Illinois Compiled Statutes
Chapter 35 - REVENUE
35 ILCS 155/ - Automobile Renting Occupation and Use Tax Act.

(35 ILCS 155/1) (from Ch. 120, par. 1701)
Sec. 1.

This Act shall be known and may be cited as the "Automobile
Renting Occupation and Use Tax Act".

(Source: P.A. 82-703.)
 
(35 ILCS 155/2) (from Ch. 120, par. 1702)
Sec. 2. Definitions. "Renting" means any transfer of the possession
or right to possession of an automobile to a user for a valuable consideration
for a period of one year or less.
"Renting" does not include making a charge for the use of an
automobile where the rentor, either himself or through an agent, furnishes a
service of operating an automobile so that the rentor remains in possession of
the automobile, because this does not constitute a transfer of possession
or right to possession of the automobile.
"Renting" does not include the making of a charge by an
automobile dealer for the use of an automobile as a demonstrator in connection
with the dealer's business of selling, where the charge is merely made to
recover the costs of operating the automobile as a demonstrator and is not
intended as a rental or leasing charge in the ordinary sense.
"Automobile" means (1) any motor vehicle of the first division, or (2) a motor vehicle
of the second division which: (A) is a self-contained motor vehicle designed or
permanently converted to provide living quarters for recreational, camping or
travel use, with direct walk through access to the living quarters from the
driver's seat; (B) is of the van
configuration designed for the transportation of not less than 7 nor more than
16 passengers, as defined in Section 1-146 of the Illinois Vehicle
Code; or (C) has a Gross Vehicle Weight Rating, as defined in Section 1-124.5 of the Illinois Vehicle Code, of 8,000 pounds or less.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership, association,
joint stock company, joint adventure, public or private corporation, limited
liability company, or a receiver, executor, trustee, conservator or other
representative appointed by order of any court.
"Rentor" means any person, firm, corporation or association engaged in
the business of renting or leasing automobiles to users. For this purpose,
the objective of making a profit is not necessary to make the renting activity
a business.
"Rentee" means any user to whom the possession, or the right to possession,
of an automobile is transferred for a valuable consideration for a period
of one year or less, whether paid for by the "rentee" or by someone else.
"Gross receipts" from the renting of tangible personal property or
"rent" means the total rental price or leasing price. In the case of
rental transactions in which the consideration is paid to the rentor on an
installment basis, the amounts of such payments shall be included by the rentor
in gross receipts or rent only as and when payments are received by the rentor.
"Gross receipts" does not include receipts received by an automobile dealer
from a manufacturer or service contract provider
for the use of an automobile by a person while that person's automobile is
being repaired by that automobile dealer and the repair is made pursuant to a
manufacturer's warranty or a service contract where a manufacturer or service
contract provider reimburses that automobile dealer pursuant to a
manufacturer's warranty or a service contract and the reimbursement is merely
made
to recover the costs of operating the automobile as a loaner vehicle.
"Rental price" means the consideration for renting or leasing an automobile
valued in money, whether received in money or otherwise, including cash
credits, property and services, and shall be determined without any deduction
on account of the cost of the property rented, the cost of materials used,
labor or service cost, or any other expense whatsoever, but does not
include charges that are added by a rentor on account of the
rentor's tax liability under this Act or on account of the rentor's duty
to collect, from the rentee, the tax that is imposed by Section 4 of this Act.
The phrase "rental price" does not include compensation paid to a rentor by a
rentee in consideration of the waiver by the rentor of any right of action or
claim against the rentee for loss or damage to the automobile
rented and also does not include a separately stated charge for insurance or
recovery of refueling costs or other separately stated charges that are not for
the use of tangible personal property.

(Source: P.A. 98-574, eff. 1-1-14.)
 
