Chicago Downtown Dining Taxes Higher Than Major U.S. Cities
By Samantha Abernethy in Food on Feb 28, 2012 10:00PM
A study shows Chicago's downtown restaurant tax at 10.75 percent places it at the top tax rate of all major U.S. cities, according to a study by the Tax Foundation, a tax research group. New York City and Los Angeles ranked much further down the list, at 18th and 19th, respectively Only one smaller city charges more than Chicago. Minneapolis has a tax rate of 10.775 percent. Crain's writes:
On top of the 9.5 percent state and local sales tax in Chicago, the city imposes a 0.25 percent restaurant tax and downtown restaurants must levy an additional 1 percent tax for the Metropolitan Pier and Exposition Authority, which runs Navy Pier and McCormick Place.
NYC and LA don't charge a separate meals tax like Chicago does. They only tack on sales tax rates of 8.875 percent and 8.75 percent, respectively. In fact, of the 10 largest cities, Chicago is the only one that imposes that tax.
Add in the fact that Chicago has half of the most expensive restaurants in the country, and diners are dropping dough as fast as they can eat it.