School Facility Sales Tax

Winnebago County School Facilities Sales Tax

Harlem School District 122 has joined school districts across Winnebago County in advancing a countywide sales tax referendum to reduce reliance on local property taxes to fund school facilities.

Rockford Public Schools approved a resolution to place a referendum on the March 17, 2026, ballot seeking voter authorization for a 1% County School Facilities Sales Tax (CSFT). If approved by county voters, this sales tax would provide an alternative revenue source for school facility needs, currently funded primarily by property taxes. Items normally subject to sales tax are included, however, there are exceptions.  Items such as groceries, prescriptions, wholesale purchases, vehicles, and services are not included in the CSFT.

Revenue generated from the proposed sales tax could be used for capital projects and facility maintenance. Illinois law is very clear about how the revenue can be used. Revenue from the 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. The Harlem School District is exploring these two options:

• Property Tax Abatement: Using sales tax revenue to reduce the portion of property taxes dedicated to school facility bonds and maintenance, resulting in a lower tax levy.
  
  

• Facility Improvements: Funding renovations directly with sales tax revenue, potentially avoiding the need for new bonds and future debt service property tax increases.

This approach broadens the funding base beyond local property owners to include visitors within the county. Estimates suggest that more than half of the sales tax revenue would be generated by individuals who do not reside in Winnebago County, helping to distribute the cost of school facilities more equitably.  Locally, Boone County passed the CSFT in 2013.

By law, the Board of Education may not take a public position on the referendum.

To learn more about the School Facilities Sales Tax, visit the Regional Office of Education's website.