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Joliet Residents Hit With Sales Tax Increase

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Cash/Currency/Money (Photo credit: KAREN BLEIER/AFP/Getty Images)

Cash/Currency/Money (Photo credit: KAREN BLEIER/AFP/Getty Images)

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JOLIET (CBS) – Joliet residents are about to get hit with a 40 percent increase in the town’s sales tax.

Board members voted to increase the tax from 1.25 percent to 1.75 percent as the only way to help close the town’s $17 million budget deficit.

Residents will also pay more tax for natural gas and phone service. The taxes will generate about $7 million, while budget cuts will make up the rest.

LISTEN: WBBM Newsradio’s Bernie Tafoya Reports

Joliet Mayor Tom Giarrante said the town needed the revenue because it has cut the budget to the bone.

“We have cut just about as much as we can as far as personnel without affecting services,” he said.

The mayor will also be seeking givebacks from the police and fire union members, who are due a 4 percent salary increase in 2012.

Otherwise, there will be more layoffs, the mayor said.

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