Illinois – Grocery items are not tax exempt, but they are taxable at a reduced rate of 1%. Candy, soft drinks, alcoholic beverages, and food prepared for immediate consumption do not qualify for the 1% rate.
Starting January 1, 2020, the city of Chicago’s restaurant tax rate will be 0.50% . Starting January 1, 2020, the total sales tax for restaurants in the city of Chicago will be 10.75% (inclusive of the city of Chicago’s 0.50% restaurant tax).
The purchase of food for eventual resale in your restaurant is a tax -exempt purchase. Your supplier should not charge you sales tax on food used exclusively for resale. Sales taxes will only be due when you eventually sell food to patrons at your restaurant .
Restaurants will be required to charge 5% GST and 0% PST on food sales as opposed to the 12% HST. All alcoholic sales must be charged at 5% GST and 10% PST instead of 12% HST.
In North Carolina , certain items may be exempt from the sales tax to all consumers, not just tax – exempt purchasers. Several examples of exemptions to the state sales tax are prescription medications, some types of groceries, some medical devices, and machinery and chemicals which are used in research and development.
States Without Sales Tax Alaska . Delaware . Montana . New Hampshire . Oregon .
This is the total of state, county and city sales tax rates. The Illinois sales tax rate is currently 6.25%. The County sales tax rate is 1.75%. The Chicago sales tax rate is 1.25%.
A 20% increase would bring Illinois’ current income tax rate up from 4.95% , where it stands now, to 5.94% across the board.
Although restaurants are not required to pay sales tax on food that they purchase for resale, they are required to collect sales tax on food that they sell to their own customers. Most states put restaurant food , or prepared food , in a different category from grocery food .
Some items are exempt from sales and use tax, including: Sales of certain food products for human consumption (many groceries) Sales to the U.S. Government. Sales of prescription medicine and certain medical devices. Sales of items paid for with food stamps.
Generally, food and food products sold by food stores are exempt from sales tax . However, there are exceptions. This bulletin explains what kinds of food are subject to sales tax and which are exempt when sold by food stores and similar establishments, including supermarkets, grocery stores , convenience stores , etc.
Goods and services that are zero-rated from GST include: Basic groceries , including meats, fish, cereals, dairy products, eggs, vegetables, coffee, tea. Some foods including snack foods, liquor, and carbonated beverages are charged HST.
Here are some examples of GST free foods: bread and bread rolls without icing or filling. cooking ingredients such as flour, sugar and cake mixes. fats and oils for cooking. milk, cream, cheese and eggs. spices and sauces. fruit juice containing at least 90% by volume of juice. bottled drinking water.
Tax exemption for classic cars is now rolling. This means that from 1 April each year, vehicles manufactured more than 40 years before 1 January of that year are automatically exempt from paying Vehicle Excise Duty (VED), otherwise known as road tax.