Illinois’ Governor Pritzker is providing businesses that operate eating and drinking establishments some much needed relief during the COVID-19 pandemic. After a strong push from merchants, the Governor’s new policy provides a two-month reprieve for businesses needing to remit collected sales taxes to the state for processing. This concession offered by the Governor will help preserve liquidity for companies that are suffering from decreased income during the ongoing crisis, but who are still facing operational expenses.
The deferral in sales tax will apply to bars and restaurants that paid $75,000 or less in sales tax in 2019; and will include approximately 24,000 establishments. These establishments will still have to file returns for March, April, and May, but will be allowed to withhold their payments for two months without being charged interest. There will also be no penalties accrued providing that the merchants make payments in four timely installments beginning on the 20th of May, then again in June, July, and August. Officials estimate that four out of five bars and restaurants statewide will benefit from this deal.