Peru sales tax increase approved

Money for roads and sewers beat out the risk of loosing shoppers and businesses with the approval of a half-cent sales tax increase in Peru.  The proposal had the council Monday night.

Alderman Dave Potthoff was the most outspoken against it, saying a tax increase would put Peru at a competitive disadvantage.  He thinks it will make people want to shop online or in other towns.  He also thinks it could lead to businesses leaving for towns with lower sales tax.

Mayor Scott Harl had been pushing for the tax increase all summer.  He says Peru’s situation wasn’t hurt when the council created a half-cent sales tax in 2007 for Parkside School.

Potthoff, Bob Ankiewicz, Tony Ferrari, and Dave Waldorf voted against the increase, but were out numbered when Harl’s yes vote broke a tie.

The sales tax will begin January 1.  It will be collected in a restricted fund designated for road and sewer projects.