Libertyville Restaurant Tax Repealed Amid Coronavirus Battle

LIBERTYVILLE, IL — Village of Libertyville board members last month presented the approved budget for 2020 to 2021 while keeping in mind the impact the ongoing coronavirus pandemic has had on local businesses and residents. Patch took a look at the village's new budget for its upcoming fiscal year, which includes a repeal of the "1 % Places for Eating" sales tax, approved by village officials in 2016.

The village board recently said that "under ideal economic circumstances, the Places for Eating tax would have been repealed the day prior" to a non-home rule sales tax taking effect June 30, 2020), but "given the economic downturn caused by the COVID-19 pandemic and the recent closure of the dine-in sections of restaurants," staff recommended the tax expire at 1:59 p.m. on April 30.

However, the state-mandated closure of dine-in restaurants led the village to "informally suspend" Places for Eating tax collections beginning on March 16.

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The "Places for Eating Tax" was put in place to act as a new source of revenue for Libertyville with very little impact on taxpayers.

By repealing this tax and imposing a non-home rule sales tax, $2 million per year in revenue would be brought in, and would go directly to what the village described as offsetting costs associated with infrastructure projects that the board deems high priority.

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The non-home rule sales tax, according to village documents, stems from when the board adopted a multi-year Capital Improvement Plan (CIP) on August 27, President Weppler reported.

The plan is centered on raising approximately $2.5 million each year to maintain and improve roads, parks, facilities, information technology and more. The board then adopted a resolution on November 12, submitting a referendum question to qualified village electors, "asking for permission to impose a non-home rule sales tax in the amount of 1%," which they approved on March 17, according to documents.

Libertyville Local Business Guide: What's Open or Closed

In an effort to support readers and businesses in the community, Patch put a call out to local businesses last month, asking them to update their status, give details on how you can continue to patronize them, and to let the community know how they can best help during these challenging times. You can find the local guide here.

Several local businesses responded to the call out and are asking community members to follow them on Facebook, and simply share the details written in the local guide.