Naperville addresses food and beverage tax ‘loophole’
With an eye toward fairness, Naperville city council members have agreed to apply the city’s food and beverage tax to drive-through-only businesses.
One example, the 7 Brew kiosk off Ogden Avenue, has generated long lines and serves caffeinated drinks into the night. There’s also a Scooter’s Coffee on Route 59, plus a drive-through-focused Chick-fil-A in south Naperville.
Most of the establishments are not required to collect and remit Naperville’s food and beverage tax, according to a memo from the city’s finance department director. Only one of them remits the tax, city spokesperson Kelley Munch confirmed last month. It was determined that the tax applies there because of permanent outdoor seating.
The newly approved ordinance amends the city’s definition of a “retail food facility” so that the 1% tax is imposed upon purchases at those drive-through-only chains, as well as food or beverage or ice cream trucks. There’s an exemption for temporary, mobile vendors or those that operate for less than 10 calendar days within a year.
Mayor Scott Wehrli said he asked for the “cleanup language” in the code to “create a symbol of fairness across all of our restaurants and collectors of the food and beverage tax to make sure that there's not people getting a special deal … because they don't have a table in their facility.”
Wehrli has said the optics are that food trucks “get a better deal than those restaurants or folks who actually invest and pay taxes, real estate taxes, into our community.”
Councilman Josh McBroom said he understands the fairness issue and that there seems to be “a loophole.” However, McBroom and Councilman Nate Wilson voted against the changes.
McBroom has raised concerns about how the food and beverage tax dollars are spent. Revenue generated by the 1% food and beverage tax goes toward the Special Events and Community Arts, or SECA, grant program.
McBroom posted a chart of 2026 grant applicants on social media and wrote, “That’s a lot of tax payer money being requested by 84 different non profits.”
At an October meeting, he said that there are “tons of great events, tons of great organizations” that have received grants. He requested a deeper review of the SECA grant program and its history. The council agreed to direct city staff to prepare a report as a first step.
“I think it's time that we have a public discussion,” McBroom said. “I would hope that part of that would be some standards, some conduct, possibly for applicants. And then, maybe really zero in on what the intention is and kind of safeguard the future and protect the program, because it’s going to keep getting bigger.”
According to the city’s finance director, the revenue has grown over time to support other areas, including public safety pensions and social service grants.
Wilson said this week he would prefer to look at ways to reduce the food and beverage tax and/or the allocation to SECA and that he’s wary of adding to the tax pool “without specifically knowing where the funding was going.”
Wehrli suggested the city first realize what the newly included businesses will generate.