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• Tax Highlights

New Year, New Chicago Tax Rates

With the projected budget deficit, the city of Chicago is once again raising some of its taxes. We frequently find that taxpayers are unaware about the myriad of local taxes that apply to businesses located in Cook County and Chicago. A few of these taxes are as follows:

• Chicago Restaurant Tax—Chicago imposes a tax on the selling price of all food and beverages sold by an eating place located within the city.
• Metropolitan Pier and Exhibition Authority (MPEA) Tax—The MPEA imposes a Food and Beverage Retailers' Occupation Tax on all persons engaged in selling prepared food, alcoholic beverages and soft drinks within the metropolitan area.
• Chicago Use Tax for Nontitled Personal Property—This tax is imposed on the purchase of nontitled tangible personal property for use in Chicago from a retailer located outside Chicago.
• Chicago Personal Property Lease Transaction Tax—This tax applies to businesses or individuals who lease or rent personal property for use in Chicago. The lessor is required to collect and remit the tax but if they do not, the lessee is responsible.
• Chicago Employers' Expense Tax—This tax applies to businesses that employ 50 or more employees who perform 50% or more of their work per quarter in Chicago. The employees must also earn more than $900 in a quarter to be taxable.
• Amusement Tax—Chicago imposes an amusement tax on the patrons of every amusement within the city unless an exemption applies. Beginning January 1, 2009, the tax rate will increase to 9% (previously 8%) of the admission fees or other charges paid. A rate of 5% (previously 4%) will apply to the admission fees or other charges paid to see a live performances if the space has a maximum capacity of more than 750 people (if the facility seats less than 750 people, the amusement tax does not apply). In addition, Cook County has a separate amusement tax with which taxpayers must comply.
• Parking Tax—Beginning February 1, 2009, the city tax imposed on individuals for parking in the city of Chicago is increased as follows:
  

  Daily Parking Charges	Former Fee	Fee as of February 1, 2009
  Less than $2.01	$0.00	$0.00
  $2.01 – $4.99	$1.00	$1.00
  $5.00 – $11.99	$1.75	$1.75
  $12.00 plus	$2.25	$3.00
  Weekly Parking Charges	Former Fee	Fee as of February 1, 2009
  Less than $10.01	$0.00	$0.00
  $10.01 – $24.99	$5.00	$5.00
  $25.00 – $59.99	$8.75	$8.75
  $60.00 plus	$11.25	$15.00
  Monthly Parking Charges	Former Fee	Fee as of February 1, 2009
  Less than $40.01	$0.00	$0.00
  $40.01 – $99.99	$20.00	$20.00
  $100.00 – $239.99	$35.00	$35.00
  $240.00 plus	$45.00	$60.00

In addition, Cook County has a separate parking tax with which individuals must comply.

These are just a few of the many taxes imposed by the city of Chicago and Cook County. If some of these taxes are new to you, our experienced professionals can assist you in complying with these taxes and minimizing your exposure.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.