Submitted By
Emily A. Egan, Development Services Department Director
Reviewed By
LKS
Agenda Item Title
Title
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
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Overview
Overview
At the Village Board meeting on October 30, 2023, the Village Board directed staff to prepare an ordinance for consideration to increase the Village's Hotel/Motel and Transient Occupancy Rental Unit Tax from its current rate of 4% to 7.5%. Further, the Village Board gave direction to dedicate the revenue generated by any increase over the existing 4% rate, to the Village's Housing Trust Fund to support affordable housing goals.
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. Additionally, the Village Board asked that multiple options related to a potential adjustment to the Village's Hotel/Motel and Transient Occupancy Rental Unit Tax be presented including a Diversity Equity and Inclusion (DEI) assessment. A proposed ordinance creating a surcharge tax of 3.5% and alternative tax adjustment options are presented in this agenda item for Village Board consideration.
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Recommendation
Recommendation
Staff recommend Village Board adoption of the proposed ordinance. The proposed ordinance creates an additional 3.5% surcharge tax paid only by the Village's licensed short-term rentals. Revenue generated by the proposed increase would be allocated to the Village's Housing Trust Fund to support affordable housing goals. The staff supported option is...
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