Cook County,
IL Sweetened Beverage Tax |
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On November 10, 2016, the Cook County Board of Commissioners
passed the
Cook County Sweetened Beverage Tax Ordinance. The tax
imposed will be at the rate of $0.01 per ounce on the retail
sale of all sweetened beverages in Cook County.
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Under the new ordinance the Retailer is responsible for
collecting the tax from the consumer and passing it on to
the Distributor who in turn will remit the tax to the
County.
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Retailers are responsible for adding the tax to beverages
sold.
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Businesses who sell sweetened beverages (Retailers &
Distributors) will have to file monthly (20th) with the
County Department of Tax.
Retailers and Distributors are required to keep
meticulous records.
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Distributors are not required to collect and remit taxes on
sales made to another Distributor.
They are also not required to collect taxes on sales
made to other Distributors or Retailers outside Cook County.
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Taxes are not collected to sales made to passengers on
interstate carriers.
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Taxes are are also not collected from purchases that are
exempt from taxes under federal law.
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These items are exempt from the tax:
-100% natural fruit/vegetable juice, syrup and powder with
no added sweetener
-Milk, soy, rice, or similar milk substitutes that are the
primary ingredient (more than 50%)
-Unsweetened drinks to which a purchaser can add, or can
request that a retailer add, sugar, at the point of sale
-Infant formula Beverages for medical use Weight
reduction/therapeutic nutritional meal replacements
-Any syrup or powder that the consumer himself or herself
combines with other ingredients to create a beverage
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If a refund is requested resulting from the return of
product by a Retailer, the Distributor must refund the tax
amount to the Retailer before applying for a refund from the
Department.
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Violations of the ordnance will be met with penalties.
They includes a fine of $1,000.00 for the first
offense, and a fine of $2,000.00 for the second and each
subsequent offense.
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On or before August 20, 2017, every Retailer of sweetened
beverage will be required to submit a Floor Tax Return and
remit the applicable tax amount. The Floor Tax return must
reflect the Retailer’s inventory, on which tax was not
previously paid, that was in his/her possession on June 30,
2017. Further information will be forthcoming.
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Established timelines:
August 20, 2017 – Retailers must remit to the Department its
floor tax return and payment.
August 20, 2017 – Distributors must remit to the Department
its tax payment and monthly return reflecting July 2017
activity.
August 20, 2017 – Retailers must remit to the Department its
floor tax return and payment.
August 20, 2017 – Distributors must remit to the Department
its tax payment and monthly return reflecting July 2017
activity.
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Visit the
FAQ page to get specific questions answered and learn
more.
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The implementation of this tax was temporarily halted due to
a filing by the
Illinois Retail Merchant Association (Temporary Restraining Order) citing violations of the
uniformity clause of the Illinois Constitution and
impermissible vagueness.
The order is now in effect as of 2 August 2017.
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Update: The Cook County Board voted to end the
soda tax. On December 1, 2017 the Cook County Soda Tax
will come to an end. |
Sources:
Sweetened Beverage Tax Ordnance
Cook County Sweetened Beverage Webpage
Cook County Sweetened Beverage FAQ page
IRMA Filing with The Circuit Court of Cook County
Temporary Restraining Order
IRMA
By Wendy
Stewart
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