Chicago has a sales tax on amusements which includes events. However, there are two exemptions available:501C3 organizations Events that comply with all 5 of these criteria:
– 501C3 Organizations OR
– Events that meet all 5 of these criteria:
- The event takes place primarily on the public way or other public property,
- Any required permits are obtained,
- The event, or the organization conducting the event, is open to the public,
- At least 100 individuals pay to participate in the event, and
- The event will promote or celebrate the City, its civic institutions, or public activities or events in the City, and will promote the interests and welfare of the City.
The good news is that most races meet these 5 criteria and no tax is due.
To take this exemption, go into your race dashboard and agree that you comply with the regulations or are a nonprofit and enable the exemption.
Remember, you must enable your races with any applicable exemptions – it is the only way we know that you comply and not tax your transactions.
Also, unfortunately, there is not way to pull back sales taxes paid by participants on events that took transactions before the exemption was taken.