East Moline proposes sales tax hike to help local businesses

The city of East Moline is discussing a sales tax increase to its small businesses. City Council this week discussed an additional sales tax up to one percent, to benefit small businesses in their city.

The city of East Moline is discussing a sales tax increase to its small businesses. City Council this week discussed an additional sales tax up to one percent, to benefit small businesses in their city.

“I don’t think anyone likes to be taxed,” said Mark Rothert, East Moline’s city administrator. “I don’t, you don’t, businesses don’t. Their customers who will be paying the tax, are in a way are already paying it if they are going to our neighboring communities to go shop.”

East Moline could implement a 1% sales tax on top of a 1.5% tax on food and beverages. “It’s to create this pool of funding that businesses locally inside of the district can then apply to every year through a round of funding,” Rothert said. “They can receive assistance if they qualify for their projects that they want to have to expand their business, do a remodel of their business.”

Respect Abilities, a small business in East Moline (834 15th Ave.) that serves individuals with challenges, says East Moline needs traffic back in downtown.

“In 2015 we started just creating some things,” said Michelle Horton, the owner of Respect Abilities. “I’ll tell you right now, there were tumbleweeds that would go up and down downtown. So for me, it’s always been a huge concern driving traffic back to downtown.”

Horton says the sales tax increase will help small businesses like hers. “A quarter to invest in, where you can actually tap into later,” Horton said. “And work with the city promoting your business, and doing all the things that need to be done to make you successful, I think is worth it. I really do.”

Being competitive with surrounding cities is what Respect Abilities hopes the increase will provide. “It’s just evening the plane,” Horton said. “And that’s what we have to do. We got to bring in more money, so we can play with all of our surrounding communities.”

The sales tax increase has not been voted on or approved yet, but East Moline City Council is expected to discuss the proposal in the near future.

“We have to answer the question, is having a pool of funds that businesses can tap into to enhance their business worth the one percent sales tax,” Rothert said. The 1 percent sales tax hike if approved, will coexist with the 1.5% food and beverage tax, that will go into effect this March.

The city currently has an overall 7.75% sales tax on all retail sales (including state, municipal, county and school tax rates). For more information, visit the city website HERE.

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