Burr Ridge Dining Tax Needs Audit: Trustee

BURR RIDGE, IL — Burr Ridge Trustee Zach Mottl said Monday he wants the village's collection of its restaurant tax audited, so every business is paying its fair share. He pointed to an instance seven years ago in which a restaurant failed to pay its tax.

According to village documents, the restaurant failed to pay the 1 percent place-of-eating tax on $1.5 million in earnings. As part of a later agreement with the village, the eatery paid the $15,000 in taxes on that income.

"I have concerns that we are not auditing some of the taxes," Mottl said. "Before we raise fees on anyone, I want to make sure we're collecting all the revenue we should."

The topic came up during a discussion about the selection of an auditor.

In response to Mottl's comments, Mayor Gary Grasso acknowledged the restaurant in question had a problem with its tax and it was quickly resolved. He said the village has not had any other such issues with the place-of-eating tax.

Other officials said the annual audit does not closely examine tax collections. That would require a special or forensic audit, they said.

But Mottl said the annual audit has not been "robust" enough.

"There are some inconsistencies, and it warrants a deep dive," he said.

Grasso said the village staff has been under his and past mayors' instruction to make sure the village is getting what it should from the restaurant tax.

"If you think the numbers are incorrect, talk to the staff," the mayor said.

Mottl was the lone vote against the hiring of an auditor. Trustee Anita Mital was absent.

The board chose Naperville-based Lauterbach & Amen to handle the audit for the next three years. In the first year, the audit will cost $24,850, nearly $10,000 less than the price of the village's previous auditor, BKD, according to a village memo.