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Thread: Village sales tax increase

  1. #1
    Forum Hall of Famer DTM's Avatar
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    Village sales tax increase

    Didn't recall hearing about this when it went down, but it went into effect the first of the month.

    Village sales tax increase by 0.25%

    Trying to remember when the village last increased the sales tax. It was a number of years ago to cover some short fall.....and of course, was never repealed....

  2. #2
    Forum Regular - Vociferous Class GESince1958's Avatar
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    Roosevelt Road TIF district tax was reduced (or eliminated it) 0.25% 14 months ago.

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    Forum Hall of Famer Cliché's Avatar
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    Quote Originally Posted by GESince1958 View Post
    Roosevelt Road TIF district tax was reduced (or eliminated it) 0.25% 14 months ago.
    Village of Glen Ellyn business owners and residents are invited to attend upcoming community meetings to learn more about the proposed 1.5% food and beverage tax.

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    Forum Regular - Vociferous Class GESince1958's Avatar
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    Quote Originally Posted by Cliché View Post
    Village of Glen Ellyn business owners and residents are invited to attend upcoming community meetings to learn more about the proposed 1.5% food and beverage tax.
    Such as grocery stores, or just prepared and served food (restaurants)?

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    Forum Hall of Famer Cliché's Avatar
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    Quote Originally Posted by GESince1958 View Post
    Such as grocery stores, or just prepared and served food (restaurants)?
    Not sure, that’s why there is a meeting

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    Forum Hall of Famer Cliché's Avatar
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    Question: What is the tax?
    Answer: The Village of Glen Ellyn Food and Beverage Tax is a proposed 1.5% tax on the purchase price of prepared food, alcoholic and non-alcoholic drinks that have been prepared for immediate consumption, and on alcoholic beverages sold in original container for consumption off premises.

    Question: When would this tax take effect?
    Answer: If approved by the Village Board, it is proposed that the new food and beverage tax would be implemented March 1, 2019.

    Question: What transactions are exempt from the Food and Beverage Tax?
    Answer: Products, except alcohol, that are prepared off-site in packages ready for retail sale and not for immediate consumption. Examples of products that are exempt from the Food and Beverage Tax include, but are not limited to:
    • Common grocery items such as bread, milk, produce, eggs, soda and frozen foods that are in their original packaging and not prepared for immediate consumption.
    • Items sold by a non-profit group (provided a copy of the group’s sales tax exemption letter issued by the Illinois Department of Revenue is filed with the Village of Glen Ellyn). May include: Government entities, hospitals, nursing homes and medical treatment facilities.

    Question: Why is there a need for a new food and beverage tax?
    Answer: A new capital revenue source is needed to sustain a strong capital plan which helps make Glen Ellyn a vibrant community. Capital revenue sources are in decline and to sustain the existing capital plan and fund additional capital projects, a new revenue source is needed. Continuous investment in capital, especially in the downtown helps attract and retain businesses. In addition, a more vibrant downtown strengthens the Village’s commercial corridors and attracts visitors and new residents to the community.

    Question: What projects would the new tax be allocate towards?
    Answer: The new food and beverage tax would provide capital funding for the Village. Major projects on the horizon include a parking garage at the Village’s Civic Center, Central Business District street and streetscape rehabilitation, train station and pedestrian tunnel, and Village facility improvements. In addition, access improvements to the Baker Hill Shopping Center and other possible improvements on Roosevelt Road are under consideration. Potential future projects may also include a second parking garage on the north side of the tracks and bike accessibility improvements throughout the Village. All of these projects are underfunded and unscheduled. Without this new revenue, the Village would be unable to complete these projects and maintain the current capital plan that has sustained the overall street program effectively for decades.

    Question: Would any of the funds generated from this new tax be allocated to the Village’s operating expenses?
    Answer: No. All revenue generated by the food and beverage tax would go directly to the capital fund.

    Question: How much would the new food and beverage tax generate on an annual basis?
    Answer: A 1.5% food and beverage tax is expected to generate an estimated $825 to $1.2M annually.

    Question: Why opt to implement a food and beverage tax over other revenue sources?
    Answer: After discussing several possible funding options, the Board considered this to be the best option to fund these capital projects. This type of tax would not increase the property tax burden to the Village’s residents and other property owners. The tax is also borne by both residents and non-residents, both who use Village streets, the downtown and Village services. It is estimated that more than 50 percent of the food and beverage tax revenue would be generated by non-residents.

