tax," is a 1% proposed sales tax on some goods sold within DeKalb County. The funds to be collected from this tax can primarily be used to address school facility needs. The law allowing the Penny Tax was updated a few years ago to allow schools to use these funds for School Resource Officers and/or Mental Health Professionals because of growing needs for social-emotional wellness and security. Nearly every school board in DeKalb County, representing the majority of students in the county, has agreed to place this question on the November ballot.
If passed, this 1% sales tax is projected to generate an estimated $10 million annually for public school districts across the county and an estimated $5 million for DeKalb CUSD 428. It is further estimated that 42% of retail spending is done by non-County residents.
What will the ballot question be?
Voters will be asked: "Shall a retailers’ occupation tax and a service occupation tax (commonly referred to as 'Sales Tax') be imposed in DeKalb County at a rate of one (1) percent to be used exclusively for school facility purposes, school resource officers, and mental health professionals?"
Voters will have the option to vote "Yes" or "No." A simple majority vote is required for the tax to pass.
When will this vote take place?
This will appear on the ballot in the November election taking place on Tuesday, Nov. 5, 2024.
What is NOT taxed under the DeKalb County School Facility Tax?
Certain items will not be subject to the 1% sales tax, including:
- Prescriptions and over-the-counter medications
- Cars, trucks, ATVs, boats, RVs, and mobile homes
- Farm equipment, parts, and farm inputs
- Services
- Unprepared food (groceries)
If it is not currently taxed under Illinois law, it will not be taxed under the new sales tax.
How will the funds be distributed?
If the sales tax passes, the funds collected will be distributed to school districts based on the number of students residing within the county in each district.
How can the generated funds be used?
The funds can be used for:
- New school facilities
- Additions and renovations
- Land acquisition
- Energy efficiency improvements
- Athletic facilities
- Paying off building bonds
- Abating property taxes
- Architectural planning
- Durable equipment
- Safety and security improvement
What can the generated funds not be used for?
The funds cannot be used for:
- Salaries and benefits for staff*
- Instructional costs
- Textbooks and computers
- Movable equipment
- School buses
- Operating costs
* The recent change in the CSFT allows schools to use these funds only for salary and benefits for School Resource Officers and/or Mental Health Professionals.
How would DeKalb 428 use the funds?
DeKalb CUSD 428 intends to use the proceeds to lower debt and provide additional property tax relief to district residents. The district will pay off outstanding approved referendum bonds faster, saving on interest costs that will be passed on to property taxpayers. This will allow the district to lower its tax levy and provide additional abatements, benefiting property taxpayers.
This allows the district to continue on its current course and prioritize the utilization of additional revenue streams to benefit local residents while continuing to ensure our students and families have access to educational services that meet our community’s growing needs.
Will revenue be generated from people who live outside of DeKalb County?
Yes. Any person who travels through or visits DeKalb County and makes a qualifying retail purchase would be contributing to the revenues for the DeKalb County school facilities. PGAV Planners conducted research that indicates that 42% of all purchases in DeKalb County are made by people who live outside of DeKalb County. In addition, not all of the remaining 58% of purchases are made by people who own property in DeKalb County. The Penny Tax could allow individuals who don’t pay property taxes to support schools and could decrease some of the burden on local property owners.
Who will make decisions on how the funds are spent?
The school boards and administration within each DeKalb County district will be responsible for determining how the funds will be allocated within their respective districts.
Will every school district in the county benefit?
Yes. Every public school district that has at least one student residing in DeKalb county will receive funds from the sales tax, which will be collected from all communities in the county and then distributed based on DeKalb County district enrollment.
Each school district in the county would receive a portion of sales tax money that is based on student enrollment. The most recent projection for Dekalb County Schools is as follows:
