Woodstock wants public’s input on raising sales tax

Woodstock is asking the public to weigh in on a proposal to increase the sales tax paid in town to 8.5%, which would give it one of the highest rates in McHenry County.

City officials have been thinking about a sales tax increase to help fund recreation center renovations and potentially other projects. Woodstock doesn’t have a separate park district.

The city is planning to issue bonds for the renovations, but also is mulling the sales tax increase to pay for the project.

The City Council back in May informally expressed support for an increase in the local portion of the sales tax rather than raising property taxes to cover the renovations. City Manager Roscoe Stelford suggested increasing the home-rule sales tax by 0.25%, which could bring in an estimated $800,000 to $850,000 of revenue per year. Stelford said the sales tax also could support other capital projects.

The council preferred the sales tax proposal, but a couple of members said they wanted to see the tax go away once a planned bond sale is paid off. Woodstock usually has a 20-year repayment schedule on bonds it issues, Stelford said.

Woodstock is required, under rules it adopted when it became a home-rule municipality almost a decade ago, to hold a public hearing if the city wants to raise the sales tax. The city announced on Facebook late Tuesday that the public hearing will take place at 7 p.m. July 15 at City Hall.

If approved, Woodstock – where shoppers now pay a total sales tax of 8.25% – would match Crystal Lake for having the highest sales tax in the county. Crystal Lake also has approved an additional 1% sales tax just for the Water’s Edge development, bringing that area’s sales tax to 9.5%.