City Sales Tax – Restaurant Business Alert for those operating in O’Fallon, Illinois, selling FOOD and BEVERAGE.
The city of O’Fallon, IL, charges an additional 1% city sales tax, in addition to the state’s rate, on food and beverages.
O’FALLON, IL (STL.News) City Sales Tax – The city of O’Fallon, Illinois, imposes an additional city sales tax of 1% on food and beverages, which took effect January 1, 2016, as required by Ordinance #3898. They provide a Food and Beverage Tax Return that must be filed monthly, accompanied by a copy of the sales tax that was filed with the state of Illinois, which is presumably used to verify sales and reconcile the numbers.
If a restaurant offers third-party marketplaces online sales, such as DoorDash, GrubHub, or Uber Eats, you can exclude those from the state sales tax form because those marketplace providers collect and pay the taxes. But the city of O’Fallon, IL, has different rules from the state.
While income from those online sources, it is our understanding that you still have to pay sales tax to the city for Uber Eats because they DO NOT pay the city directly like DoorDash and Grubhub. Grubhub pays the tax for the merchant, and according to the city representative, DoorDash started paying it this past January. However, Uber Eats must be included in your monthly sales at this time, which will not match the state sales tax form.
Having written this, we are not providing legal, tax, or accounting advice. We are alerting the restaurant community in O’Fallon, IL, to ensure they comply with local rules. If you pay a professional, it’s a good idea to ask them how they handle the city sales tax and what income they are reporting. If you file the city and state sales tax forms, ensure that you report the correct number to the City of O’Fallon, Illinois. If you have questions, we encourage you to contact the City of O’Fallon, IL, for complete information, as details are subject to change without notice.
Summary: While the state is not an issue, which third-party marketplace should you include in your sales to the city of O’Fallon, IL?
- DoorDash – Do NOT include on the city Food and Beverage Tax Return.
- GrubHub – Do NOT include on the city Food and Beverage Tax Return.
- Uber Eats – Do include on the city Food and Beverage Tax Return.
NOTE: This is subject to change without notice. If you have any questions, we recommend consulting a tax professional or contacting the city for further clarification or information.
Forms and questions can be submitted via email to acctspayable@ofallon.org or by calling 618-624-4500. Alternatively, you can visit their website by clicking here.
City of O’Fallon (Illinois)
Finance Department
255 South Lincoln
O’Fallon, Illinois 62269
Phone: +1 618-624-4500
Email: acctspayable@ofallon.org
