New tax incentive offered to annex businesses into Springfield

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SPRINGFIELD, Ill. (WAND) - A new tax incentive is available for businesses that will annex into the City of Springfield from the county.

Motorheads Bar & Grill will get sales tax rebates of up to $25,000 for annexing, which will offset the $48,000 cost of setting up a water line.

This would be the first time the city has used a sales tax rebate for annexations.

The City Council could vote on the deal as early as next Tuesday.

2.25 percent of the 8.5 percent sales tax in Springfield is levied by the city.

This rebate would take 0.75 percent of the local sales tax Motorheads generates and it would be returned with a $25,000 cap.

The rate goes up to 2.5 percent on July 1. O

Motorheads is brand new to Springfield. It opened its bar Friday and will open its kitchen sometime next month.

Springfield hopes the sales tax rebate will encourage more businesses to open in town.

A rebate with a $1.2 million cap has been offered to LS Building Products for a lumberyard. The first $3 million in sales is excluded from the rebate.

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