Pizza, beer and other fast foods are popular among NIU students, who spend twice the per capita average for these goods. But sales taxes from pizza and beer don’t bring the city of DeKalb much money.

“Is pizza and beer sales tax the same as tax from buying a car or television set?” asks Gary Boden, DeKalb’s assistant city manager. “When replacing a television set, chances are (students) aren’t buying in DeKalb.”

The problem DeKalb faces is although a university is located within the community, the city does not have as large a tax base as desirable for its services offered because of the unique nature of the municipal tax structure.

“NIU is the most significant player in DeKalb’s economy, but it doesn’t translate into burgeoning government funding (for the city).”

“About 25 percent of (DeKalb’s student) population lives on property that is tax-exempt (residence halls),” Boden said. “We have to provide services for NIU, but we can’t collect property tax from state-owned buildings.”

Services include fire protection, for which NIU pays $238,000 each year, Boden said. DeKalb also provides police service when students are in the city.

John Lewis, NIU director of corporate relations, “Students do cause ‘town-gown’ problems. They get drunk and walk through lawns. Huskie bus lines tear up the street.

“But we would like the community to know about the (economic) impact NIU’s presence has,” Lewis said.

The “Economic Impact of the Modern University” states sales tax revenues generated by NIU’s presence are estimated at $5.8 million in the county. But all this revenue does not stay within the county, Lewis said. Most goes to the state.

Boden said, “Only about $2 of $7 collected in the city stays directly in the city or in DeKalb County. The city collects about $2.7 million in sales tax, of which 7/8 goes to the city and 1/8 goes to the county.”

DeKalb uses a 7 percent retail sales tax, of which 5 percent goes to the state, 1/4 to the county and 1 3/4 to the city.

The city’s geographic location is a fundamental reason for the diminished impact of NIU on DeKalb, compared to other Illinois campuses. The University of Illinois, Champaign-Urbana, Illinois State University, Bloomington-Normal and Southern Illinois University, Carbondale serve as major metropolitan and industrial sections for downstate Illinois.

However, DeKalb is located between Chicago, the suburbs and Rockford, and students, staff and faculty are within a 30 to 45 minute drive to four major shopping malls, Boden said.

In addition, about 80 percent of NIU students are from the northern Illinois region, and many return home on the weekends, he said.

“We have a more localized economy, and we export sales tax,” Boden said. “For example, people buy television sets, cars or clothing outside of the city or county.”

The city’s tax base differs from other communities since property tax is low in DeKalb, Boden said. For its operating funds, the city receives 80 percent of its revenue from taxes and 20 percent from licenses, permits, fees and grants.

NIU has tremendous potential for growth. It is diversifying and expanding its programs. It’s becoming a major institution. And, as Boden said, as NIU progresses, the city progresses and vice-versa.