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Taxes, Fees and Financial Forms

Food and Beverage Tax

Tax Rate

On July 1, 2004, the Naperville City Council adopted an ordinance that establishes a one percent (1.0%) tax on food and beverages (alcoholic and non-alcoholic), which can be consumed on the premises where purchased.

The purpose of this tax is to help fund celebrations of community and cultural opportunities that focus on the heritage, diversity and character of the city. Monies collected from the Food and Beverage Tax will be placed in a Special Events & Cultural Amenities Fund Grant and will be awarded annually to eligible grant programs.

Filing

The food and beverage tax is due monthly. Payment of the tax must be made to the City of Naperville no later than the 20th of each month following the month in which the tax was collected. For example, taxes collected during the month of July are due no later than August 20. Along with the tax payment, business owners must submit a completed Food & Beverage Tax Return Form and a copy of the State of Illinois forms ST-1 and ST-2, if applicable.

Businesses may retain 2% of the total tax due to cover administrative expenses, if payment is received by due date. Filing after the due date will result in a late payment penalty equal to 5% of the unpaid tax.

All retailers must fill out and return a food and beverage tax registration form.

Downtown Filing & Tax Rate

Illinois law authorizes home-rule municipalities to impose a tax in an area of up to one square mile; on the gross receipts of the sale of alcoholic beverages, soft drinks and food prepared for immediate consumption; for the purpose of paying for public parking facilities.

On September 15, 2015, the City updated such a defined area food and beverage tax at a rate of 1.0%, per ordinance 15-160. The tax is in addition to the existing 1% food and beverage tax applicable throughout the city since 2004. This additional tax applies only to businesses located in downtown Naperville. Please see Exhibit A to view the downtown boundaries (PDF).

Businesses located in the downtown area are required to begin collecting two percent (2.0%) food and beverage tax effective January 1, 2016.

Downtown Filing

The food and beverage tax is due monthly. Payment of the tax must be made to the City of Naperville no later than the 20th of each month following the month in which the tax was collected. For example, taxes collected during the month of July are due no later than August 20. Along with the tax payment, business owners must submit a completed Food & Beverage Tax Return Form and a copy of the State of Illinois forms ST-1 and ST-2, if applicable.

Businesses may retain 2% of the total tax due to cover administrative expenses, if payment is received by due date. Filing after the due date will result in a late payment penalty equal to 5% of the unpaid tax.

All retailers must fill out and return a Food & Beverage Tax Registration Form.

Home Rule Sales Tax

The Home Rule Municipal Retailers’ Occupation Tax and Home Rule Municipal Service Occupation Tax took effect on January 1, 2016 at a rate of one half of one percent (0.50%), per ordinance no. 15-160.

Hotel and Motel Use Tax

The City of Naperville collects a Hotel and Motel Use Tax at the rate of 4.40% of the room rate.

  • All proceeds resulting from the imposition of the tax under this Chapter, including interest and penalties, shall be paid into the Treasury of the City and shall be credited to and deposited in the General Fund of the City. (Ord. 85-63, 4-1-1985, eff. 5-1-1985)
  • Revenues from the Hotel and Motel Use Tax are approximately $1.5 million annually.
  • This tax has enabled the city to assist in funding the Naperville Visitors Bureau as well as services in the General Fund.

Filing

All retailers must fill out and return a Hotel/Motel Tax Registration Form.

The Hotel/Motel Tax is due quarterly. Payment of the tax must be made to the City of Naperville on or before the 15th day of the month following the end of the quarterly filing period.

Filing after the due date will result in a Late Payment Penalty equal to 5% of the unpaid tax and an Interest Penalty equal to 1.5% of the unpaid tax per month.

Motor Fuel Tax

The City of Naperville collects a Motor Fuel Tax at the rate of 4 cents per gallon.

Of every four cents ($0.04) per gallon collected, one cent ($0.01) shall be allocated to the City Road and Bridge Fund and three cents ($0.03) shall be allocated to the Motor Fuel Tax Fund.

  • Revenues from the Motor Fuel Tax are approximately $2.8 million annually.
  • This tax helps fund the annual Maintenance Improvement Program (MIP) street resurfacing/reconstruction program.

