A study of beverage sales in Cook County, Illinois, shows that for four months in 2017 — when the county implemented a penny-per-ounce tax on both sugar-sweetened and artificially sweetened drinks — purchases of the taxed beverages decreased by 21%, even after an adjustment for cross-border shopping.
What is the soda tax in Illinois?
3 percent
The Chicago Home Rule Municipal Soft Drink Occupation Tax is imposed on persons who sell canned or bottled soft drinks at retail in Chicago. The rate is 3 percent of gross receipts from soft drinks sold at retail.
What states have a soda tax?
After a few years without much attention, taxes on sugar-sweetened beverages (SSBs) are back in the headlines, with at least four states—Connecticut, Hawaii, New York, and Washington—considering such statewide taxes.
Does Illinois have a sugar tax?
On November 10, 2016, the Cook County, Illinois, Board of Commissioners (“Board”) passed a Sweetened Beverage Tax (SBT) ordinance. The tax was implemented on August 2, 2017, and later repealed, effective November 30, 2017.
Does Chicago still have a soft drink tax?
On October 11, 2017, the Cook County Board repealed the Sweetened Beverage Tax Ordinance, effective December 1, 2017.
Is water taxed in Illinois?
Procedure: The Bottled Water Tax applies to the retail sale of bottled water in the City at a rate of $0.05 per bottle of water. Wholesalers are required to collect the tax. Retailers are required to collect if wholesaler does not.
Is milk taxed in Illinois?
(Note, even though brewed unsweetened black coffee and tea are not considered soft drinks, hot coffee or hot tea, regardless of whether they contain natural or artificial sweeteners or milk or milk products, are subject to tax at the 6.25% rate because they are considered to be “food prepared for immediate consumption”
Does a soda tax work?
Adults who participated in the study reported drinking about 10 fewer sodas a month after the tax, amounting to a reduction of about 31 percent, according to a study recently published by Cawley and colleagues in the Journal of Health Economics.
What cities in the US have a sugar tax?
No state currently has an excise tax on sugar-sweetened beverages. Instead, soda taxes are levied locally in Boulder, Colorado; the District of Columbia; Philadelphia, Pennsylvania; Seattle, Washington; and four California cities: Albany, Berkeley, Oakland, and San Francisco.
Why is the soda tax good?
Soda taxes are a powerful, but underutilized, intervention to discourage sugar consumption and thereby reduce the burden of obesity and non-communicable diseases (NCDs). Despite major industry campaigns, cities and countries from Berkeley, California, to Barbados, are levying taxes on sugary beverages.
What is the food and beverage tax in Chicago?
Restaurant Tax (7525)
| Municipal Code Reference: | 3-30 |
|---|---|
| Procedure: | The Restaurant Tax is imposed on each place for eating located in the City of Chicago. The tax is imposed on the selling price of all food and beverages sold at retail by the place for eating. |
| Tax Base: | As of 1/1/2020: .5% Prior to 1/1/2020: .25% of retail price |
How do state and local soda taxes work?
How do state and local soda taxes work? While no state currently taxes sweetened beverages, several localities levy what’s commonly referred to as a soda tax. Six local governments levy a per volume excise tax on drinks sweetened with sugar and one government levies a per volume tax on all sweetened drinks.
What soda is from Chicago?
Green River
Clover Club Bottling manufacturers and bottles a variety of sodas, including the 75-year-old Green River brand. The greenish, lime-flavored beverage hit its stride nationwide during prohibition, when a local Chicago brewery produced it to compensate for a falloff in beer sales.
What is the 2.25 tax in Illinois?
Illinois Sales Tax
Food, drugs and medical appliances are all subject to a statewide tax rate of 1% of purchase price, in addition to local taxes of up to 1.25%, for a total tax of up to 2.25%. There are some food items that don’t count as a qualifying food.
Are groceries taxed in Illinois?
According to lawmakers, the state’s 1% sales tax on groceries will be suspended for the entirety of the new fiscal year, which officials say will save taxpayers up to $400 million through July 1, 2023.
Why does Chicago have a water tax?
Water taxes
In 2007, Chicago passed a five-cent per bottle water tax. The intention was that this tax would reduce the stream of plastic being discarded.
What food items are taxed in Illinois?
Illinois is one of the states that impose a tax on groceries. Currently, the state charges a 1% tax on groceries, medicine, other drug items, and hygiene products. Other purchases are charged at a higher sales tax rate of 6.25%.
What items are taxed in Illinois?
Goods that are subject to sales tax in Illinois include physical property, like furniture, home appliances, and motor vehicles. Illinois charges a reduced rate on both prescription and non-prescription medicine as well as groceries.
Is alcohol tax exempt in Illinois?
Illinois: Alcohol Excise Taxes
In addition to (or instead of) traditional sales taxes, alcoholic beverages like wine, beer, and liquor are subject to excise taxes on both the Illinois and Federal levels. Excise taxes on alcohol are implemented by every state, as are excises on cigarettes and motor fuels like gasoline.
What states have no sales tax?
The 5 states without sales tax
- Alaska. Known as ‘The Last Frontier’, Alaska is the most tax-friendly state in the country.
- Delaware. The ‘First State’ also does not charge its residents or visitors any state sales tax.
- Montana.
- New Hampshire.
- Oregon.
- Sales tax isn’t the only tax to consider.
Is Illinois tax free?
Illinois began a sales tax holiday on a number of items for shoppers Friday, but it’s not quite the same as the tax-free weekends many states have this time of year. While states like Arkansas, Iowa, Missouri, Ohio and Texas have tax-free weekends, Illinois has 10 days of a sales tax holiday.