|
Title:
|
An Ordinance amending Chapter 23A ("Taxes") of the Oak Park Village Code by amending Article 11 ("Municipal Grocery Tax") and repealing Ordinance No. 25-159 regarding a Municipal Grocery Tax
|
Title
title
An Ordinance amending Chapter 23A ("Taxes") of the Oak Park Village Code by amending Article 11 ("Municipal Grocery Tax") and repealing Ordinance No. 25-159 regarding a Municipal Grocery Tax
end
Introduction
overview
This is an ordinance amending the Village's local grocery tax to update technical language as requested by the Illinois Department of Revenue.
end
body
Recommended Action
Adopt the ordinance.
Prior Board Action
The Board has taken the following prior action:
* At its August 5, 2025, the Board adopted a municipal grocery tax to replace the Statewide tax which is sunsetting on January 1, 2026 (ORD 25-159).
Background
On August 5, 2025, the Village Board approved Ordinance 25-159, imposing a 1% local grocery tax on January 1, 2026 to replace the State-wide 1% grocery tax which ends on that date. Per State law, the Illinois Department of Revenue ("IDOR") administers, collects, distributes, and enforces local grocery taxes. Late last week IDOR demanded changes to dozens of ordinances that have been adopted by Illinois local governments this year. The attached ordinance addresses IDOR's concerns, which relate to gaps in the statutory language created when the General Assembly repealed the State-wide grocery tax and authorized local grocery taxes. The attached ordinance does not make any substantive changes to Ordinance 25-159 - the tax will be imposed at the same rate, and start at the same time, as the Village Board previously approved. Village staff filed Ordinance No. 25-159 with IDOR and, after approval of this ordinance, Village staff will also file it with IDOR.
Timing Considerations
There is no timing impact for this item as the Village has already submitted an ordinance for Municipal Grocery Tax collection before the October 1, 2025 deadline.
Budget Impact
There is no budget impact associated with this item.
Staffing Impact
There is no staffing impact associated with this item.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Adopt the ordinance.
Advantages:
* This action will ensure the Municipal Grocery Tax ordinance language is satisfactory to the Illinois Department of Revenue.
Disadvantages:
* There are no disadvantages to this action.
Alternatives
The Board can elect to reject the ordinance amendments.
Advantages:
* There are no advantages to this alternative.
Disadvantages:
* This action would keep language that is unsatisfactory to the Illinois Department of Revenue in the ordinance.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Donna Gayden, Chief Financial Officer
Reviewed By: Jack Malec, Assistant to the Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Grocery Tax Ordinance Amendment