reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.111 - Commercial Distribution Fee Sales Tax Exemption

Current through Register Vol. 48, No. 28, July 12, 2024
a) Qualifications for exemption through June
			 30, 2004. Beginning on July 1, 2003 through June 30, 2004, sales of certain
			 motor vehicles are not subject to the tax imposed under this Part if they meet
			 all of the following tests:
1) The motor
			 vehicle qualifies as a second division motor vehicle under Section 1-146 of the
			 Illinois Vehicle Code. First division motor vehicles, such as those motor
			 vehicles that are designed for the carrying of not more than 10 persons, do not
			 qualify for the exemption (See
			 625 ILCS
			 5/1-146.);
2) The motor vehicle has a gross vehicle
			 weight in excess of 8,000 pounds; and
3) The motor vehicle is subject to the
			 Commercial Distribution Fee imposed under Section 3-815.1 of the Illinois
			 Vehicle Code. [35 ILCS
			 110/2 ] The motor vehicle must be registered and
			 remain registered in such a manner whereby it is subject to payment of the
			 Commercial Distribution Fee imposed under Section 3-815.1 of the Illinois
			 Vehicle Code [625 ILCS
			 5/3-815.1] and such fee is actually paid for any
			 period in which the fee is in effect.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.115 - Collection Of The Service Use Tax By Servicemen

Current through Register Vol. 48, No. 28, July 12, 2024
a) Servicemen who incur and remit Service
			 Occupation Tax to the Department; or servicemen who come within the definition
			 of a "Serviceman maintaining a place of business in this State" (as set out in
			 Section
			 160.105(f)
			 of this Part and in Section 2 of the Service Use Tax Act) and who have a
			 Service Use Tax collection obligation; or other servicemen who are authorized
			 to voluntarily collect the Service Use Tax, shall collect the tax from users.
			 The Service Use Tax shall be based on the selling price of the tangible
			 personal property transferred incident to the sale of service if stated
			 separately on the invoice from the serviceman. If not stated separately, then
			 the tax will be imposed on 50% of the entire billing from the serviceman.
			 However, the Service Use Tax which is collected by a de minimis serviceman who
			 incurs Service Occupation Tax on his cost price of tangible personal property
			 transferred incident to service, as provided at 86 Ill. Adm. Code
			 140.109,
			 shall be based upon his cost price of tangible personal property transferred
			 incident to his sales of service. For purposes of this Part, "cost price" is
			 defined as provided in 86 Ill. Adm. Code
			 140.201.
b) Although not required unless requested by
			 the service customer, the Service Use Tax may be separately stated as a
			 distinct item on the service bill (Section 3a of the Act).
c) If the serviceman collects the Service Use
			 Tax as a separate item, he shall use the tax collection brackets prescribed in
			 the Use Tax rules (86 Ill. Adm. Code 150.Table A) with respect to the 6.25 %
			 rate when it is impracticable to collect exactly 6.25% of the selling or cost
			 price.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.116 - Persons Who Lease Tangible Personal Property to Exempt Hospitals

Current through Register Vol. 48, No. 28, July 12, 2024
a) Effective
			 January 1, 1996, computers and communications equipment utilized for any
			 hospital purpose that are transferred incident to the sale of service to
			 persons who lease those items to exempt hospitals are not subject to Service
			 Use Tax providing:
1) the computers and
			 communications equipment described above must be leased to a tax exempt
			 hospital under a lease that has been executed or is in effect at the time of
			 purchase;
2) the lease must be for
			 a period of one year or longer; and
3) the lease must be to a hospital that has
			 an active tax exemption identification number issued by the Department under
			 Section 1g of the Retailers' Occupation Tax Act (see 86 Ill. Adm. Code
			 130.2007
			 ).
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.117 - Persons Who Lease Tangible Personal Property to Governmental Bodies

Current through Register Vol. 48, No. 28, July 12, 2024
a) Effective
			 January 1, 1996, tangible personal property transferred incident to a sale of
			 service to a lessor who leases that property to a governmental body is not
			 subject to Service Use Tax provided that:
1)
			 the property must be leased to a governmental body under a lease that has been
			 executed or is in effect at the time of purchase;
2) the lease must be for a period of one year
			 or longer; and
3) the lease must be
			 to a governmental body that has an active tax exemption identification number
			 issued by the Department under Section 1g of the Retailers' Occupation Tax Act
			 (see 86 Ill. Adm. Code
			 130.2007
			 ).
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.125 - Special Information For Users

