Chicago Tax Rate Changes, January 2015
- Dec 18, 2014 | Gail Cole
The City of Chicago Department of Finance has published a 2015 Tax Changes Bulletin that summarizes numerous changes to the Chicago Municipal Code tax ordinances, enacted when the Chicago City Council approved the 2015 budget.
The new budget impacts the following taxes:
- Hotel accommodations tax: Website facilitators are now required to collect the City’s hotel tax on transactions that occur through their websites.
- Non-titled use tax: Goods purchased outside the City are subject to use tax when used in Chicago; however, if the purchaser can show that local sales tax was paid in another Illinois municipality, that tax is credited against the use tax owed. Credit does not apply to any amounts rebated by another municipality.
- Lease transaction tax: Rentals by car sharing organizations are subject to the increased lease tax rate of 9%. There are new specifications for invoicing, as well.
- Parking tax: The tax rate for daily parking Monday through Friday is increased by 2%, to 22% and the daily rate for weekend parking is increased to 20%. Weekly and monthly parking tax rates are increased to 22%. An additional tax is imposed on valet parking businesses (20% on all charges or fees received from valet parking operations in the City).
- Amusement tax: Tax will be due on 100% of the admission fee paid for special seating areas, “however, the amount of tax due will be reduced by any other city tax shown to be imposed on such charges.” In addition, credit will no longer be accepted “for amounts paid to the City pursuant to any agreement for the right to use the public way or to do business in the city.” The separate tax on ticket sales is removed.
Taxpayers and tax collectors are advised to obtain professional advice regarding the tax changes delineated in the bulletin and how they affect individual situations.
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