Wilmette Gives Small Businesses $375,000 Coronavirus Tax Rebate

WILMETTE, IL — At an electronically conducted meeting, the Wilmette Village Board Tuesday unanimously approved an economic relief package for local small businesses suffering during the public health emergency triggered by the spread of the new coronavirus.

The $375,000 tax rebate program allows eligible businesses to receive half of the municipal sales tax they collected last year as a grant. That money can be used for payroll, paying bills and operating expenses but cannot be used for capital improvements or rent, according to village staff.

"We recognize that COVID-19 has placed a substantial burden on the Village's small business community. This program will provide funds for businesses that need help now making payroll or paying suppliers," Village President Bob Bielinski said in a release. "As a local government, Wilmette has the ability to move faster than the federal and state governments which are implementing more substantial financial assistance programs for small businesses. The intent of this program is to put money into the hands of businesses immediately so they can continue to remain in business until they are able to access those larger programs."

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The grants are available to businesses with village businesses licenses that generated between $50,000 and $7.5 million in municipal sales tax-eligible revenue in 2019. Those sales must have declined by at least 15 percent between March 21 and the application date, compared to the prior year. Chains with five or more locations, franchisees, private clubs and home occupations are not eligible, according to program rules.

"Because our local businesses are a critical part of the vitality of the Village and because the sales tax they generate is an important funding source for municipal services and infrastructure, supporting local businesses is good public policy," Bielinski added. "While we are hopeful that this program will give businesses some short-term economic relief, it is absolutely vital that Wilmette residents continue to support our local restaurants and retailers by responsibly shopping at local businesses which remain open because the State has deemed them essential, ordering takeout and delivery from restaurants, and making online purchases. We can all work together to help our business community during this very challenging time."

Municipal sales tax is separate from the village's home rule sales tax. In 2019, the village received $2.63 million from municipal sales tax, which is equal to 1 percent of all retail sales that occurred in a given municipality.

To receive the tax relief from the village, local businesses must have been operational March 17 and must not have permanently ceased operations, according to rules. Businesses that plan to reopen after being forced to close due to Gov. JB Pritzker's stay-at-home order are eligible for the rebate.

Bielinski declared a local disaster public health emergency on March 17, and the amendment to the village code and resolution extending the disaster declaration approved Tuesday added the authorization to spend up to $500,000 to help local businesses, according to a memo to the board from Village Manager Michael Braiman and Corporation Counsel Jeffrey Stein. The declaration also allowed the village to request reimbursements from the state and federal government in the future.

Other amended emergency authorities include:

• Allowing public meetings in the village to be conducted electronically, something authorized by the governor's suspension of a portion of the Illinois Open Meetings Act.
• Allowing the curbside pickup or off-site delivery of alcohol by all Wilmette establishments with liquor licenses.
• Allowing loading zone signage for licensees without the normal application and permit requirements.
• Allowing the Bielinski, as village president, to do anything that he "reasonably believes is required to protect the health, safety, and welfare of persons or property within the village, or otherwise preserve the public peace or abate, clean up or mitigate the effects of any disaster."

Watch the full March 24, 2020, Wilmette Village Board Meeting below and read more about the village's economic relief program and emergency declaration and code amendment: