Clarendon Hills May Hike Dining Tax

CLARENDON HILLS, IL – Clarendon Hills is looking to increase the restaurant dining sales tax by 1 percentage point, to 2 percent.

The increase is expected to bring an extra $160,000 a year to the village. This would offset the income lost from the possible elimination of the vehicle sticker fee.

In a memo earlier this month, Village Manager Zach Creer noted the village provided help to restaurants during the pandemic by offsetting certain costs with money from the village's main account. For instance, the public works department spent a lot more time on events, decorations and outdoor dining set-up and removal, Creer said.

When the general sales tax is combined with the dining tax, Clarendon Hills is now the lowest among a number of area towns. Its rate is 8 percent compared with 9 percent on the DuPage County sides of Oak Brook and Hinsdale, 9.5 percent in Downers Grove and Westmont, and 9.75 percent in Glen Ellyn.

"In terms of fairness, there is a practicality to using Place for Eating taxes since these are the businesses that benefit most from events and outdoor dining," Creer said. "It is also very likely the tax will be passed on to patrons as it is effectively an additional sales tax."

At a meeting Monday, the Village Board plans to discuss increasing the tax.