Current through Register Vol. 48, No. 28, July 12, 2024
a) Purchasers incurring Service Use Tax
			 liability that is not paid to a serviceman authorized or required to collect
			 the tax (see Section
			 160.101(g)
			 of this Part) shall pay the Service Use Tax directly to the Department. Such
			 remittance to the Department shall be made by the last day of the month
			 following the month in which the user makes any payment to the serviceman and
			 shall be accompanied by a return which shall be made on a return form that the
			 Department will provide on request. On receipt of the tax, the Department will
			 provide the user with a receipt if demanded by the user, but not
			 otherwise.
b) In general, the
			 provisions of Subpart D of the Service Occupation Tax Regulations (86 Ill. Adm.
			 Code 140) (including the authorization, under some circumstances, for quarterly
			 tax returns and annual tax returns, but not the requirement of an annual
			 information return) shall apply to returns of registered users under the
			 Service Use Tax Act.
c) Also,
			 registered users under the Service Use Tax Act are subject to the provisions of
			 Subpart F of the Service Occupation Tax Regulations.
d) If the user who must remit the Service Use
			 Tax to the Department is registered either under the Retailers' Occupation Tax
			 Act [35 ILCS 120 ], the Use Tax Act [35 ILCS 105 ], the Service Occupation Tax
			 Act [35 ILCS 115 ], and the Service Use Tax Act [35 ILCS 110 ], he shall report
			 the Service Use Tax information in the space provided for that purpose on the
			 return which he files under any such registration.
e) Since transfers of tangible personal
			 property by de minimis servicemen who incur Use Tax as described in 86 Ill.
			 Adm. Code
			 140.108
			 do not constitute sale of service under Section 2(g) of the Service Occupation
			 Tax Act, customers of such de minimis servicemen do not incur Service Use Tax
			 liability on such transfers.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.130 - Registration Of Servicemen

Current through Register Vol. 48, No. 28, July 12, 2024
a) A
			 serviceman who is registered under the Retailers' Occupation Tax Act, Use Tax
			 Act or Service Occupation Tax Act need not obtain a separate Certificate of
			 Registration under the Service Use Tax Act. However, any out-of-State
			 serviceman maintaining a place of business in this State, if not registered
			 under the Retailers' Occupation Tax Act, the Use Tax Act or the Service
			 Occupation Tax Act, must apply to the Department for a Certificate of
			 Registration on an application form furnished by the Department. Each such
			 serviceman shall list with the Department the names and addresses of all his
			 agents operating in this State and the location of any and all of his
			 distribution or sales houses, offices or other places of business in this
			 State. In general, the provisions of Subpart F of the Service Occupation Tax
			 Regulations (86 Ill. Adm. Code 140) shall apply to such registration under the
			 Service Use Tax Act.
b) For a
			 definition of "Serviceman maintaining a place of business in this State", see
			 Section
			 160.105 of this
			 Part.
c) Every out-of-State
			 serviceman maintaining a place of business in this State must register and
			 collect Service Use Tax from service customers, unless such serviceman is
			 authorized to pay Use Tax as provided in 86 Ill. Adm. Code
			 140.108.
d) The Department may, in its discretion,
			 upon application, authorize the collection of the Service Use Tax by any
			 serviceman not maintaining a place of business within this State within the
			 meaning of the Service Use Tax Act and Section
			 160.105 of this Part.
			 Such serviceman shall be issued, without charge, a permit to collect such tax.
			 When so authorized, it shall be the duty of such serviceman to collect the tax
			 upon all tangible personal property sold, to his knowledge, as an incident to a
			 sale of service for use within this State, in the same manner and subject to
			 the same requirements, as a serviceman maintaining a place of business within
			 this State.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.135 - Serviceman's Return

