86 Ill. Adm. Code (Part 130)

# Section 130.ILLUSTRATION C Food Flow Chart

TITLE 86: REVENUE CHAPTER I: DEPARTMENT OF REVENUE PART 130 RETAILERS' OCCUPATION TAX SECTION 130.ILLUSTRATION C FOOD FLOW CHART

Section 130.ILLUSTRATION C Food Flow Chart TEST TO DETERMINE TAX RATE FOR FOOD ITEMS SOLD BY A RETAILER (EXCLUDING RESTAURANTS AND CAFETERIAS) IS THERE ON-PREMISES SEATING? YES NO ↓↓ ↓↓ 1. Is the area for on-premises consumption physically separated from the area where food not for immediate consumption is sold? AND 2. Does the retailer utilize a separate means of recording and accounting for collection of receipts from sales of food prepared for immediate consumption (high rate) and food not prepared for immediate consumption (low rate)? Does the retailer utilize a separate means of recording and accounting for collection of receipts from sales of food prepared for immediate consumption (high rate) and food not prepared for immediate consumption (low rate)? ↓↓ ↓↓ ↓↓ ↓↓ YES NO YES NO ↓↓ ↓↓ ↓↓ ↓↓ Only hot foods, soft drinks, candy, alcoholic beverages and food prepared by the retailer for immediate consumption are subject to HIGH RATE. Grocery type food subject to LOW RATE All items sold in the store are subject to tax at the HIGH RATE, even food not prepared for immediate consumption (grocery type food) ALL items sold in the store are LOW RATE. HOWEVER, THE HIGH RATE APPLIES TO: - hot food - alcohol - candy - soft drinks and - other food prepared by the retailer for immediate consumption If the retailer sells both food prepared for immediate consumption and grocery type food, ALL food is HIGH RATE (rebuttable presumption). If the retailer sells only grocery type foods, all food is LOW RATE other than soft drinks, alcoholic beverages and candy. (Source: Added at 33 Ill. Reg. 15781, effective October 27, 2009)

Section 130.ILLUSTRATION C Food Flow Chart

TEST TO DETERMINE TAX RATE FOR FOOD ITEMS SOLD BY A RETAILER (EXCLUDING RESTAURANTS AND CAFETERIAS)

IS THERE ON-PREMISES SEATING?

YES

NO

↓↓

↓↓

1. Is the area for on-premises consumption physically separated from the area where food not for immediate consumption is sold?

AND

2. Does the retailer utilize a separate means of recording and accounting for collection of receipts from sales of food prepared for immediate consumption (high rate) and food not prepared for immediate consumption (low rate)?

Does the retailer utilize a separate means of recording and accounting for collection of receipts from sales of food prepared for immediate consumption (high rate) and food not prepared for immediate consumption (low rate)?

↓↓

↓↓

↓↓

↓↓

YES

NO

YES

NO

↓↓

↓↓

↓↓

↓↓

Only hot foods, soft drinks, candy, alcoholic beverages and food prepared by the retailer for immediate consumption are subject to HIGH RATE.

Grocery type food subject to LOW RATE

All items sold in the store are subject to tax at the HIGH RATE, even food not prepared for immediate consumption (grocery type food)

ALL items sold in the store are LOW RATE. HOWEVER, THE HIGH RATE APPLIES TO:

- hot food

- alcohol

- candy

- soft drinks and

- other food prepared by the retailer for immediate consumption

If the retailer sells both food prepared for immediate consumption and grocery type food, ALL food is HIGH RATE (rebuttable presumption).

If the retailer sells only grocery type foods, all food is LOW RATE other than soft drinks, alcoholic beverages and candy.

(Source: Added at 33 Ill. Reg. 15781, effective October 27, 2009)