As the coronavirus pandemic continued to affect businesses through the 2020 holiday shopping season, Oak Brook’s sales tax revenue was down 11% for November and December as compared to the same two months in 2019.
Sales tax revenue for November and December 2020 was down about $326,000 in 2020 to about $2,574,000 from about $2,900,000 in 2019, according to information from Jason Paprocki, Oak Brook’s finance director. The most significant decrease came in December with a drop of 15%, or about $271,000. The decrease for November was 5%, or about $54,000, Paprocki said. The village gets sales tax revenue numbers three months after actual sales are made.
Both Paprocki and Village President Gopal Lalmalani said the decrease in sales tax revenue was about what was expected.
“We knew that because of the pandemic it’s been a difficult challenge for retail stores and restaurants,” Lalmalani said. “It was really difficult in December with the state’s restrictions that were in place, limiting businesses.”
While sales tax revenue is important to all towns, it’s even more the case in Oak Brook than most municipalities because the village does not levy a municipal property tax. Its strong sales tax revenue base has allowed Oak Brook to fund expenditures without property tax contributions from residents and businesses.
The strong sales tax base usually accounts for slightly more than half the village’s General Fund revenue each year.
The village anticipated in its budget that it would receive $2,605,000 in sales tax revenue for November-December 2020, which was $30,575 more than the actual amount received.
“We were planning for a decline,” Paprocki said.
More Top Picks Best Electric Bikes For Heavy Riders
For November, the $1,093,000 received was $63,000 more than the budget projection of $1,030,000. December’s collection of $1,481,425 was $93,575 less than the projected $1,575,000.
Earlier in 2020, sales tax revenue in Oak Brook rebounded considerably in June after losses of more than 50% in April and May, compared to 2019.
The temporary closing in March 2020 of Oakbrook Center and many other businesses in Oak Brook because of the pandemic resulted in considerable losses in sales tax revenue, particularly in April, which was down $515,467, or 55%; and in May, which was down $611,829, or 57.1%, compared to the same months in 2019.
In March 2020, revenue was down $224,147, or 23%, as the pandemic significantly affected businesses for about half the month.
Until March 2020, that year was off to a good start with sales tax revenue for Oak Brook. In January 2020, there was an increase over 2019 of $186,223, or 25.8%, and in February the increase was $105,932, or 13.5%.