Current through Register Vol. 48, No. 28, July 12, 2024
a) Every
			 serviceman required or authorized to collect the Service Use Tax must file a
			 return each month by the twentieth day of the month covering the preceding
			 calendar month except when the serviceman is authorized to file tax returns on
			 a quarterly or annual basis as hereinafter provided. The Department has
			 combined the Service Use Tax return form, the Service Occupation Tax return
			 form and the Use Tax return with the Retailers' Occupation Tax return
			 form.
b) Where the sale of service
			 is made under a conditional sales contract, or under any other form of sale
			 wherein the payment of the principal sum, or a part thereof, is extended beyond
			 the close of the return period for which the return is filed, the serviceman,
			 in collecting the tax, may collect, for each return period, only the tax
			 applicable to that part of the selling price actually received during such
			 return period.
c) In his regular
			 return, each serviceman shall also include the total amount of Service Use Tax
			 due upon the selling price or cost price of tangible personal property
			 transferred by him as an incident to a sale of service. Such serviceman shall
			 remit the amount of such tax to the Department when filing such
			 return.
d) In general, the
			 provisions of Subpart D of the Service Occupation Tax (86 Ill. Adm. Code 140)
			 (including the provisions pertaining to quarterly and annual tax returns, but
			 not the provisions pertaining to annual information returns) shall apply to
			 returns of servicemen under the Service Use Tax Act.
e) The serviceman who collects the Service
			 Use Tax from his purchaser and who remits, as Service Use Tax, the amount so
			 collected is allowed to deduct the
			 1.75 %
			 collection allowance or $5 per calendar year, whichever is greater, in the same
			 manner as the serviceman is allowed to do under Subpart D of the Service
			 Occupation Tax. (86 Ill. Adm. Code 150, Subpart D) Where a purchaser from a
			 serviceman, however, does not pay the Service Use Tax to the serviceman, but
			 pays it to the Department, that purchaser is not allowed to deduct any amount
			 as a collection allowance.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.140 - Penalties, Interest, Statute of Limitations and Administrative Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
Civil penalties, provisions concerning interest and procedures
				(such as the making of assessments, the venue and mode of conducting hearings,
				subpoenas, matters pertaining to judicial review and other procedural
				subjects), together with statutes of limitation (except that in the case of a
				failure to file a return required by the Service Use Tax Act, no notice of tax
				liability shall be issued on and after July 1 and January 1 covering tax due
				with that return during any month or period more than 6 years before that July
				1 or January 1, respectively) to the extent not inconsistent with the
				provisions of the Service Use Tax Act, are the same under the Service Use Tax
				Act as those imposed under the Retailers' Occupation Tax Act, and Section 3-7
				of the Uniform Penalty and Interest Act. (See
				35
				ILCS 110/12.) For information concerning civil
				penalties and interest see the Uniform Penalty and Interest Act [35 ILCS 735 ]
				and 86 Ill. Adm. Code 700. For information concerning criminal penalties, see
				Section 15 of the Service Use Tax Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.145 - Incorporation Of Illinois Service Occupation Tax Regulations By Reference

Current through Register Vol. 48, No. 28, July 12, 2024
To avoid needless repetition, the substance and provisions of
				all Illinois Service Occupation Tax Regulations (86 Ill. Adm. Code 140),
				(whether characterized as Rules, Articles or by some other designation), which
				are now in effect or which may hereafter be amended or promulgated, and which
				are not incompatible with the Service Use Tax Act or any special Rules and
				Regulations that may be promulgated by the Department thereunder, are
				incorporated herein by reference and made a part hereof.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.155 - Disposition Of Credit Memoranda By Holders Thereof

Current through Register Vol. 48, No. 28, July 12, 2024
a) Assignment Of Credit Memoranda
1) Credit memoranda issued hereunder may be
			 assigned or transferred only after a request for that purpose is filed with the
			 Department upon forms prescribed and furnished by it, and subject to the
			 following conditions:
A) That the assignment
			 is made to a person who is subject to the Service Use Tax Act, the Service
			 Occupation Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any
			 local occupation or use tax administered by the Department, Section 4 of the
			 Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
			 the Local Mass Transit District Act, or subsections (e), (f) and (g) of Section
			 4.03 of the Regional Transportation Authority Act;
B) that there is no proceeding pending to
			 establish an unpaid liability against the assignor pursuant to notice given of
			 the Department's proposal to assess an amount against him either under the
			 Service Occupation Tax Act, or under the Service Use Tax Act, the Retailers'
			 Occupation Tax Act, the Use Tax Act, any local occupation or use tax
			 administered by the Department, Section 4 of the Water Commission Act of 1985,
			 subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District
			 Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional
			 Transportation Authority Act and
C)
			 that there is no established assessment or admitted liability or interest or
			 penalty unpaid by the assignor, either under the Retailers' Occupation Tax Act,
			 or under the Use Tax Act, the Service Occupation Tax Act, the Service Use Tax
			 Act, any local occupation or use tax administered by the Department, Section 4
			 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section
			 5.01 of the Local Mass Transit District Act, or subsections (e), (f) and (g) of
			 Section 4.03 of the Regional Transportation Authority Act: Provided, that if
			 the amount of the credit memorandum must first be applied, in whole or in part,
			 against an established unpaid assessment which has been issued to the
			 claimant-assignor, or in total or partial liquidation of an unpaid admitted tax
			 liability, or unpaid penalty, or unpaid amount of interest, due from the
			 claimant-assignor, notice to this effect shall be given the claimant-assignor
			 by the Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.160 - Refunds

