Village trustees recently approved a 2 percent tax that will apply to businesses that both sell food, and provide a place to consume it. The new "places for eating tax" will be “imposed wherever food is sold at retail for immediate consumption on the premises where seating is provided,” according to village documents.
Board members approved the tax in a 4-to-1 vote; Trustee Anne Colton cast the dissenting vote. Trustees Tom Kataras and Lisa Purcell were absent.
Sales tax revenue in Homewood has been decreasing steadily since 2008—and is expected to take an additional $300,000 hit with the closing of Kmart. Revenue is expected to improve with the opening of Walmart in 2015.
The village is expected to see a deficit of $333,000 this year, and a heftier $719,000 shortfall in 2015, Sun-Times Media reports. As a non-home rule village, Homewood's options for bringing in additional revenue are few. Two other Southland towns — Palos Hills and Chicago Ridge — currently utilize a similar tax.
The new tax is estimated to bring in an additional revenue of $760,000 annually.