Filing

All retailers must fill out and return a Motor Fuel Tax Registration Form.

The Motor Fuel Tax is due monthly. Payment of the tax must be made to the City of Naperville no later than the 20th of each month following the month in which the tax was collected. For example, taxes collected during the month of July are due no later than August 20. Along with the tax payment, business owners must submit a completed Motor Fuel Tax Return Form and a copy of either the Illinois Department of Revenue Sales and Use Tax Return Form (ST-1), or the County Motor Fuel Tax form (CMFT-1/CMFT-2), or an internal report.

Filing after the due date will result in a Late Payment Penalty equal to 5% of the unpaid tax and an Interest Penalty equal to 1.5% of the unpaid tax per month.

Per-Capita Taxes

The City of Naperville receives a share of certain State Taxes which are distributed on a per-capita (population) basis. The tables below reflect the amounts reported by the State of Illinois for distribution during the fiscal year. 

Income Tax
A share of income taxes paid by individuals and business from withholding, estimates, and tax returns is shared with Counties and Municipalities in the State on a per-capita (population) basis. The State has delayed physical transfer of income tax funds up to four months after the distribution has been reported.

Fiscal YearIncome Tax
FY2016* $9,924,890.73
FY2015 $13,892,315.96
FY2014 $13,823,029.66

*8 months - May 2015 through December 2015

Use Tax
Sales taxes collected by the State of Illinois on a non-taxed or lower taxed out of state purchases (e.g. internet sales) used in Illinois. The total State Use Tax rate is 6.25%. A portion of the Use Tax collected by the State of Illinois is distributed on a per-capita (population) basis to counties and municipalities.

Fiscal YearUse Tax
FY2016* $2,087,609.12
FY2015 $2,731,666.64
FY2014 $2,421.564.35

*8 months - May 2015 through December 2015

State Motor Fuel Tax (MFT)
The State of Illinois collects 19.8 cents per gallon of gasoline or diesel fuel sold. A portion of the MFT collected by the State of Illinois is distributed on a per-capita (population) basis to counties and municipalities. Its use is restricted to uses for maintenance of roads and bridges.

Fiscal YearMotor Fuel Tax
FY2016* $2,416,723.43
FY2015 $4,731,964.64
FY2014 $4,129,817.19

*8 months - May 2015 through December 2015

Property Tax Levy

Each year, the tax levy process begins in August. This process includes compiling historical data, polling townships for growth and reassessment rates, developing revenue projections, updating the City’s capital plans and updating the City’s long-term operational plans.

Annually, the City Council holds Financial Overview and Tax Levy workshops. Based upon Council’s direction and the analysis described, staff compiles tax levy information.

State law dictates the timing and process that must be followed in the levy and collection of property taxes. This necessitates the passage of a property tax levy well in advance of the budget year in which these funds are used. Consequently, the City Council has typically approved a property tax levy amount that satisfies the procedural requirements of law and gives the City Council a small margin of flexibility in terms of determining, at a later date, the final property tax rate. Typically, after the City Council reviews the operating budget and debt analysis, the amount of the approved levy is reduced by the series of property tax abatement ordinances, approved the following April. When considering the amount of the initial levy, the City Council has consistently set the expectation that the City Manager and staff to present a budget that will allow for abatements.

Property Taxes

Below is a breakdown of resident property taxes and how they are used. 

Tax Levy Year201320142015
City of Naperville  FY15 FY16 CY16
Average Home Value $375,000 $375,000 $385,000
EAV or Home $120,000 $120,000 $123,200
City Property Tax 0.7828 0.8081 0.7389
Property Tax Paid to the City of Naperville by Average Homeowner $939.36 $969.72 $910.32

Real Estate Transfer Tax

The City of Naperville issues transfer tax stamps for real estate purchases and exempt stamps for owners making deed changes. There is a charge for purchase of a real estate transfer stamp, but no charge for exempt stamps. Both transactions only apply to incorporated properties within Naperville.

How do I find out if the property is within city limits?
Your address can be looked up on our website using the Your Place application. Once the address information is opened, you can click on Planning/Zoning Info to determine if incorporated, or contact the Finance Department at (630) 420-6059.

