Pekin City Council proposing increased sales tax, considers reduction in property taxes

Local News

PEKIN, Ill. (WMBD) — Pekin City Council is proposing an increased sales tax to help local businesses expand.

The sales tax would be 1% and would go into the Business Development District fund. The Business Development District is Pekin’s major commercial area for retail shops.

Mark Rothert, Pekin city manager, said the money is meant to assist existing businesses redevelop their properties and invest dollars into new infrastructure.

The customers will not be taxed for services, but will be taxed for the products needed to provide the service.

For example, if you purchase a hair service, you will not be taxed for the actual hairstyle, but you will be taxed for the shampoo or other hair products used.

“The city council has been very cognizant of this fact that the business development district comes with a 1% tax increase. What the council has decided to do is also consider a property tax cut for those residents in Pekin.”

Mark Rothert, Pekin City Manager

The city manager said they plan to reduce property taxes by 10% and reduce sewer fees to offset the sales tax. The city will hold a public hearing on the proposed sales tax Monday, Oct. 26 at 4:30 p.m.

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