New for 2024

In April 2023, the Village Board adopted a code amendment which significantly updated Chapters 10 and 11, and Appendix A of the Village Code. These sections regulate businesses in the Village of Mount Prospect. The purpose of the amendments was to simplify the code, strike outdated policies, and be more reflective of the current economic environment. As a result, the code amendments updated the types of business licenses offered by the Village and the associated fees. 

Many businesses will notice no change to their licenses or renewals. 

Some businesses will have a change in business license type, and others may see a minor increase in the annual fee. These changes are reflected in the annual renewal letter sent to all business owners in mid-November. 

Business License Types

Business Certificates. The Village will no longer be issuing business certificates. All businesses with a Business Certificate License will now be licensed under a Class I license type, with the Class I associated fees. Business certificates were a separate license category and were issued to certain business types (i.e., those licensed through the State of Illinois). There is also an increase in license fee associated with the change from Certificate to Class I license types. 

While researching for the code updates, staff determined these type of businesses were not licensed separately in surrounding municipalities. Staff could find no applicable reason as to why they should remain separate category in Mount Prospect; this business type receives the same treatment with regard to inspections, regulation, etc. as Class I businesses. In addition, many business owners did not differentiate between Business Licenses vs. Business Certificate, resulting in filing errors. This amendment reduces the amount of license types offered, resulting in a simpler filing. 

Additional Class I and Class II License Category

New License Category: 2,500 - 4,999 SF. The Village's fees for Class I and Class II businesses are determined by the business square footage. This is noted on the license application and is standard practice across all municipalities. In doing analysis, it was noted that the 1,000 to 5,000 square foot (SF) license category is by far the Village's largest. Staff also noted that some municipalities break this license group into two, from 1,000 - 2,499 SF and 2,500 - 4,999 SF. The Village felt the fees would be more reasonably distributed by splitting this once license type into two. There is no action required on behalf of the business owner for this change; the changes to the license types and fees are automatically calculated in the Village's permit system software. 

Modifications to License Fees

Some Businesses Will See a Fee Increase of $25.00. In doing research for the code update, staff discovered that the Village's business license fees have not been increased since 1986. This explained the disparity in fees charged per license type when examining the codes of neighboring municipalities. In order to better align with the region, and to help offset the cost of the business license inspections conducted during the year, some license categories have their fees increased by $25.00.  At this time, this is a one-time increase - the code does not have "built-in" increases for the fees every year. Many municipalities have an annual fee adjustment built in to their municipal fees (for example, related to the rate of inflation). If the Village choses to explore this, it will require approval by the Village Board. 

Other Modifications to License Types

Coin-in-Slot Licenses are No Longer Required.  One "add-on" fees some businesses needed to pay was Coin-in-Slot devices such as vending machines, jukeboxes, candy/gum machines, pinball/electronic games. These items no longer require licensing and no fees are charged to have them at the business. 

Some Licenses have been Eliminated. The Village had several license types which were for specific business types. Examples include Gold and Silver Merchants, Carnivals and Circuses, and Auctioneers, among others. For the businesses which operate on a temporary basis (i.e. carnival) are now classified as a Short Term Merchant. Theses businesses will apply for a Short Term Merchant license and indicate the time frame of operation. Businesses which have a long term tenure (i.e. Gold and Silver Merchants) are being processes with a standard Class I or Class II license type as appropriate. The reduction in the amount of license types available simplifies the code and makes filing paperwork easier on the applicant. 

What Hasn't Changed

While the code amendments were extensive, much of the Business License process itself has not changed. 

• The application process is unchanged. Businesses are able to renew their licenses via the same portal, and have the same account as 2023 or prior. 
• There are no changes to any regulations with regard to current Class I or Class II business operations or inspections. As mentioned above, those utilizing the "itinerant merchant" license would now be regulated as a "Short Term Merchant" [Section 11.506 of the code]. 
• There are no changes to the license fee payment due dates, nor how fees are calculated for late payments, mid-year applications, license transfers or high-hazard operations.

Questions about the license process? See our Business License FAQ or contact Antonia Lalagos, Development Planner, at 847-818-5328 or by email.