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              Fiscal Year 2002 Payments to Local Governments Page 11
Each month, the department allocates any locally imposed taxes that it collects to the unit
of local government that imposes the tax based on transactions occurring in the local
government’s boundaries. These taxes are identified below.
Counties, municipalities, the Regional Transportation Authority (RTA), the Metro-East Mass
Transit District (MED), and the Metropolitan Pier and Exposition Authority (MPEA) are
allowed to impose occupation and use taxes on automobile rentals. County and municipal
governments and the Metro-East Mass Transit District (MED) may impose taxes of up to 1
percent. The Regional Transportation Authority (RTA) may impose such taxes at a rate not to
exceed 1 percent in Cook County or 0.25 percent in Du Page, Kane, Lake, McHenry, and Will
counties. The Metropolitan Pier and Exposition Authority (MPEA) imposes a 6 percent tax on
automobiles rented within Cook County. Funds are distributed monthly after subtracting
administrative fees of 1.6 percent of the total amount collected for municipalities and 2
percent of total amount collected for counties, the MED, and the RTA. No administrative fee
is subtracted from automobile renting occupation and use taxes imposed by the MPEA.
The Chicago Home Rule Municipal Soft Drink Occupation Tax is imposed on persons
who sell canned or bottled soft drinks at retail in Chicago. The rate is 3 percent of gross
receipts from soft drinks sold at retail. Funds, minus a 2 percent administrative fee, are
distributed monthly to Chicago based on sales of soft drinks occurring in the municipality.
The Illinois Sports Facility Authority imposes a tax of 2 percent of 98 percent on gross
receipts from hotel operators in Chicago. Funds, minus a 4 percent administrative fee,
are distributed monthly to the authority.
The Metropolitan Pier and Exposition Authority (MPEA) imposes the following taxes:
A 1 percent retailers’ occupation tax is imposed on the gross receipts from food
prepared for immediate consumption, alcoholic beverages, and soft drinks sold within
Chicago’s Metropolitan Pier and Exposition Authority (MPEA) boundaries. Funds,
minus a 2 percent administrative fee, are certified to the state treasurer monthly for
distribution to the MPEA to pay for the expansion of Chicago’s McCormick Place.
A 2.5 percent tax is imposed on the gross receipts from hotel operators within the
city of Chicago. Funds are certified to the state treasurer monthly for distribution to
the MPEA to pay for the expansion of McCormick Place in Chicago. There is no
administrative fee imposed for administering this tax.
Under the Illinois Municipal Code, Chicago imposes a Municipal Hotel Operators’
Occupation Tax at the rate of tax of 1 percent of 99 percent on gross rental receipts from
hotel operators in Chicago. Funds, minus a 4 percent administrative fee, are distributed
monthly to Chicago.
Du Page, Kane, and McHenry counties impose a county motor fuel tax on the retail sale
of motor fuel at a rate not to exceed 4 cents per gallon. Du Page and McHenry counties
impose the tax at the rate of 4 cents per gallon, while Kane County imposes the tax at 2
cents per gallon. Funds, minus an administrative fee not greater than 2 percent of the
previous fiscal year’s receipts, are distributed monthly.
The County Water Commission Tax of 0.25 percent is imposed on sales of general
merchandise within the boundaries serviced by the Du Page Water Commission. Funds are
distributed monthly to the Du Page Water Commission. There is no administrative fee
imposed for administering this tax.
Home rule units of local government are authorized to impose a home rule sales tax (in
0.25 percent increments) to be collected by the department. The tax is imposed on the
same general merchandise base as the state sales tax, excluding titled or registered
Tax Rates
and Distribution Formulas
Automobile Renting
Occupation and
Use Taxes
City of Chicago
taxing bodies
• Chicago Home Rule
Municipal Soft Drink
ROT
• Illinois Sports Facility
Hotel Tax
• MPEA Food and
Beverage Tax
• MPEA Hotel Tax
• Municipal Hotel
Operators’ Occupation
Tax
County Motor Fuel
Tax
County Water
Commission Tax
Home rule and
Non-home rule
taxes
Taxes collected for local governments