Taxes and Fees

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Taxes

The village collects and administers a variety of locally imposed taxes to fund services provided. The home rule sales tax is collected by the Illinois Department of Revenue and remitted to the village.

Rates for taxes paid to the Village are as follows:

Food and Beverage Tax - 1.00%
Hotel and Motel Tax - 6.00%
Home Rule Sales Tax - 1.00%
Property Tax
Real Estate Transfer Tax - $3 per thousand
Sales Tax
Electric Use Tax
Natural Gas Use Tax - $0.02 per therm
Telecommunications Tax - 6.00%

Fees

Business License Fees
Permit Fees
Cable Franchise Fees - 5.00%

 

Food and Beverage Tax

The Village imposes a tax upon the purchase of prepared foods and alcoholic liquor at retail and at prepared food facilities or alcoholic liquor facilities within the Village at a rate of 1.00% of the purchase price of such prepared food and alcoholic liquor. The ultimate incidence of and liability for payment of the food/beverage tax shall be borne by the purchaser thereof (Village Code 3-2-4). For more information please see Food & Beverage Tax Return or Food & Beverage Tax Registration Form.

Hotel and Motel Tax

The Village imposes a tax for the use and privilege of renting, leasing or letting of rooms in a hotel or motel in the Village at a rate of 6.0% of the gross rental receipts. The ultimate incidence of any liability for payment of said tax shall be borne by the user, lessee or tenant of said rooms. The hotel/motel tax is in addition to any and all other taxes imposed by the Village or other political subdivision (Village Code 3-2-6). For more information please see Hotel/Motel Occupancy Tax Return or Hotel/Motel Occupancy Tax Registration Form

Home Rule Sales Tax

The Village imposes a tax upon the business of selling goods or services at retail at a rate of 1.00% of the gross receipts from such sales (Village Code 3-2-1). The taxes are collected by the Illinois Department of Revenue and remitted to the Village. The home-rule sales tax does not apply to groceries, and prescription and non-prescription drugs.

Property Tax

The Village of Elk Grove is one of approximately 10 units of local government that comprise the typical resident’s overall property tax bill. For more information please go to the Property Taxes page which includes an understanding on how property taxes are calculated.

Real Estate Transfer Tax

The Village of Elk Grove Village imposes a tax on the transfer of title to real estate located in the Village. The rate of the tax is $3 per $1,000 of value, or fraction thereof. The primary liability for the tax lies with the seller or grantor of the real estate (Village Code 3-2-5). For more information please go to the Real Estate Transfer Tax page.

Sales Tax

The State of Illinois administers and collects a sales tax on the purchase of goods and merchandise. A portion of the tax is remitted to municipalities and other government agencies. The total tax rate depends in which municipality and county the purchase is made. The total sales tax rate in the Village depends in which county the Village business is located. For a sales tax rate breakdown please go to the Sales Taxes page. 

Electric Use Tax

The Village imposes a tax upon the privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the Village at the following starting rate (Village Code 3-2-13): A rate of 0.61 cents per kilowatt hour is charged for the first 2,000 kilowatt hours used or consumed in a month.

Natural Gas Use Tax 

The Village imposes a tax upon the privilege of using or consuming gas acquired in a purchase at retail and used or consumed within the corporate limits of the Village at the rate of two cents ($0.020) per therm (Village Code 3-2-12). 

Telecommunications Tax

The Village imposes a simplified telecommunications tax at a rate of six percent (6%) of the gross charge for such telecommunications purchased at retail from a retailer (Village Code 3-2-8).

Business License Fees

Every business engaged in retail sales of any product is required to be licensed per the Elk Grove Municipal Code. Additionally, certain other businesses including day care centers, food caterers and retail establishments require a license. All food, beverage and cigarette vending machines as well as coin-operated amusement/musical devices must also display a valid license. The annual fee for a business license covers the cost of making inspections necessary to safeguard public safety, health and welfare. For a complete schedule of fees and other information including additional forms visit the Business License page.

Permit Fees

The permit process is needed to protect both the business or resident and the Village. It protects from improper work done by contractors. Furthermore, it saves money by making certain that all jobs are done correctly the first time so that they do not have to be redone to meet Village codes. For a basic fee schedule of permits or for more information regarding permits please visit the Permits page.

Cable Franchise Fees

The Village imposes a fee on any holder providing cable service or video service in the Village. The amount of the fee is five percent (5%) of the holder's gross revenues (Village Code 03-20-2).