Auto, Gas Sales Vital To City Retail Tax Picture

Money from the sale of automobiles and gasoline in Des Plaines was the single biggest contributor in sales tax receipts that were filtered into the city's treasury during the first three months of 1998.

According to the Illinois Dept. of Revenue, Des Plaines received more than $440,000 in state sales and Home Rule Sale tax money for sales of automobiles and gasoline during January, February and June of this year.

In all categories of sales, the city received more than $2 million in sales tax cash.

Every quarter, Des Plaines and all other Illinois municipalities receive a report from the Dept. of Revenue which states how much money in sales tax money they are entitled to based on local sales. The categories which this form of tax money is accumulated include sales on cars, food, at restaurants, drugs, furniture, hardware, and general merchandise. There is also a category called "Agriculture & All Others". In the case of Des Plaines during the first quarter of 1998, more than $611,000 was garnered by the city in this category. According to Des Plaines' Finance Director Jim Egeberg, he is unsure what the "All Others" category includes.

Des Plaines over the years, has traditionally been near the top of Chicago suburban communities in terms of sales tax reaped. However, for about the last 10 years, that number has stabilized at around $6.7 million in sales tax money. About three years ago, City Council members created a 1/2% Home Rule Sales Tax which brings in approximately $2.2 million annually to the city.

During the first quarter of this year, more than $476,000 in Home Rule Sales Tax money filtered to Des Plaines and another $1,6 million in regular sales tax. Regular sales tax is based on one cent of every dollar spent goes to the municipality where the sale took place.

In comparison, Elk Grove Village garnered more than $1.8 million in state sales tax during the first quarter, and another $648,000 in Home Rule Sales Tax cash.