PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Micky Horstman (312) 607-4977

Oak Lawn waives $500,000 in license renewal fees for a year
Illinois Policy Institute found businesses have faced $650 million in tax hikes

CHICAGO (July 13, 2022) — On July 12, the Village of Oak Lawn voted to give businesses a break by waiving an estimated $500,000 in license renewal fees for a year.

The relief package proposed by Oak Lawn trustees and board members cited Illinois Policy Institute research showing businesses have faced $650 million in tax hikes since Gov. J.B. Pritzker took office.

Licensing fees in Oak Lawn vary based on the type and size of business, and the package covers these specific license fees: business, liquor, tobacco, games of skill, and video gaming. The village can afford lost revenue from licensing fees because they permanently increased the home rule sales tax from 0.75% to 1.25% earlier this year.

Illinois Policy Institute research on the state’s business environment shows:  

• Illinois dropped to 36th from 26th place in the Tax Foundation’s Business Tax Climate ranking between 2017 and 2021. No other neighbor state saw a decline.
• Illinois is still missing over 136,000 jobs from before the pandemic.
• Three major companies announced their headquarters were leaving Illinois this summer: Boeing, Caterpillar and Citadel. Last month, U.S. Steel Corp. announced changes to their Granite City Works facility that will cost the area up to 1,000 jobs.

Bryce Hill, senior research analyst at the nonpartisan Illinois Policy Institute, offered the following statement:

“Illinois has become a harder place to do business. Oak Lawn officials should be commended for their efforts to create a friendlier environment for local businesses.

“Prior to inflation increases this year, Oak Lawn raised their sales tax, which provided the revenue needed to pass this one-year relief package. Moving forward, the village should consider using their sales tax revenue to permanently eliminate license renewal fees for businesses.

“A huge chunk of pension debt is held by local municipalities. That’s left local governments saddled with an unsustainable financial burden and no options to control costs. The best way for local governments to grow their economy and help businesses is by passing constitutional pension reform and preventing Amendment 1 from passing in November. This will save residents and business owners from future tax increases.”

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.