FREQUENTLY ASKED QUESTIONS - FINANCE DEPARTMENT
What is the sales tax rate in Fairview Heights?
Effective January 1st, 2012 the total sales tax rate in Fairview Heights is 8.35% with the exception of the Shoppes at St. Clair Business District where it is 8.85% (excluding Barnes & Noble Bookstore). The total rate is the combination of rates from multiple taxing entities that includes the State of Illinois and St. Clair County. The City of Fairview Heights - in most cases - receives 2.0 cents for every $1.00 spent in Fairview Heights.
What is the Home Rule Tax?
The Home Rule Tax is a portion of the total sales tax rate. Effective January 1st, 2012 it is 1.0%. By City ordinance, 45% of the receipts are to be used for the city's Capital Improvement Plan (CIP). The remaining receipts may be utilized for the operation of the City, with a priority towards maintaining the City's infrastructure.
What is the Hotel/Motel Tax Rate?
Effective October 1st, 2011 the City charges a 7.0% tax on hotel room receipts. The revenue generated is primarily utlized to retire a revenue bond and to encourage tourism to the City by sponsoring events such as the Midwest Salute to the Arts, Miracle League Baseball Fields and Midwest Wing Fest.
What is the Food & Beverage Tax?
Effective October 1st, 2011 the Food & Beverage Tax is 2.0%. The tax was originally implemented to retire an $8 million bond debt for the construction of a new police facility, Ogles Creek improvements, stormwater projects and sewer expansion program. The tax is based on retail sale of food and beverages that have been prepared for immediate consumption.