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Business District Retailers' Occupation Tax

Statutory Reference

Electronic Services

Definition

Municipalities that have approved a business district development or redevelopment plan and have elected to impose a tax by ordinance may impose a Business District Retailers’ Occupation and Service Occupation Tax on sales of general merchandise within the business district. The tax may not be imposed on sales of items that will be titled or registered with an agency of state government or on qualifying food, drugs, and medical appliances.

Tax Rate

The tax may be imposed in 0.25% increments and cannot exceed 1%. Use the Tax Rate Database to look up location specific tax rates.

Forms/Filing & Paying Requirements

Affected retailers and service persons report the tax on Form ST-1, Sales and Use Tax and E911 Surcharge Return. If imposed, the preprinted rate on Form ST-1, and if a multi-site filer, on Form ST-2 will include the tax. The due date is the same as provided for in the Retailers’ Occupation Tax Act and the Service Occupation Tax Act. For more information, see “Sales & Use Taxes."