Elburn Village Board adds new food and beverage tax

The Elburn Village Board voted last week to add a 1% tax on prepared food and beverages whether from restaurants, grocery stores or other businesses that sell prepared food.

Although several board members expressed concerns, the vote was unanimous for an ordinance to add a 1% tax on prepared food and beverages. The tax is set to be effective Dec. 1.

Searching for alternative sources of funding for village expenses other than raising property taxes, Village Administrator John Nevenhoven had learned municipalities such as Pingree Grove, Westmont and Yorkville had implemented what was referred to as a “places for eating” tax.

“This would not be directed toward property owners, but toward people who are out eating and drinking,” Nevenhoven said.

Trustee Ken Anderson asked if Nevenhoven had discussed the proposed tax with Elburn Chamber of Commerce members. Nevenhoven said Chamber members were, for the most part, service businesses that wouldn’t be affected by the tax, but he would be communicating with them.

“I’m not a fan of raising taxes,” Trustee Chris Hansen said. “They tried doing this in Geneva and it did not go well.”

Nevenhoven said he had received a call from Ream’s Meat Market about the tax and said they generally were OK with it. Using Ream’s Meat Market as an example, he said the additional tax would apply to hot food, prepared sandwiches, candy and alcohol, but not to raw meat.

He said most places, such as Jewel-Osco, already have a system set up for items that are taxed at a low rate and others at a higher rate.

For a restaurant with seating, he said pretty much everything it would sell would be taxed at the higher rate.

“We’re looking at [the consumer paying] $1 on a $100 meal,” he said.

While it shouldn’t be a hardship on the customer, the revenue the municipality could accrue could be substantial, he said. Pingree Grove, for example, was bringing in about $180,000 to $200,000 a year. The tax is locally administered, meaning revenue raised would be kept at the local level.

Nevenhoven said the village should identify a specific project that the money would be used for, such as a new municipal building. The additional 1% general sales tax the village implemented a few years ago goes toward maintaining streets and parks.

Village President Jeff Walter said the new tax could be eliminated after the new municipal building is paid for.

Village Board members also addressed the dangers of distracted driving, texting while driving and illegal passing on the right.

Walter said many of the fatalities involved distracted driving incidents such as drivers looking down at their phones.

“There’s been a horrific number of deaths,” Walter said.

Two people died in a rollover crash June 18 in Elburn, a man died after crashing his pickup truck into a semitruck Aug. 8 in Elburn and three people died Sept. 2 in a head-on collision involving a car and motorcycle in Big Rock Township.

There is a state statute covering distracted drivers, but Walter and other officials believe the fines are not significant enough to get people’s attention. Board members have been exploring the option of creating a local ordinance that would carry a more punitive fine such as $750 or even $1,000.

Village attorney Bill Thomas said the problem with enforcement of that type of ordinance is the village doesn’t have the ability to add the moving violation to drivers’ state records and the option of suspending their license.

“It [the state statute] gives the penalties a little more teeth,” Thomas said.

Trustee Luis Santoyo suggested police could have the option of using a local ordinance violation or state moving violation, depending on the circumstance.

“It gives the police officer some discretion,” he said.

“It’s all about enforcement,” Trustee Chris Hansen said. “We’ve already got a reputation for speeding. I’m OK with a reputation for when you drive through our town, you put that phone down.”

Santoyo wondered about the use of cameras, given that the police can’t always be there to enforce phone use while driving. Village attorney Thomas said he will investigate the legalities of using cameras for enforcement.

Walter said drivers passing other cars on the right has been getting worse. He said signs warning people against the practice have had limited impact. Placing temporary barriers that would prevent people from being able to pass on the right at strategic places such as where traffic traveling north stops to turn left into Ream’s Meat Market may be an option.

“Do we need another officer during periods of heavy traffic like noon to 5 or 8 p.m.,” he said after the meeting. “I just want to find what we can do to make a difference.”