Current through Register Vol. 48, No. 28, July 12, 2024
In case the Department determines that the claimant is entitled
				to a refund, such refund shall be made only from such appropriation as may be
				available for that purpose. If it appears unlikely that the amount appropriated
				would permit everyone having a claim allowed during the period covered by such
				appropriation to elect to receive a cash refund, the Department will make such
				refunds only in hardship cases (i.e., in cases in which the claimant cannot use
				a credit memorandum). The two most likely situations where this would be the
				case are the situation in which the claimant has discontinued business and the
				situation in which the claimant will have a small volume of liability to the
				Department in the foreseeable future, but receives a large credit memorandum
				which it therefore might take the claimant a long time to liquidate by using it
				to pay current taxes. In these instances, the claimant probably would have to
				sell the credit memorandum at a loss in order to realize anything from it
				within any reasonable period of time.
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.165 - Interest

Current through Register Vol. 48, No. 28, July 12, 2024
a) Any credit or
			 refund that is allowed under the Act shall bear interest at the rate of 1% per
			 month or fraction thereof from the date when the erroneous payment for which
			 the credit or refund is being allowed was made to the Department until the
			 credit memorandum is issued or the refund is paid until January 1, 1994.
			 Interest shall not be paid on claims filed after the effective date of the
			 Uniform Penalty and Interest Act and 86 Ill. Adm. Code 700 except such interest
			 which is paid in accordance with the Act. (Section 3-9 of the Uniform Penalty
			 and Interest Act) [35 ILCS
			 735/3-9 ]
EXAMPLE: A taxpayer files a claim for credit with the
				Department on January 15, 1994 for an overpayment of Service Use Tax. The
				overpayment occurred in October 1992 when the taxpayer, an out-of-state
				registered serviceman, made a sale of service to an Illinois service customer,
				collected Service Use Tax on 50% of the total bill to the service customer and
				remitted the tax to the Department. The sale of service involved the repair of
				a piece of graphic arts machinery and equipment. The serviceman determined that
				the repair should have been made tax-free, refunded the tax to the service
				customer and filed a claim for credit with the Department. The credit
				memorandum is issued on June 15, 1994. Interest shall be paid at the rate of 1%
				per month for the period from October 1992 through December 31, 1993; and at
				the semiannually adjusted interest rate imposed pursuant to the Uniform Penalty
				and Interest Act from January 1, 1994 until June 15, 1994, the date on which
				the credit memorandum was issued by the Department.
b) No interest will be allowed if the
			 overpayment is found by the Department to have been made deliberately for the
			 purpose of drawing interest, or if the overpayment is ascertained not to have
			 been bona fide for some other reason.
c) When a claim that is allowed is paid by
			 means of a credit memorandum instead of by means of a cash refund, the claim
			 will be considered to have been paid when the credit memorandum is issued by
			 the Department to the claimant, and no interest will be allowed or paid by the
			 Department for any period subsequent to that, even if the claimant does not use
			 or assign the credit memorandum immediately after it is issued.
Illinois Administrative Code › Title 86 - REVENUE › Part 180 - AUTOMOBILE RENTING OCCUPATION TAX › Subpart A - NATURE OF THE TAX › Section 180.105 - Responsibility Of Trustees, Receivers, Executors Or Administrators

