- Local Sales Tax
Local Sales Tax
Local Sales Tax
The City of Rockford collects two types of local sales tax, the Redevelopment Fund (Food and Beverage) Tax and the Tourism (Hotel/Motel) Tax. The City also levies a 1% sales tax strictly for infrastructure improvements, but that tax is collected by the State of Illinois.
Redevelopment Fund (Food and Beverage) Tax
Businesses operating within the City of Rockford are responsible for collecting a 1% Redevelopment Fund Tax on the retail purchase price of qualifying food, beverages, alcoholic liquors, and package liquor. This tax is in addition to the usual sales tax collected by the Illinois Department of Revenue. Hotels/motels operating in the City of Rockford are responsible for collecting a 1% Redevelopment Fund Tax in addition to the usual Hotel Operator's Occupation tax collected by the Illinois Department of Revenue on the charge for renting a hotel or motel room.
Tourism (Hotel/Motel) Tax
Hotels and motels are also responsible for collecting a 5% Tourism Tax in addition to the 1% Redevelopment Fund Tax mentioned above.
How the Sales Tax Works
All businesses subject to the Redevelopment Fund Tax and Tourism Tax must file a monthly return indicating sales receipts and the amount of applicable taxes due.
In order to avoid fines, tax forms must be properly filed with the City of Rockford, and all taxes paid by the last day of the month following the month of sales being reported. A paper tax return form will not be mailed by the City of Rockford. Businesses are responsible for acquiring the proper form, either by contacting the Local Tax Collection section at 779-348-7165 for a blank copy which you may make copies of, or by clicking on the link below which will take you to a PDF version that you may download and complete. In any event, it is the responsibility of the business to acquire and maintain copies of this form for filing purposes. Only the official and approved version of the tax return form is acceptable for proper filing. Use of any other form or substitute is not acceptable and will be returned and considered an improper filing if used. Doing so may result in your filing being deemed late and penalties may apply.