Municipal Sales Tax

HOTEL / MOTEL / ROOM RENTAL TAX - 8%

Who Pays This Tax?

• Hotels
• Motels
• Short-Term Rentals

The tax is assessed at 8% of the taxable receipts for room stays of twenty-nine (29) days or less. Here’s what you need to know:

• Who files: Business owners/operators of Hotels, Motels, and Short-Term Rental Units pay this tax directly to the City of Peoria.
• When to file: Tax returns are due monthly, by the last day of the month following the month you are reporting. (Short-Term Rentals are required to remit annually in January)
• Zero sales: Even if you had no sales in a month, you still need to file a zero return for that period.
• State tax form: Each return must include a copy of your State of Illinois sales tax return for the same period.
• Outstanding months: If your business is already open, you must file for any past months right away.

If you have more than one location, you can file them all on one return, but you must include copies of either:

• The State RHM-1 form for each location, or
• The State RHM-2 form (for multiple locations).

Exemptions:

• Room stays 30 days or longer.

Tax Return Forms:

• Hotel Only Tax Form
• Hotel-Restaurant-Amusement Tax Form
• Short-Term Rental Tax Worksheet

RESTAURANT / TAVERN TAX - 2.0%

Who Pays This Tax?

• Restaurants
• Bars/Taverns
• Mobile Food & Drink Vendors with food/drink sales within the City of Peoria city limits

The tax is assessed at 2% of the taxable receipts for food, non-alcoholic, and alcoholic beverage sales. Here’s what you need to know:

• Who files: Business owners/operators pay this tax directly to the City of Peoria.
• When to file: Tax returns are due monthly, unless authorized otherwise, by the last day of the month following the month you are reporting.
• Zero sales: Even if you had no sales in a month, you still need to file a zero return for that period.
• State tax form: Each return must include a copy of your State of Illinois sales tax return for the same period.
• Outstanding months: If your business is already open, you must file for any past months right away.

If you have more than one location, you can file them all on one return, but you must include copies of either:

• The State ST-1 form for each location, or
• The State ST-2 form (for multiple locations).

Exemptions:

• Pre-packaged sealed items (Take & Bake)
• Hermetically sealed containers

Tax Return Forms:

• Restaurant Only Tax Form
• Hotel-Restaurant-Amusement Tax Form

AMUSEMENT TAX  - 3.0%

Who Pays This Tax?

• Movie Theaters
• Axe Throwing, Escape Rooms, Trampoline Parks, etc
• Carnivals
• Live Theater Events (concerts, plays, musicals, etc)
• Cover Charges for Bar/Tavern Events 
• Sexually Oriented Adult Entertainment 

The tax is assessed at 3% of the admission fees for entertainment. Here’s what you need to know:

• Who files: Business owners/operators pay this tax directly to the City of Peoria.
• When to file: Tax returns are due monthly, by the last day of the month following the month you are reporting.
• Zero sales: Even if you had no sales in a month, you still need to file a zero return for that period.
• State tax form: Each return must include a copy of your State of Illinois sales tax return for the same period.
• Outstanding months: If your business is already open, you must file for any past months right away.

If you have more than one location, you can file them all on one return, but you must include copies of either:

• The State ST-1 form for each location, or
• The State ST-2 form (for multiple locations).

Exemptions:

• Schools, local cultural nonprofits, religious, educational, or charitable institutions.

Tax Return Form: Hotel-Restaurant-Amusement Tax Form

PACKAGED LIQUOR TAX - 2.0%

Who Pays This Tax?

• Microbreweries/Distilleries that package and sell their alcohol
• Liquor Stores/Convenience Stores/Gas Stations
• Grocery Stores/Drug Stores

The tax is assessed at 2% of the taxable receipts for pre-packaged alcohol sales. Here’s what you need to know:

• Who files: Business owners/operators pay this tax directly to the City of Peoria.
• When to file: Tax returns are due monthly, by the last day of the month following the month you are reporting.
• Zero sales: Even if you had no sales in a month, you still need to file a zero return for that period.
• State tax form: Each return must include a copy of your State of Illinois sales tax return for the same period.
• Outstanding months: If your business is already open, you must file for any past months right away.

If you have more than one location, you can file them all on one return, but you must include copies of either:

• The State ST-1 form for each location, or
• The State ST-2 form (for multiple locations).

Tax Return Form: Packaged Liquor Tax Form

MOTOR FUEL TAX - $0.05 PER GALLON

Who Pays this Tax?

• Retail Gas Stations
• Bulk Gasoline Users 
  (Any person who purchases motor fuel for storage in bulk storage facilities located within the City)

The tax is assessed at $0.05 per gallon of motor fuel purchased. Here’s what you need to know:

• Who files: Business owners/operators pay this tax directly to the City of Peoria.
• When to file: Tax returns are due monthly, by the last day of the month following the month you are reporting.
• Zero sales: Even if you had no sales in a month, you still need to file a zero return for that period.
• State tax form: Each return must include a copy of your State of Illinois sales tax return for the same period.
• Outstanding months: If your business is already open, you must file for any past months right away.

If you have more than one location, you can file them all on one return, but you must include copies of either:

• The State ST-1 form for each location, or
• The State ST-2 form (for multiple locations).

Tax Return Form: Motor Fuel Tax Form

BUSINESS DISTRICT / HOSPITALITY ZONE TAX - 1.0%

Who Pays this Tax?

• For a list of locations subject to this tax, please visit: www.tax.illinois.gov
• This tax is only in a designated area in Downtown Peoria

The tax is assessed at 1% of the taxable receipts for room stays of twenty-nine (29) days or less. Here’s what you need to know:

• Who files: Business owners/operators pay this tax directly to the City of Peoria.
• When to file: Tax returns are due monthly, by the last day of the month following the month you are reporting.
• Zero sales: Even if you had no sales in a month, you still need to file a zero return for that period.
• State tax form: Each return must include a copy of your State of Illinois sales tax return for the same period.
• Outstanding months: If your business is already open, you must file for any past months right away.

Tax Return Form: Business Development District Tax Form