Submitted By
Tammie Grossman, Director of Development Customer Services Department
Reviewed By
LKS
Agenda Item Title
Title
First Reading of an Ordinance Amending Chapter 23A ("Taxes"), Article 4 ("Hotel/Motel Tax") of the Oak Park Village Code to Include Transient Occupancy Rental Units
End
Overview
Overview
With the rise of private residential Transient Occupancy Rental Units, within the Village of Oak Park, significant competition with commercial Hotel/Motel establishments has developed. Recognizing that Transient Occupancy Rental Units function in the same capacity as traditional Hotel/Motel Units staff is recommending that these units be subject to the 4% user tax as defined by Chapter 23A "Taxes" Article 4 "Hotel/Motel Tax".
Body
Staff Recommendation
Approve recommended revisions to Chapter 23A "Taxes" Article 4 "Hotel/Motel Tax" .
Fiscal Impact
For every 100 Transient Occupancy Rental Units identified, staff estimates that the Village could realize a $40,000 increase in Hotel/Motel taxes annually. By ordinance these funds are to only be used for "the purpose of promoting tourism, meetings, conventions or other events within the Village or otherwise attracting nonresidents to visit the Village".
Background
Oak Park's proximity to the City of Chicago and our many cultural attractions make Oak Park a natural location for the establishment of Transient Occupancy Rental Units. In addition to cultural attractions and our natural geography Oak Park's housing stock consisting of single and multi-family units contributes to this new reality. Staff estimates that over 100 Transient Occupancy Rental Units are currently offered in Oak Park. These "Units" consist of single rooms being offed in a residential home that is owner occupied, to non owner occupied apartments and homes.
With the number of Tranient Occupancy Rental Units offered in Oak Park growing, and a recognition that these types of tranactions have become accepted and embraced by the ge...
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