Why did Jacksonville, Illinois restaurants charge different sales-tax rates, and what was the 2015 rate on general merchandise?

Plain-English summary

A customer reported Jacksonville restaurants charging 7%, 8%, or 9% and asked why establishments in the same small city did not all charge the same rate.

IDOR explained that Illinois state rates differed by the type of item sold and local rates varied by jurisdiction and effective date. For general merchandise in Jacksonville, the combined rate had been 7%: 6.25% state tax plus 0.75% local Home Rule tax.

Effective July 1, 2015, Morgan County added a 1% County School Facility Tax. The Jacksonville general-merchandise rate therefore became 8%. IDOR said 7% was correct before that date and 8% on or after it.

What this means for you

This GIL records a specific 2015 rate change, not a current rate lookup. When comparing restaurant receipts, check the item category, exact location, and transaction date using the Department's current rate tools.

Common questions

Was 7% ever correct? Yes, before July 1, 2015.

What rate applied afterward to general merchandise? 8% in this letter.

Did IDOR validate a 9% charge? No.

Citations and references

• 86 Ill. Adm. Code 130.310 and 130.311.
• 86 Ill. Adm. Code 270.115.

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2015.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2015/st-15-0052-gil.pdf

Original ruling text

ST-15-0052 GIL – August 21, 2015 - LOCAL TAXES
If a sale is made in a jurisdiction that imposes a local retailers’ occupation tax, that local jurisdiction’s
tax will be incurred on that sale. See 86 Ill. Adm. Code 270.115. (This is a GIL.)

August 21, 2015

Dear Ms. XXXX:
This letter is in response to the complaint that you filed on July 8, 2015 with the Illinois Office of
the Attorney General regarding the collection of sales tax at different rates by various establishments
within the same city in Illinois. The Office of the Attorney General forwarded your complaint to the
Illinois Department of Revenue. The Department issues two types of letter rulings. Private Letter
Rulings (“PLRs”) are issued by the Department in response to specific taxpayer inquiries concerning
the application of a tax statute or rule to a particular fact situation. A PLR is binding on the
Department, but only as to the taxpayer who is the subject of the request for ruling and only to the
extent the facts recited in the PLR are correct and complete. Persons seeking PLRs must comply
with the procedures for PLRs found in the Department’s regulations at 2 Ill. Adm. Code 1200.110.
The purpose of a General Information Letter (“GIL”) is to direct taxpayers to Department regulations
or other sources of information regarding the topic about which they have inquired. A GIL is not a
statement of Department policy and is not binding on the Department. See 2 Ill. Adm. Code
1200.120. You may access our website at www.tax.illinois.gov to review regulations, letter rulings
and other types of information relevant to your inquiry.
The nature of your inquiry and the information you have provided require that we respond with
a GIL. In your letter you have stated and made inquiry as follows:
In Jacksonville restaurants are charging different rates of tax on bill. COMPANY A and
COMPANY B 7%. COMPANY C 8%. COMPANY D is charging 9%. Can you tell me if
this is correct. It seems in our small town they would all be charging the same tax?
Thanks for your time.
DEPARTMENT’S RESPONSE:
The Retailers’ Occupation Tax rate and Use Tax rate imposed by the State of Illinois are
6.25% and 1%, depending on the type of item being sold. See Sections 130.310 and 130.311. Unlike
the state tax rates noted above, local tax rates vary depending on the tax rate imposed by the local
government in a particular jurisdiction. For local tax rates, see the Department’s Tax Rate Database
and the Tax Rate Finder on the Department’s website at www.tax.illinois.gov. Once on the website,
you will see on the left hand side a box entitled “Quick Links”. At the bottom of that box is a link
entitled “Tax Rate Database”. Click on that link which will take you to a screen entitled “Tax Rate
Database”. In the middle of the screen click on the link entitled “Sales Tax”. Toward the bottom of the
middle of that screen you will see a link entitled “Tax Rate Finder”. Click on that link which will take
you to another screen. At the bottom of that screen click the “Start” button on the bottom right of the
screen. At the bottom of the next screen, click on the “Continue” button. On the next screen, click on

the “Accept” button, which takes you to the “Search” screen. This screen permits you to find the
particular area you are interested in searching to find out the tax rates in that area for specific months.
The State rate of tax on general merchandise is 6.25%. Jacksonville imposes an additional
local Home Rule tax at the rate of .75%. However, effective July 1, 2015, the tax rate in Jacksonville,
Illinois (Morgan County) increased by 1% as there is now a County School Facility Tax of 1% in
place. As a result, the tax rate now in effect in Jacksonville for general merchandise is 8%. For this
reason, if you patronized a local restaurant prior to this rate change, the correct rate was 7%, and if
you patronized a local restaurant on or after July 1, 2015, the correct rate was 8%.
I hope this information is helpful. If you require additional information, please visit our website
at www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.

Very truly yours,

Cara Bishop
Associate Counsel

CJB:mdb
cc: Office of the Illinois Attorney General