How do I calculate the Live Adult Entertainment Facility Surcharge on Form LA-1, Live Adult Entertainment Facility Surcharge Return, using the method based on receipts?

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The method based on gross receipts requires the operator to pay a set dollar amount based on the annual gross receipts subject to tax under Section 2 of the Retailers’ Occupation Tax Act. 35 ILCS 175/10(a)(2). Use the following table to determine the amount of surcharge that would be due based on your gross receipts.

If the facility’s annual gross receipts from the previous calendar year are:

• less than $500,000, the surcharge owed is $5,000;
• $500,000 or more, but less than $2,000,000, the surcharge owed is $15,000;
• $2,000,000 or more, the surcharge owed is $25,000.

To calculate gross receipts, use the total taxable receipts from the prior year's Form ST-1, Sales and Use Tax and E911 Surcharge Return. For single-site surcharge filers, the taxable receipts can be figured by adding Lines 4a, 5a, and 8a from each Form ST-1. Multi-site surcharge filers can calculate their taxable receipts using Lines 4a, 5a, and 8a from each Form ST-2.

Note: This method cannot be used if an operator has not filed the applicable returns under the Retailers’ Occupation Tax Act for a full calendar year prior to any January 20.