    Question: What other communities impose a Food and Beverage Tax?
    Answer: Several municipalities with vibrant restaurant communities charge a food and beverage or places for eating tax, including Elmhurst (1%), Lombard (2%), Schaumburg (2%), Naperville (2% in the downtown, 1% everywhere else), Downers Grove (1%), Hinsdale (1%), Skokie (2%), among others. These communities continue to attract new restaurants.

    Question: The Village has a Tax Increment Financing (TIF) District in the Central Business District. Why is that not providing the funding for these downtown projects?
    Answer: The downtown TIF fund is still in its infancy and is only generating $200,000 annually. This covers the cost of the downtown interior, façade, and fire awards, but does not leave much additional funding for the larger downtown projects on the horizon. As the increment grows, it may be possible to allocate more TIF money to downtown capital projects.

    Question: How long would this tax be in effect?
    Answer: This tax would be in effect through the life of the bonds (estimated 20 years). A “sunset” provision would be included in the proposed ordinance.

    Question: Where can I get more information on the Food and Beverage Tax?
    Answer: The Village will be holding two community meetings on August 14 at 2pm (Police Station Community Room) and on August 15 at 9am (Glen Ellyn History Center). The Village will also be discussing this at an upcoming workshop on August 27, at the Civic Center, 535 Duane Street.
    The capital plan and food and beverage tax will be discussed at the following public meetings:
    • Monday, August 27: Village Board workshop
    • Monday, September 10: Village Board meeting. A first reading of the ordinance will take place.
    • Monday, September 24: Village Board meeting. A second reading and adoption is scheduled.

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    Forum All Star middlein87's Avatar
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    Quote Originally Posted by GESince1958 View Post
    Roosevelt Road TIF district tax was reduced (or eliminated it) 0.25% 14 months ago.
    the TIF district tax is different than a sales tax. TIF affects property taxes and valuations.

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    Executive summary:

    - The TIF is not generating the funding we hoped for (shocker, since it wasn't blighted in the first place and won't have the property value growth needed to generate the funds.)
    - We are going to tax the overpriced restaurants only the folks on the north side of the tracks can afford anyway
    - Everyone is doing this tax, so we might as well.
    - There is a sunset provision, but in 20 years we will have built this revenue into the budget so we will probably renew it anyway.

  10. #10
    Forum All Star middlein87's Avatar
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    Friendly reminder, people: Tip based on the Sub-total, NOT the total.

  11. #11
    Forum All Star Perplexed's Avatar
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    Quote Originally Posted by middlein87 View Post
    Friendly reminder, people: Tip based on the Sub-total, NOT the total.
    #stingy



    Sent from my iPhone using Tapatalk

  12. #12
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    Quote Originally Posted by Cliché View Post
    The Village will be holding two community meetings on August 14 at 2pm (Police Station Community Room) and on August 15 at 9am (Glen Ellyn History Center). The Village will also be discussing this at an upcoming workshop on August 27, at the Civic Center, 535 Duane Street.
    The capital plan and food and beverage tax will be discussed at the following public meetings:
    • Monday, August 27: Village Board workshop
    • Monday, September 10: Village Board meeting. A first reading of the ordinance will take place.
    • Monday, September 24: Village Board meeting. A second reading and adoption is scheduled.
    The two community meetings scheduled on weekdays during business hours are not terribly helpful for most citizens.

    This is a 1.5% tax on Sauv Blanc everyone. Where is the outrage?

  13. #13
    Forum Hall of Famer Cliché's Avatar
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    Quote Originally Posted by NEBF View Post
    The two community meetings scheduled on weekdays during business hours are not terribly helpful for most citizens.
    Just FYI, an evening meeting was added..."The third and final community meeting will be at 7 p.m. Aug. 22 in the Galligan Room at the Glen Ellyn Civic Center"

  14. #14
    Forum All Star Perplexed's Avatar
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    I don't have time to go through all the Village Board minutes, but I was at a meeting (after that meeting) where the options were discussed and in my eyes the 1.5% tax was the best choice. If I ever get some time, I'll go back and find the minutes from both meetings.

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