PDF document

- 1 -

Illinois Department of Revenue

Publication 116 January 2022

Chicago Soft Drink Tax

The information in this publication
is current as of the date of the About this publication
publication. Please visit our website at Knowing how Illinois tax laws apply to your business can save you
tax.illinois.gov to verify you have the time and money. The information included in this publication will
most current revision.
supply you with the general sales tax information most Chicago soft
This publication is written in the plain drink retailers need, help you collect the proper amount of tax due,
English style so the tax information is
and help you file your returns correctly.
easier to understand. As a result, we
do not directly quote Illinois statutes As a retailer of canned or bottled soft drinks in Chicago, you are
or the Illinois Administrative Code. responsible for
The contents of this publication are
• collecting the correct amount of tax on every applicable soft
informational only and do not take
drink sale you make,
the place of statutes, rules, or court
decisions. For many topics covered • properly documenting the tax-exempt sales you make,
in this publication, we have provided • sending a payment for the tax owed along with your properly
a reference to the applicable section completed Form ST-14, Chicago Soft Drink Tax Return, by the
or part of the Illinois Administrative due date, to the Illinois Department of Revenue, and
Code for further clarification or more • keeping complete and accurate books and records for all soft
detail. All of the sections and parts
drink sales.
referenced can be found in Title 86 of
the Code.

Taxpayer Bill of Rights
You have the right to call the Illinois Department of Revenue (IDOR) for help in resolving tax problems.
You have the right to privacy and confidentiality under most tax laws.
You have the right to respond, within specified time periods, to IDOR notices by asking questions, paying the amount due, or
providing proof to refute IDOR’s findings.
You have the right to appeal IDOR decisions, in many instances, within specified time periods, by asking for IDOR review or by
taking the issue to court.
If you have overpaid your taxes, you have the right, within specified time periods, to a credit (or, in some cases, a refund) of that
overpayment.
For more information about these rights and other IDOR procedures, you may write us at the following address:
PROBLEMS RESOLUTION OFFICE
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19014
SPRINGFIELD, IL 62794-9014

Get forms and other information faster and easier at tax.illinois.gov

PUB-116 (R-06/22 back reformatted)

- 2 -

                                                                          Chicago Soft Drink Tax

Contents

Legal Reference  .............................................................3 

Overview  ....................................................................3
  Tax Rate .................................................................3

General Information
  What transactions are exempt from this tax? .....................................4
  How do I show this tax on my retail receipts?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
  Who pays tax on soft drinks sold in vending machines?  ............................4 
  Do I owe Chicago Soft Drink Tax on fountain drinks?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
  How does the Leveling the Playing Field for Illinois Retail Act affect  
  out-of-state retailers that sell soft drinks?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
  How does the Leveling the Playing Field for Illinois Retail Act affect  
  soft drink sales through a marketplace?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 
  What are the marketplace facilitator’s Chicago Soft Drink Tax responsibilities?. . . . . . . . . . .5
  What are the tax remittance thresholds? ........................................5
  What books and records must I keep? ..........................................6

Registration Information
  If I am starting my business, how do I register my account?  .........................7
  If I am registered as a retailer but will sell soft drinks in Chicago, what do I need to do?. . . .7
  Are there any different registration requirements if I am a marketplace facilitator? ........7 

Forms and Filing Information
  How do I report the Chicago Soft Drink Tax? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
  How do I file if I have more than one site? .......................................8
  Must I file Form ST-14 if I have no sales to report?  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
  When is my return and tax payment due? .......................................8
  Is there an incentive for paying the tax I owe on time? ..............................8
  Where do I file my Form ST-14? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
  What if I do not file and pay by the due date?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
  What if I make a mistake on my Form ST-14?  ....................................9

Questions and Electronic Services ...........................................9

Office locations .............................................................10 

PUB-116 (R-06/22 back reformatted)                                                              Page  2 of 10

- 3 -

                                                                             Chicago Soft Drink Tax

Legal Reference

For statutory information, please see 65 ILCS 5/8-11-6b.

