FAQs • Deerfield, IL • CivicEngage

Who is liable for payment?: The ultimate incidence and liability for payment of the tax is borne by the purchaser of prepared food at a prepared food facility. However, the owner and operator of each prepared food facility has the duty to collect, secure and account for the tax at the time of purchase. Any prepared food facility found to be violating or refusing to comply with the tax is subject to penalties and will not be released from the payment of the tax.

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Food and Beverage Tax

1. Which type of businesses must collect and pay the Food and Beverage Tax?: All premises within the Village of Deerfield where prepared food (including drinks) is sold at retail for immediate consumption on and/or off premises of the facility. Examples of prepared food facilities include but are not limited to:
Restaurants, bakeries, buffets, cafeterias, cafes, lunch counters, fast food outlets, catering services, coffee shops, diners, sandwich shops, soda fountains, taverns, bars, cocktail lounges, ice cream parlors, delicatessens, movie theaters, hotels and motels.

2. On what sales must I collect and pay the Food and Beverage Tax?: You must collect and pay the Food and Beverage Tax if you make retail sales of prepared food and non-alcoholic drinks that have been prepared for immediate consumption, whether on or off the premises. The tax will also be collected on alcoholic beverages that have been prepared for immediate consumption at restaurants but not packed liquor for consumption off premises. Examples of taxable sales include but are not limited to:
• All products served in restaurants
• All restaurant style products sold by a grocery store or other places of eating, such as prepared chicken, ice cream cones or hot soup.
• All restaurant style products at convenience stores, such as food items selected under a heat lamp.
• A can or bottle of beer, a mixed drink, or a dispensed soft drink served to a diner in a restaurant or to a patron in a bar/tavern.
• Brewed coffee, fountain drinks or other beverages prepared for immediate consumption on or off premises in a grocery store or convenience store.

3. What transactions are exempt from the Food and Beverage Tax?: Products that are prepared off-site in packages ready for retail sale and not for immediate consumption. Examples of products that are exempt from the Food and Beverage Tax include, but are not limited to:
• Pre-packed pizzas or other frozen food products sold in a grocery store or convenience store.
• A can of soda or a six-pack of beer from a cooler or convenience store.
• General grocery items such as bread, milk, and eggs that are in their original packaging and not prepared for immediate consumption.

4. What is the tax rate?: The Food and Beverage Tax rate is 1 percent (.01) of gross receipts. For example, if a prepared lunch meal was purchased for $10.00 the tax would equal 10 cents.

5. Do I have to register my business as a prepared food facility subject to the tax?: Yes. Every owner and operator of any prepared food facility must register as a retailer before opening for business. This is a one-time registration that will remain effective unless there are changes of business ownership, management or location.

6. How do I show this tax on my retail receipts?: You may either separately state this tax, or state this tax in combination with other taxes on the receipts you give your customers.

7. What form must I use to report the Food and Beverage Tax?: To pay this tax, the owner and the operator of each prepared food facility must file a sworn Food and Beverage Tax Return with the Finance Director of the Village on forms prescribed by the Village.

8. Where do I file my return?: You should mail or deliver your sworn Food and Beverage Tax Return and payment to:
Village of Deerfield
Food and Beverage Tax Returns
850 Waukegan Road
Deerfield, Illinois 60015

9. When is my monthly Food and Beverage Tax Return and tax payment due?: The returns and tax payments are due by the 20th day of each month, at the same time intervals and frequencies as the retailer occupation tax return, Form ST-1, is due to the Illinois Department Revenue for the prepared food facility. The sworn food and beverage tax returns must also be accompanied with a copy of the Form ST-1 filed with the Illinois Department of Revenue covering the same reporting period.

10. How do I file if I have more than one site?: If you make retail sales from more than one site you must file a separate Food and Beverage Tax Return for each site.

11. Must I file the Food and Beverage Tax Return even if I have no sales to report?: Yes. You must file a signed return form for each monthly reporting period regardless of whether or not there are receipts to report. You may file a “zero” return.

12. What if I do not file and pay by the due date?: If you do not file your return and pay the tax by the due date, you will be assessed for any tax due plus a late payment penalty equal to two percent (2%) of the unpaid tax.

13. Who is liable for payment?: The ultimate incidence and liability for payment of the tax is borne by the purchaser of prepared food at a prepared food facility. However, the owner and operator of each prepared food facility has the duty to collect, secure and account for the tax at the time of purchase. Any prepared food facility found to be violating or refusing to comply with the tax is subject to penalties and will not be released from the payment of the tax.

14. What other communities impose a Food and Beverage Tax?: Numerous communities throughout the State of Illinois impose a Food and Beverage Tax, typically at a rate between 1-2%. Communities proximate to the Village of Deerfield with a Food and Beverage Tax include: Arlington Heights (1.25%), Bannockburn (1%), Buffalo Grove (1%), Des Plaines (1%), Highland Park (1%), Lake Bluff (1%), Lincolnwood (1%), Morton Grove (1%), Niles (1%), Park Ridge (1%), Skokie (2%) and Wheeling (1%).