Skokie Enacts 2 Percent Restaurant Tax

A 2 percent tax for restaurant service at Skokie establishments will be added to patrons bills beginning on September 1.

The Village Board approved implementing the tax in the budget to help offset the expected loss of revenue from the state should Gov. Bruce Rauner’s budget plan be implemented, according to the Skokie Review.

Mayor George Van Dusen stressed the importance of the village to rely less on state funding to keep services running. Village officials expect to lose anywhere from $3 million to $3.5 million from the state.

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But targeting one industry to help make up for the losses is not the fair thing to do, according to Independent Merchants of Downtown Skokie President Randy Miles.

“The 2 percent food and beverage tax proposed here tonight puts an unfair burden on those establishments and makes my recruiting much more difficult,” she said. “The targeting of one industry to carry the weight of the entire community seems to be arbitrary and capricious. We feel that since this is a village-wide concern, that it is only fair to put the burden on the entire community and spread this in a more equitable manner.”

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Skokie Chamber of Commerce Executive Director Howard Meyer agreed, adding that the restaurant industry “has not yet recovered from the recession and continues to be very fragile.”

The tax will affect diners, those who pick up food and have drinks.

Nearby municipalities already have a similar tax enacted, but in Morton Grove, Niles and Lincolnwood, it is only 1 percent.

more via the Skokie Review

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