Water Park Admission Tax Reduced

Yorkville aldermen rolled back part of admission tax Tuesday in a move leaders said provided parity in light of a similar tax implemented in October.

The city approved a 3 percent amusement tax for certain businesses citywide about two years after Raging Waves management agreed to pay a 5 percent admission tax in a special agreement with the city.

Under that agreement, 2.75 percent of the admissions for 10 years would go back to Raging Waves managers in light of the road upgrades they built near the park. The city would keep 2.25 percent of the admissions for 10 years and then the full 5 percent for 10 years after that.

But Mayor Gary Golinski said he reached out to Raging Waves managers after he was elected in April because he thought the new amusement tax amounted to a “bait and switch” deal for the water park. As an alderman, Golinski voted in June against the amusement tax, which also affects a few other businesses.

Under the deal approved unanimously Tuesday, Raging Waves managers will still pay the 3 percent amusement tax. But the admissions tax was reduced to 2.75 percent, which will be funneled back to water park leaders. The admissions tax will be suspended after the 10-year rebate period expires in 2018.

Aldermen said they thought the move evened the playing field for Raging Waves, while some aldermen thought this change had already been approved.

“I think it’s a good move to correct a situation where we’re overtaxing a local business,” said Ward 2 Alderman Larry Kot. “I think it’s a good message to send businesses.”

The water park managers plan to start marketing a price cut in August in light of the tax reduction, City Administrator Bart Olson said in a memo to Yorkville City Council members.

Meanwhile, Ward 4 Alderman Rose Spears asked her fellow aldermen about exploring removing the amusement tax altogether. Some have estimated the amusement tax would generate about $125,000 a year.

Spears, Golinskig and then-Ward 1 Alderman Wally Werderich voting voted against the 3-percent amusement tax in June, while Ward 1 Alderman George Gilson Jr. was absent, meeting minutes show.

Proponents initially touted the amusement tax as an important source of revenue in light of plans for a sports complex that have since dissipated.

When Spears suggested repealing the amusement tax in October, some argued that the amusement tax, unlike property taxes, affected only those who used the facilities. Critics argued that the tax deterred business.

In October, then-Mayor Valerie Burd broke a tie to maintain the tax, with Spears, Gilson, Golinski and Werderich voting to remove it, meeting minutes show.