NIU students and visitors to the City of DeKalb could face some hefty tax and fee increases under proposals considered by the city council.

In a memo presented to the DeKalb city council this past Monday night, city officials proposed a smorgasbord of "revenue enhancements" to close an anticipated budget shortfall that is estimated at $1.68 million going into 2019.

Among the proposals to collect more money from residents:

  • A 25% increase in the restaurant and bar tax in DeKalb. Currently the city collects a 2% tax in addition to the 8% sales tax already in place.  The total restaurant and bar tax collected in DeKalb is 10%. City leaders are looking to increase the city share from 2% to 2.5%, which would represent a 25% increase. Passage of this new tax would make restaurants in DeKalb one of the most taxed in the Northern illinois Area, outside of Chicago
  • A 14% increase in local sales tax. This tax applies to all goods sold in DeKalb, with the exception of groceries and automobiles. The current rate is 1.75%. Leaders propose to increase it to 2.75%. 9% sales tax total. This would make DeKalb the city with the highest in all of northern illinois outside of the Chicago area.
  • A 5% increase in the electric utility tax and gas utility for DeKalb residents.
  • A 4 - 6% rate increase in property tax rates for city residents

Also, NEW Entertainment tax is being proposed.

City leaders are also proposing some cuts to help balance the the budget. At the moment these items are considerations and have not been approved, yet.