Effective October 1, 2005, by the passage of Ordinance 3998, there is a 1% tax levied on gross receipts received for the sale of prepared food and beverages sold at retail at "Restaurants and Other Places for Eating."

Definition

"Places for Eating" is defined as a place where prepared food is sold at retail for immediate consumption with seating provided on the premises (including any outdoor seating on the premises), whether the food is consumed on the premises or not.

Summary of Tax Ordinance

Effective Date

This ordinance went into effect on October 1, 2005.

Items Included

"Prepared food" is defined as food or liquid, including alcoholic beverages, that are prepared for immediate consumption at "Restaurants and Other Places for Eating."

Exempt Entities

Entities that are exempt from the sales tax provisions of state statute are exempt from the Restaurant and Other Places for Eating Tax.

Tax

The tax is levied on the gross receipts received for prepared food and beverages sold at retail. The amount of the tax is 1% and is placed on the owners of Restaurant and Other Places for Eating, who can pass the tax along to consumers.

Commission

The entity may keep a commission of 1% of the amount of the tax, to reimburse for expenses incurred in the administration of the tax.

Payments Due

Payments are due on or before the 1st day of the 2nd month after the taxes have been collected. For example, taxes collected in October are due by December 1st; taxes collected in November are due by January 1st. Send check payments to Avenu Insights & Analytics:

Sales Tax Division
PO BOX 830725
Birmingham, AL 35283-0725

Toll Free Phone: (800) 556-7274
Toll Free Fax: (844) 528-6529

Payments may also be made online using Visa, Mastercard or Discover credit cards at: www.salestaxonline.com. Tax ID numbers will be required to set up online accounts.

More Information

Please submit your questions in writing to the address above or by fax to 847-459-9692. Be sure to include a phone number and address where we can respond to your question.