Current through Register Vol. 48, No. 28, July 12, 2024
Where trustees, receivers, executors or administrators
				  (whether appointed by a Federal or a State court), by virtue of their
				  appointment, continue to operate, manage or control a business and engage in
				  the business of renting automobiles under lease terms of one year or less, they
				  are liable for the Automobile Renting Occupation Tax.
Illinois Administrative Code › Title 86 - REVENUE › Part 180 - AUTOMOBILE RENTING OCCUPATION TAX › Subpart A - NATURE OF THE TAX › Section 180.110 - Occasional Rental Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
Since the Act does not impose a tax upon persons who are not
				  engaged in the business of renting automobiles, persons who enter into isolated
				  or occasional rental transactions do not incur Automobile Renting Occupation
				  Tax liability.
Illinois Administrative Code › Title 86 - REVENUE › Part 180 - AUTOMOBILE RENTING OCCUPATION TAX › Subpart A - NATURE OF THE TAX › Section 180.115 - Habitual Rental Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
Any person who habitually engages in renting automobiles
				  under lease terms of one year or less, or who, in any manner or at any time,
				  advertises, solicits, offers for rent or holds himself out to the public to be
				  a rentor of automobiles under lease terms of one year or less is engaged in the
				  business that is taxed by the Act, provided that such person is engaged in such
				  business in this State.
Illinois Administrative Code › Title 86 - REVENUE › Part 180 - AUTOMOBILE RENTING OCCUPATION TAX › Subpart B - GROSS RECEIPTS, AUTHORIZED DEDUCTIONS AND NON-TAXABLE TRANSACTIONS › Section 180.120 - The Meaning of Gross Receipts

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				"Gross receipts" means all consideration received by a rentor as the rental
				price for the rental of automobiles under lease terms of one year or less.
				Where a rentor receives the rental price in installment payments, the rentor
				shall include the amounts of such payments only as and when the payments are
				received by the rentor.
b) All
				consideration received as the rental price must be included in gross receipts
				whether received in money or otherwise, including cash, credits, property and
				services. (Ill. Rev. Stat. 1981, ch. 120, par. 1702.)
c) There is no deduction from gross receipts
				on account of the cost of the property rented, the cost of materials used,
				labor or service cost or any other expense whatever.
Illinois Administrative Code › Title 86 - REVENUE › Part 180 - AUTOMOBILE RENTING OCCUPATION TAX › Subpart B - GROSS RECEIPTS, AUTHORIZED DEDUCTIONS AND NON-TAXABLE TRANSACTIONS › Section 180.125 - Authorized Deductions from Gross Receipts

Current through Register Vol. 48, No. 28, July 12, 2024
a) "Gross receipts" on which the Automobile
				Renting Occupation Tax must be computed do not include receipts from the
				following separately stated charges added to rentees' billings:
1) charges added on account of the rentor's
				duty to collect the Automobile Renting Use Tax from rentees or passed on
				because of the rentor's liability under the Automobile Renting Occupation Tax
				or passed on because of the rentor's liability under Municipal, County,
				Regional Transportation Authority or Metro East Mass Transit District
				Automobile Renting Occupation Taxes;
2) receipts from rentees in consideration of
				waivers of claims for loss or damage to automobiles rented;
3) receipts from separately stated charges
				for insurance;
4) receipts from
				separately stated charges for recovery of refueling costs;
5) receipts from any other separately stated
				charges which are not for the use of tangible personal property.
Illinois Administrative Code › Title 86 - REVENUE › Part 180 - AUTOMOBILE RENTING OCCUPATION TAX › Subpart B - GROSS RECEIPTS, AUTHORIZED DEDUCTIONS AND NON-TAXABLE TRANSACTIONS › Section 180.130 - Nontaxable Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
The tax does not apply to rental receipts from the following
				  transactions:
a) 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 or older (Section 3
				of the Act);
b) isolated or
				occasional automobile renting transactions;
c) the renting of automobiles under lease
				terms of more than one year;
d) the
				renting of motor vehicles which do not fall within the definition of automobile
				as set forth in Subsection
				180.101(b);
e) transactions protected by the Commerce
				Clause of the United States Constitution (U.S. Const. art. 1, sec. 8, cl.
				3);
f) transactions in which the
				rentor furnishes the service of operating the automobile, so that the rentor or
				the rentor's agent remains in possession of the automobile;
g) transactions in which an automobile dealer
				makes a charge for the use of an automobile as a demonstrator in connection
				with that dealer's business of selling automobiles so long as the charge is
				made only to recover the costs of operating the automobile as a demonstrator;
				nor
h) the renting of automobiles
				under lease terms of one year or less to persons who will re-rent those
				automobiles to others under lease terms of one year or less.
Illinois Administrative Code › Title 86 - REVENUE › Part 180 - AUTOMOBILE RENTING OCCUPATION TAX › Subpart B - GROSS RECEIPTS, AUTHORIZED DEDUCTIONS AND NON-TAXABLE TRANSACTIONS › Section 180.135 - Rentals for Re-rental

