LIQUOR TAX

Municipal Code of Chicago tit. 3, ch. 3-44

in effect

Municipal Code of Chicago § 3-44-010 Title.

3-44-010 Title. This chapter shall be known and cited as the "Chicago Liquor Tax Ordinance", and the tax herein imposed shall be known and cited as the "Chicago Liquor Tax". (Prior code § 200.11-1; Added Coun. J. 5-14-86, p. 30004)

Municipal Code of Chicago § 3-44-020 Definitions.

3-44-020 Definitions. Whenever any of the following words, terms or phrases are used in this chapter, they shall have the following meanings: (a) "City" means the City of Chicago, Illinois. (b) "Department" means the department of finance of the city. (c) [Reserved] (d) "Alcohol" means the product of distillation of any fermented liquid, whether rectified or diluted, whatever may be the origin thereof, and includes synthetic ethyl alcohol. It does not include denatured alcohol or wood alcohol. (e) "Alcoholic beverage" includes alcoholic spirits, wine, beer and any liquid or solid, patented or not, containing alcohol, spirits, wine or beer, and capable of being consumed as a beverage by a human being. The provisions of this chapter shall not apply to alcohol used in the manufacture of denatured alcohol produced in accordance with Acts of the United States Congress and regulations promulgated thereunder, nor to any liquid or solid containing one-half of one percent or less of alcohol by volume. (f) "Retail alcoholic beverage dealer" or "retailer" means any person who engages in the business of retail sale of alcoholic beverages in the City or to purchasers in the City. (g) "Spirits" means any beverage which contains alcohol obtained by distillation, mixed with water or other substances in solution, and includes brandy, rum, whiskey, gin or other spirituous liquors, and such liquors when rectified, blended or otherwise mixed with alcohol or other substances. (h) "Wine" means any alcoholic beverage obtained by the fermentation of fruits, or vegetables, containing sugar, including such beverages when fortified by the addition of alcohol or spirits. (i) "Beer" means a beverage obtained by the alcoholic fermentation of an infusion or concentration of barley or other grain, malt and hops in water, and includes, among other things, beer, ale, stout, lager beer, porter and the like. (j) "Original package" means any bottle, flask, jug, can, cask, barrel, keg, hogshead or other receptacle or container whatsoever, used, corked or capped, sealed and labeled by a manufacturer of alcoholic beverage, to contain or convey any alcoholic beverage. (k) "Manufacturer" means any brewer, fermenter, distiller, rectifier, blender, processor, bottler or person who fills or refills an original package, whether for himself or for another, and others engaged in brewing, fermenting, distilling, rectifying or bottling alcoholic beverages. (l) "Sale" or "purchase" means any transfer of ownership or title or both, any exchange or barter, in any manner or by any means whatsoever for a valuable consideration. (m) "Retail sale" means any sale to a person for use or consumption, and not for resale. (n) "Wholesale alcoholic beverage dealer" or "wholesaler" means any person who engages in the business of selling or supplying alcoholic beverages to any person for resale in the City of Chicago. (o) "Purchaser" means any person who purchases in a retail sale. In this chapter, unless the context otherwise requires, words in the singular number include the plural, and words in the plural include the singular; words in the masculine gender include the feminine and the neuter; and when the sense so indicates, words of the neuter gender may refer to any gender. (Prior code § 200.11-2; Added Coun. J. 5-14-86, p. 30004; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 4-24-20, p. 15051, § 4)

Municipal Code of Chicago § 3-44-030 Tax imposed.

3-44-030 Tax imposed. In addition to any and all other taxes authorized by law, a tax is hereby imposed on the privilege of purchasing or using, in the City, alcoholic beverages purchased in a sale at retail. This tax shall be paid by the purchaser and nothing in this chapter shall be construed to impose a tax on the occupation of retail or wholesale alcoholic beverage dealer. The tax shall be levied according to the following schedule: (1) beer, a tax at the rate of $0.29 per gallon; (2) alcoholic liquor, other than beer, containing 14 percent or less of alcohol by volume, a tax at the rate of $0.36 per gallon; (3) alcoholic liquor containing more than 14 percent and less than 20 percent of alcohol by volume, a tax at the rate of $0.89 per gallon; (4) alcoholic liquor containing 20 percent or more of alcohol by volume, a tax at the rate of $2.68 per gallon. The tax rate stated above shall be apportioned in sales involving a fraction of a gallon, and shall be rounded down to the nearest cent when less than one- half a cent is due and rounded up to the nearest cent when one-half cent or more is due. (Prior code § 200.11-3; Added Coun. J. 5-14-86, p. 30004; Amend Coun. J. 11-17-93, p. 42192; Amend Coun. J. 12-15-04, p. 39833, § 2; Amend Coun. J. 12-15-04, p. 39840, § 1; Amend Coun. J. 11-13-07, p. 15814, § 1; Amend Coun. J. 4-24-20, p. 15051, § 5)

Municipal Code of Chicago § 3-44-031 Tax imposed - Off premises consumption.

