In response to the evolving COVID-19 pandemic, the City of Chicago has joined the State of Illinois in issuing a Stay at Home order effective Saturday, March 21st at 5pm CT. In addition, City of Chicago facilities are closed to the public. Staff are prioritizing essential services to protect the health and safety of our residents and employees. As such, we may be delayed in responding to non-essential inquiries and service requests. To stay up to date on the City of Chicago’s COVID-19 response, please visit the City Coronavirus Response Center site.
The rate of the City’s restaurant tax is .50% of the "selling price" of all food and beverages sold. The term "selling price" means "the consideration for a sale" and "shall be determined without any deduction on account of the cost of the property sold, the cost of materials used, labor or service cost or any other expense whatsoever ..."
Accordingly, any "surcharge" your customers are required to pay for food or beverages is considered taxable and should be included in the basis upon which the restaurant tax is calculated.
In addition, it is important to note that any such "surcharge" is not a tax and should not be designated as such on any price list or invoice.
If you have any questions regarding this or any other City of Chicago tax matter, please email us at email@example.com.