Illinois charges a 6.25% sales tax for sales within the state. There are many exceptions to sales tax in Illinois, some of the most common exceptions are movie tickets, food purchased at grocery stores, food sold in a student cafeteria, newspapers, some Internet sales, and sales by nonprofit organizations.
The Ohio General Assembly established the CAT in 2005 as part of a series of tax reforms in the FY 06-07 budget (Am. Sub. HB 66). HB 66 phased-in the CAT and simultaneously phased-out the state corporate franchise tax and local tangible personal property tax for most businesses.
Despite its name, a franchise tax is not a tax on McDonalds or other franchises. Instead, it is a tax that states charge on corporations and other business entities, such as limited liability companies (LLCs), for the privilege of incorporating or doing business in their state.