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Sales tax increase proposed for Peru

Posted by wlpo on May 18, 2011

A half-percent sales tax increase could be Peru’s way of paying for road and sewer improvements.  Saying the city has fallen behind with road improvements, Mayor Scott Harl is proposing a sales tax increase that would only fund infrastructure improvements.

Harl explained his idea to the Peru City Council Wednesday night.  He’s suggesting it be in place for five years and not be applied to car sales and food.

Alderman Rodney Perez asked if a quarter percent sales tax would work, but Harl didn’t believe it would generate enough money.

Sales tax in Peru totals 7%, with the city’s share at 1.5%.

Harl wants the council members to think about it so they could possible take action on it by July.  That’s when it would need to be submitted to the state.

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