Current through Register Vol. 48, No. 28, July 12, 2024
a) Rental
				receipts from rental transactions under lease terms of one year or less in
				which the rentee will act as a sub-rentor by re-renting the automobile to a
				sub-rentee under lease terms of one year or less are exempt from the Automobile
				Renting Occupation Tax.
b) In order
				to document that an auto rental transaction is an exempt rental for re-rental,
				the rentor must have among his records a Certificate of Automobile Re-rental
				from the rentee (sub-rentor) which contains the following information:
1) a short statement by the rentee that the
				automobile is being rented for the purpose of re-renting it to others
				(sub-rentees) under lease terms of one year or less;
2) the rentor's name and address;
3) the rentee's name and address;
4) the rentee's signature and date of
				signing;
5) the Vehicle
				Identification Number(s) of the automobile(s) rented for re-rental;
6) the rentee's Automobile Renting Occupation
				Tax or Retailers' Occupation Tax registration number issued by the Illinois
				Department of Revenue.
A) However, in the
				case of an out-of-State rentee (sub-rentor) who is not required to be so
				registered in Illinois, a certification that he will always re-rent and deliver
				the automobile(s) to his sub-rentee(s) outside Illinois pursuant to a rental
				agreement entered into outside Illinois may be provided in lieu of an Illinois
				Automobile Renting Occupation Tax registration number.
B) Except in the case of an out-of-State
				rentee (sub-rentor) not required to be registered who will re-rent and deliver
				outside Illinois, no rental shall be made tax-free on the ground of being a
				rental for re-rental unless the rentee (sub-rentor) has an active registration
				number from the Department and furnishes that number to the rentor as part of
				the Certificate of Automobile Re-rental.
Illinois Administrative Code › Title 86 - REVENUE › Part 180 - AUTOMOBILE RENTING OCCUPATION TAX › Subpart D - INCORPORATION BY REFERENCE › Section 180.145 - Incorporation of Certain Retailers' Occupation Tax Regulations

Current through Register Vol. 48, No. 28, July 12, 2024
The substance and provisions of the Illinois Retailers'
				  Occupation Tax Regulations cited in this Part are incorporated herein by
				  reference and are made a part hereof.
a) For purposes of this incorporation,
				references in the incorporated Retailers' Occupation Tax Regulations to:
1) persons engaged in the business of selling
				tangible personal property at retail mean persons engaged in the business of
				renting automobiles for periods of one year or less for valuable
				consideration;
2) sellers and
				retailers mean automobile rentors;
3) users or purchasers mean
				rentees;
4) sales or sales at
				retail mean automobile rentals under lease terms of one year or less;
				and
5) the Retailers' Occupation
				Tax Act means the Automobile Renting Occupation Tax Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart A - NATURE OF THE TAX › Section 190.101 - Description, Rate and Base of the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Automobile Renting Use Tax (Section 4
				of the Automobile Renting Occupation and Use Tax Act (the Act) (Ill. Rev. Stat.
				1991, ch. 120, pars. 1701 et seq.)) is a tax imposed upon the privilege of
				using, in this State, an automobile rented from an automobile rentor under
				lease terms of one year or less. The tax is imposed at the rate of 5% of the
				rental price paid to the rentor.
b)
				"Use" means any incident of control by a rentee, including the possession or
				the right to possession, over an automobile pursuant to a rental agreement for
				that automobile under a rental term of one year or less.
c) However, if the automobile rentor from
				whom the automobile is rented would not be taxable under the Act despite all
				elements of the rental transaction occurring in Illinois, then the tax imposed
				by the Act shall not apply to the use of the rented automobile in this State.
				For example, a rentee of an automobile from a rentor who qualifies as an
				isolated or occasional rentor so as not to incur Automobile Renting Occupation
				Tax liability does not incur Automobile Renting Use Tax liability when using
				that rented automobile in Illinois.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart A - NATURE OF THE TAX › Section 190.105 - Relation of Automobile Renting Use Tax to Automobile Renting Occupation Tax

Current through Register Vol. 48, No. 28, July 12, 2024
The Automobile Renting Use Tax complements the Automobile
				  Renting Occupation Tax. That is why the Automobile Renting Use Tax is
				  restricted to situations in which automobiles are rented from automobile
				  rentors under lease terms of one year or less.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart A - NATURE OF THE TAX › Section 190.110 - Collection of the Tax from Rentees by Automobile Rentors Maintaining a Place of Business in This State