3-44-031 Tax imposed - Off premises consumption. (a) Notwithstanding anything in Section 3-44-030 to the contrary, in addition to any and all other taxes authorized by law excluding the tax imposed by Section 3-44-030, a tax is hereby imposed on the privilege of purchasing or using, in the City, alcoholic beverages purchased in a sale at retail for consumption off of the premises where such alcoholic beverages are sold. This tax shall be paid by the purchaser and nothing in this chapter shall be construed to impose a tax on the occupation of retail or wholesale alcoholic beverage dealer. The rate of the tax under this section shall be one and a half percent of the purchase price, exclusive of any other tax charged for such alcoholic beverages. (b) On a quarterly basis, the Department of Finance, in consultation with the Department of Business Affairs and Consumer Protection, shall report to the Committee on Finance on the financial impacts of the tax imposed by this section and the compliance with such requirements. (Added Coun. J. 12-19-25, p. 38125, Art. X, § 2)

Municipal Code of Chicago § 3-44-040 Liability for payment.

3-44-040 Liability for payment. The ultimate incidence and liability for payment of the tax herein levied is to be borne by the retail purchaser of alcoholic beverages. It shall be a violation of this chapter for a retail alcoholic beverage dealer to fail to include the tax imposed herein in the sale price of the alcoholic beverage, or to otherwise absorb such tax. (Prior code § 200.11-4; Added Coun. J. 5-14-86, p. 30004)

Municipal Code of Chicago § 3-44-050 Collection.

3-44-050 Collection. (a) Except as otherwise provided herein, the tax levied under this chapter shall be collected by each wholesale dealer of alcoholic beverages who sells such beverages to a retail dealer of alcoholic beverages located in the City. (b) Any wholesale alcoholic beverage dealer required to collect the tax levied by this chapter shall collect the tax from each retail alcoholic beverage dealer in the City to whom the sale of said alcoholic beverages is made, and any such retail alcoholic beverage dealer shall in turn then collect the tax from the purchaser of said alcoholic beverages. The tax shall be paid to the person required to collect it as trustee for and on the behalf of the City. (c) If any retailer shall receive or otherwise obtain alcoholic beverages upon which the tax imposed herein applies but has not been collected by any wholesale alcoholic beverage dealer, including any instance where the tax under Section 3-44-030 was collected when the tax under Section 3-44-031 applies, then the retailer shall collect such tax and remit it directly to the department within 30 days of the receipt of such alcoholic beverage. (d) If a wholesale alcoholic beverage dealer sells alcoholic beverages to a purchaser for use or consumption in the City and not for resale, such wholesale alcoholic beverage dealer shall collect the tax imposed herein from such purchaser and remit it to the department in the same manner as sales to retail alcoholic beverage dealers. (Prior code § 200.11-5; Added Coun. J. 5-14-86, p. 30004; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 4-24-20, p. 15051, § 6; Amend Coun. J. 12-19-25, p. 38125, Art. X, § 3)

Municipal Code of Chicago § 3-44-060 Report of sales.

3-44-060 Report of sales. A. Each wholesale alcoholic beverage dealer shall file each month with the department, a sworn report of sales of alcoholic beverages in such form as prescribed and furnished by the department. Each report of sales of alcoholic beverages shall be accompanied by a remittance of the appropriate amount of tax applicable to the sale reported, and such report and tax shall be considered due on or before the 15th day of the month following the month for which the report and remittance is made; provided, however, that for reports and remittances covering December, 1991 and prior months, such reports and remittances shall be due on or before the 45th day from the last day of the month for which the report is filed. Payment of the tax imposed herein shall be made to the department. B. Notwithstanding any other provision of this chapter, for all periods beginning on or after January 1, 2000, (1) all tax returns shall be filed with the department on an annual basis on or before August 15 of each year in accordance with Sections 3-4-186 and 3-4-189 of this Code, (2) all tax payments and remittances shall be made in accordance with either Section 3-4-187 (payment of actual tax liabilities) or Section 3-4-188 (payment of estimated taxes), and (3) the provision of Sections 3-4-186, 3-4-187, 3-4-188 and 3-4-189 shall control over any contrary provisions in this chapter regarding the subjects covered by those sections. (Prior code § 200.11-6; Added Coun. J. 5-14-86, p. 30004; Amend Coun. J. 11-14-91, p. 7458; Amend Coun. J. 11-17-99, p. 18040, § 2.1; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

Municipal Code of Chicago § 3-44-065 Returns and payments required after a tax increase.

