Buffalo Grove trustees not amused by tax proposal

In hopes of diversifying the village's revenue streams as it faces the loss of revenue from Springfield, Buffalo Grove's administration this week floated the idea of an amusement tax.

Village trustees were not amused.

"We're talking about creating a disincentive for the very businesses that we think are the best and most likely ones to be attracted to the community," Trustee Jeffrey Berman said. "It seems like we're continuing a historical trend that no one's allowed to have a good time in this town, and if we sense some fun, let's tax it and make it go away."

As a home-rule community, Buffalo Grove can impose an amusement tax of up to 10 percent, or at a flat rate of 25 cents to $1 per person, said Deputy Village Manager Jennifer Maltas. The tax could be applied to events like live performances, craft shows and festivals, or entertainment venues such as Brunswick's, K-1 Speed, the Buffalo Grove Theater and Twin Rinks.

"It's a way to capture a tax that's not just on the residents of Buffalo Grove," Maltas said.

Although it is difficult speculate exactly how much revenue an amusement tax would generate annually, Maltas offered a conservative estimate of $300,000, based on a 5 percent tax.

Trustees, however, said they don't believe now is the right time to impose an additional tax.

"I think it's a great idea to keep in our back pocket, if we do find ourselves in a position that the state might put us in to where we need to find ways to generate several hundred thousand dollars worth of taxes," Trustee Joanne Johnson said. "But I feel like this is a really noticeable tax. Like if I were to go play golf next week, and all of a sudden I'm paying an extra dollar ... I might consider going somewhere else."

Trustee Andrew Stein wondered if this might be a good time to take another look at reinstating the village's vehicle licensing fee.

But Berman poured cold water on the notion, saying "it's a very regressive tax" that takes up a tremendous amount of staff time and cost to administer.