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An Ordinance Amending Chapter 23A ("Taxes"), Article 4 ("Hotel/Motel and Transient Occupancy Rental Unit Tax") of the Oak Park Village Code Regarding Hotel Taxes.
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Introduction
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Staff have drafted revisions to Chapter 23A ("Taxes"), Article 4 ("Hotel/Motel and Transient Occupancy Rental Unit Tax") to add the role of "facilitator."
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Recommended Action
Adopt the ordinance.
Prior Board Action
• ORD 24-108 An Ordinance Amending Chapter 12 ("Housing"), Article 7 ("Housing Trust Fund"), Section 12-7-8 ("Source of Funds") and Chapter 23A ("Taxes"), Article 4 ("Hotel/Motel and Transient Occupancy Rental Unit Tax") of the Oak Park Village Code to Adopt a Transient Occupancy Rental Unit Tax Surcharge
• MOT 24-112 A Motion to Direct Village Staff to Draft for Village Board Consideration an Ordinance Amending the Oak Park Village Code to Adopt a Transient Occupancy Rental Unit Surcharge Tax in the Amount of 3.5% to be Allocated to the Affordable Housing Fund
Background
At the Village Board meeting on February 6, 2024, the Village Board approved a motion directing staff to prepare for Village Board consideration an ordinance amending the Village Code to adopt a Transient Occupancy Rental Unit Surcharge Tax in the Amount of 3.5% to be allocated to the Housing Trust Fund to support affordable housing goals.
At the Village Board meeting on February 20, 2024, the Village Board approved Ordinance 24-108 to adopt a Transient Occupancy Rental Unit Surcharge Tax in the Amount of 3.5% to be allocated to the Housing Trust Fund to support affordable housing goals.
The proposed ordinance does not modify the surcharge tax approved in 2024 or the hotel/motel tax. Instead, it adds the role of "facilitator" to the ordinance to reflect the administrative structure commonly used by short-term rental operators.
Timing Considerations
If adopted, the revised ordinance would be in full force after its passage, approval, and publication.
Budget Impact
The proposed changes will not reduce the amount of funds it is anticipated that the hotel/motel tax or the surcharge tax will generate annually for the Housing Trust Fund. At the time of the adoption of ORD 24-108, it was estimated that the surcharge tax would generate $1,287,417 over 10 years.
Staffing Impact
This change will not impact staffing needs or workloads.
DEI Impact
The proposed addition of the facilitator role would not impact the benefits of the surcharge tax to the Housing Trust Fund, which thereby improves the diversity and inclusion of the community through the projects and programs it supports.
Community Input
This item has not been part of any other board or commission meetings.
Staff Recommendation
Staff recommends that the Board adopt the ordinance.
Advantages:
• The addition of the "facilitator" role in the ordinance reflects the administrative structure commonly used by short-term rental owners and operators.
• The changes proposed in the draft ordinance reflect hotel tax language utilized by other Illinois communities.
Disadvantages:
• Staff does not foresee any disadvantages to this ordinance change.
Alternatives
Alternative 1:
Modify the proposed ordinance language.
Advantages:
• Modification can allow customization of the ordinance to reflect the priorities and concerns of the Board.
Disadvantages:
• The changes proposed in the draft ordinance reflect hotel tax language utilized by other Illinois communities.
Anticipated Future Actions
Staff will implement the ordinance changes.
Prepared By: Jonathan Burch, Assistant Village Manager/ Neighborhood Services Director
Reviewed By: Ahmad M. Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Draft ordinance