Illinois Gov. J.B. Pritzker (D) has announced plans to defer sales tax payments and waive penalties and interest for bars and restaurants affected by the spread of COVID-19.
On March 19, Pritzker announced that the Department of Revenue would defer sales tax payments for more than 24,000 bars and restaurants, representing more than 80 percent of the state’s total. Eating and drinking establishments qualify for the deferral if they incurred less than $75,000 in sales tax liabilities last year. These businesses will not be charged penalties or interest on late payments originally due in March, April, or May.
Taxpayers are still required to file sales tax returns on time but will be eligible to pay their March, April, and May sales tax liabilities in four installments, starting May 20 and extending to August 20.
The move follows calls for relief from restaurant and bar owners after Pritzker banned on-site food consumption statewide in an effort to stem the spread of the coronavirus. The ban is in effect until March 30.