Airport Departure Tax Rate Increase

July 21, 2010

MPEA Airport Departure Tax Rate Increase

On July 21, 2010 The Metropolitan Pier and Exposition Authority (MPEA) amended their airport departure tax ordinance to include an increase in the tax effective September 1, 2010.

Category 1: Taxi & Livery

The tax rate changes as follows: old rate $2.00 to new rate of $4.00 for each taxi or livery departure.
Taxpayers may reimburse themselves by imposing a charge of $2.00 per trip in addition to fare charges with passengers for hire both on pickups and drop-offs at O’Hare and Midway airports.

Category 2: Buses & Vans

The tax rate changes as follows:
Bus or van with capacity of 1-12 passengers: prior rate of $9.00 to new rate of $18.00 per departure.
Bus or van with capacity of 13-24 passengers: prior rate of $18.00 to new rate of $36.00 per departure.
Bus or van with capacity over 24 passengers: prior rate of $27.00 to new rate of $54.00 per departure.
Taxpayers may reimburse themselves either by (i) including the amount of their estimated tax liability in their charges without any reference to the tax or by (ii) imposing a charge not to exceed $2.00 per passenger for each departure from O’Hare and Midway airports in addition to their regular charges provided that the taxpayer discloses the charge separately on any ticket, invoice or statement by which the taxpayer bills his charges.

Category 3

The tax rate changes as follows: old rate $1.00 to new rate of $2.00 per passenger for each departure in a bus or van regulated by the Interstate Commerce Commission or the Illinois Commerce Commission operating on a scheduled service from O’Hare and Midway airports.
Taxpayers may reimburse themselves by imposing a charge of $2 per passenger for each scheduled departure from O’Hare and Midway airports in addition to the customary per passenger fare.

• For taxi and livery operators that pay this tax by stamp, the stamp will increase from $2.00 to $4.00 per departure effective September 1, 2010. During the week of August 30, 2010 through September 3, 2010 we will have an exchange process and provide staff at each airport to facilitate the exchange of two unused old stamps for one new stamp. September 1, 2010 will be the last date that aviation staff will accept two unused old stamps affixed to the ticket. The new stamp has the $4.00 rate stated on the stamp. Beginning September 2, 2010 only new stamps will be accepted. After September 3, 2010 exchanges will be handled by the City of Chicago Department of Revenue /Tax Division located at 333 S State Street, Suite 300.
• No exchanges will be given at either airport after September 3rd.
• For registered filers of the tax, you may continue to use the periodic payment coupons that were previously distributed. Further instructions on the filing of tax forms will be distributed in June 2011.

For questions about the increase please call our Customer Service unit at (312) 747-4747.