Local Business Sales Tax Rebate Economic Relief Program
The Village of Winnetka acknowledges the financial hardship on the Village’s small business community as a result of the COVID-19 pandemic, and therefore, on August 18 Village Trustees approved the Winnetka Local Business Sales Tax Rebate Economic Relief Program which is a rebate program to provide funds to Winnetka local businesses that have suffered economic loss during the COVID-19 Pandemic (“Rebate Program”). The Rebate Program will distribute a portion of the Village’s share of municipal sales tax (“Rebate”) received in 2019 to eligible local businesses to supply businesses with immediate cash for short-term financial operational needs such as payroll, payment to suppliers, payment to service providers, or payment of rent and utilities. Of the 9% retail sales tax remitted by a Winnetka business, the Village of Winnetka receives 1%, per statute.
Terms and Conditions
The Rebate Program shall be administered in the sole discretion of the Village and nothing in this program creates a right to any business to receive any funds or creates an obligation of the Village to expend any funds. The Village is offering, through an application (“Application”), the ability of eligible Winnetka businesses to a rebate of the municipal sales tax proceeds received by the Village of Winnetka in 2019. The total amount of the Rebate Program will not exceed $400,000.
All Rebates by the Village are expressly conditioned upon the satisfactory completion of an Application and adherence to these Administrative Rules.
The application for the Rebate Program must be completed and submitted to the Village no later than December 1, 2020.
If a Rebate is approved, it will be awarded via check in the name of the business submitted on the Application. Rebate awards are not transferable to another person, owner, previous owner, or business.
Refund of Rebate
If at any point these Administrative Rules are not strictly adhered to, the Rebate funds provided shall be returned to the Village in the full amount within ten (10) calendar days of receiving notice of a breach of the Rebate Program. Each owner of at least 5% of the business shall submit the Application to the Village, shall sign said Application and shall jointly and severally personally guarantee the refund of the rebate proceeds should the Administrative Rules not be strictly adhered to.
Proprietary Information and General Release
Applicants shall permit Village representatives to make all reasonable inspections and investigations of the business’ financial and proprietary information during the process period of the Application. Applicants, as a necessary part of the Application process, shall provide to the Village or otherwise allow the Village to obtain and use all financial and proprietary information, including all municipal sales tax information, of the business. Such information shall no longer be deemed proprietary and confidential for purposes of this Rebate Program. All payments under the Rebate Program will be made public and will contain the amount of the Rebate funds awarded to the business and the business’ name and information. Applicants, upon submission of an Application, release the Village from any and all liability, waive any rights in regards to the proprietary information’s confidentiality, and covenant not to sue the Village for the release of said proprietary information and from any other claim arising from this Application and the Rebate Program. Village, for this section shall mean their officers, directors, employees, agents, affiliates and representatives. Submission of an Application is an express consent and agreement to the above.
To be considered an eligible business to receive a Rebate, businesses must meet the following requirements:
1. Business must have a physical location in the Village of Winnetka;
2. Business must generate municipal sales tax as part of its operations and sales;
3. Municipal sales tax eligible revenue must not exceed $4.0 million ($40,000 in municipal sales tax collections) in the calendar year 2019.
4. Business must not have permanently ceased operations as of the date the funds are dispersed;
5. Business shall not be part of a chain consisting of more than 4 units nationwide;
6. Business shall not be part of a franchise system;
7. Business shall not be a private club and must be open to the general public;
8. Business shall not be a home occupation;
9. Business shall not be a local government unit or school district;
10. Business must have been in operation during 2019 because this program is a rebate of sales taxes collected by the Village in 2019.