Overview

The Chicago Home Rule Municipal Soft Drink             The following list includes examples of drinks that 
Occupation Tax is imposed on retailers of canned       are not included in the definition of soft drinks:
or bottled soft drinks in the city of Chicago 
                                                       •  fountain drinks;
including
                                                       •  unsweetened teas;
•  in-state retailers located in the city of Chicago;
                                                       •  coffee;
•  out-of-state retailers with selling activity in the 
city of Chicago (i.e. physical presence, see,          •  beverages containing milk or milk products;
e.g., 86 Ill. Adm. Code 270.115) OR with sales         •  infant formula;
of inventory located in the city of Chicago;           •  soy, rice, or similar milk substitutes;
•  remote retailers without physical presence          •  drinks containing greater than 50 percent of 
or inventory in Illinois who meet or exceed a           natural fruit or vegetable juice;
tax remittance threshold and make sales to 
                                                       •  carbonated or uncarbonated water that 
purchasers in the city of Chicago;
                                                        contains no sweeteners;
•  marketplace facilitators whose marketplace 
                                                       •  nonalcoholic drink mixes; and
meets or exceeds a tax remittance threshold 
and who make sales over the marketplace to             •  soft drinks when mixed and sold in an alcoholic 
purchasers in the city of Chicago on behalf of          drink.

marketplace sellers; and                               A retailer of canned or bottled soft drinks in 
•  marketplace facilitator’s own sales when:           Chicago is responsible for:
`  they are making sales fulfilled from inventory  •  collecting the correct amount of tax on every 
 located in Chicago, or the selling activities          applicable soft drink sale they make;
 otherwise occur in Chicago or
                                                       •  properly documenting the tax-exempt sales 
`  they meet or exceed a tax remittance                 they make;
 threshold, the selling activity is conducted 
                                                       •  sending a payment for the tax owed along with 
 outside Illinois, and they are shipping a soft 
                                                        a properly completed Form ST-14, Chicago Soft 
 drink to an address located in the city of 
                                                        Drink Tax Return, by the due date, to the Illinois 
 Chicago.
                                                        Department of Revenue; and
“Soft drinks” include (but are not limited to):        •  keeping complete and accurate books and 
•  soda;                                                records for all soft drink sales. 
•  sport or energy drink;
•  sweetened tea;                                      Tax Rate

•  waters containing natural or artificial             The tax rate is 3 percent (.03) of the gross receipts 
sweeteners;                                            of soft drinks sold at retail in Chicago. Use the 
•  beverages containing 50 percent or less fruit or    Tax Rate Database to look up this and other 
vegetable juice; and                                   applicable tax rates. 

•  all other preparations commonly known as soft 
drinks.
PUB-116 (R-06/22 back reformatted)                                                                 Page  3 of 10

- 4 -

                                                       Chicago Soft Drink Tax

General Information

What transactions are exempt from this                 The Leveling the Playing Field for Illinois Retail 
tax?                                                   Act did change the tax remittance requirements 
                                                       for certain out-of-state retailers without physical 
The same transactions that are exempt from sales       presence or without inventory in Illinois. These 
tax (Illinois Retailers’ Occupation Tax) are also      retailers, also known as remote retailers, who meet 
exempt from this tax.                                  or exceed a tax remittance threshold must collect 
                                                       and remit the Chicago Soft Drink Tax for sales of 
How do I show this tax on my retail                    canned or bottled soft drinks made to Chicago 
receipts?                                              purchasers beginning October 1, 2021.

You may either separately state this tax or state this For further information on remote retailers and tax 
tax in combination with other taxes on the receipts    remittance thresholds, visit the Leveling the Playing 
you give your customers.                               Field for Illinois Retail Act resource page.

Who pays tax on soft drinks sold in                    How does the Leveling the Playing Field 
vending machines?                                      for Illinois Retail Act affect soft drink 
                                                       sales through a marketplace? 
The owner of the soft drinks in the vending 
machine is liable for the tax.                         Beginning October 1, 2021, a marketplace 
                                                       facilitator, whose marketplace meets or exceeds 
                                                       a tax remittance threshold, is responsible for 
Do I owe Chicago Soft Drink Tax on 
                                                       collecting and remitting Chicago Soft Drink 
fountain drinks?                                       Tax on behalf of their marketplace sellers for 
No. Fountain drinks (drinks that are prepared by       canned or bottled soft drink sales made through 
mixing a syrup or concentrate with water) are          the marketplace to Chicago purchasers. The 
not subject to this tax and are not reported on        marketplace facilitator must certify to all of their 
Form ST-14.                                            marketplace sellers that they are assuming the 
                                                       rights and duties as the retailer with respect to 
Note: The city of Chicago does administer a            sales made by the sellers over the marketplace.
separate tax on fountain soft drinks. That tax must 
be paid directly to the Chicago Department of          If a marketplace does not meet a threshold, the 
Revenue.                                               marketplace sellers are responsible to collect and 
                                                       remit the Chicago Soft Drink Tax on soft drink sales 
                                                       through that marketplace in certain circumstances.
How does the Leveling the Playing Field 
                                                       Illinois (in-state) retailers must collect and remit 
for Illinois Retail Act affect out-of-state 
                                                       the Chicago Soft Drink Tax if the Illinois location at 
retailers that sell soft drinks? 
                                                       which a sale occurs is within the city of Chicago. 

