Sales tax referendum for Winnebago County schools to appear on primary ballot

School taxes are by far the largest items on your property tax bill. A referendum appearing on the March 17, 2026 primary election ballot could reduce them.

It reads, “Shall a retailer's occupation tax and a service occupation tax (commonly referred to as a sales tax) be imposed in Winnebago County at a rate of 1% to be used exclusively for school facility purposes, school resource officers and mental health professionals?”

A separate referendum item on the ballot asks voters if Illinois should opt into the Federal Scholarship Tax Credit program.

Modeled after a similar program in 2007, the County School Facilities Tax (CSFT) is a one percent sales tax on selected purchases to fund school facility improvements and reduce reliance on property taxes in Illinois, To date, the CSFT has been passed by 58 of the 102 counties in Illinois, including Boone County.

If approved in Winnebago County, tmCSFT tax funds would be applied toward new school facilities, additions, technology infrastructure, architectural planning, durable equipment, fire prevention and life safety, land acquisition, roof repairs/energy efficiency, parking lots, demolition, school resource officers and mental health professionals.

Abatement, debt recovery, and security upgrades are included. It will not go to villages or townships, only to school districts.

The one percent CSFT sales tax acts as a direct offset to the property tax burden, providing an alternative revenue stream that reduces the district's reliance on property tax collections.

Items that won’t be taxed: unprepared food (groceries), prescriptions, over the counter medications, anything purchased at wholesale, cars, trucks, ATVs, boats, RVs, mobile homes and services.

Funds are divided between the school districts based on each district's share of public school students residing in Winnebago County.

Funds are distributed directly to school districts and do not flow through the Illinois General Assembly budget process.

The school districts say the funds will give tax relief for property owners, strengthening school safety, classroom and facility enhancements.

Estimated CSFT revenues for local school districts: $1.48 million for Kinnikinnick, $1.59 million for Hononegah, $698K for Prairie Hill, $1.39 million for Rockton, and $87 K for Shirland.

In the Harlem district #122 the approximate sales tax revenue is $5.4 million, with an abatement of $2.7 million in existing property taxes.

Additional funds will be earmarked for building and facility needs such as roof replacements, boilers, fire alarm systems, HVACs, and more needs.

Because the county sits at the intersection of I-90 and I-39, much of its sales tax revenue comes from travelers passing through the region, not local residents.

That means anyone who shops in Winnebago County, including those who don't live here, would contribute toward keeping schools up to date.

School officials do not advocate for or against the ballot measure, but several local superintendents presented facts and information at a meet and greet on Feb. 11 and at a meeting on Feb. 24 in the Hononegah High Community High School library.

Josh Aurand, Assistant Superintendent for Business and Operations at Harlem High School, gave an overview.

Aurand spoke about what isn't taxed and some of the specific areas where the money will be allocated. “We are in the mode that we have more projects than money,” he said.

“Property taxes are high enough. This is a way to help us bring down property taxes a little bit and to help us with our buildings and structures.”

Dr. Terrell Yarbrough, Harlem's superintendent, added, "We cannot tell you to vote yes but this is really important to put this situation on the referendum in the hands of the voters, and to get the word out about this.”

Hononegah Community High school Superintendent Mike Dugan said, "For us we take a look at the Hononegah Nation's districts.”

“The bonds approved by the referendum for the field house construction won't be paid off until 2037.… The cost to taxpayers of these bonds is approximately $54 per $100,000 of a home's assessed value. The facility tax referendum would allow the school to pay off these bonds sooner.... This would save property owners that same amount in property taxes.”

Dugan said two ways to decrease property taxes are to reduce and to avoid.

To reduce, a district can abate or decrease existing property taxes by using sales tax funds to pay off outstanding building bonds. Property taxes can be reduced on residential, commercial and industrial properties.

Or a district can avoid levying property taxes by using sales tax funds to pay for facility projects that would have been paid for with property taxes.

“We have no initial immediate need in any type of facility, seeing in the last couple of years we have done a lot of things to the building,” Dugan added. “Things wear out and have to be replaced.… In the past we have had to burden tax payers to pay for those new roofs.”

“This will be a better option to be able to maintain these facilities and to use this sales tax and to lessen the tax burden on property taxes to all of the residents.”

Hononegah Board of Education President Dave Kurlinkus said, “Everyone is going to see pretty much the same things as far as the sales tax goes.”

“I am not advocating for or against the sales tax. There are people who don't understand that schools are totally reliant on sales tax. A lot of people probably think we are getting a cut from the casino in Rockford. We are not. That is very important to understand.”

“Please pay attention. There is a very strict limitation to what these funds can be used for. Look at the handouts and tell your friends. I am not going to advocate for it, but just want to make sure that there is no misinformation out there.”

Superintendent of Rockton School District Dan Phelps said, “This is unique, it is my first year in the role.“ Phelps reiterated, “Just go vote.”

“The money follows the student population. In Shirland we don't have a lot of businesses out there that other places have.”

“We talk about things like facilities. For us we have to focus on school safety and the importance of our playgrounds.”

Phelps said 63% of sales tax would come from non Winnebago County residents.

“Being new to this administration, one of our water heaters blew out. I learned very quickly that the cost of a water heater for a school is very different than one for your basement at home.”

“We have an HVAC that we know at some point is going to go.… The abatement of those property taxes is going to be very important for us,”Phelps said.