• 5 percent of amount collected

Title 3, Chapter 36 of the Village Code imposes a 5% amusement surcharge on any fee or charge made for admission to any amusement event. An amusement event is defined as any event, activity, exhibition, performance, presentation, or show for entertainment purposes which is staged in the village. The amusement surcharge is not assessed against any show or event not open to the general public, or amusements sponsored by religious, educational, charitable or governmental entities. Admissions charges paid by religious, educational, charitable, or governmental groups at other amusements is subject to the surcharge. The amusement surcharge is imposed on the amusement patron and collected by the amusement owner. The amusement owner remits all surcharges collected on a monthly basis, along with the appropriate Amusement Tax Form. For further information on the amusement tax, please refer to Title 3, Chapter 36 of the Village Code or contact the Finance Department at 847-895-4500.

Amusement Tax Packet

Title 3, Chapter 36 of the Village Code imposes a tax on the privilege of leasing a motor vehicle from a business located in the Village, whether on a daily, weekly, monthly or yearly basis. The tax is $1.00 per vehicle per leasing period. The lessee is responsible for paying the tax, and the lessor is responsible for collecting the tax and remitting it to the Village on a quarterly basis and by submitting the Automobile Lease Tax Form . For further information on the automobile lease tax, please refer to Title 3, Chapter 36 of the Village Code, or contact the Finance Department at 847-923-4537.

Title 3, Chapter 36 of the Village Code imposes a 2% tax on the retail purchase of alcoholic liquor, food or beverages at any retail food facility or retail liquor facility. The food and beverage tax is in addition to the applicable sale tax. The tax is imposed on the purchase of the prepared food or liquor, and collected and remitted monthly by the retail facility along with the Food and Beverage Tax Form . The tax is to be remitted by the last day of the calendar month following the month of sales. For further information on the food and beverage tax please refer to Title 3, Chapter 36 of the Village Code or contact the Finance Department at 847-895-4500.

Food and Beverage Tax Packet

Title 3, Chapter 36 of the Village Code imposes an 8% tax on the use and privilege of renting, leasing or letting rooms in a motel or hotel in the Village. The owner of the hotel, motel, bed and breakfasts, or short term rentals are responsible for collecting and remitting the tax to the Village. Accommodations that are leased to an occupant for more than 30 consecutive days are exempt from the tax. Owners of hotels, motels, bed and breakfasts, short term rentals, or as any other persons, entities, or on-line travel companies are required to submit the hotel and motel tax collected on a monthly basis along with a Hotel and Motel Tax Form . The form and payment are due no later than the last day of the calendar month following the reporting month. For further information on the Hotel and Motel Tax please refer to Title 3, Chapter 36 of the Village Code, or contact the Finance Department at 847-895-4500.

The Village of Schaumburg does impose a 1% home-rule sales tax that is administered and collected by the State of Illinois. The home-rule sales tax does not apply to the purchase of groceries, drugs, or licensed vehicles.

Title 3, Chapter 36 of the Village Code imposes tax upon the privilege of purchasing or using Motor Fuel at retail within the Village. The tax rate is three cents ($0.03) per gallon of motor fuel. The local motor fuel tax is in addition to the applicable taxes. The tax is imposed on the purchaser or user of the vehicle fuel, and collected and remitted monthly by the retail facility along with the Local Motor Fuel Tax Form. The tax is to be remitted by the last day of the calendar month following the month of sales. For further information on the local motor fuel tax please refer to Title 3, Chapter 36 of the Village Code or contact the Finance Department at 847-895-4500.

Local Motor Fuel Tax Packet

• .619 percent of Property Equalized Assessed Valuation

Learn more about Property Tax.

• $1 per thousand

Learn more about Real Estate Transfer Tax.

Recreational Cannabis

In late 2019, Schaumburg officials approved several ordinances that will allow for recreational cannabis to be sold in Schaumburg. The first ordinance provides regulations regarding the cultivation, processing and dispensing of cannabis in the village as well as business registration requirements. The second ordinance enacts a 3% tax on the sale of cannabis products. A third ordinance places regulations on the number and location of dispensaries and cultivation centers allowed in Schaumburg.

Schaumburg Local Ordinances:

• Ordinance No. 19-087
• Ordinance No. 19-088
• Ordinance No. 19-107

The issue was brought forth in response to Cannabis Regulation and Tax Act, which legalized the consumption and possession of cannabis for adults 21 and older in Illinois that began Jan. 1, 2020. Schaumburg’s Village Board discussed the topic at three Committee of the Whole meetings to consider whether recreational cannabis will be sold by cannabis dispensaries interested in operating as retail establishments in Schaumburg. A consensus was reached to allow sales and gives the village direct control over the operations and allow the village to collect tax revenue from the sale of cannabis.

Local Application Process for Businesses

Licensing

• Is a license required to operate a cannabis establishment in Illinois?
  Yes. The Illinois Office of Cannabis Control shall issue licenses for all dispensing organizations. Dispensing organizations are defined as a facility operated by an organization or business that is licensed by the Illinois Department of Financial and Professional Regulation to acquire cannabis from a cultivation center, craft grower, processing organization or another dispensary for the purpose of selling or dispensing cannabis, cannabis-infused products, cannabis seeds, paraphernalia or related supplies to purchasers or to qualified registered medical cannabis patients and caregivers.

• Is a license required to operate a cannabis establishment in the Village of Schaumburg?
  A business is required to register annually with the village. There is no charge for registration. A business license from Schaumburg is not required.

