Chicago Tax Law Update

Chicago taxpayers should take note of changes the city has made to its tax laws that will affect all city taxpayers. These changes include modifying the payment dates of estimated tax payments, expanding the Chicago hotel tax and narrowing the scope of the Chicago Employers' Expense Tax on Chicago employers. These changes all take effect on July 1, 2011, for fiscal years starting on that date, and are as follows:

Monthly or Quarterly Tax Payments: Chicago has amended its Uniform Revenue Procedures Ordinance to provide that monthly (or quarterly) tax payments or estimates now have to be filed by the 15th of the following month, rather than at the end of the following month—or otherwise be subject to penalty and interest. Because of the potential 5-percent penalty and 1-percent monthly interest rate, taxpayers may want to take care to ensure that the postmark of their payments comply with this new law.