Chapter 3-30
FOOD AND BEVERAGE TAX
Sections:
3-30-070 Late payment penalty.
3-30-080 Transmittal of excess tax collections.
3-30-110 Violations—Penalties.
3-30-010 Title.
A tax shall be imposed on the sale at retail of prepared food and beverages (alcoholic and nonalcoholic) which are sold in the city. The tax imposed in this chapter shall be known and cited as the “food and beverage tax.” (Ord. 3302 § 3-28-011, 2014)
3-30-020 Definitions.
The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
“Food and/or beverage” means any and all material or commodities, whether solid, semisolid, or liquid (including both alcoholic and nonalcoholic liquid), powder or item used or intended to be used for human consumption, internal consumption, whether simple, compound or mixed for enjoyment or nourishment of the human body and has been prepared for immediate consumption. Such food or beverage may be purchased for consumption within or upon the premises where it is sold, or it may be purchased for consumption off the premises. However, with respect to food and/or beverages purchased for consumption off the premises where same are sold, “food and/or beverage” does not include any food and/or beverage which is sold in a closed or sealed bottle, can, carton or container of the manufacturer or wholesaler, or which has not been prepared for immediate consumption.
“Purchase at retail” or “retail purchase” means to obtain food, beverages and/or alcoholic liquor for immediate use or consumption in exchange for a consideration, whether in the form of money, credits, barter or any other nature, and not for resale.
“Retail food facility” includes any place at which food, beverages and/or alcoholic liquor are served and/or prepared for immediate consumption by a retailer that provides for on-premises consumption of said food, beverages and/or alcoholic liquor, including, but not limited to, those establishments commonly called an inn, restaurant, eating place, drive-in restaurant, bakery, buffet, cafeteria, cafe, lunch counter, fast-food outlet, catering service, coffee shop, diner, sandwich shop, soda fountain, tavern, bar, cocktail lounge, soft drink parlor, ice cream parlor, tearoom, delicatessen, movie theater, hotel, motel or club. Where a facility is only partially intended to permit on-site consumption of food (such as a grocery store with a prepared food service area), only that portion of the facility selling prepared food shall be considered a retail food facility.
“Retailer” means a person who sells or offers for sale food, beverages and/or alcoholic liquor for use or consumption and not for resale. “Retailer” includes an individual, corporation, or partnership, or an officer or employee of any corporation (including a dissolved corporation), or a member or employee of any partnership or limited liability company, who sells or offers for sale food, beverages and alcoholic liquor for use or consumption and not for resale.
“Retail liquor facility” means any establishment licensed under this chapter with respect to the sale of alcoholic liquor where the alcoholic liquor sold is intended to be consumed on the premises. (Ord. 3302 § 3-28-011-1, 2014)
3-30-030 Tax imposed.
A tax, in addition to any and all other taxes, is hereby levied and imposed upon the privilege of the retail purchase of alcoholic liquor, food or beverages at any retail food facility or retail liquor facility, as herein defined, within the city, at the rate of one (1) percent of the purchase price of such alcoholic liquor, food or beverage, the ultimate incidence of and liability for payment of which shall be borne by the purchaser thereof. (Ord. 3302 § 3-28-011-2, 2014)
3-30-040 Collection.
The owner and the operator of each retail food facility and each retail liquor facility within the city shall jointly and severally have the duty to collect and account for said tax from each purchaser at the time that the consideration for such purchase is paid. (Ord. 3302 § 3-28-011-3, 2014)
3-30-050 Books and records.
The owner and the operator of each retail food facility and each retail liquor facility within the city shall jointly and severally have the duty to maintain complete and accurate books, records and accounts, showing the gross receipts for sales of food and beverage and alcoholic liquor, as well as the taxes collected each day. Such books, records and accounts shall be made available in/to the city for examination and audit upon reasonable notice and during customary business hours. (Ord. 3302 § 3-28-011-4, 2014)
3-30-060 Filing of return.
The owner and the operator of each retail food facility and each retail liquor facility within the city shall jointly and severally have the duty to cause to be filed a sworn return with the finance director for each retail food facility located in the city. Said return shall be prepared and submitted on forms prescribed by the city. Said return shall be filed by the filing date or postmarked on the filing date (either of which shall constitute timely payment), and at the same time intervals and frequencies as the retailers’ occupational tax return, Form ST-1, is due to be filed with the Illinois Department of Revenue. Said return shall also be accompanied with a copy of the return filed with the Illinois Department of Revenue covering the same reporting period. Said return shall also be accompanied by payment to the city of all taxes imposed by Section 3-30-030 of this code which are due and owing for the period covered by said return; provided, however, that the dealer may retain an amount of money equal to one (1) percent of the tax due as compensation for services rendered in the collection and payment of such tax. Payment of the tax imposed herein shall be made to the finance director.
