Food And Beverage Tax Goes Into Effect Jan. 1 In Downers Grove

DOWNERS GROVE, IL — Downers Grove residents will have a new tax to take into consideration in 2018. The village's food and beverage tax, which was approved in July, goes into effect on Jan. 1.

The 1 percent tax will apply to prepared foods and both alcoholic and non-alcoholic beverages that are purchased for "immediate consumption." This includes, but is not limited to, food and drinks bought in a restaurant, cafeteria, deli, coffee shop, movie theatre, bakery, bar, and hotel.

Prepared and "eat-in" foods at grocery stores will also be subject to the 1 percent tax, as will packaged alcohl purchased at grocery and liquor stores.

Some institutions, including churches, festival vendors, schools, ice cream trucks, vending machines, and employee cafeterias are exempt from the tax.

The village expects the tax to generate $1.5 million in annual revenue to help recoup a decline in revenue from sales and income taxes in recent years.

Visit the village of Downers Grove website for more details on the food and beverage tax.

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