The City of Rockford collects two types of local sales tax, the Redevelopment Fund (Metro) Tax and the Tourism (Hotel/Motel) Tax. The City also levies a 1% sales tax strictly for infrastructure improvements, but that tax is collected by the State of Illinois.
Redevelopment Fund (Metro) Tax
Restaurants, package liquor stores, and lounges/bars operating within the City of Rockford are responsible for collecting a 1% Redevelopment Fund (Metro) Tax on the retail purchase price of food, beverages, and package liquor. This tax is in addition to the usual 6-1/4% sales tax. Hotels/motels operating in the City of Rockford are responsible for collecting a 1% Redevelopment Fund Tax in addition to the 6-1/4% sales tax on the charge for renting a hotel or motel room.
Tourism (Hotel/Motel) Tax
Hotels and motels are also responsible for collecting a 5% Tourism Tax in addition to the 6-1/4% sales tax and the 1% Redevelopment Fund Tax.
How the Sales Tax Works:
On or about the 25th day of each month, a preprinted tax form and envelope will be sent to you. Please fill in the blanks with your sales and metro tax information from the previous month and return a copy of the form along with your check in the enclosed envelope. If your form is misplaced, fill out a blank copy, available below, and mail to the address listed on the form. In order to avoid fines, tax forms must be filed by the last day of the month for the preceding month's sales.
Local Sales Tax Return
Please notify us about new business or ownership changes by filling out the Local Sales Tax Business Registration Form. Your tax returns will be mailed according to the information on the questionnaire.
For more information on Metro Tax, click here.