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Proposed 1% Sales Tax Increase


On Monday, September 18, 2023, the Freeport City Council will take a vote on the increase of the home-rule sales tax to fund city road projects. If passed, the 1 percent sales tax increase will help secure a sustainable local funding source to improve the 139 miles of road within the City of Freeport.

A combination of factors, including long-standing underinvestment in transportation, natural wear, changing weather patterns, and a gradual decline in the revenue generated in the Motor Fuel Tax has led City leaders to discuss alternative funding sources for a sustainable road program. The following infographic lays out the basics of the sales tax increase basics.

Revenue from the proposed 1 percent sales tax increase is estimated to yield $3.5 million on an annual basis. Tax revenue will be dedicated by ordinance to the following key areas for a successful road program:

  • Roadway repairs and reconstruction
  • Paving materials
  • Curb
  • Gutter
  • ADA sidewalk ramps
  • Public Works staff wages
  • Contracted work related to road improvements
  • Utility improvements related to roadway repairs and reconstruction
  • Debt service for financing roadway repairs and reconstruction

If passed, the permanent, dedicated street funding will address many local streets with reconstruction contracted bid work and the City paving crew’s in-house operations. Roughly three-fifths of the sales tax revenue will be allocated towards paving materials, contracted paving work, and public work supplemental wages. One-fifth of the funding will be allocated towards utility improvements related to roadway repairs and reconstruction.

Currently, it is estimated 60 percent of local streets in Freeport are in need of major roadway renovations and reconstruction efforts. The project anticipates road construction work in all wards of Freeport. Transparency, efficiency, and advance planning is key to communicating the annual street program for design and construction efforts each season. This funding outline below will increase or decrease depending on the amount of actual sales tax revenue received annually.

A 3-Year Road Improvement Plan draft has been created to show how these funds would be applied to proposed road projects. Please view this map of intended road projects and the draft road improvement plan outline.

The sales tax increase will not impact the following sales:

  • Food to be consumed off-premise from where it is sold
  • Prescription and non-prescription medications
  • Insulin and diabetic related testing materials such as urine testing materials, syringes, and needles
  • Medical appliances
  • Vehicle sales


If approved on Monday night’s City Council Meeting, the City will begin receiving funds from the increased sales tax in April 2024 for the kick-off of the 2024 road construction season. To contact your elected officials to discuss your concerns or comments regarding the upcoming vote, please visit our webpage for Council Member’s contact information.

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