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Fox River Grove approves 1% municipal sales and service tax; board also cuts telecom tax
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Summary
On Sept. 2, 2025 the Village of Fox River Grove approved a 1% non-home rule municipal retailers' and service occupation tax effective Jan. 1, 2026, and adopted a reduction to the Simplified Municipal Telecommunications Tax; trustees said sales-tax receipts will go to the capital fund and several fee reductions are planned to offset the change.
The Village of Fox River Grove Board of Trustees on Sept. 2 approved a 1% non-home rule municipal retailers' occupation tax and a 1% non-home rule municipal service occupation tax, and separately approved a reduction to the Simplified Municipal Telecommunications Tax.
The sales- and service-tax ordinance (Ordinance 2025-19) was presented by Administrator Soderholm and approved on a roll-call vote. Administrator Soderholm told trustees the revenue from the 1% rate would be deposited into the village's capital fund and used at the board's discretion. Trustee Steve Knar, who moved the sales-tax motion, said the village may need additional revenue for future economic development. Trustee David Joseph recorded the lone dissenting vote on the sales-tax ordinance; Trustee Joseph had suggested lowering all revenue-offset fees to zero during the discussion, a change President Marc McLaughlin said he would not recommend for future boards.
Trustees also approved Ordinance 2025-20, which reduces the Simplified Municipal Telecommunications Tax. Trustee Knar asked whether the reduction would yield about $45,000 in savings to residents; Administrator Soderholm confirmed the $45,000 figure and said the telecommunications reduction is one of several planned offsets. Soderholm said additional offset measures planned over the coming months include reductions in cable franchise fees, electricity and natural-gas surcharges, certain non-new-construction building permit fees and water/sewer recapture fees.
Votes at a glance Ordinance 2025-19 (1% non-home rule retailers' and service occupation taxes, effective Jan. 1, 2026): Moved by Trustee Knar; seconded by Trustee Curtiss. Roll-call: Trustees Curtiss, Hester, Knar, Migdal and Wall — yes; Trustee Joseph — no. Outcome: approved. Effective date stated as Jan. 1, 2026. Ordinance 2025-20 (reduction of Simplified Municipal Telecommunications Tax): Moved by Trustee Hester; seconded by Trustee Knar. Roll-call: Trustees Curtiss, Hester, Joseph, Knar, Migdal and Wall — all yes. Outcome: approved.
The board approved a consent agenda of routine items including minutes, accounts payable, the treasurer's report, two proclamations (Chamber of Commerce Week and Constitution Week), Ordinance 2025-18 (a zoning variation), Resolution 2025-02 (fund transfer), a Business Capital Assistance Program grant agreement for Lord of Beers, a façade grant agreement for Pence Holdings, and a waiver of the temporary liquor-license fee for the Fox River Grove Lions Club's Oct. 18 event. Trustee Devin Hester moved approval of the consent agenda and Trustee Jennifer Curtiss seconded; the minutes record the motion and second. The transcript does not provide a separate roll-call tally for the initial consent-agenda motion.
During other business, Trustee Knar asked about a Tree Replacement program; Administrator Soderholm said a press release announcing the program was scheduled for Sept. 3, 2025. Knar also inquired about invoices from storm-recovery vendor Clean-Cut; Soderholm said additional invoices from three vendors were expected. President McLaughlin noted residents had complimented the village's quick response to recent storm damage.
The meeting convened at 6:30 p.m. and adjourned at 6:48 p.m. on Sept. 2, 2025. The minutes include signatures dated Sept. 16, 2025 for Village President Marc McLaughlin and Clerk Shelley J. Caesar.