Locally Imposed Taxes

The City collects and administers a variety of locally imposed taxes to fund services provided. The City imposes a tax on hotels/motels, motor fuel, prepared food and beverages, real estate transfers and telecommunications. The City also imposes a 1% home rule sales tax on the purchase of general merchandise (excluding groceries and licensed vehicles). The home rule sales tax is collected by the Illinois Department of Revenue and remitted to the City.

Locally imposed tax rates are as follows:

• Food and Beverage Tax - 1% of taxable sales
• Hotel and Motel Tax - 7% of gross receipts, 11% for O'Hare Corridor Hotels
• Local Option Gas Tax - $.07 per gallon (effective Jan. 1, 2020)
• Telecommunications Tax - 6%
• Sales Tax - 10% (effective Jan. 1, 2016)

The Sales Tax Rate is comprised of the following: