Title
Adoption of an Updated Ordinance Imposing Business District Taxes (ROT, SOT, and HOOT) for the Downtown Orland Park Business District No. 1 (BD1)
History
The Village previously initiated steps to establish the Downtown Orland Park Business District No. 1 following a public hearing held on September 3, 2024. Upon review of the ordinance, the State’s Legal Department advised that a new ordinance must be passed specifically imposing the business district taxes across all tax types. 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.
Recommended Action/Motion
I move to adopt the Ordinance as fully presented.
(Full motion - not necessary to be read)
I move to adopt an Ordinance entitled: AN ORDINANCE DESIGNATING ORLAND PARK BUSINESS DISTRICT NO. 1 (DOWNTOWN ORLAND PARK BUSINESS DISTRICT).