The current sales tax on dining out in a large part of Chicago is 11.50%. That clickbait headline implies that the tax would be doubling – to 23%?! Wrong!
City of Chicago Sales tax
City of Chicago 1.25%
Total for merchandise and non-downtown dining: 10.25%
Downtown dining taxes:
McPier Tax (see below) 1.00%
Downtown restaurant tax .25% Increasing to .5% January 1, 2020
Tax on dining downtown is 11.50% Increasing to 11.75% on January 1, 2020.
It is this tax Downtown restaurant tax .25% that is increasing to .50% or and additional 25 cents per $100 spent.
The new tax will be 11.75% v. 11.50% or an additional 5 cents on the $19 restaurant bill pictured below.
McPier Tax is a sales tax (since 2009) on restaurant dining within certain areas of the City IDOR-535, MPEA Boundaries Map . The boundaries are: Stevenson Expressway, Ashland, Diversey, the Lake and also includes O’Hare and Midway Airport. In May, 2019 the McPier Authority requested and the Illinois State Senate passed a bill extending the areas where McPier tax applies to include parts of the North, Northwest and South sides including Wrigleyville, Logan Square and Hyde Park. The bill still has to pass the Illinois House and be signed by No Toilets (aka the Governor). These revenues would not go to the City of Chicago but to the McPier Authority to teardown the Lakeshide Center and build a new convention hall over King Drive at McCormick Place.
Lightfoot’s office confirmed that she’ll also seek a $20 million new tax on restaurants
Wrong! The .25% tax increase will not be on restaurants. It will be the people dining at restaurants who will pay the additional tax.
No one wants to pay more tax
No one wants to pay more tax but the media is irresponsible for publishing these misleading headlines. As someone who dines out frequently I will be subject to this tax. It is an unfortunate reality that revenues need to be raised but an additional 25 cents per $100 is not going to cause undue hardship. This tax is expected to generate an additional $20 million a year in revenue.