Tinley Park advances plan to raise amusement tax to 6% and clarify ticketed-event definitions

Tinley Park trustees voted to forward an ordinance to the Village Board that would raise the village’s amusement tax from 5% to 6% and revise the code to clarify which amusements are taxed.

Hannah (staff member) said the change is tied to revenue planning for Harmony Square, the new plaza opening this summer, and that the village has been earmarking video-gaming revenues and a portion of the amusement tax for the plaza since 2017. Staff said most municipalities with amusement taxes levy 5% to 6% and that increasing the rate and clarifying definitions would ‘‘level the playing field’’ among entities that host ticketed events. Hannah said the tax is largely paid by nonresidents for events and ticketed entertainment.

Trustees sought and received clarifications. Trustee Brady asked whether small performances or cover charges at local bars would fall under the definition; staff said the intention is to capture ticketed events and ticketed shows, not every cover charge or small bar performance. The committee discussed carnivals and ticketed ride events: Hannah confirmed ticketed carnivals would be considered amusements and that exemptions in section b of the ordinance would cover religious, educational and charitable organizations and certain governmental events. Trustees asked whether school events would be exempt because of nonprofit status; staff confirmed eligible nonprofit or charitable events would be exempt.

Trustees moved the ordinance to the Village Board; the roll call recorded yes votes from Trustees Brady, Mahoney, Mueller, Shaw and Colleen Sullivan. Staff said the ordinance, if adopted, would be effective Jan. 1, 2026, to allow time for outreach and collection-system adjustments.