In the event the owner and the operator of any retail food facility or retail liquor facility within the city which has made payment of any food and beverage tax to the city and believes that said payment was in excess of what was legally required to be paid, that party shall have a period of one (1) year from the date of payment to amend its food and beverage tax returns. Upon confirmation of overpayment, the city shall process said amendment and repay any excess amount paid to the city for any fees collected within one (1) year of the request being made. (Ord. 3302 § 3-28-011-5, 2014)
3-30-070 Late payment penalty.
If any tax imposed by Section 3-30-030 of this code is not paid in full over to the city when due, a late payment penalty equal to five (5) percent of the unpaid tax shall be added for each month, or any portion thereof, that such tax remains unpaid, and the total of such late payment penalty shall be paid along with the tax imposed hereby. If any filing required herein is not made when required, a late filing penalty of five (5) percent of the unpaid tax then due shall be added for each month, or any portion thereof, that such filing is delayed. The tax herein required to be collected by any owner and the operator of each retail food facility and each retail liquor facility, and any related penalties, shall constitute a debt owed by such entity to the city. In addition to all other available remedies, the city may bring a civil action to collect any unpaid tax or penalty. (Ord. 3302 § 3-28-011-6, 2014)
3-30-080 Transmittal of excess tax collections.
If any person collects an amount upon a sale not subject to the tax imposed hereby, but which amount is purported to be the collection of said tax, or if a person collects an amount upon a sale greater than the amount of the tax so imposed herein and does not for any reason return the same to the purchaser who paid the same before filing the return for the period in which such occurred, said person shall account for and pay over those amounts to the city along with the tax properly collected. (Ord. 3302 § 3-28-011-7, 2014)
3-30-090 Agent designation.
Each and every owner and operator of any retail food facility and retail liquor facility within the city shall designate an individual, either by name or job title, to receive any written communication from the city regarding the tax herein imposed. Each person so designated shall be employed at a facility located within the city and, for purposes of this section, may be referred to as “agent.” Each owner and operator of each facility may additionally designate an individual, either by name or job title, outside of the corporate limits of the city, to receive the same information or inquiries provided to the person so designated within the city. It shall be the obligation of each owner or operator of the facility to notify the city in writing, via certified mail, of any change of person so designated within ten (10) days of such change. (Ord. 3302 § 3-28-011-8, 2014)
3-30-100 Exemptions.
This tax shall not be applied to coin-operated automatic food item dispensing machines, confectionery stores, wholesalers, churches, public or private schools, mobile food or beverage vehicles, boardinghouses, day-care centers, nursing homes, retirement centers or similar residential care facilities or programs for the central preparation of meals to be delivered and consumed at private residences of invalids or the elderly.
This tax shall not be applied to the sale or purchase of undispensed soft drinks, meaning any complete, finished, ready to use, nonalcoholic drink, whether carbonated or not, including, but not limited to, soda water, cola, fruit juice, vegetable juice, carbonated water, and all other preparations commonly known as “soft drinks” of whatever kind or description that are contained in any closed or sealed bottle, can, carton or container, regardless of size. “Soft drinks,” as defined herein, does not include coffee, tea, energy drinks, noncarbonated water, infant formula, milk or milk products as defined in the Grade A Pasteurized Milk and Milk Products Act, 410 ILCS 635/1 et seq., or drinks containing five (5) percent or more natural fruit or vegetable juice. (Ord. 3302 § 3-28-011-9, 2014)
3-30-110 Violations—Penalties.
A. In addition to any other penalty, any owner and operator of any retail food facility and retail liquor facility, or other person violating any provision of this chapter found guilty of disobeying, omitting, neglecting, failing to submit a correct tax return by the return date or refusing to comply with this chapter, except when otherwise specifically provided, upon conviction thereof shall be punished by a fine not less than two hundred fifty dollars ($250.00) nor more than one thousand dollars ($1,000.00) for the first offense and not less than five hundred dollars ($500.00) nor more than one thousand five hundred dollars ($1,500.00) for the second and each subsequent offense in any one hundred eighty (180) day period; provided, however, that all actions seeking the imposition of fines only shall be filed as quasi-criminal actions subject to the provisions of the Illinois Code of Civil Procedure.
B. Each failure to collect the tax imposed hereby and each failure to pay such tax over to the city shall constitute a separate violation of this chapter. It shall be deemed a violation of this chapter for any person knowingly to furnish false or inaccurate information as required herein. A separate and distinct offense shall be regarded as committed each day upon which such person shall continue any such violation or permit any such violation to exist after notification thereof.
C. Criminal prosecutions pursuant to this chapter shall in no way bar the right of the city to institute civil proceedings to recover delinquent taxes, interest and penalties due and owing as well as costs incurred for such proceedings.
D. Failure to comply with any provision of this chapter can result in the suspension, revocation, or refusal to renew business and/or liquor licenses. (Ord. 3302 § 3-28-011-10, 2014)
3-30-120 Confidentiality.
All information received by the city from returns filed pursuant to this chapter or from any investigations conducted pursuant to this chapter, except for official city purposes, or as required by the Freedom of Information Act, shall be confidential. (Ord. 3302 § 3-28-011-11, 2014)