Published on August 19, 2025 7:28 pm
Last Updated on August 19, 2025 7:28 pm
Effingham City Council members Tuesday discussed major changes in how the City would generate tax revenue.
The Council agreed to implementing a sales tax to generate revenue. A 1% sales tax is estimated to generate $6.5 million annually. The tax as discussed would exempt groceries, medicine and titled vehicles. The City also has the option of a 1% grocery tax that would replace the 1% state grocery tax that expires at year’s end. The third option is to eliminate the City’s amusement tax, which generates about $165,000 each year.
That’s what will be considered, but there will be more discussion before the plan is finalized. Council members are excited about the options they to consider. For instance, the sales tax might generate enough revenue that the grocery tax wouldn’t be needed. There also be less needed in city property tax.
The matter is going to be discussed with a goal of deciding what to do in September. That way, anything that has to go through the State could be filed by year’s end and revenue could be collected beginning in January.
To make clear, any new sales tax would only be collected in the city of Effingham.
All five Council members are hoping to hear from Effingham residents on these matters. More information is to be released soon by the City. Also, there is no referendum for any of these actions; any action will be taken by the Council.