The Leveling the Playing Field for Illinois Retail Act Out-of-state retailers must collect and remit the 
did not change the tax remittance requirements         Chicago Soft Drink Tax if they: 
for out-of-state retailers with physical presence or 
                                                       •  have physical presence in the city of Chicago 
with inventory in Chicago. Those retailers are still 
                                                       and are making soft drink sales that are 
required to collect and remit the Chicago Soft Drink 
                                                       conducted, shipped, or finalized in Chicago; or 
Tax on sales of canned or bottled soft drinks in the 
city of Chicago.                                       •  do not have physical presence in Illinois but 
                                                       meet or exceed a tax remittance threshold and 
                                                       are shipping a soft drink to an address located 
                                                       in the city of Chicago. 
PUB-116 (R-06/22 back reformatted)                                                                 Page  4 of 10

- 5 -

                                                                              Chicago Soft Drink Tax

General Information

Likewise, affiliates of marketplace facilitators,       •  they are an Illinois (in-state) retailer and the 
whether the marketplace meets or exceeds a              sale occurs within the city of Chicago;
threshold or not, are required to collect and remit     •  they are an out-of-state retailer with physical 
the soft drink tax on their own behalf for applicable   presence in the city of Chicago and are making 
soft drink sales made over the marketplace.             soft drink sales that are conducted, shipped, or 
Affiliates must determine what type of retailer         finalized in Chicago; or
they are (see bullets directly above) to determine 
                                                        •  they are an out-of-state retailer without physical 
whether they must collect and remit the Chicago 
                                                        presence in Illinois but meet or exceed a 
Soft Drink Tax. 
                                                        tax remittance threshold and are shipping a 
Marketplace facilitators and marketplace sellers        soft drink to an address located in the city of 
must have an agreement or contract that                 Chicago (beginning October 1, 2021).
explains the responsibilities of both parties. IDOR 
                                                        A marketplace facilitator must register for their 
encourages marketplace sellers to contact their 
                                                        sales on behalf of marketplace sellers (marketplace 
marketplace facilitator with questions about their 
                                                        facilitator soft drink account) separately from 
agreement. 
                                                        their own soft drink sales account. Likewise, 
For further information on marketplace facilitators,    a marketplace facilitator must file separate 
affiliates, and tax remittance thresholds, visit the    Forms ST-14 when remitting the Chicago Soft 
Leveling the Playing Field for Illinois Retail Act      Drink Tax; one Form ST-14 for their marketplace 
resource page.                                          facilitator sales and a separate Form ST-14 for their 
                                                        own soft drink sales.
What are the marketplace facilitator’s 
Chicago Soft Drink Tax responsibilities?                What are the tax remittance thresholds?
Beginning October 1, 2021, marketplace                  The tax remittance thresholds are
facilitators, whose marketplace meets or exceeds        •  $100,000 or more in cumulative gross receipts 
a tax remittance threshold, are responsible for         from sales of tangible personal property to 
collecting and remitting the Chicago Home Rule          purchasers in Illinois; or
Municipal Soft Drink Retailers’ Occupation Tax on 
                                                        •  200 or more separate transactions for the sale 
behalf of marketplace sellers for all sales of soft 
                                                        of tangible personal property to purchasers in 
drinks made through the marketplace and delivered 
                                                        Illinois.
to purchasers within the city of Chicago. In other 
words, if a marketplace facilitator meets or exceeds  For further information on tax remittance 
a tax remittance threshold, they must collect the       thresholds, visit the Leveling the Playing Field for 
applicable Chicago Soft Drink Tax on behalf of their    Illinois Retail Act resource page.
marketplace sellers and remit them to IDOR.

In addition, if a marketplace facilitator sells its own 
soft drinks, whether made through the marketplace 
or not, their soft drink sales may be subject to the 
Chicago Soft Drink Tax. They must collect and remit 
Chicago Soft Drink Tax on their own sales of soft 
drinks if:

PUB-116 (R-06/22 back reformatted)                                                                  Page  5 of 10

- 6 -

                                                      Chicago Soft Drink Tax

General Information

What books and records must I keep? 
The requirements for keeping books and records 
can be found in Publication 113, Retailer’s 
Overview of Sales and Use Tax, Prepaid Wireless 
E911 Surcharge, and Illinois Telecommunications 
Access Corporation (ITAC) Assessment.

