Title
Adoption of an Ordinance Imposing a Retailers’ Occupation Tax, a Service Occupation Tax, and a Hotel Operators’ Occupation Tax within the Downtown Orland Park Business District No. 1 (BD1)
History
Following the establishment of the Downtown Orland Park Business District No. 1 (BD1) and pursuant to recommendations from the State’s Legal Department to separate the district designation from the tax imposition, this ordinance formally enacts the required business district taxes. The State Department acknowledged that while the statutory deadline was met by the Village's initial timely filing, these taxes must be imposed via this standalone companion ordinance using the State-provided sample format. To ensure comprehensive tax imposition at the rate of one percent (1%) each, these taxes include:
-Business District Retailers’ Occupation Tax (ROT): Imposed upon all persons engaged in the business of selling tangible personal property at retail within BD1 at the rate of 1% of the gross receipts of sales.
-Business Service Occupation Tax (SOT): Imposed upon all persons engaged in the business of making sales of service within BD1 who transfer tangible personal property or real estate as an incident to a sale of service, at the rate of 1% of the selling price of the property so transferred.
-Hotel Operators’ Occupation Tax (HOOT): Imposed upon all persons within BD1 engaged in the business of renting, leasing, or letting rooms in a hotel at the rate of 1% of the gross rental receipts.
Financial impact
Effective January 1st, 2027, this ordinance imposes a one percent (1%) Business District Retailers’ Occupation Tax, Business Service Occupation Tax, and Hotel Operators’ Occupation Tax on applicable transactions within Downtown Orland Park Business District No. 1, generating ongoing business district revenues for the Village and meeting state requirements for tax return verification by October 30, 2026.
Recommended Action/Motion
I move to adopt the ordinance ...
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