3-44-065 Returns and payments required after a tax increase. A. Every retail alcoholic beverage dealer, who possesses alcoholic beverages purchased prior to the effective date of a Chicago liquor tax increase, shall file with the department, on a form prescribed by the comptroller, a tax return attesting to the quantities of alcoholic beverages in its possession as of the last day prior to the tax increase and pay to the department the amount of tax due as a result of each rate increase. The retail dealer shall in turn collect the tax from its retail purchasers. B. Each such tax return and payment due under subsection A above shall be filed and received by the department by the 24th day following the effective date of each tax increase. C. Every retail alcoholic beverage dealer required to file a tax return under this section who does not file such tax return by its due date, or alternatively does not provide all required information on such tax return, or fails to pay all required tax due computed thereon, shall be subject to a penalty of $100.00 per business location required to be reported on the tax return, in addition to all other penalties and interest that may be due under the provisions of the Uniform Revenue Procedures Ordinance, Chapter 3-4 of this Code. D. If the comptroller determines that a party to whom the penalty in subsection C of this section has accrued had reasonable cause for paying late, underpaying the applicable tax, or filing a late or incomplete tax return, then the applicable penalty shall be waived. E. The comptroller, or his or her designee, may at any time during the statute of limitations outlined in Section 3-4-120 of this Code, examine the books and records of any party required to file a tax return under this section and may issue a tax determination and assessment to the party as per Section 3-4-160 of this Code if a determination is made that any amount of tax, penalty or interest is due. F. Every party required to file a tax return under this section who files a complete tax return by its due date and makes timely payment of the amount computed thereon shall be eligible to retain a commission in the amount of one percent of the tax computed due thereon. (Added Coun. J. 11-13-07, p. 15814, § 1; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3) Editor's note – Coun. J. 3-31-04, p. 20916, § 1.1, repealed former § 3-44-065, which pertained to inventory report.

Municipal Code of Chicago § 3-44-070 Purchase of alcoholic beverage for resale.

3-44-070 Purchase of alcoholic beverage for resale. A. No retail alcoholic beverage dealer shall purchase any alcoholic beverage for resale from a person other than a wholesaler. B. Any retailer who violates subsection A of this section shall be subject to a fine of not less than $25.00 nor more than $500.00 for each bottle, can, keg or other original package of an alcoholic beverage purchased from a person other than a wholesaler. (Added Coun. J. 12-15-92, p. 27387)

Municipal Code of Chicago § 3-44-080 Payment of tax required.

3-44-080 Payment of tax required. The failure of the wholesale or retail alcoholic beverage dealer to collect the tax herein imposed shall not relieve the purchaser of his duty to pay it. If the wholesale and retail alcoholic beverage dealer fails to collect the tax, the purchaser shall be required to pay it directly to the department in the same manner and form as a retail alcoholic beverage dealer. (Prior code § 200.11-8; Added Coun. J. 5-14-86, p. 30004)

Municipal Code of Chicago § 3-44-090 Reserved. Editor's note – Coun. J. 11-19-08, p. 48243, Art. I, § 4, repealed § 3-44-090, which pertained to the commission for collection agents and dealers remitting tax when due.

Municipal Code of Chicago § 3-44-100 Exemptions.

3-44-100 Exemptions. This tax shall not apply to purchases of alcoholic beverages wherein the purchaser is a passenger on an interstate carrier; nor shall this tax apply to the extent it would violate the United States Constitution or the Constitution of the State of Illinois. The tax herein levied shall not apply to wine intended for use and used by any church or religious organization for sacramental purposes; provided, that such wine shall be purchased legally under the laws of Illinois and the United States; but no exception from this tax is permitted with respect to wine sold to private persons for such purposes. It shall be presumed that all sales of alcoholic beverages from wholesale or retail alcoholic beverage dealers are subject to tax under this chapter until the contrary is established. The burden of proving that such is not taxable hereunder shall be upon the person so claiming. (Prior code § 200.11-10; Added Coun. J. 5-14-86, p. 30004)

Municipal Code of Chicago § 3-44-110 Registration.

3-44-110 Registration. Every wholesale alcoholic beverage dealer shall register with the department within 30 days after the date of commencing such business. (Prior code § 200.11-11; Added Coun. J. 5-14-86, p. 30004; Amend Coun. J. 3-31-04, p. 20916, § 3.15)

Municipal Code of Chicago § 3-44-120 Supplementary provisions.

3-44-120 Supplementary provisions. Whenever not inconsistent with the provisions of this chapter, or whenever this chapter is silent, the provisions of the Uniform Revenue Procedures Ordinance, Chapter 3-4 of the Municipal Code of Chicago, as amended, shall apply and supplement this chapter. (Prior code § 200.11-12; Added Coun. J. 5-14-86, p. 30004; Amend Coun. J. 11-14-91, p. 7458)

Municipal Code of Chicago § 3-44-130 Deposit of funds.

3-44-130 Deposit of funds. All proceeds resulting from the imposition of this tax, including interest and penalties, shall be deposited in the city's corporate fund. (Prior code § 200.11-13; Added Coun. J. 5-14-86, p. 30004)

Municipal Code of Chicago § 3-44-150 Severability.

3-44-150 Severability. If any provision of this chapter or application thereof to any person or circumstance is held unconstitutional or otherwise invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid application or provision, and to this end each such invalid provision or invalid application of this chapter is severable, unless otherwise provided by this chapter. In particular, but without limitation, each provision creating an exception to or an exemption or exclusion from the imposition of the tax is severable. It is hereby declared to be the legislative intent of the city council that this chapter would have been adopted had any such unconstitutional or otherwise invalid provision or application not been included. (Prior code § 200.11-15; Added Coun. J. 5-14-86, p. 30004)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2607157Fetched: 10/24/2026