Village Of Northbrook: Food, Beverage Tax Would Fund Economic Development

Press release from the Village of Northbrook:

The Village of Northbrook is discussing whether a 1% local food and beverage tax would help fund economic development in the downtown. The tax would apply at a business where food or beverages, including alcohol, are prepared for immediate consumption, such as restaurants/cafés. This is not a tax on groceries or package liquor for consumption off premises. What would the tax fund?

• Incentives for business retention throughout community with a focus on restaurants
• Development of a plan for downtown including improvement of large properties, improvement to walkability, parking, how the area looks (landscaping, public art)
• Establish a dedicated village position to support economic development work including:
  • Oversee the development of a private downtown entity to lead marketing, aesthetic improvements and event efforts in central business district
  • Manage formal incentive programs for retention of businesses as well as recruitment of new businesses to vacant spaces

What is a Food and Beverage Tax? A food and beverage tax is collected at the local level and applies at a business where food or beverages, including alcohol, are prepared for immediate consumption, such as restaurants/cafes. This is not a tax on groceries or package liquor for consumption off premises. How can the community give input? A survey will be made publicly available to gage the support of the tax under consideration.

How is it established? Following the planning phase, a community survey, and business engagement, an ordinance establishing the tax at a Public Meeting of the Village Board is scheduled to be considered this summer. The tax would generally be effective several months later. The Village would then establish an online payment portal for local businesses to remit the tax to the Village. What other local communities have this tax? Communities proximate to the Village of Northbrook with a Food and Beverage Tax include: Arlington Heights (1.25%), Bannockburn (1%), Buffalo Grove (1%), Deerfield (1%), Des Plaines (1%), Glencoe (1%), Highland Park (1%), Lake Bluff (1%), Lincolnwood (1%), Morton Grove (1%), Niles (1%), Park Ridge (1%), Skokie (2%) and Wheeling (1%). What are the revenue projections? In 2023, there was $115,000,000 of sales in the Village that would be applicable to the food and beverage tax under consideration. This would amount to a projected annual revenue of $1,150,000.

This press release was produced by the Village of Northbrook. The views expressed here are the author’s own.