A marketplace seller must maintain books and 
records for all sales made through a marketplace 
even if the marketplace facilitator has assumed the 
responsibility for collecting and remitting the taxes.

A marketplace facilitator must maintain books and 
records for all sales made through the marketplace 
and provide these records to IDOR upon request. 
The books and records must contain the name, 
address, and FEIN of all marketplace sellers 
making sales through the marketplace.

Note: Marketplace facilitators should, if possible, 
separately state the various state and local 
retailers’ occupation taxes remitted to IDOR (as 
well as the taxes remitted to other local taxing 
authorities, such as local governments that impose 
and administer their own restaurant tax) on records 
of each transaction provided to marketplace sellers. 

PUB-116 (R-06/22 back reformatted)                                          Page  6 of 10

- 7 -

                                                                       Chicago Soft Drink Tax

Registration Information

If I am starting my business, how do I                Are there any different registration 
register my account?                                  requirements if I am a marketplace 
For detailed information about registering an         facilitator?
account, see Publication 113, Retailer’s Overview     Marketplace facilitators must register for separate 
of Sales and Use Tax, Prepaid Wireless E911           Chicago Soft Drink Tax accounts, one to report 
Surcharge, and Illinois Telecommunications Access     sales they make on behalf of marketplace sellers 
Corporation (ITAC) Assessment.                        (marketplace facilitator account) and the other 
The easiest way to register with IDOR is to register  to report their own sales. Marketplace facilitators 
electronically using MyTax Illinois.                  must check the marketplace facilitator checkbox 
                                                      on Form REG-1 when registering their facilitator 
For additional information about registering          account. When registering by mail or fax, 
with IDOR and for registration forms, such as         marketplace facilitators must also attach Schedule 
the Form REG-1, Illinois Business Registration        REG-1-MKP, Marketplace Facilitator Information, to 
Application, visit the registration section of our    your Form REG-1. 
website.                                               
Note: When completing Form REG-1, Illinois 
Business Registration Application, ensure that you 
check the box labeled “Chicago Soft Drink Tax” 
when registering in MyTax Illinois or “Soft drinks 
(other than fountain soft drinks) in Chicago” when 
registering by mail or fax using the Form REG-1 
found on our website. 

If I am registered as a retailer but will sell 
soft drinks in Chicago, what do I need to 
do?

If you have a MyTax Illinois account, you can 
register for new tax accounts, including a Chicago 
Soft Drink Tax account, by simply logging into 
your existing MyTax Illinois account and clicking 
on ‘Register for New Tax Accounts’ to complete 
registration. 

Otherwise, contact the Central Registration 
Division by e-mailing us at REV.CENTREG@
illinois.gov, calling 217 785-3707, or writing us at: 

CENTRAL REGISTRATION DIVISION
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19030
SPRINGFIELD  IL 62794-9030

PUB-116 (R-06/22 back reformatted)                                                              Page  7 of 10

- 8 -

Chicago Soft Drink Tax

Forms and Filing Information

How do I report the Chicago Soft Drink When is my return and tax payment due?
Tax?
You must file your Form ST-14 and pay any tax due
All retailers of soft drinks (not fountain) in Chicago on or before the 20th day of the month following
must file Form ST-14, Chicago Soft Drink Tax the end of the reporting period. It will be the same
Return, for each reporting period and pay the tax as the reporting period for your Form ST-1. We will
collected from retail sales made. notify you if your filing status changes.

• Form ST-14, Chicago Soft Drink Tax Return | Note: Any time a due date falls on a weekend or
Instructions state recognized holiday, we adjust the due date to
• Form ST-14-X, Amended Chicago Soft Drink the next business day.
Tax Return | Instructions
Is there an incentive for paying the tax I
Note: If you are a marketplace facilitator, you are
required to file separate Forms ST-14 for each owe on time?
period, one for your sales on behalf of marketplace Yes. If you file your Form ST-14 and pay the tax on
sellers (marketplace facilitator soft drink sales) and time, you are allowed to take a discount of 1.75
one for your own soft drink sales. percent of the tax you collected on receipts from
sales.
How do I file if I have more than one
site? Where do I file my Form ST-14?
Because the Chicago Soft Drink Tax is imposed You can file Form ST-14 electronically using MyTax
city wide, the same rate of tax is due at any site Illinois.

