ILLINOIS: S&U Tax: Chicago Bottled Water Tax Is Permissible Local Sales Tax

Abstract

In American Beverage Association v. The City of Chicago, an Illinois Appellate Court held that Chicago's 5% tax on bottled water is a sales tax on tangible personal property, not an unauthorized home rule unit occupation tax that violates the Illinois Constitution. Under the Chicago ordinance, the retailer selling bottled water is responsible for collecting and remitting the tax, but the incidence of the tax falls on the purchaser.