Village of Hampshire Tax Structure
As a non-home rule local government, the Village is very restricted in what taxes can be levied and at what level they can be imposed. The list of local taxes and fees below include all currently imposed taxes and their rates. Any additional taxes the Village might levy would require voter approval by referendum or a a change in status to home rule. See the current budget and capital improvement plan to see how revenues are being used.
Locally Imposed Taxes
The following is a list of all local taxes imposed in the Village of Hampshire. It does not include all taxes or fees a person may be required to pay to the county, state, or federal government or other taxing bodies.
Places for Eating Tax: 2% on the sales of prepared food and beverages sold at retail at the place of eating.
Telecommunications Tax: 6% on the act or privilege of intrastate or interstate telecommunications by a person.
Hotel Tax: 5% on rent charged for the privilege and use of renting a hotel or motel room for each twenty-four (24) hour period or any portion thereof for which a daily room charge is made.
Utility Tax: 5% on the gross receipts of distributing, supplying, furnishing, or selling gas for use or consumption within the Village and not for resale.
Municipal Electricity Tax: $0.355 per kwh up to 2,000 kwh and descending in increments on the use or consumption of electricity acquired in a purchase at retail and used or consumed within the Village.
Cannabis Retailers' Occupation Tax: 3% on the sales of cannabis at retail in the Village, other than cannabis purchased under the Compassionate Use of Medical Cannabis Pilot Program Act.
*Note that there are no cannabis establishments in the Village at this time.*
Property Tax: The Village property tax revenue can change each fiscal year depending on the value of property in the Village and the revenue needs for the operations. The tax rate extended is limited to the lesser of the CPI index from the prior year or 5%, plus the value of new construction. Read more about local government property taxes and current tax rates.
SSA Tax: Properties in a special service area (SSA) may have taxes levied on them to raise revenue for services specific to that area. For example, properties in a subdivision with stormwater retention ponds may be taxed for maintenance services for upkeep of the ponds. These taxes are accounted for separately from other Village funds and are not used for other purposes. Rates can change each year depending on the work performed in the prior year and the work expected to be done in the future. SSA taxes are included on the property tax bill. Read more about current SSAs in the Village.
Related Local Fees
While the following fees are not technically taxes but are included here for transparency. This list does not include any application fees, permit fees, or license fees.
Cable/Video Service Provider Fee: 5% on revenues of any holder providing cable or video service in the Village.
Water/Sewer Capital Improvements Charge: $15 per month for water users and $10 per month for sanitary sewer users included in the bimonthly water bill (i.e., $50 per water bill for most residents).
Water & Sewer Rates (increase with CPI on July 1 each year)
Water = $6.24 per 1,000 gallons
Sewer = $7.30 per 1,000 gallons
Garbage Collection Rates
Regular = $22.19 per month
Senior = $14.43 per month