Local school districts considering a county-wide 1% sales tax
While collected county-wide and having many exclusions, it could lead to property-tax refunds
School districts in Rockton, Roscoe, and South Beloit, along with the rest of Winnebago County are evaluating the potential impact of a countywide School Facility Occupation Tax (CSFT), also known as a school sales tax or penny tax, which could generate nearly $39 million annually to support local school facilities in Winnebago County with school districts in Rockton, Roscoe, And South Beloit would receive just over $6 million annually.
The tax, authorized under Illinois law since 2007, allows school districts to seek voter approval for a sales tax of up to 1% on most retail purchases, excluding essentials such as unprepared food, medications (including medicinal cannabis), vehicles, and farm equipment. If approved, funds may only be used for school facility purposes, including new construction, building renovations, technology infrastructure, security upgrades, and energy efficiency projects.
This funding mechanism gives districts a dedicated revenue stream for facility improvements without relying solely on property taxes. It allows schools to address aging buildings, safety needs, and modern infrastructure in a sustainable way.”
Winnebago would not be the first (or second or third) county in Illinois to have a CSFT on a ballot. 57 counties in Illinois as of 2024 have voted by referendum to enact the tax, with neighboring Boone county residents passing the tax in April 2013 after being voted down in November 2012.
If school boards representing more than 50% of county student enrollment pass resolutions, the question could appear on the ballot as early as March 2026. If approved by voters, the sales tax would take effect on July 1, 2026, with schools beginning to receive funds in fall 2026. While Rockford Public Schools is in favor of putting this question to county voters and could do such since it almost 65% of county students attend RPS, it is approaching local districts to garner more support and persuade team leaders and board members.
School leaders emphasize that community education will be critical ahead of any referendum, noting that ballot language is broad and does not specify individual projects. Districts are expected to outline how funds would reduce pressure on property taxes and improve local learning environments. Some districts have issued property tax refunds after completing projects or fulfilling bond payments.
For more information on the proposal and its potential impact on Winnebago County schools, residents are encouraged to follow updates from their local school districts and the Regional Office of Education.
