Eating out may cost more in Palos Hills

Dining tax would add 1 percent to patrons’ bills

By Kevin Olsen

In an attempt to generate more revenue and reduce a budget shortfall, Palos Hills aldermen are scheduled to vote Thursday on a dining tax.

The proposed tax, which would apply to any purchase of prepared food, would add 1 percent to bills at all eating establishments in the city. It is expected to generate about $160,000 in additional funds next year, said Palos Hills Mayor Gerald Bennett.

Should aldermen vote to establish the tax, the city’s sales tax pertaining to eating establishments would jump to 10 percent effective Jan. 1. With the Cook County Board of Commissioners recent roll-back of a half percent sales tax increase, the total tax on eating bills would be 9.5 percent come next July.

Bennett said Palos Hills has about 60 eating establishments in the city. The tax would apply to dining in, pick-up and carry-out orders as well as fast food businesses, Bennett said.

Bennett said the City Council has for two months discussed implementing the dining tax. Instead of initiating a tax that only burdens residents, the eating tax will affect any patron who comes into Palos Hills regardless of residency, he noted.

Neighboring Palos Park passed a similar ordinance in October when it increased its places-of-eating tax from 1 percent to 2 percent in an effort to boost revenues.

The city has already instituted “major budget cuts” including requiring unpaid furlough days for employees, Bennett said. He estimated about 5 percent of the budget has been cut as the city attempts to close a deficit.

This is part of the December 17, 2009 online edition of The Reporter.

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