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Riverside board directs staff to draft streaming (amusement) tax ordinance to replace sunset grocery tax
Summary
Trustees instructed staff to prepare an ordinance to impose a 5% streaming (amusement) tax to partially replace grocery tax revenue that sunsets Jan. 1, 2026; staff estimated revenues near $40,000 and outlined implementation options and collection costs.
The Village Board on Nov. 20 directed staff to draft an ordinance imposing a 5% amusement/streaming tax to help replace grocery‑tax revenue that is scheduled to sunset on Jan. 1, 2026.
Director Zavala described the proposed tax as a 5% fee on charges for streaming services (video and audio streaming and remotely accessed online games) provided within the village; cable services would not be covered. Staff said the estimated revenue would be slightly less than the grocery tax (an estimate of approximately $40,000 based on comparable communities) and that the village would collect the tax directly, although the village may use a third‑party processor. A comparable municipality mentioned a third‑party collection fee of about 32% of collections.
Trustees asked for clarification on covered services (examples given: Apple, Prime, Netflix), collection mechanics, and whether streaming companies would pass costs to consumers. Manager Francis and Director Zavala said the fee is intended for the General Fund to support village services and could be implemented via an ordinance and registration process similar to the places‑for‑eating tax. Staff noted the need for an implementation portal and a learning curve in the first year.
Trustees reached a consensus to proceed with drafting an ordinance for possible implementation in 2026; no final vote was taken Nov. 20.
