Places for Eating Tax
Register, File, and Pay online through Localgov at https://tax.localgov.org/login
Starting February 3, 2023, Village of Westmont Places for Eating taxpayers are required to use Localgov to file and pay Places for Eating Tax online. It takes just a few minutes to register, set up payments, and get current with your taxes.
You will be able to pay with ACH/e-check or credit and debit cards online. There are no fees for ACH/e-check payments. Credit card and debit card payments made through Localgov will have a discounted service fee of 1.75%.
When do I have to file and remit Places for Eating Tax on Localgov?
Payments will no longer be accepted after February 3rd in the Village Business Office or drop box.
All PFE tax returns must be remitted online with Localgov. Tax return filings and payments are to be remitted no later than the last day of the month. For example, sales that occurred in January 2023 need to be filed online and paid by the last day of February 2023.
You still have the option to file on a quarterly or annual basis through Localgov only if your business submits State Sales Tax on that schedule.
How Do I Get Started?
Set up your online account here: https://tax.localgov.org/login
- Each establishment must complete the online registration form to ensure we have current contact and business information. ALL establishments must submit this registration form, whether or not that establishment is already registered with the Village. Businesses only need to register ONCE for each establishment, there is NO annual renewal.
- Schedule a meeting with Localgov Customer Service and we’ll walk you through how to register and submit your first filing: https://calendly.com/localgov/localgov-customer-service-meeting.
- If you have any questions or need assistance, please contact Localgov Customer Service at (877) 654-0021 or firstname.lastname@example.org .
Who is Required to Pay the Places for Eating Tax?
PFE tax applies to ALL businesses that:
- Serve food and/or beverage, AND
- Have a dining area in which customers could consume their food and/or beverage purchase, whether it is consumed on premises or not.
What is Localgov?
Localgov facilitates secure and convenient online filings and payments. Their service also offers taxpayers in our community significant advantages, such as:
- Automatic calculation of taxes and fees owed.
- Secure processing that keeps your data safe.
- Multiple payment options, including ACH/e-check, credit and debit card payments.
- Payments can be made when you have time—not only during the Village of Westmont business hours.
- Eliminates paper forms, envelopes, checks, and stamps.
- Help is available seven days a week during Localgov business hours.
Places for Eating Tax - Frequently Asked Questions
How much is the Tax?
- Effective April 1, 2019, the tax is 2.0% of gross receipts on food sold at retail for immediate consumption. For example, on a $100 meal, the tax would be $2.00.
How does the tax benefit the Village?
- The revenue from this tax is helping the Village in several ways.
- The initial revenue helped offset the operating shortfall which occurred as a result of the loss of home rule revenues in 2013 and allowed the Village to issue approximately $10 million in bonds for infrastructure improvement.
- The increase to 2.0%, provided funding for the Public Works Facility built in 2021.
Who pays the tax?
- It works just like the state sales tax. Technically it is a tax on the owner, but in almost all cases the business passes the tax on to the customer.
Which businesses must comply with the Place for Eating Tax?
- The Places For Eating Tax applies to ALL businesses that: a) serve food and/or beverage, AND
b) have a dining area in which customers are intended to consume their food and/or beverage purchase
Does the tax apply to businesses that sell beverages only and/or alcohol?
- If a business has a dining area for customers, then the answer is YES, this tax applies to businesses that serve beverages, and YES, that does include alcohol.
Does this tax apply to businesses that sell pre-packaged foods such as chips, cookies, etc.?
- Once again, if a business has a dining area for customers, then the answer is YES. This tax applies to businesses that sell food to customers. This includes prepackaged foods such as chips, cookies, etc. HOWEVER, this tax does not apply to vending machines, nor does it apply to "qualifying food" which is subject to the lower state sales tax rate.
When did the Places for Eating Tax become effective?
- The Places for Eating Tax began September 1, 2013.
- The effective date of the rate change to 2.0% is April 1, 2019.
When should the tax be remitted to the Village?
- Tax payments to the Village should be remitted no later than the last day of the following month. For example, the return for January is due the last day of February. The return for February is due the last day of March.
- However, if the entity submits state sales tax less frequently than monthly (such as quarterly), the entity may submit to the Village on the same schedule.
What is a Place for Eating?
- All premises where food is sold at retail, for immediate consumption on the premises, with seating provided.
- Includes but not limited to places typically called Restaurants, Eating place, Drive-in restaurant, Buffet, Bakery, Banquet facility, Cafeteria, Cafe, Lunch counter, Fast food outlet, Catering service, Coffee shop, Diner, Sandwich shop, Soda fountain, Bar, Cocktail lounge, Soft drink parlor, Ice cream parlor, Tea room, Delicatessen, Hotel, Motel, Club, or Any other establishment which sells at retail prepared food for immediate consumption.
Are tips/gratuities taxed?
- No, tips and gratuities are not included in gross receipts and are not taxed.
Are drinks taxed?
- Yes, gross receipts on any liquid (including both alcoholic and nonalcoholic) used or intended immediate consumption are subject to the tax.
Are places that sell food, but also sell other things taxed?
- Yes, if the location sells food for immediate consumption on the premises, they are taxed on the gross receipts of food to be consumed on the premises, regardless of whether or not they conduct any other business there.
Is food purchased through drive throughs, "to go", or takeout subject to the tax?
- Yes, regardless of whether or not the food is actually consumed on the premises, so long as it is sold so that it could be consumed on the premises, the gross receipts of the food is subject to the tax.
Is catering taxed?
- If catering is done from a place for eating, the food and drink is taxed. If catering is done from a location that is not a place for eating, then it is not taxed.
Is the sale of pre-packaged grocery items taxed?
- No, the tax is only on the sale of "prepared" food.
If the food is subject to the lower state sales tax rate, is it subject to the places for eating tax?
- The state sales tax has a lower rate for food that is not prepared. If an entity is paying the lower sales tax rate for "qualifying food", the food is not considered prepared, so it would not be subject to the places for eating tax.
Is Westmont the only community with this tax?
- No, in DuPage County there are at least 11 other communities with a similar tax. Additionally, some of these communities are Home Rule, which allows additional taxing opportunities that are not available to the Village of Westmont.
How much revenue does the Village anticipate receiving from the tax?
- The Village anticipates receiving approximately $1,500,000 annually.
For additional information
Please contact Localgov Customer Service at (877) 654-0021 or email@example.com or the Village of Westmont Business Office at 630-981-6220.