May 2010 Sales Taxes in Illinois - Illinois General Assembly

Other Sales Taxes
The Illinois Department of Revenue also collects other local sales taxes above and
beyond the state and local rate of 6.25%. Listed below are these various other local
sales taxes as described by the Department of Revenue:
Business District Retailers’ Occupation Tax (65 ILCS 5/11-74.3-1 to 11-74.3-6)
Municipalities that have approved a business district development or redevelopment
plan and have elected to impose a tax by ordinance may impose a Business District
Retailers’ Occupation and Service Occupation Tax on sales of general merchandise
within the business district. The tax may not be imposed on sales of items that will be
titled or registered with an agency of state government or on qualifying food, drugs,
and medical appliances. The Tax may be imposed in 0.25% increments and cannot
exceed 1%.
Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax
(65 ILCS 5/8-11-6b)
The Chicago Home Rule Municipal Soft Drink Occupation Tax is imposed on persons
who sell canned or bottled soft drinks at retail in Chicago. The rate is 3% of gross
receipts from soft drinks sold at retail. “Soft drinks” include (but are not limited to):
• soda water,
• carbonated water,
• colas, and
• drinks containing less than 50 percent natural fruit or vegetable juice.
The following list includes examples of drinks that are not included in the definition of
soft drinks:
Fountain drinks,
• Noncarbonated water,
• Coffee,
• Tea,
• Infant formula,
• Milk or milk products,
• Drinks containing 50 percent or more natural fruit or vegetable juice,
• Nonalcoholic drink mixes, and
• Soft drinks when mixed and sold in an alcoholic drink.
• Drinks containing 50 percent or more natural fruit or vegetable juice,
• Nonalcoholic drink mixes, and
• Soft drinks when mixed and sold in an alcoholic drink.
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