Food & Beverage Tax Frequently Asked Questions
1. What is the Food & Beverage Tax?
This is a tax on prepared food items for immediate consumption, or alcoholic liquor purchased for immediate consumption.
2. What is the tax rate?
The rate is 1/2 of 1% (.5%).
3. When did the tax become effective?
The tax became effective at 2:01 a.m., October 1, 1998.
4. What are the filing period and remittance requirements?
The tax shall be collected on a monthly basis, with remittance due by the 20th of the following month.
5. Is there a discount for timely filing?
Yes – if your return is date-stamped by the 20th of the following month, you may retain 1.75% of the tax collected for that period.
6. Is there a penalty for late filing?
Yes — if your return is not date-stamped by the 20th of the following month, a penalty of 2% of the tax due shall be added to your payment.
7. Suppose my business is based in a different city, but I provide food or alcoholic liquor for immediate consumption in Champaign (i.e. – a catered event). Am I subject to the tax?
No, after consultation with the Illinois Department of Revenue and the City of Urbana, it is agreed that for catered events and deliveries, the point of sale is where the order is accepted, not delivered.
8. Will the City provide me with a registration form and a remittance form?
Yes — enclosed (i.e., available on the City of Champaign’s website) is a registration form and a copy of the monthly remittance form. The registration form should be completed and submitted upon receipt. The remittance form shall be filed along with payment each monthly. After your registration form is received, the City will provide a set of 12 preprinted forms for your use each year. It may be photocopied for future monthly filings.
9. To whom should the check be made payable?
City of Champaign
10. Do you accept credit cards?
Yes – the City accepts Visa and Master Card.
11. Who can I contact with additional questions?
You may call the Finance Department at 403-8940 with questions about the tax rate, remittance deadlines, etc. Several staff members will be available to help you.