Cook County Board President Todd Stroger on Monday vetoed a board-approved measure to repeal the controversial 1% sales tax increase enacted last year that raised the Chicago-area rate to 10.25% —the highest in the nation.
Stroger warned that the county needs the tax revenue to maintain operations. In a surprise move last week, commissioners voted 12-3 to repeal the tax. Some who voted for the tax hike last year joined in voting for the repeal. Stroger’s veto is expected to hold. Fourteen of the 17 members must support an override.
“I will not jeopardize the well-being of county residents by allowing this faction of commissioners to end funding for vital services and destroy our health and public safety operations,” Stroger said. “There is too much at stake for residents who desperately need these services, and for residents who deserve a government that is responsibly funded.”
The tax increase is expected to generate an additional $300 million annually.
Support for the repeal was strong among local elected officials, including Chicago Mayor Richard Daley.
Stroger did say he supported some form of graduated rollback in the sales tax, but did not elaborate.
Rating agency analysts said recently that given the slowdown in sales tax collections due to the recession, a repeal could strain the county’s balance sheet and possibly impact it ratings in the mid-double-A category.
A report released Monday from DePaul University’s Chaddick Institute for Metropolitan Development and Economic Research Associates Inc. found that retail sales in Cook County suburbs near the county line fell by 5.7% last year compared to 4.1% overall in Cook and 1.7% outside of the county. Those figures suggest that more shoppers are taking their business outside the county to avoid the higher tax rate.
