Elburn might add a 'places for eating' tax

Elburn could add a 1% tax on prepared food and beverages, whether from a restaurant, grocery store or other businesses that sell prepared food.

Village Administrator John Nevenhoven recommended the proposal to the village board Tuesday, noting that other municipalities including Pingree Grove, Glencoe, Homewood, Roselle, Westmont and Yorkville all have implemented such a tax, referred to as a "places for eating" tax.

Pingree Grove's tax is now at 2%, but the others are at 1%, he said.

"This would not be directed toward property owners, but towards people who are out eating and drinking," Nevenhoven said. "We're looking at (the consumer paying) $1 on a $100 meal."

The revenue for the village could be substantial, he said. Pingree Grove, for example, was bringing in about $180,000 to $200,000 a year. The tax is locally administered, meaning revenues would remain in the village.

Nevenhoven also recommended that the village identify a specific project or area where the money would be used, similar to how the additional 1% general sales tax the village implemented a few years ago funds street and park maintenance.

Trustee Pat Schuberg asked how the tax would impact businesses such as Jewel-Osco and Ream's Meat Market that sell both groceries and prepared meals.

"How onerous would this be for businesses to separate out these things?" she asked.

Nevenhoven said that it would likely be a small administrative cost up front.

Village President Jeff Walter said that it could be a good way for the village to bring in additional income to help pay for a police station without directly affecting property owners.

"It sounds like a reasonable thing to do," Schuberg added.