Montgomery Village Board backs plan to hike property owner sales tax rebates from $45 to $75 for 2023

Residential property owners in the village of Montgomery may be eligible for a larger sales tax rebate from the village in the new year.

Since 2015, the village has been issuing $45 sales tax rebates annually to local residents who complete forms online or in person at Village Hall.

During a meeting Monday evening, Dec. 12, a majority of Village Board members voiced support for a plan to increase the rebates to $75 for the coming year.

The village established the rebate program as an inducement to village voters to approve a referendum creating a 1% retail sales tax in 2014 to finance the village’s annual street maintenance and capital infrastructure program. The referendum passed, and the village began offering the rebates in 2015.

Over the past seven years, the cost to the village for the rebate program has ranged been between $68,000 and $116,000, according to a memo from village staff.

Board members noted during Monday’s meeting that the village has seen a significant rise in retail sales tax revenues this year at the same time local residents are coping with rising costs because of inflation.

In an effort to provide residents with some relief, board members voiced support for a recommendation from Village President Matt Brolley to increase the rebate from $45 to $75 for the coming year.

Brolley told the board the village has the funds available to cover the increase for 2023.

Referring to the increase, Brolley said, “This is not forever. Every single year we have to take a hard look at it and see what the surplus is.”

Brolley also asked village staff to streamline the rebate application process to make it simpler and easier for village residents and staff.

Board member Steve Jungermann said increasing the size of the rebate has long been one of his goals and noted that he had discussed the possibility of an increase with his board colleagues before Monday’s meeting.

Jungermann said he would support increasing the rebates to $90.

The village has not been levying the maximum amount it can under the Property Tax Extension Limitation or tax cap law, yet still has funding available to increase the rebates which, Jungermann said, is a credit to the village’s staff.

Board member Tom Betsinger proposed the village increase the rebate to $60 while at the same time having village staff make adjustments to the application process to encourage more residents to participate.

“The process should be less administratively time-consuming for staff,” Betsinger said.

Board member Mike Bauman, however, said he believes the village should keep the rebate at $45, citing increasing costs the village is facing relating to infrastructure and personnel.

“We have [employee] contracts coming up, and I think we are looking at some potentially serious increases and we want to remain competitive,” Bauman said.

By keeping the rebates at $45, Bauman said the village still would be responsible to local residents while allowing the village to cover unforeseen expenses that will come up.

After discussion, Brolley made his recommendation to set the rebate at $75 for the coming year only, and board members agreed.

Board member Theresa Sperling was absent from Monday’s meeting.