Metro East Sun

Madison and St. Clair county residents are paying an increased sales tax that began Jan. 1.

Belleville, O’Fallon and Collinsville in St. Clair County along with Troy and Collinsville in Madison County instituted the 1 percent sales tax raise in their respective business districts. In total, 20 municipalities raised sales tax beginning on Jan. 1, the Illinois Policy Institute reports.

A full list of sales tax increases, along with instructions for business owners, was published by the Illinois Department of Revenue. The sales tax won’t affect certain foods, drugs, medical appliances or other special purchases.

Local businesses affected by the rate change will need to update their software or cash registers to ensure they are collecting the correct amount of sales tax from consumers. There is more detailed information available at the Department of Revenue website.

The tax increases from Belleville, O’Fallon, Collinsville (both in St. Clair and Madison county), and Troy will affect only the business districts in those areas. Collinsville (St. Clair County) now has the highest tax of the group at 9.6 percent. Collinsville (Madison County) and Belleville are tied for the second highest rate in the area as both now have a tax rate of 9.1 percent. O’Fallon ranks third with a new sales tax rate of 8.85 percent. Troy residents will enjoy the lowest sales tax burden in the region with only 7.85 percent.

The increase in sales tax is something that the Illinois Policy Institute notes will increase the tax burden on already heavily taxed working-class residents. Illinois residents already carry a tax burden higher than most of the nation, with the combined income, property and other taxes making it the fifth-highest in the nation.

Chicago, likewise, has the distinction of being the city with the highest sales tax in the country.