May 28, 2008

The Cook County Sales Tax: Basic Facts

Cook County Board President Todd Stroger recently reported that much of the material published in recent days about the soon increase in Cook County's portion of the sales tax “has not been accurate.”

So to set the record straight and clarify the facts, he put out a press release detailing the sales tax breakdown for the county and other municipal areas.

Currently, Cook County receives ¾ of 1 cent from the sales tax – three-fourths of a penny per every dollar, in which the rate has remained unchanged for more than 15 years – since the County portion of the sales tax was passed in 1992 under the administration of former County Board President Richard Phelan, according to the March 6, 2008 press release. Effective July 1, 2008, the Cook County portion of the sales tax will increase by one cent for a total of 1.75 %. Stroger also reported that the proposed sales tax increase will affect households, businesses and visitors in proportion to their spending habits and lifestyles, and that the Stroger reports that the County sales tax has “never applied to items that include groceries, medicines and related medical supplies,” and that the sales tax will not affect goods like a dozen eggs, a gallon of milk, raw chicken, a bag of potatoes, Oxygen tanks, syringes, prescription drugs and over-the-counter drugs.

The sales tax will affect goods like, fast food, restaurant meals, alcohol purchased in a tavern, clothes shopping and furniture.

The sales tax will not affect “real” or “titled” property like, land, property, home, automobiles, boats, and recreational vehicles.

However, “some of these items may be subject to various municipal sales tax rates.”

On average, households pay less than $158 in Cook County sales tax each year, the press release stated.