County School Facility Occupation Tax (CSFT)
Lake County Regional Office of Education approved a resolution to place a referendum on the November 3, 2026, ballot seeking voter authorization for a 1% County School Facilities Sales Tax (CSFT). If approved by county voters, this sales tax would provide an alternative revenue source for school facility needs, currently funded primarily by property taxes. Items normally subject to sales tax are included; however, there are exceptions. Items such as groceries, prescriptions, wholesale purchases, vehicles, and services are not included in the CSFT.
Illinois law is very clear about how the revenue can be used. Revenue generated from the proposed sales tax could be used for capital projects, facility maintenance, mental health services, safety and security, and tax abatements. It cannot be used for general school salaries, instructional materials, or other operating costs. Gavin School District 37 is exploring these options should the referendum pass:
- Facility Maintenance: Funding projects directly with sales tax revenue, potentially avoiding costly deferred maintenance or the need for new bonds and future debt service property tax increases.
- Safety and Security: Using funds to address safety and security goals, such as high-resolution camera upgrades.
- Property Tax Abatement: Using sales tax revenues to reduce community debt service obligations through tax abatements to taxpayers.
- Student Support: Using funds for mental health professionals, supporting student mental health needs.
Gavin School District 37's preliminary plan to address critical facility needs with this potential revenue was shared with the Board of Education on September 16th, 2026. Click here to view the Board Presentation.
This approach broadens the funding base beyond local property owners to include visitors within the county. Estimates suggest that more than half of the sales tax revenue would be generated by individuals who do not reside in Lake County, helping to distribute the cost of school facilities more equitably.
Approximate annual sales tax revenue for Gavin School District 37 is $820,000.
By law, the Board of Education may inform the community about the referendum but cannot take an advocacy position.
To learn more about the School Facilities Sales Tax, visit the Regional Office of Education's website.