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The DeKalb Community Unit School District 428 Board of Education voted at its August 6, 2024 meeting to approve an addition to the upcoming November referendum to allow voters to decide if they wish to support a 1% county sales tax. The tax will be allocated to all school districts in DeKalb County to address needs that fall within the acceptable use of the tax. Sycamore, DeKalb, Genoa-Kingston, Sandwich, Somonauk, and Hiawatha school boards have all approved placing this measure on the ballot.
In order to include the sales tax referendum on the November ballot, school districts representing more than 50% of students enrolled in DeKalb County had to vote to approve the process. 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. (see Retail Demand Summary below)
What is the DeKalb County School Facility Tax?
The DeKalb County School Facility Tax (CSFT) also known as the “Penny Tax” is a proposed 1% sales tax on certain goods sold within the county, designed to support school facility improvements. It’s important to note that if a product or service is not currently subject to sales tax, it will not be taxed under this proposal.
Items such as prescriptions and over-the-counter medications, cars and trucks, farm equipment, unprepared foods (groceries), and services will be untaxed. These funds could also be used to support School Resource Officers, and Mental Health professionals in the future. If passed, each district will decide how it will utilize the funds.
How Can Funds Be Used?
The funds generated by this tax will be distributed to each district based on the number of students in each district who reside in DeKalb County. School boards will be responsible for deciding how the funds are used for facility-related projects.
Funds can be used for the following:
- New School Facilities
- Additions & Renovations
- Abate Property Taxes
- Land Acquisition
- Energy Efficiency
- Athletic Facilities
- Paying Off building Bonds
- Architectural Planning
- Durable Equipment
- Safety/Security Improvements
How D428 will allocate funds if passed
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.
Retail demand summary
The County is home to an estimated population of 99,635 people in more than 38,500 households. The median household income in the County is $66,556. The retail demand indicated by spending on the part of these County residents is approximately $823 million. This estimate is based on data provided by Esri and the Bureau of Labor Statistics.2 A recent study conducted by PGAV Planners indicates that at least 42% of retail spending is done by non-county residents.
2 Source: Esri. Consumer Spending data are derived from the 2019 and 2020 Consumer Expenditure Surveys, Bureau of Labor Statistics.
Ballot Question
The specific question that will appear on the November ballot will be:
“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 be asked to vote “Yes” or “No,” and a simple majority is required for the measure to pass.
We encourage you to review the information and make an informed decision on this important initiative.
For more details, we have created a one-page flyer in English and Spanish that further explains how this sales tax will impact our district and countywide schools. Additional information will be provided over the coming months.
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