Transfer Tax Stamp for Real Estate Purchases

Who needs to purchase a transfer tax stamp?
Buyers of residential or commercial properties in Naperville located within city limits are responsible for purchasing the tax stamp by City ordinance.

How would I determine the cost of the transfer stamp?
The cost is $1.50 per $500 of purchase price, rounding the purchase price to the nearest $500 (i.e. $150,000 purchase price would be calculated $150,000 / 500 * 1.5 = $450.00).

What paperwork is required for issuance?
The Real Estate Transfer Declaration form (PDF) needs to be completed and submitted along with:

  1. Completed Statement of Open Accounts (PDF | DOCX). The request for open accounts must be received at least 7 business days prior to closing; AND
  2. The sales contract which must include the legible purchase price, and the signature page with both buyer and seller signatures. OR
  3. The P-Tax form with both buyer and seller signatures.

Exempt Stamps

When is an exempt stamp required?
This is required on all properties in Naperville within city limits when there is a deed change on owned property. Some examples include marriage and adding another name, name change, putting in or removing from a Trust, refinancing, divorce/removal of name or a foreclosure where the Sheriff’s Deed puts the property in bank ownership. If the property on the Sheriff’s Deed was purchased by an individual, a transfer tax stamp would need to be purchased (see above). Please complete and submit the following forms:

  • Certificate for Exemption (PDF)
  • Completed Statement of Open Accounts (PDF | DOCX). The request for open accounts must be received at least 7 business days prior to closing.
  • Copy of the notarized deed to be recorded with the county.

How Do I Acquire a Real Estate Transfer Stamp?

There are two methods in which you can acquire the real estate transfer stamp:

By Mail:
In order to acquire the stamp by mail, you would need to send all the necessary documents, along with an acceptable form of payment and a self addressed, postage paid return envelope. Acceptable forms of payment include personal or business checks and money orders. It is important that the payment amount is correct, so make sure to double check any calculations. If the wrong amount is received all forms and payment will be returned without issuing the stamp. Additionally, it is highly suggested using FedEx, UPS and USPS certified mail for tracking purposes. If you are acquiring an exempt stamp, there is no charge and first class mail would be acceptable in this case but you would still need to include a self-addressed, postage paid envelope.

All required documents and payment, if necessary, should be mailed to: City of Naperville, Attn: Finance Department, 400 S. Eagle St., Naperville, IL 60540

In Person:
In order to acquire the stamp in person, you would need to bring all necessary documents to the Finance Department at City Hall. Acceptable forms of payment include Visa, MasterCard, Discover, American Express, personal or business check, money order and cash. If the check or money order is preprinted, please make sure they are calculated accordingly. We do accept multiple forms of payment for the purchase of the stamp. 

The Finance Department is located on the first floor of City Hall, which is located at 400 S. Eagle St., Naperville, IL 60540.

Check for Building and Code Inspection Issues Prior to Purchase

For information regarding the status of any outstanding building permits, building fees, or code enforcement actions and outstanding fines on property you are considering buying in the City of Naperville, please call (630) 420-6100. For building department issues, enter Option # 2; for code enforcement issues, enter Option # 6.
Should you have any additional questions, please call customer service at (630) 420-6059.

Retail Sales Tax

The City of Naperville is a home-rule community. City Council has recently implemented a Home Rule Sales Tax (HRST) that is restricted for capital projects and to pay off debt. The following table provides a sample comparison showing the difference for some common purchases made by families. This chart is meant as a tool to help understand what kinds of items are and are not affected by the implementation of the HRST, implemented in January 2016.

Taxing BodyGeneral MerchandiseFood for Immediate ConsumptionFood for Immediate Consumption (Downtown)Groceries & Qualified Medical Vehicles
State of Illinois* 6.25% 6.25% 6.25% 1.00% 6.25%
City of Naperville 0.50% 1.50% 2.50% 0.00% 0.00%
Regional Transportation 0.75% 0.75% 0.75% 0.75% 0.75%
Total 7.50% 8.50% 9.50% 1.75% 7.00%

 *The State of Illinois distributes 1% of the 6.25% State sales tax with the City. 

 

Finance Department