in Chicago where you make your sales. For each Forms ST-14 also can be electronically filed using
reporting period, report the combined sales from all software you write or that you buy or use from
of your sites or locations on the same Form ST-14. an accepted vendor (third party). Visit IDOR’s
Approved Third Party Software Vendor webpage
Must I file Form ST-14 if I have no sales for a list of vendors that have been approved to
to report? electronically submit these forms. These vendors
Yes. You must file a processable (signed) may charge a transaction fee. If you electronically
Form ST-14 for each reporting period regardless of file using your own software, you must first obtain
whether or not there are receipts to report. You may IDOR approval.

file a “zero” return. For paper forms, mail your Form ST-14 to the
Note: If all of your sales for the month are through address printed on the form. If no address is
a marketplace and the marketplace facilitator, who available, please mail your return to:

meets a tax remittance threshold, is responsible CHICAGO SOFT DRINK TAX ADMINISTRATION
for your marketplace sales, you must file a “zero” ILLINOIS DEPARTMENT OF REVENUE
return for that month. However, if all of your sales PO BOX 19034
are always through a marketplace facilitator, who SPRINGFIELD IL 62794-9034
meets a tax remittance threshold, you may be able
Do not mail Form ST-14 with any other type of
to close your account. For more information about
return.
marketplace facilitators, see the Resource Page for
the “Leveling the Playing Field for Illinois Retail Act.”

PUB-116 (R-06/22 back reformatted) Page 8 of 10

- 9 -

Chicago Soft Drink Tax

Forms and Filing Information

What if I do not file and pay by the due What if I make a mistake on my
date? Form ST-14?
If you do not file your Form ST-14 and pay the If, after you file your Form ST-14, you find you
tax due by the due date, you will be assessed for made a mistake that resulted in an overpayment or
any tax due (including any portion of the discount an underpayment, you must file an amended return
for timely filing that we have disallowed) plus (Form ST-14-X).

penalty and interest. For detailed information about You may file Form ST-14-X, Amended Chicago
the penalties and interest that may apply, see Soft Drink Tax Return, using MyTax Illinois.
Publication 103, Penalties and Interest for Illinois Form ST-14-X is also available in the forms area of
Taxes. IDOR’s website.

Note: When sent through the U.S. mail, items For help completing your amended return,
are considered to be received by the department please call the Taxpayer Assistance Division at
on the date of the post office cancellation mark. 1 800 732-8866 or 1 217 782-3336.
Private postage meters are not used to establish
the date of receipt.

If items are not sent through the U.S. mail, they
are considered to be received on the date the
department actually receives them.

Questions and Electronic Services

Questions?
• Call us at: 1 217 785-3707 for a pre-printed return or 1 800 732-8866 for questions
• Call TDD: 1 800 544-5304
• Mail your ST-14 and ST-14-X forms to:
CHICAGO SOFT DRINK TAX ADMINISTRATION
PO BOX 19034
SPRINGFIELD IL 62794-9034

Electronic Services

• MyTax Illinois
• Approved Third Party Software Vendors for Sales and Use Tax
• ACH Credit

PUB-116 (R-06/22 back reformatted) Page 9 of 10

- 10 -

                                                                                                                Chicago Soft Drink Tax

Office Locations

                                                  Suburban North Regional Building
                                                  9511 Harrison Street FA 203
                                                  Des Plaines, Illinois 60016-1563

200 South Wyman Street
Rockford, Illinois 61101-1237                                                                                   555 West Monroe Street
                                                                                                                Suite 1100
                                                                                                                Chicago, Illinois 60661-3605

                                                                                                                Willard Ice Building
                                                                                                                101 West Jefferson
                                                                                                                Springfield, Illinois 62702-5145

15 Executive Drive
Business Center One, Suite 2
Fairview Heights, Illinois 62208-1331

                                   2309 W. Main, Suite 114
                                   Marion, Illinois 62959-1196

Contact Information                Visit our website at tax.illinois.gov. For specific phone number and email contacts, see our 
                                        Contact Us page. 
                                   Call us at 1 800 732-8866 or 217 782-3336.
                                   Call our TDD (telecommunications device for the deaf) at 1 800 544-5304.
                                   Write us at Illinois Department of Revenue, PO Box 19001, Springfield, IL  62794-9001.
                                   Call our 24-hour Forms Order Line at 1 800 356-6302. 

PUB-116 (R-06/22 back reformatted)            Printed by authority of the State of Illinois, Web only, one copy                             Page  10 of 10

PDF file checksum: 1546825707

(Plugin #1/9.12/13.0)