Special Use

• Establishments interested in serving as a cannabis dispensary must seek a special use permit from the Village of Schaumburg. Adult-use manufacturing establishments also require a special use permit. Information required as part of the special use plans must include site and floor plans, plans for disposal, ventilation, security plan, a proposed plan of operations, signage plan, parking and other information pertaining to the proposed location and operations of the establishment.

Development Review Resource Guide

Development Review Application

Cannabis Business FAQs

What are the hours of operation?

Adult-Use Cannabis Dispensing Organizations shall operate only between the hours of 6 a.m. and 10 p.m.

How many dispensaries are allowed in the Village of Schaumburg?

A total of 5 dispensaries are allowed in the village. In addition, the village will allow up to 5 adult-use manufacturing establishments such as cultivation centers, craft growers, cannabis infusers, cannabis processors and cannabis transporters to operate in the village.

Where are dispensaries and cultivation/processing uses allowed in the Village of Schaumburg?

Dispensaries are allowed in most business-zoned districts of the village provided they meet restrictions identified in the zoning ordinance and are 1,000 feet away from day cares, schools and places of worship. The map indicates where dispensaries are permitted to operate in the village.

How is the sale of cannabis going to be taxed at the state level?

• As of Jan. 1, 2020, a Cannabis Purchaser Excise Tax is imposed by the State of Illinois upon purchasers for the privilege of using cannabis at the following rates:
  • Cannabis flower or products with less than 35 percent Tetrahydrocannabinol (THC): 10 percent tax.
  • Cannabis-infused products (i.e. edibles): 20 percent tax.
  • Cannabis flower or products with a THC concentration higher than 35 percent: 25 percent tax.
• The purchase price of any product that contains any amount of cannabis or any derivative is subject to the excise tax on the full purchase price of the product.
• The purchase of cannabis is also subject to state and local sales taxes. The total sales tax rate in Schaumburg is 10%. Sales tax is collected in addition to all other occupation, privilege or excise taxes imposed by the State of Illinois or by any municipal corporation or political subdivision of the state.
• All funds received by the Illinois Department of Revenue under the excise tax will be paid into the Cannabis Regulation Fund in the state treasury.

How will cannabis be taxed at the local level?

• Starting July 1, 2020, Schaumburg businesses are required to collect an additional 3% Municipal Cannabis Retailers’ Occupation Tax as well as an anticipated additional 3% County Cannabis Retailers’ Occupation Tax.
• The Municipal Cannabis Retailers’ Occupation Tax shall be remitted to, collected by and enforced by the Illinois Department of Revenue.
• In addition, the local 2% food and beverage tax rate may also apply to edible cannabis products. The local food and beverage tax shall be remitted to the Village of Schaumburg and is due by the last day of each month succeeding the month the sales transaction occurred.

Recreational Cannabis FAQs

When was recreational cannabis made legal in Illinois?

On Nov. 25, 2019, Governor JB Pritzker signed Illinois House Bill 1438, better known as the Cannabis Regulation and Tax Act (CRTA), thus legalizing the consumption and possession of cannabis for adults 21 and older in Illinois.

Can the consumption/possession of recreational cannabis be banned by a local municipality like Schaumburg?

No, municipalities cannot ban or override the CRTA.

What regulatory abilities, if any, do business owners and landlords have?

Any person, business, public entity, or landlord may prohibit the use of cannabis on private property.

Who can legally purchase and consume recreational cannabis?

As a result of the new State law, the consumption of cannabis as of Jan. 1, 2020, will be treated similarly to that of the consumption of alcohol with any Illinois resident, or non-resident, ages 21 or over, now being able to purchase and consume cannabis.

How much cannabis may an individual possess?

Illinois residents may possess up to:

• 30 grams, or just over one ounce of “flower”
• 5 grams of cannabis concentrate
• 500 milligrams of THC - the chemical that makes users high – in a cannabis infused product such as gummies, candy, other consumable products (referred to as “edibles”), or tinctures, and lotions

Will cannabis consumption be allowed in public spaces?

No, the consumption of cannabis in public is unlawful and subject to enforcement by police.

Where will consumption be allowed?

The consumption of cannabis will be allowed on private property only. It is unlawful to consume cannabis in a motor vehicle. Cannabis must be properly packaged when carried in a motor vehicle. Violations are subject to enforcement by police.

Are there any changes to existing medical cannabis laws?

Yes, the list of conditions that are covered under the use of medial cannabis was expanded to now include chronic pain, autism, migraines, irritable bowel syndrome, osteoarthritis, and anorexia.

How do federal laws affect Illinois’ law?

Although cannabis remains illegal at the federal level, federal law enforcement has rarely interfered with individuals possessing the state regulated legal amount or businesses complying with state enforced programs. Any questions related to Federal or State regulations should be directed to the proper agencies.

The State of Illinois administers and collects a sales tax on the purchase of goods and merchandise. A portion of the tax is remitted to municipalities and other government agencies. The total tax rate depends in which municipality and county the purchase is made.

Learn more about Sales Tax.

The Village of Schaumburg imposes a 6% simplified telecommunications tax. The tax is administered and collected by the State of Illinois.

Call 1-800-906-9887 to locate the nearest VITA site.

The IRS Volunteer Income Tax Assistance Program (VITA) and the Tax Counseling for the Elderly (TCE) Programs offer free tax help for taxpayers who qualify.

For more information, visit the IRS website.