Ding, Dong, Vehicle Stickers Dead In Palos Park, But New Sales Tax Added

PALOS PARK, IL — The Palos Park Village Council voted to eliminate annual vehicle stickers, and approved a .05 percent sales tax increase to offset any revenue loss by no long requiring the motor vehicle license tax.

The measure was prompted by declining compliance by residents and businesses who viewed the vehicle stickers as a nuisance and never bothered to purchase one.

Since 1982, Palos Park residents and business with commercial vehicles registered in the village are required to pay an annual motor vehicle license tax, eliminating village stickers. Managing the motor license fees were also labor-intensive, often requiring village employees to work overtime and hiring additional help to process applications.

“We don’t believe our police department should be spending their time looking at vehicles on drivings and citing residents,” Mayor Nicole Walters said.

During a discussion at the April 14 village council meeting, Walters told commissioners that revenues for vehicle stickers and dog licenses were expected to accrue $75,373, a marked decline from the $88,143 revenue collected last year, $96,573 (2023) and $104,376 (2022).

“We expect that this downward trend will continue,” the mayor said.

The most recent fees charged were $35 for motorcycles, $60 for cars and pickup trucks, $40 for seniors, and $70 for RVs and motor homes.

To offset the revenue loss from vehicle stickers, Walters asked village commissioners to approve a non-home rule .05 percent sales tax increase. The village implemented a .05 percent tax increase in 2014 has generated annual revenue of $350,000. Walters expected a similar return from the new sales tax increase. Walters said a referendum was not required because the increase was under 1 percent.

The mayor said residents who spent $2,000 at stores in Palos Park would pay the $100 they would have spent on vehicle stickers on the new sales tax increase.

“I think it’s a win-win for the village in a way we can make sure we have income coming in and not burdening the residents directly for each vehicle …,” Walters added. “You don’t have to be a village resident to end up paying [the sales] tax.”

Oak Lawn, Evergreen Park, Orland Park, Des Plaines and Park Ridge, to name a few, have eliminated vehicle stickers.

Commissioners unanimously approved both measures at last Monday's meeting. The new .05-percent sales tax increase is expected to kick in Jan. 1, 2026.