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Shabbona board signals support for 5% hotel-motel tax; ordinance to be drafted for August
Summary
Trustees expressed that a prior 7.5% figure was too high and coalesced around a 5% hotel-motel tax; staff will research statutory limits and present a draft ordinance at the August meeting.
Trustees discussed creating a local hotel-motel tax and said a previously proposed 7.5% rate was likely too high. The group generally favored a 5% rate and asked staff to consult the Illinois Municipal League about whether municipalities may set rates above certain model thresholds before an ordinance is drafted.
"So it's kind of the feeling of the board that we landed 5%?" one trustee asked, and other trustees indicated agreement; the Village President instructed staff to draft a tax ordinance and bring it to the August meeting. Trustees flagged that combined local and state/county taxes can lead to high total rates and asked staff to confirm whether county and state shares apply inside municipal limits.
Next steps: staff will consult the municipal league and draft an ordinance that the board will consider at its August meeting; trustees said the intent is to set a competitive local rate to encourage hotels to locate in Shabbona rather than nearby unincorporated areas.
