Online sales and big box chains across the river are hurting Peoria County sales tax revenue. That’s according to the latest 2015 financial report presented to a county budget committee last week.
County Chief Financial Officer Eric Dubrowski says the tax from online sales is distributed to Peoria County at a lower rate, based on a per-capita distribution. The County's revenue is based on its unincorporated population of 37,000.
“If that sale would have taken place in a traditional brick-and-mortar situation, then we would actually have received more in terms of sales taxes,” Dubrowski said.
Dubrowski says local use tax, which includes online sales, grew 69 percent during the past decade.
Another trend Dubrowski says is impacting county sales tax revenue is a decline in fuel sales. He says Peoria County consumers are buying fuel elsewhere.
“If you’re going to go to Costco, Target or something in East Peoria, since you happen to be there, you’ll fill up your tank,” Dubrowski said.
It's also worth noting that Peoria County's unemployment rate is higher than state and national numbers. Dubrowski says the unemployment rate could be a factor in the stagnant sales tax revenue because residents may be less inclined to buy non-essential items that bring bigger returns for the county.
The county is working on a “Buy Local” campaign to encourage residents to keep the flow of dollars in Peoria. Dubrowski said this could also help with the problem of unemployment.