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Winnebago County School Facilities Sales Tax

More information on the proposed one-cent sales tax for Winnebago County Schools

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Overview

The County School Facilities Sales Tax (CSFT) is a local funding option created by the Illinois General Assembly in 2007, modeled after a similar program in Iowa.

Traditionally, school building improvements in Illinois have been funded primarily through local residents' property taxes. Because the county sits at the intersection of I-90 and I-39, revenue also comes from visitors coming to our region for entertainment, travel, dining, shopping, sports, etc., not just local residents. In this way, the CSFT enables the sharing of the cost of facility improvements more broadly through a sales tax of up to one percent on selected purchases. 

To date, 57 of Illinois’ 102 counties, including neighboring Boone County, have approved the CSFT.

In Winnebago County, school boards representing a majority of resident student enrollment have passed a resolution for this to be placed on the ballot for the voters to decide. As a result, the proposal will appear on the March 17 Primary Election ballot, where it will be decided by a countywide vote.

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What can funds be used for? 

CSFT Informative Flyer (4) (1)
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Illinois law is very clear about how the CSFT revenue can be used. Revenue from this one percent sales tax can only be used for improving school facilities, retiring new or current building bonds, or for school resource officers and mental health professionals. It cannot be used for general school salaries, instructional materials, or other operating costs. Specifically, some examples of what the funding can support include:

  • New school facilities
  • Additions and renovations
  • Improved safety and security for students
  • Funding to keep roofs, windows, and doors in good working condition
  • Up-to-date labs and technology
  • Energy efficient heating and air conditioning
  • Paying off existing or new building bonds
  • Architectural planning/engineering
  • Durable equipment
  • School resource officers and mental health professionals

What is taxed and not taxed?


Items normally subject to sales tax are included in the CSFT with some exceptions. 

Health Life Safety Inspections

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Compliance

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NOT Taxed

  • Unprepared food (groceries)
  • Prescriptions & over-the-counter medications
  • Anything purchased at wholesale level
  • Cars, trucks, ATVs, boats, RVs, & mobile homes
  • Farm equipment
  • Services (accounting, legal, beauty, etc.)
Blueprint

Examples

McDonalds meal $18 = 18¢
Haircut = not taxed (service)
TV at BestBuy $750 = $7.50
Gasoline $64 = 64¢
Ground beef at Walmart = Not taxed (unprepared food) 

  • Funds are divided among school districts based on each district’s share of public school students residing in Winnebago County. Enrollment figures used for distribution are submitted annually to the Regional Office of Education, and CSFT revenues are distributed directly to school districts. These funds do not flow through the Illinois General Assembly budget process.

  • Public schools in Illinois are funded through a combination of local, state, and federal sources. The exact mix varies by school district, but on average funding comes from:

    • Local property taxes and donations: approximately 74%

    • State funding: approximately 12%

    • Federal funding: approximately 14%

    Because the majority of school funding comes from local property taxes, districts often rely heavily on property tax revenue to support day-to-day operations and facility needs. State and federal funds supplement local revenue but typically come with specific requirements or limitations on how they may be used.

    Funding levels and sources can vary significantly by district. Detailed and current financial information for each school district is available through the Illinois School Report Card.

  • Possibly. School districts may use County School Facilities Sales Tax (CSFT) revenue to pay for facility projects or existing building bonds that would otherwise be funded through property taxes. How much your property taxes might be reduced depends on each district’s current debt, future board decisions, and how the district chooses to allocate CSFT funds.

  • Anyone who shops in Winnebago County contributes, including visitors who do not live in the area. Because the county sits at the intersection of I-90 and I-39, revenue also comes  from visitors coming to our region for entertainment, travel, dining, shopping, sports, etc., not just local residents. 

  • On the March 17 Primary Election ballot, Winnebago County voters will see the following question:

    "Shall a retailer’s occupation tax and a service occupation tax (commonly referred to as a ‘sales tax’) be imposed in Winnebago County at a rate of 1% to be used exclusively for school facility purposes, school resource officers, and mental health professionals?"

    This referendum asks voters to decide whether the County School Facilities Sales Tax (CSFT) should be enacted in Winnebago County.