Business District Retailers' Occupation Tax
Statutory Reference
Definition
Municipalities that have approved
a business district development or redevelopment plan and have
elected to impose a tax by ordinance may impose a Business District
Retailers’ Occupation and Service OccupationTax on sales of
general merchandise within the business district. The tax may
not be imposed on sales of items that will be titled or registered
with an agency of state government or on qualifying food, drugs,
and medical appliances.
Tax Rate
The tax may be imposed in 0.25% increments and cannot exceed
1% .
Forms/Filing &
Paying Requirements
Affected retailers and servicepersons
report the tax on Form ST-1, Sales and Use Tax Return (this
form is not available on-line). If imposed, the preprinted
rate on Form ST-1, and if a multi-site filer, on Form ST-2
will include the tax. The due date is the same as provided
for in the Retailers’ Occupation Tax Act and the Service
Occupation Tax Act. For more information, see
“Sales
& Use Taxes."
