COMPARATIVE COMMUNITIES AND THEIR SALES TAX RATES
Rock Island 7.50 Downers Grove 8.25
Moline 7.50 Rockford 8.25
Galesburg 8.50 Bettendorf 7.00
Geneseo 6.75 (Pre April 9th) Davenport 7.00
Peoria 8.25 LeClaire 7.00
The sales tax for some goods would raise to 7.75% in Geneseo after April 9th. Here’s a link if you want to explore other community sales tax rates.
Assume a person drives from Geneseo to Best Buy in Moline for an item that costs the same at Village Maytag or at Best Buy. We know that
cost of the item, cost of delivery, service, etc. all play into the decision, but assume all factors are equal except sales tax and location of the store.
The shortest route is 22.55 miles one way (45.1 miles)
Assume that you can average 20 mpg and assume 2.255 gallons of gas
Assume $3.60/gal= $8.12 worth of gas
Assume the item costs $400
Total Sales tax in Moline= $30.00
Sales tax in Geneseo= $31.00
So the Geneseo resident would pay $1 extra in sales tax for the appliance at Village Maytag, but would pay $8 in gas.
Let’s now look at a $400 appliance purchased in Davenport versus Geneseo. This would result in the following
Davenport Sales Tax= $28.00
Geneseo Sales Tax= $31.00
So why would a person buying a $400 appliance travel to Davenport (26.75 miles each way) if it costs the same in Geneseo?
Distance 53.5 miles
Gallons of gas 2.675
Cost of gas $9.63
Is it economical to drive to Davenport, or Moline, even if you do pay a little more in sales tax? It wouldn’t appear that sales tax then becomes the main criteria in determining many of these purchases? And if sales tax is such an inhibitor to business/retail/restaurant development, the current sales tax in all of the Quad Cities communities (both on the Iowa and Illinois side) is already higher than the current 6.75% in Geneseo; yet Elmore Avenue, 53rd, etc. seem to have many shopping and dining spots also.
If you also consider the value of the extra 1% as it relates to the Geneseo Schools:
That same appliance purchased in Geneseo generates $4.00 for Henry County Schools. Geneseo District 228 makes up approximately 31.6% of all Henry County students
So if the Geneseo resident (or Henry County shopper) stays home and pays the extra $4 for that appliance, it’s worth $1.26 to the School District.
Henry County Consumers save $ on travel, and also can contribute to better County-wide school facilities, while lessening the property tax burden for facilities!
Hmmmmm…. shopping and dining in Geneseo and Henry County helps employ people, supports local commerce, and if the additional Henry County Schools Facilities Sales Tax is approved, provides needed– and not just wanted— funds for all schools in our County. Think about it. It makes “cents”!