Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2060 - Sales of Alcoholic Beverages, Motor Fuel and Tobacco Products

Current through Register Vol. 48, No. 28, July 12, 2024
a) Retailers'
				Occupation Tax on Retail Sales of Alcoholic Beverages
Persons engaged in the business of selling alcoholic
				  beverages to purchasers for use or consumption are required to remit retailers'
				  occupation tax to the Department upon their gross receipts from such sales,
				  notwithstanding the fact that manufacturers and importing distributors of
				  alcoholic beverages are required to pay certain taxes under the Liquor Control
				  Act of 1934 [235 ILCS 5]. It is immaterial
				  whether such alcoholic beverages are consumed on or off the premises where such
				  alcoholic beverages are sold. In computing retailers' occupation tax liability,
				  no amount may be deducted from gross receipts from retail sales of alcoholic
				  beverages to cover the taxes which have been paid by manufacturers or importing
				  distributors of alcoholic beverages under the Liquor Control Act of 1934. Since
				  the legal incidence of the Cook County Liquor Gallonage Tax is on the consumer,
				  with the seller acting merely as a collector of the tax for the county, amounts
				  collected because of the Cook County Liquor Tax are not considered to be a part
				  of the liquor retailer's receipts that are subject to retailers' occupation
				  tax.
b) Retail Sales of
				Motor Fuel
Persons engaged in the business of selling motor fuel to
				  purchasers for use or consumption are also required to remit retailers'
				  occupation tax to the Department upon their taxable receipts from such sales.
				  In computing their retailers' occupation tax liability, persons who sell motor
				  fuel for use or consumption may deduct, from their gross receipts from such
				  sales, the Illinois Motor Fuel Tax collected with respect to such sales,
				  because the Illinois Motor Fuel Tax is on the consumer and is not considered to
				  be a part of the "selling price" of the motor fuel. (Also, see 86 Ill. Adm.
				  Code 130.435 and
				  500.200.)
c) In addition, the Cook County Motor Fuel
				Tax is imposed upon the consumer and is therefore also deductible from gross
				receipts. However, county motor fuel taxes imposed under the County Motor Fuel
				Tax Law are includable in gross receipts subject to retailers' occupation tax
				because such taxes are imposed upon retailers of motor fuel and not upon
				consumers. (See Section 130.435.)
d) Retailers' Occupation Tax on Retail Sales
				of Cigarettes and Other Tobacco Products
1)
				Persons engaged in the business of selling cigarettes, cigars and other tobacco
				products incur retailers' occupation tax liability when selling such products
				to purchasers for use or consumption. In the case of cigarettes, the amount of
				the retail selling price represented by the State Cigarette Tax or Cigarette
				Use Tax should be included in the total selling price in arriving at the net
				taxable selling price.
2) If a home
				rule jurisdiction, such as Chicago, imposes a cigarette tax, the amount of such
				local cigarette tax is subject to retailers' occupation tax. If any local
				government, pursuant to authorization from the Illinois General Assembly to do
				so, should impose a cigarette tax in the nature of an occupation tax, the
				amount collected by retailers because of that kind of local cigarette tax is
				also subject to retailers' occupation tax.