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Illinois Valley

Utica to boost hotel-motel taxes to 7.5%

Village Board to put more teeth into the late fees

Utica Village Hall

Utica is boosting its hotel-motel tax for the first time in more than 40 years – and plans to crack down on venue operators who don’t pay that tax on time.

Thursday, the Utica Village Board enacted a few amendments to its ordinance(s) regulating motels, motels and overnight venues. One of the aims was to increase the tax levied on visitors.

“It’s been 5% since, as far as I can tell, 1985,” village attorney Herb Klein said, noting the village has had the authority to boost the rate since becoming a home rule community in 2006.

The board agreed and voted 4-2 to increase the hotel-motel tax from 5% to 7.5%, a figure that remains significantly lower than in Chicago, for example.

Trustees Debbie Krizel and John Schweickert voted no, believing that increasing the rate by half was a little too high.

The fee increase takes effect April 1.

The second aim is to ensure prompt payment by boosting the penalty for late payment.

Mayor David Stewart said he’s had operators who are the picture of reliability, but others who’ve fallen months in arrears. The past-due sums can add up, he said, but he’s just as eager to alleviate the paperwork on village workers.

“It’s a lot of extra work on the office staff,” Stewart said.

Klein will prepare some language on enforcement for the February meeting. The proposed amendment is to increase late fees from 1.5% to 2.5% or $50, whichever is greater, after the 30-day grace period has expired. The mayor would have discretion to suspend the operator’s license for non-payment after 90 days.

“Whatever it is, it has to hurt,” trustee Jim Schrader said.

In other matters, the board:

-Approved a contract with ARC Pyrotechnics for the Independence Day fireworks show (cost: $22,400) scheduled for Monday, July 6.

-Anticipates receipt of a Utica police survey on which signs need to be updated or replaced, and where signs need to be added

-Will participate in a ribbon-cutting at 4 p.m. Thursday, Jan. 29, at Love’s, which is completing a significant remodeling project

Tom Collins

Tom Collins

Tom Collins covers criminal justice in La Salle County.