Oak Lawn, IL Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Standard rate
- $0.20 per sq ft
- State-licensed pros
- flat $150
- Fee cap
- $5,000 combined max
- Certificate term
- Oct 1 – Sep 30
- Underreporting fine
- $1 per sq ft
Summary
Oak Lawn sorts businesses into fee classes under its Business Regulation Certificate ordinance: most local businesses pay $0.20 per square foot, state/IDFPR-licensed professionals pay a flat $150, and non-Village businesses pay separate flat fees.
Commercial establishments or business activities licensed by the IDFPR or otherwise licensed exclusively by the State of Illinois or federal government shall pay a minimum fee of $150.00 regardless of square feet of space occupied.
2. Commercial establishments or business activities licensed by the IDFPR will pay a single annual registration fee for the establishment or activity (i.e. legal entity), not per licensed professional.
3. Underreporting of gaming terminals is subject to a fine of $5,000.00 per underreported machine.
4. Underreporting of towing vehicles is subject to a fine of $5,000.00 per underreported vehicle.
5. A minimum fee of $150.00 is required for businesses with a physical location(s) in the village (non-home based), even in the event the business is less than 750 square feet of interior space or consists only of a post office box.
6. The maximum annual combined registration and licensing fee that a business is required to pay based on square footage of interior space is $5,000.00.
7. Businesses or entities with multiple locations in the village that serve as support for the primary business location (e.g., maintenance, storage, back- office, etc.) derive total square footage of interior space by the sum of the total interior square footage of all their facilities and locations within the village.
8. Mobile Home Park operators will derive total square footage by adding the
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-15: Code current through: Ord. 26-09-22, passed April 28, 2026).
Full Breakdown
Village Code § 3-1-1-7 splits commercial establishments into rate classes rather than taxing revenue. Ordinary Oak Lawn-based businesses are billed $0.20 per square foot of interior space (minimum $150, capped at $5,000 combined). Businesses licensed exclusively by the Illinois Department of Financial and Professional Regulation or by the state or federal government instead pay a flat $150 regardless of square footage. Non-Village-based businesses operating in town (waste haulers, towing companies, ice cream trucks, billboard operators) fall under a separate Table 2 flat-fee schedule since they have no local square footage to bill against. Video gaming terminal operators and towing companies are billed per unit on top of a base fee.
Violations & Fines
Operating without a certificate is unlawful under § 3-1-1-3. Under-reporting square footage draws a $1 per square foot fine; under-reported gaming terminals or towing vehicles draw a $5,000 fine per unit. General violations of the chapter run $25 to $750 per day under § 3-1-1-12(B)(1), and the Village Manager can close a noncompliant business after a 10-day notice.
Frequently Asked Questions
Does Oak Lawn tax business revenue?
Why do doctors and lawyers pay a flat fee?
Sources & Official References
Other rules in Oak Lawn
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