Alerts and Updates
Chicago Adds New Taxes for 2008
November 29, 2007
The City of Chicago has increased a number of its taxes. Of note, effective January 1, 2008, the city is increasing its Liquor tax, expanding its Hotel tax, changing the rate of its Leasing tax, increasing the Telecommunication tax surcharge and adding a new Bottled Water tax.
The Hotel tax is expanded by taxing resellers of hotel rooms, such as online resellers.
The Leasing tax on personal property (Chicago Transaction tax) is increased from 6% to 8%.
The Telecommunication surcharge is increased from $1.25 a month to $2.50 a month.
The new Bottled Water tax will be 5 cents per bottle (no size of bottle is designated).
For Further Information
If you would like more information on this topic, please contact Stanley R. Kaminski, any other member of the State and Local Tax Practice Group, or the lawyer in the firm with whom you are regularly in contact.As required by United States Treasury Regulations, you should be aware that this communication is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under United States federal tax laws.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
