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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.

Finance Department