(35 ILCS 155/3) (from Ch. 120, par. 1703)
Sec. 3.
A tax is imposed upon persons engaged in this State in the business
of renting automobiles in Illinois at the rate of 5% of the gross receipts
received from such business. The tax herein imposed does not apply to the
renting of automobiles to any governmental body, nor to any corporation,
society, association, foundation or institution organized and operated
exclusively for charitable, religious or educational purposes, nor to any
not for profit corporation, society, association, foundation, institution
or organization which has no compensated officers or employees and which is
organized and operated primarily for the recreation of persons 55 years of
age or older. Every person engaged in this State in the business of renting
automobiles shall apply to the Department (upon a form prescribed and
furnished by the Department) for a certificate of registration under this
Act. The certificate of registration which is issued by the Department to a
retailer under the Retailers' Occupation Tax Act shall permit such rentor
to engage in a business which is taxable under this Section without
registering separately with the Department.
The Department shall have full power to administer and enforce this Section,
to collect all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in the manner hereinafter provided, and to determine
all rights to credit memoranda, arising on account of the erroneous payment
of tax or penalty hereunder. In the administration of, and compliance with,
this Section, the Department and persons who are subject to this Section
shall have the same rights, remedies, privileges, immunities, powers and
duties, and be subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2a, 2b, 2c, 3 (except
provisions relating to transaction returns, electronic filing of returns, and quarter monthly payments),
4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
11a, 12 and 13 of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act as fully as if those provisions were set
forth herein.

(Source: P.A. 100-303, eff. 8-24-17.)
 
(35 ILCS 155/4) (from Ch. 120, par. 1704)
Sec. 4.
A tax is imposed upon the privilege of using, in this State,
an automobile which is rented from a rentor. Such tax is at the rate of
4% of the rental price of such automobile prior to July 1, 1985 and at
the rate of 5% of the rental price of such automobile on and after July 1,
1985 paid to the rentor under any rental agreement. The tax herein imposed
shall not apply to any governmental body, nor to any corporation, society,
association, foundation or institution, organized and operated exclusively
for charitable, religious or educational purposes, nor to any not for
profit corporation, society, association, foundation, institution or
organization which has no compensated officers or employees and which is
organized and operated primarily for the recreation of persons 55 years of
age or older, when using tangible personal property as a rentee.
The tax hereby imposed shall be collected from the rentee by a rentor
maintaining a place of business in this State and remitted to the Department.
The tax hereby imposed and not paid to a rentor pursuant to the preceding
paragraph of this Section shall be paid to the Department directly by any
person using such automobile within this State.
Rentors shall collect the tax from rentees by adding the tax to the rental
price of the automobile, when rented for use, in the manner prescribed by
the Department. The Department shall have the power to adopt and promulgate
reasonable rules and regulations for the adding of such tax by rentors to
rental prices by prescribing bracket systems for the purpose of enabling
such rentors to add and collect, as far as practicable, the amount of such tax.
The tax imposed by this Section shall, when collected, be stated as a
distinct item separate and apart from the rental price of the automobile.
The Department shall have full power to administer and enforce this Section;
to collect all taxes, penalties and interest due hereunder; to dispose of
taxes, penalties and interest so collected in the manner hereinafter provided,
and to determine all rights to credit memoranda or refunds arising on account
of the erroneous payment of tax, penalty or interest hereunder. In the
administration of, and compliance with, this Section, the Department and
persons who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be subject to the
same conditions, restrictions, limitations, penalties and definitions of
terms, and employ the same modes of procedure, as are prescribed in
Sections 2, 3 through 3-80, 4, 6, 7, 8, 9 (except provisions relating to
transaction returns, electronic filing of returns, and quarter monthly payments), 10, 11, 12, 12a, 12b,
13, 14, 15, 19, 20, 21 and 22 of the Use Tax Act, and are not inconsistent
with this Section, as fully as if those provisions were set forth herein.

(Source: P.A. 100-303, eff. 8-24-17.)
 
(35 ILCS 155/5)
Sec. 5.
Sunset of exemptions, credits, and deductions.
The application
of every exemption, credit, and deduction against tax imposed by this Act that
becomes law after the effective date of this amendatory Act of 1994 shall be
limited by a reasonable and appropriate sunset date. A taxpayer is not
entitled to take the exemption, credit, or deduction beginning on the sunset
date and thereafter. If a reasonable and appropriate sunset date is not
specified in the Public Act that creates the exemption, credit, or deduction, a
taxpayer shall not be entitled to take the exemption, credit, or deduction
beginning 5 years after the effective date of the Public Act creating the
exemption, credit, or deduction and thereafter.

(Source: P.A. 88-660, eff. 9-16-94.)

Structure Illinois Compiled Statutes