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Food and Beverage Tax

What is the tax?

The Downers Grove Food and Beverage Tax is a 1.5% tax on the purchase price of alcohol, packaged liquor, prepared foods and non-alcoholic beverages for immediate consumption. 

Which establishments are taxed?

Any establishment licensed under Chapter 3 of the Downers Grove Municipal Code with respect to the sale of liquor. Additionally:

  • Restaurant or eating place, drive-in restaurant, fast food outlet
  • Cafeteria (open to the public), cafe, lunch counter, delicatessen, sandwich shop, coffee shop, buffet
  • Soft drink parlor, ice cream parlor, tearoom
  • Inn, hotel or motel
  • Grocery 'eat-in' and prepared take-out
  • Banquet facilities, catering facilities
  • Bakeries and confectioners
  • Movie theatres, bowling alleys, billiards halls
  • Convenience store/gas station 'take-out'

Are there any exceptions?

This tax is not imposed on the following:

  • Food and beverages that are exempt from tax under the provisions of the retailers' occupation tax.
  • Churches, hospitals, nursing home facilities and other medical treatment facilities.
  • Daycare establishments
  • Schools, residential halls, sororities and fraternities
  • Government entities
  • Ice cream and food trucks
  • Festival vendors
  • Vending machines
  • Employee cafeterias

How can a payment be submitted?

The following forms must be submitted to the Village on a monthly basis, along with payment: 

When is the tax due?

The Downers Grove Food and Beverage Tax is due on or before the 25th of the following month of the reporting month. If the filing due date falls on a weekend or holiday, the tax payment and forms must be postmarked by the next business day to be considered on time.

2021 Food and Beverage Tax Filing Due Dates

Table 01. 2021 Food and Beverage Tax Filing Due Dates
2021 Taxable Period  Due Date
January 

February 25

February March 25
March April 26 *
April May 25
May June 25
June July 26 *
July August 25
August September 27 *
September October 25
October November 29 *
November December 28 *
December January 25, 2022

*indicates a due date pushed back due to a weekend or holiday

Is a discount available?
The Village will apply a 2% discount to all businesses which pay on time (on or before the 25th of the following month.) This discount will serve as a service fee to reimburse businesses for expenses incurred for keeping records and data, billing, and preparing and filing returns to the Village.

Will there be penalties for late-payment?

Yes, a 1% penalty will be issued for late-payments.

How will this tax be applied to a food or beverage purchase?

Below are three examples of some common transactions in the Village where the food and beverage tax would apply:

  • A purchase of $50.00 is made at a restaurant: $0.75  is added to the total bill
  • A cup of coffee is purchased for $3.00 at a coffee shop: $0.05 is added to the total bill
  • A case of beer is purchased for $15.00 at a liquor store: $0.23 is added to the total bill

Merchant Forms

The following are fillable PDF forms.