Geneva dining tax losing favor?
Diners may not have to pay 2 percent more for their food in Geneva next month after all.
A places for eating tax in Geneva might again be delayed.
Geneva alderman decided Monday they want to vote April 17 on a proposal to put off implementing the tax on restaurant meals until Oct. 1.
The tax, approved in October, was supposed to take effect Jan. 1. In December, aldermen changed the date to May 1, after restaurant owners protested.
The tax is expected to put $1.5 million a year in the city's general fund account.
Alderman Dean Kilburg proposed the delay. He was one of three aldermen who initially voted against the tax.
The delay would give the city, the Geneva Chamber of Commerce and restaurant owners time to figure out how to persuade Geneva voters to increase the citywide sales tax rate, he said. And the city would have updated numbers on how much it currently collects in sales tax.
The increased tax would apply to general merchandise. The city portion could be increased to 1 percent.
If voters approved it in the next election, which is in March 2018, it could be charged as soon as July 1, 2018.
The city could spend it on anything through Dec. 31, 2020. After that, it could only spend the money on property tax relief or on streets, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and treatment facilities, stormwater drainage and retention facilities and sewage-treatment facilities.
City administrators suggested the tax as a way to get more money to replace equipment, such as trucks. But the places for eating revenue would not be specifically earmarked for that, which Alderman Tom Simonian criticized. It would also be collected by the city, instead of the state, meaning there would be no chance of disbursement being delayed by the state as it deals with a budget impasse.
Simonian tried to get aldermen to rescind the tax in March. The council instead tabled the motion.
"Here we are, April 10, we are going to talk about it April 17, with no guarantees, and you are going to expect these poor folks (restaurant owners) to be up and running (the tax)? Either rescind it or stop kicking this can. It's just not fair. It's just not right," Simonian said.
Alderman Craig Maladra said any ordinance rescinding the tax should be tied to approval of a sales tax increase.