Village officials are revisiting a proposal to implement a 1% home rule sales tax, a move they say could generate new revenue from non-residents and reduce the community’s long-standing reliance on property taxes.
The measure, expected to return for reconsideration at a March 23 special meeting, comes as the Village of Park Forest looks to diversify how it funds municipal services. Currently, property taxes make up a significant portion of that funding.
Village Manager Jon Kindseth and Finance Director Mark Pries said the proposed increase could generate up to $800,000 annually. Unlike property taxes, which are paid primarily by residents, sales taxes are also paid by visitors, commuters, and others who shop or conduct business in the Village.
“This is one method to have non-residents pay for Village services they are currently using but are not paying for,” officials wrote in a memo to the Park Forest Board of Trustees.
Local leaders say that aspect of this revenue is primary motivation. The majority of Park Forest’s retail activity comes from people who live outside the Village but travel to or through the area for work or for the Village's world-class cultural activities. By capturing more of that spending, officials argue the Village can shift part of the financial burden away from homeowners.
If approved, the measure would bring Park Forest’s total sales tax rate to 10% on the Cook County side and 8% on the Will County side, aligning it with neighboring communities such as Olympia Fields, Matteson, and Chicago Heights, all of which already have similar taxes in place.
Village officials noted that Park Forest’s current rate is about 1- 2 percentage points lower than several surrounding municipalities, putting it at a relative disadvantage when it comes to generating sales tax revenue.
The proposal includes exemptions for groceries, prescription medications, and certain medical and feminine hygiene products. Purchases made using Supplemental Nutrition Assistance Program (SNAP) benefits would also remain untaxed, limiting the impact on lower-income residents.
Revenue generated from the tax could be used to offset or eliminate other local costs. Early discussions have included potentially phasing out vehicle sticker fees, eliminating alarm registration fees, or reducing the need for future property tax increases tied to major projects such as the Park Forest Aqua Center redevelopment.
The proposal was initially introduced earlier this month but failed to pass at the March 16 Board of Trustees meeting in a 3-1 vote, with several trustees absent. Officials have since scheduled a special meeting to reconsider the ordinance.
If approved and filed with the Illinois Department of Revenue by April 1, the tax would take effect July 1.
Village leaders say the decision ultimately comes down to long-term financial stability — and finding ways to fund services without placing additional strain on residents’ property tax bills.