Written by MICHAEL LoCICERO
Wednesday, 16 July 2014 16:14
Officials also remove 1% incentive for filing sales tax returns on time
Hoping to persuade businesses in the village to pay room taxes on time, the Village of Belgium modified its room tax ordinance Monday, including adding a penalty for failing to pay on time and eliminating a 1% incentive to pay taxes on time.
According to the ordinance approved by the Village Board, any person who violates the ordinance could be fined up to $500.
The 7% room tax remained unchanged.
“There have been several things that have unfolded over the last month that caused us to change the ordinance,” Village President Rich Howells said.
The village will no longer reimburse businesses 1% of the room tax for filing a sales tax return on time.
“We have a hard time paying people back for something they are supposed to do anyway,” Howells said.
Village Attorney Gerry Antoine said the revised ordinance is another way to make sure businesses comply and submit sales tax information on time.
“This is no different than any other ordinance,” he said. “It’s just another tool to persuade people to comply.”
The change to the ordinance was spurred by the Village Board’s approval of a license renewal for the Regency Inn after the motel submitted its last six months of sales tax information.
The village had threatened not to renew the motel’s license to operate if the returns weren’t received.
The board also had not received recent tax information from How-Dea Service until officials asked them to provide it last month.
Other minor changes to the ordinance included a 10-day notification of a permit revocation if a business fails to comply with the ordinance.
The previous ordinance required a 15-day notice.
A business also has 15 days to appeal a license revocation. The previous ordinance allowed 20 days to appeal.
The changes to the ordinance passed 5-0-1 with Trustee Vickie Boehnlein, who works at How-Dea Service, abstaining from the vote.