Statutory Reference
Electronic Services
Definition
The tax is imposed on businesses that are manufacturers or importing distributors of liquor.
Tax Rate
The tax rates are listed below.
- 18.5 cents per gallon for beer or cider with an alcohol content of 0.5 percent to 7 percent
- 73 cents per gallon for alcoholic liquor other than beer with an alcohol content of 14 percent or less (includes wine coolers and wine spirits)
- 73 cents per gallon for alcoholic liquor with an alcohol content of more than 14 percent and less than 20 percent
- $4.50 per gallon for alcoholic liquor with an alcohol content of 20 percent or more
Allowable Deductions
The following alcoholic beverages are exempt:
- Wine used by religious organizations for sacramental purposes
- Sales of alcoholic beverages in interstate or foreign commerce
- Sales for use aboard ships operating in foreign commerce outside the continental limits of the U.S.
- Sales to U.S. governmental agencies (military bases) in Illinois (e.g., military bases, veterans’ hospitals)Sales to licensed non-beverage users
- Losses incurred in bottling alcoholic liquors
- Alcoholic liquors destroyed (must be witnessed by a representative of the department)
Local Taxes
Home rule units may impose liquor taxes, which the Department of Revenue does not collect.
Additional registration and bonding requirements
Liquor manufacturers or importing distributors must register with the
Illinois Liquor Control Commission. The Department of Revenue assigns each licensee an internal account number. In addition, the department (not the Illinois Liquor Control Commission) issues permits to Non-beverage Users and licenses Warehouses. A bond is also required of the applicant in an amount that is two times that company's average monthly liability, with a minimum bond of $1000 and a maximum of $100,000.
Form/Filing & Payment Requirements
Most taxpayers file
Form RL-26, Liquor Revenue Return, which is due the 15th day of the month following the month for which the return is filed.
Airlines file
Form RL-26-A, Liquor Revenue Airline Return, which is due the 15th day of the month following the month for which the return is filed.
Electronic Payments
Beginning January 1, 2003, a taxpayer with an annual liability of $200,000 or more in the preceding calendar year must make tax payments by
Electronic Funds Transfer.
Electronic Filing
Beginning January 1, 2003, a taxpayer who files and pays electronically can receive a discount. For more information refer to the
Electronic Filing - Liquor Returns booklet.
