How do I calculate the Live Adult Entertainment Facility Surcharge due on Form LA-1, Live Adult Entertainment Facility Surcharge Return?
- One method calculates the surcharge based on the number of patrons admitted to the facility.
- The other method calculates the surcharge based on the facility’s gross receipts subject to tax under Section 2 of the Retailers’ Occupation Tax.
There are two methods allowed for calculating the Live Adult Entertainment Facility Surcharge:
An operator must elect, at the time a return is due, one of the methods to calculate the surcharge, regardless of the method used the previous year. Once an operator files Form LA-1 for a given year, the operator cannot change the calculation method for that reporting period by filing an amended return.
Note: An operator has the discretion to determine how it will cover the expense of the Live Adult Entertainment Facility Surcharge. An operator is not required to impose a fee on a customer of the facility. Collecting the surcharge at a fixed amount from each person admitted does not require the operator to use the admissions method to calculate the surcharge due on Form LA-1.
For more information, see 35 ILCS 175/10 and 86 Ill. Adm. Code Section 900.120.