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Restaurant Tax (7525)

 

 

 

Municipal Code Reference: 3-30
CAPS Code Reference: 1002920051710
Tax Return Form Code: Form 7525
Procedure: The Restaurant Tax is imposed on each place for eating located in the City of Chicago. The tax is imposed on the selling price of all food and beverages sold at retail by the place for eating.
Tax Base: .25% of retail price
Exemptions, Deductions and Credits: A place for eating with a Restaurant Tax liability of $200 (equal to $80,000 in taxable sales) in an annual tax year is not taxable if the tax was not passed on to its customers. Due to the shortened tax year, the threshold for the 4/1/04-6/30/04 tax year is $50 (equal to $20,000 in taxable sales).

Sales exempt from the Illinois Retailers’ Occupation Tax are also exempt from the Restaurant Tax. For example, school cafeteria food sold to students and hospital food sold to patients are not taxable.
Rulings and Procedures:

Restaurant Tax Regulations

March 2009 Information Bulletin