| The major aspect of this study was to examine the perceptions of four groups of participants from three communities and their respective school districts in Illinois who have utilized a local sales tax to raise revenue for their school district. As a related part of the study, the researcher wanted to gain insight from other states that have the opportunity to utilize a local sales tax as a revenue source to benefit local school districts.;The methodology of the study included the use of an interview-based approach, an examination of documents and artifacts as secondary sources related to the effectuation and impact of the local sales tax on the school districts and communities, and a review of states that have used local sales taxes to benefit local school districts.;Several factors were revealed that should be considered in utilizing a local sales tax as a revenue source for a local school district. These considerations included (a) involving and gaining the support of stakeholders in the community, (b) utilizing a revenue stream other than property taxes, (c) being accountable in using the tax for a specified purpose, and (d) having an environment of cooperation within the community.;Benefits and limited detriments were identified in the communities that have used this type of revenue mechanism. Benefits included: (1) that it did not increase property taxes, (2) spread the burden of taxation to a greater number of people, (3) people understood the concept of sales taxes, (4) had little impact on businesses and individuals, and (5) intergovernmental agreements led to cooperation in the community. One detriment shared was that it could limit the opportunity of a city to access a stable revenue source. Local sales taxes have also been used in at least 12 other states to various degrees and for various purposes to assist local school districts. Significant conclusions of the study indicate that local sales taxes can be a viable source of revenue for some school districts and that several benefits can be realized for both communities and their school districts. |
