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Shabbona trustees suspend enforcement of hotel/motel tax, citing business concerns
Summary
After heated debate about a 7% hotel/motel levy and whether it discouraged competition with a planned tribal lodging project, the board voted to suspend enforcement and waive fines tied to the hotel/motel tax ordinance.
Trustees debated the village's hotel/motel tax and hospitality regulations, with one trustee saying the tax felt targeted at him and warning a 7% levy on top of state tax could deter competing hotels. Staff said the tax had been intended to give the village leverage if outside lodging located in town.
The board voted to suspend enforcement and waive fines associated with the hotel/motel tax ordinance. During discussion a trustee said the measure would discourage outside chains from building inside the village limits while staff described it as a negotiating tool if an outside hotel sought to locate in town. The resolution passed on a roll call vote.
