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 City Council Approves 1% Sales Tax, Votes Against 1% Grocery Tax, Eliminates Amusement Tax 

Published on September 16, 2025 6:22 pm
Last Updated on September 16, 2025 6:22 pm

The City of Effingham
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The Effingham City Council Tuesday voted to enact a 1% sales tax, but also voted against a 1% grocery tax and voted to eliminate the city’s amusement tax.

The sales tax is projected to generate $6.5 million based on last year’s data. The tax will be collected beginning January 1, 2026.

The state grocery tax ends at year’s end and the City expects the sales tax to make the grocery tax unnecessary, so the City will not receive the $650,000 to $700,000. Eliminating the amusement tax reduces the tax bill by $165,000.

Council members pursued the plan since it also eliminates the need for property tax, a point made by City Commissioner Hank Stephens in getting rid of the “surcharge” city property owners have had to pay.

All three votes were unanimous.

Also Tuesday, the Council sold a used backhoe to the Water Authority for $35,000; agreed to close streets for the Ham City Fall Fest on October 4th and for the EHS Homecoming Parade this Sunday, September 21st.

The Council witnessed a presentation by Police Chief Kurt Davis of a Chief’s Commendation to city officer Ryan Holsapple for months of work the officer did that resulted in a conviction in a sex offender case. Council members also appointed Christopher Ervin as Building Official after Tayler Polk left to work for the Altamont school district.