Note: The following is an article written by Mark Harris that appears in the October 2005 issue of The Wavelength, the Winnebago County newsletter.
From the desk of the County Executive…
There are lots of things being said about the possible County Sales Tax and about County employees that are myth instead of fact. Please take a few minutes to learn the facts so that we can help our friends and neighbors sort the truth from fiction.
Myths:
· Taxpayers won’t get property tax relief if a sales tax is passed.
· The County added 263 employees between 2003 and 2004.
· People will leave the County to purchase large ticket items.
· The sales tax will really be 1% not ½%.
Truth:
The resolution to pass a sales tax has always included a 12% reduction in the
property tax rate phased in over two years. The equalized tax rate would drop
from $5.67 in 2005 to $5.27 in 2006 and to $4.97 in 2007.
Only ten employees were added between 2003 and 2004. Over the last ten years the County’s total number of employees has only increased by four, and full-time employees have decreased by two. The County will likely have fewer employees in 2006 than at any time in the last ten years. The County’s population has increased by about 9% in the same time period.
For all large ticket items you pay the sales tax based on where you live and not on where you purchased them. Cars, boats, and trailers are taxed based on where they are registered. Appliances and furniture are taxed on where they are delivered. None of the sixty-one counties with a sales tax or a stadium tax have reported a decline in business as a result of the sales tax.
This tax is really ½%. The rounding rules remain the same as the rules for the 5% State sales tax. A $200.00 purchase would incur a $1.00 County sales tax. The merchant simply changes the sales tax rate from 5% to 5.5%.
Mark L. Harris, County Executive