The City of Chicago is currently in Phase Four: "Gradually Resume." Many City services have adjusted hours or locations and may require health screens prior to entering their physical spaces. Please call ahead or visit any department's website to get additional details, or visit chicago.gov/covid-19.
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.