Vote nears on Geneva places-for-eating tax
Restaurants in Geneva might pay a 2 percent tax starting Jan. 1 as city officials plan to enact a places-for-eating tax.
Aldermen are expected to vote on the measure Oct. 3. Earlier this week they supported it 9-1 at a committee meeting.
Alderman Tom Simonian voted "no" because he said he wants the city to set aside the tax receipts in a fund for extraordinary or one-time expenses, rather than the general fund.
"I don't want it to get lost back in to the overall budget," Simonian said.
City administrators calculate the tax could generate as much as $1.5 million a year.
The tax would be paid by business owners on their gross receipts. Aldermen have said they expect businesses will put the tax on customers' bills.
The tax would be levied on prepared food and beverages purchased for immediate consumption, at places that have seating on the premises, even if people get the food to go.
Batavia and St. Charles, which have home-rule powers, charge 2 percent tax on the purchase of all alcoholic beverages.
The city's general fund pays for operations other than electrical, sewer and water utilities. Sales taxes provide about 29 percent of the money, followed by property taxes at 27 percent. Fees, fines, permits, utility taxes and state income tax account for the rest.
If the council adopts the tax businesses could keep part of the tax to pay for the cost of implementing it, such as changing software for cash registers. The city would conduct meetings in late October for businesses to learn about the tax and how the city will collect it.