A rebate of part of the taxes paid to Oak Brook by the seven hotels in the village was unanimously approved Thursday by the village board.
Hotels will receive back 1% of the total 3% paid to the village via a hotel tax from Jan. 1 through March 31.
The original ordinance recommended to the board, which came from Village Manager Rick Ginex, called for a rebate of the entire 3% tax collected from Jan. 1 through May 31.
Board member Asif Yusuf said the reduction in the amount of the rebate and the length of time for which it applies doesn’t mean an additional rebate won’t happen later.
“The door is always open,” he said Friday. “We have to be cautious. The funds we receive from the hotel tax are restricted to spending on things related to the hotels, but we may need to borrow from that if this situation with the coronavirus goes on too long.”
Yusuf said hotels, along with some other businesses, may be getting financial assistance from the Federal government. “We don’t want to make a commitment that may not be needed,” he said.
Oak Brook’s Finance Director, Jason Paprocki, said the total rebate for the first three months of this year will be about $69,000, ranging from about $1,800 to about $17,500, depending on the amount paid by each hotel.
“We’ll be processing the rebates as we get the tax money in, with exception to January,” Paprocki said. “Since we already have that, we’ll start getting those out next week.”
Jim Nagle, owner of the Drake Hotel in Oak Brook, said the hospitality industry is going through a very challenging time.
“Our business is down 100%,” he said. said. “We appreciate all the help we can get.”
