Sunday, April 12, 2015
Why Moline should always vote NO
Why did Moline residents vote against the school sales tax on the April 7 referendum? Possibly because the 2015 Moline General Fund Budget expects $13,620,300.00 in sales tax revenue, by far the largest revenue source in the $41,146,200.00 General Fund! This is far more than the Moline General Fund receives from all other sources, including property taxes. Moline voters realize that for every dollar spent in Moline stores the city receives 1.25 percent; for every dollar spent in a Moline restaurant, or on prepared food and liquor, the city collects 2.75 percent. Voters realize that adding an additional 1 percent would raise the sales tax in Moline on most purchases to 8.5 percent and to 10 percent on prepared food and liquor. Many Rock Island County consumers would decide to shop and dine in Iowa where the sales tax is only 7 percent. How much sales tax revenue would Moline lose? No one can predict the exact number but it cannot be denied that Moline would collect less sales tax revenue with this added school sales tax. Money that would have to be replaced by other tax increases or by cutting city services. The same argument could be made for the city of Rock Island and other municipalities that rely on sales tax revenue as well as to the state of Illinois which would lose 6.25 percent on every dollar that went to Iowa merchants as a result of this tax increase.