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Food and Beverage Tax

What is the tax?

The Downers Grove Food and Beverage Tax is a 1% tax on the purchase price of alcohol, packaged liquor, prepared foods and non-alcoholic beverages for immediate consumption.

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

Where are these items sold?

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'

 How will the businesses selling these items be notified?

The Village will send businesses a registration form which will require the following information:

  • Name of business
  • Address and ownership information (Owner Name and address, Driver's License number)

How will payment be submitted?

Collections will be submitted to the Village on a monthly basis via the Food and Beverage Tax form, plus additional ST1 documents (State tax filing form).

When is the tax due?

The Downers Grove Food and Beverage Tax is due on or before the 25th of the subsequent 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.

2019 Food and Beverage Tax Filing Due Dates

Taxable Period

Due Date

November 2018

 December 26, 2018*

December 2018

January 25, 2019

January 2019

February 25, 2019

February 2019

March 25, 2019

March 2019

April 25, 2019

April 2019

May 28, 2019*

May 2019

June 25, 2019

June 2019

July 25, 2019

July 2019

August 26, 2019*

August 2019

September 25, 2019

September 2019

October 25, 2019

October 2019

November 25, 2019

November 2019  December 26, 2019 *
December 2019  January 27, 2020 *

 

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

Will there be penalties for late-payment?

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

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

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 is made at a restaurant: $0.50  is added to the total bill
  • A cup of coffee is purchased for $3.00 at a coffee shop: $0.03 is added to the total bill
  • A case of beer is purchased for $15.00 at a liquor store: $0.15 is added to the total bill

Merchant Forms

The following are fillable forms.