Parts of Cook County May Still Top the Sales Rate Tax List

July 24, 2009

Yesterday we reported that in Chicago the Cook County Board voted to cut in half last year’s 1 percent sales tax increase. If it survives a possible veto, the rate in Chicago would fall from 10.25% to 9.75%. We warned Pico Rivera and South Gate in California to look out because their 10.75% rate, which we thought was the highest in the country, is going to look even worse when Cook County’s falls.

But it has come to our attention that we have overlooked at least two jurisdictions that have higher sales tax rates. The Bellwood area in Cook County has a current sales tax rate of 11.5%. The areas subject to the rate are part of the Saint Charles Road and Mannheim Road Business Development Districts, which intersect each other and together seem to cover about a 2 to 3 mile stretch of road. It seems they would be subject to the planned 0.5% reduction in Cook County, but that would still leave them at 11%, higher than the Pico Rivera and South Gate.

While the state of Louisiana has a sales tax rate of 4%, the town of Lake Providence has a sales tax rate of 11%, which would tie it with Bellwood, Illinois assuming the Cook County reduction is implemented.

(Thanks to Indiana University Professor John Mikesell for alerting us to the mistake)

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