The effective date of the tax is July 1, 2017.
 
The tax imposed will be at the rate of $0.01 per ounce on the retail sale of all sweetened beverages in Cook County.

All retailers most pay a Floor tax for the ounces on hand 6/30/17 which is due 7/20/17.

Starting 7/1 the distributor is supposed to remit the tax.  If the distributor did not collect it from the retailor then the retailor is supposed to self-access and pay.

Application of the Sweetened Beverage Tax

• Bottled sweetened beverages (soda, sports drinks, flavored water, energy drinks, pre-made sweetened coffee and tea with less than 50% milk content, etc.) – the tax rate is $.01 per ounce of sweetened beverage and is calculated on the fluid ounces contained in the bottle or can.          
• Sweetened beverages produced from syrups using a beverage dispensing machine and powders using a beverage dispensing machine or by hand mixing (fountain drinks, lemonade, etc.) – tax is applied to the total amount of beverage that the syrup or powder will make per the manufacturers’ directions.
• For example, a 5 gallon bag of syrup will make 3,840 ounces of beverage – at tax rate of $.01 per ounce of sweetened beverage, the tax for that bag of syrup is $38.40.
• A reduction of 5% of the calculated tax will be applied to account for spillage and product preparation.

Exclusions:

• 100% natural fruit/vegetable juice, syrup and powder with no added sweetener
• Milk, soy, rice, or similar milk substitutes that are the primary ingredient (more than 50%)
• Unsweetened drinks to which a purchaser can add, or can request that a retailer add, sugar, at the point of sale
• Infant formula
• Beverages for medical use
• Weight reduction/therapeutic nutritional meal replacements
• Any syrup or powder that the consumer himself or herself combines with other ingredients to create a beverage

More Details @ https://www.cookcountyil.gov/service/sweetened-beverage-tax 

Typical Situation: Our client has health insurance with a high deductible health insurance plans to reduce costs.
 
When you hear a business owner say:
·         “The cost of health insurance is affecting my bottom line.”
·         “we have implemented or are thinking about implementing a High Deductible plan to reduce costs.”
 
Health Savings Accounts (HSA) offers employer groups and consumers two Health Savings Products – one being a no fee HSA and HSA with mutual fund investment options.
 
How they Work They start with a conversation and an email template that is sent prior to or after the conversation. The objective is to review the two products and account opening options the employer can select from (online, paper, URL Links for portals etc.)Once onboard they can provide education, webinars and onsite where applicable.
 
Matching Ideas With Resources:

Typical Situation: Our client is getting new clients and not sure how much credit to give them. They are either newer in business and/ or in a growth mode.
 
When you hear a business owner say:
·         “I am worried my customers might not pay our invoices.”
·         “How much credit should I give that new contact?”
 
Credit Insurance Specialist protects your business against both commercial and political risks that are beyond your control. It improves the quality of your business and helps you to grow profitably, minimizing the risk of sudden or unexpected customer insolvencies. Credit insurance gives you the confidence to extend trade credit to new customers.
 
How they Work Credit insurance protects your company against the failure of your customers to pay trade credit debts owed to you. These debts can arise following a customer becoming insolvent or failing to pay within the agreed terms and conditions (protracted default).
 
They monitor the financial performance and well-being of your customers and allocate each of those customers a grade that reflects the health of their activity and the way they conduct business.
 
From this risk assessment, each of your buyers is then granted a specific credit limit up to which you can trade and claim should something go wrong. This limit may be revised upwards or downwards as new information becomes available.
 
Matching Ideas with Resources:

On July 1st 2017 all business in Cook County (except those in cities listed below) must increase their minimum wage to $10.00 an hour.  The minimum wage will go up $1.00 an hour each consecutive year (on July 1st) to reach $13.00 an hour by 2020.  Thereafter it will be increased with inflation but not to exceed 2.5% per year.  Businesses in the city of Chicago must increase their minimum wage to $11.00 an hour on July 1st (currently their minimum is $10.50/hr) and will also go up $1.00 an hour each consecutive year, reaching $13.00 an hour by 2019.  Thereafter the minimum increases with inflation and is capped at 2.5%.
 
Also Cook County businesses (including Chicago but excluding those cities listed below) must begin offering paid time off (sick time) to all employees working more than 80 hours in any 120 day period, accrued at the rate of 1 hour for every 40 hours worked.  Employees begin accruing sick time starting with their first day of employment, or July 1st 2017.  Companies can stipulate a waiting period of up to 180 days for new employees to begin using their earned time off.  ½ of any unused sick time must be carried over from one year to the next (up to 20 hours).  Employers can’t set unreasonably burdensome notification or use policies.  Sick time can be used for one’s self or family member (including extended family members) for any illness or issues related to being the victim of domestic violence or sexual offense.  Accrued but unused sick time does NOT need to be paid out upon separation of employment.  Existing PTO policies must meet all of the new requirements or be modified to match where deficient.  Notice of the sick time policies must be given in employees paychecks 2 weeks prior to taking effect on July 1st, at the time of employment for new employees, and must be posted in a conspicuous place at each facility.
 
Cities that have opted out of the Cook County minimum wage increases and sick time requirements so far:
Municipalities That Have Opted Out (as of 6/2/17)

• Alsip
• Arlington Heights
• Barrington
• Bartlett
• Bedford Park
• Bellwood
• Bridgeview
• Buffalo Grove
• Burbank
• Burr Ridge
• East Hazel Crest
• Elk Grove Village
• Elgin
• Elmwood Park
• Evergreen Park
• Harwood Heights
• Hickory Hills
• Hoffman Estates
• Justice
• Lynwood
• Melrose Park
• Morton Grove
• Mount Prospect
• Niles
• Norridge
• Oak Forest
• Oak Lawn
• Palatine
• Palos Heights
• Palos Park
• River Forest
• River Grove
• Rolling Meadows
• Rosemont
• Schaumburg
• South Barrington
• Streamwood
• Tinley Park
• Western Springs
• Wheeling

Municipalities Still Considering Opting Out (as of 6/2/17)​

• Berkeley
• Berwyn
• Cicero
• Des Plaines
• Forest Park
• Hillside
• North Riverside
• Northbrook
• Orland Park
• Palos Hills
• Park Ridge
• Prospect Heights
• Westchester
• Worth

Note that unincorporated townships that don’t have home rule can’t opt out.  So be aware of where the client is, not just the mailing address.
 
As we get nearer to 7/1/17 I expect this list of opt outs to increase and I will do my best to keep us up to date on those that have officially opted out. 

​Feel free to stop by and see me if you want more details or have questions.​

Ruth Kronvold
​[email protected]
GLM, Inc.
200 W Higgins Rd Ste 326
Schaumburg, IL  60195
P 847-884-1781 x33
www.glmfinancial.com
​