LEXINGTON, Ill. (WMBD) — Tuesday night, voters in Lexington approved an increase to their city’s sales tax.

With 58% of voters saying yes, the city will increase its sales tax from 0.5% to 1.0% which is a half percentage more. The change will take affect July 1st.

Lexington mayor Spencer Johansen said with the increase, the city will see an additional $75,000-100,000 in revenue. While it’s small, Johansen said the money will help offset rising costs of the city’s gas, water plant power and other utilities.

According to the mayor, the city’s Ameren bill in 2021 was $20,000, now this year it’s $31,600 with still a month left.

“We don’t foresee raising property taxes, I know when you put anything about raising taxes in front of the citizens, nobody likes that, me included, but sometimes little things like this are necessary,” Johansen said.

With the increased sales tax, Lexington’s combined tax rate will rise to 7.25% which is still lower than other similar sized communities including Le Roy and Chenoa where that tax rate is 7.75%.

Johansen said residents won’t notice much of a change.

“As I explained to the residents, you’ll notice it more if you go to the hardware store for instance and you spend $10, it’s going to cost you five cents more, that’s the easiest way to put it,” Johansen said. “Where we will see it (most) is the interstate traffic we get coming into town and we’ll see an increase from those people using our services.”

Property taxes will not be affected by the measure. Johansen said the city has no plans of raising the property tax.

42% of voters said no to the increase.