The La Grange Park Village Board is eying a plan to reduce the 1% sales tax in the village’s four business districts by 25%, while implementing a village-wide retail sales tax for the same amount.
“As part of the fiscal year 2026-27 budget process, the Village Board discussed various revenue options,” Trustee and Finance Committee Chair Bob Lautner told his colleagues July 14 at the monthly board work session. “One of the options presented was the implementation of a village-wide, non home-rule municipal retailers occupation tax and municipal service occupation tax, coupled with a corresponding reduction in the sales tax imposed within the village’s four business districts.”
Under Illinois state law, Non Home-rule municipalities can impose a maximum 1% sales tax, implemented in increments of .25%. The proposal is actually five proposed ordinances, one each for the reduction in the four business districts and one for the village-wide sales tax.
The four commercial business district entities were created in 2017 and include Village Market, 31st Street/North La Grange Road, 31st Street/Barnsdale Amended, and 31st Street/Maple Avenue.
The business district 1% sales tax’ purpose is to generate revenues that support public improvements and economic development within those districts. With the new proposal, business districts would collect the same sales taxes, but free up .25% of those revenues to be used elsewhere in the village.
“Together, the ordinances would shift a portion of the future sales tax revenues from the village’s business district funds to the general fund beginning January 1, 2027,” Lautner said. “Under state law, business district revenues may only be used for eligible redevelopment economic activities within the respective districts.”
Lautner also pointed out that the new arrangement would broaden the village’s sales tax base by applying the new tax to online and remote sales.
Beginning January 1, 2027, staff projects the village-wide tax will produce an additional $53,000 through the end of the fiscal year, April 1.
The proposal drew no negative comment from village trustees, and will likely be approved at the July 28th board meeting.
That meeting will be 7:30 p.m. in the Village Board Room, 447 N. Catherine Ave.
Hank Beckman is a freelance reporter for Pioneer Press.
