Chamber Endorses 1% Hinsdale Sales Tax Increase

A Village Board referendum to increase the sales tax in Hinsdale from 7.25 percent to 8.25 percent received a boost when the Hinsdale Chamber of Commerce voted to endorse the idea.

Despite a Sept. 9 endorsement by the chamber and the support of Village President Tom Cauley and the Village Board, the proposal faces an uphill fight. Prior tax-increase referendums have failed at the ballot box three times since November 2006. However, officials feel that the referendum has a better chance this time because, in addition to the proposed sales tax increase, the village also has made budget cuts.

Supporters estimate the tax increase would generate $1.5 million annually to be used for improvements in village infrastructure, particularly roads and the sewer/water system.

John Karstrand, former president of the Hinsdale chamber and a current member of the village Economic Development Commission, is leading a campaign to inform voters of the benefits of the referendum through a series of small neighborhood meetings between now and election day.

The State of Illinois imposes a base sales tax of 6.25 percent on general merchandise sold in Illinois. Units of local government have the ability to add to that.

If the referendum is approved, the total sales tax rate would increase to 8.25 percent in Hinsdale, equal to that in Darien and Downer's Grove.  The Hinsdale rate would be lower than that of Chicago, Riverside and Brookfield, which stand at 9.5 percent. Hinsdale's current rate mirrors that of Clarendon Hills at 7.25 percent and is lower than in Westmont and Oak Brook, which each stand at 7.75 percent.