Oak Lawn businesses will be spared the cost of a local license fee this year, as village officials offer some help to their business community.
The Village Board unanimously approved waiving the license fee this year for all businesses based in Oak Lawn, with a physical location in the village and/or registered in Oak Lawn with the Illinois Secretary of State, including home-based businesses.
Depending on the type and size of a business, annual licenses cost from $75 to several thousand dollars for places that sell alcohol and have live entertainment.
The one-time waiver includes fees for video gaming, games of skill, tobacco and liquor licenses.
Village Manager Thomas Phelan estimated between 700 and 800 businesses are eligible for the fee waiver, with the average savings per business about $600.
“We, of course, welcome any efforts to support our local businesses in Oak Lawn,” said Anne Fritz, executive director of the Oak Lawn Chamber of Commerce.
When the Village Board discussed the idea in June, proposed by trustees Ralph Soch and Paul Mallo, the staff estimated it would cost Oak Lawn about $600,000 in revenue. Further staff calculations lowered the estimated potential loss to between $450,000 and $500,000.
“It’s a significant amount of money,” Phelan said at Tuesday’s meeting. “I would agree with the board that it’s a good move.”
Phelan noted businesses are just coming out of the pandemic and dealing with supply chain problems and labor shortages while facing a possible recession.
Income from retail sales tax has been strong this year, Phelan said, which, along with the village increasing the home-rule sales tax last year, will help offset the loss of revenue.
Mayor Terry Vorderer had suggested the waiver be granted only to businesses that are members of the Chamber of Commerce, to encourage more establishments to join.
But Mallo said the village’s legal counsel advised the village should not differentiate in granting a waiver.
Fritz said that did not lessen her organization’s appreciation of the waiver.
“The Chamber supports all businesses, not just members,” she said.
Vorderer instead recommendation that businesses take advantage of the fee waiver to consider Chamber membership.
“The more we can work together to make the business community strong in Oak Lawn the better we all as residents share in the cost of running government,” Vorderer said.
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Trustee Tim Desmond recommended the village also help homeowners and residents by not raising property taxes this year. He asked village officials to prepare next year’s budget with a goal of a flat property tax levy.
Kimberly Fornek is a freelance reporter for the Daily Southtown.