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				Automobile Renting Use Tax must be collected from rentees by all rentors
				maintaining a place of business in this State. "Rentor maintaining a place of
				business in this State" shall mean and include any automobile rentor having or
				maintaining in this State, directly or by a subsidiary, an office, distribution
				point, warehouse or other facility or place of business, or any agent or other
				representative operating in this State under the authority of the rentor or its
				subsidiary, irrespective of whether such place of business or agent or other
				representative is located here permanently or temporarily, or whether such
				rentor or subsidiary is licensed to do business in this State. The term "rentor
				maintaining a place of business in this State" has the same scope and effect as
				does the term "retailer maintaining a place of business in this State" by
				virtue of the incorporation of Section 2 of the Use Tax Act (Ill. Rev. Stat.
				1991, ch. 120, par. 439.2 ) into Section 4 of the Act.
b) It does not matter that an agent may
				engage in business on his own account in other transactions, or that the agent
				may act as agent for other persons in other transactions, or that the agent is
				not an employee but is an independent contractor acting as agent. The term
				"agent" is broader than the term "employee". "Agent" includes anyone acting
				under the principal's authority in an agency capacity.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart A - NATURE OF THE TAX › Section 190.115 - Accounting for the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the rentor
				is required or authorized to collect the Automobile Renting Use Tax, then the
				rentee must pay the tax to the rentor. However, the rentor's failure to collect
				the tax from the rentee does not prevent the Department of Revenue (the
				Department) from collecting the tax directly from the rentee whether the
				rentor's liability to remit tax is to remit it in the form of Automobile
				Renting Occupation Tax or in the form of Automobile Renting Use Tax. If the
				rentee rents an automobile from a rentor under lease terms of one year or less
				but does not pay the Automobile Renting Use Tax to that rentor, the rentee
				shall pay the Automobile Renting Use Tax directly to the Department.
b) The rentor must remit the Automobile
				Renting Use Tax he collects to the Department, but first reduces what he must
				remit in this connection by the Automobile Renting Occupation Tax (if any)
				which he is required to pay and does pay to the Department in connection with
				the same automobile rental transaction.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart A - NATURE OF THE TAX › Section 190.120 - How to Avoid Paying Tax on Automobile Renting Use Tax Collected from the Rentee

Current through Register Vol. 48, No. 28, July 12, 2024
a) Taxable
				rental receipts, on the basis of which Automobile Renting Use Tax must be
				collected and remitted to the Department in transactions that are subject to
				the Automobile Renting Use Tax despite being exempt from the Automobile Renting
				Occupation Tax because of interstate commerce, do not include separately stated
				charges which are added to the rental price on account of the rentor's duty to
				collect the Automobile Renting Use Tax.
b) If a rentor does not keep a detailed
				record for the return period of the Automobile Renting Use Tax which he
				collects so as clearly to segregate these added charges from other receipts,
				absent information to the contrary, it will be assumed that the Automobile
				Renting Use Tax collected equals 5% of the taxable receipts received in such
				return period from taxable automobile rentals if the rentor collects the
				Automobile Renting Use Tax in accordance with the bracket system prescribed by
				the Department in 86 Ill. Adm. Code 150.Table A and states such tax to rentees
				separately from the rental price of the automobile as the rentor is required to
				do.
c) The rentor may eliminate the
				amount of Automobile Renting Use Tax he collects from total rental receipts to
				arrive at his taxable rental receipts by subtracting the amount collected from
				the rentee as Automobile Renting Use Tax, as shown by such rentor's books and
				records, from those total rental receipts. The rentor may also accomplish this
				result by subtracting, from the total rental receipts which he receives from
				taxable automobile rentals, the figure obtained by dividing such rental
				receipts by 105 and multiplying the result by 5.
d) In collecting the Automobile Renting Use
				Tax from a rentee, the rentor must state the tax as a distinct item separate
				and apart from the rental price of the automobile. If the tax is not stated as
				a separate item, it will be irrebutably presumed that the tax was not collected
				from the rentee, and the rentor will be entitled to no deduction from total
				rental receipts for collection of the tax from the rentee. The best evidence
				that the tax was stated as a separate item is a receipt given to the rentee
				which shows the tax as a distinct item separate and apart from the rental price
				of the automobile. ( Section 4 of the Act)
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart B - EXEMPT AUTO RENTING USES AND AUTO RENTEES NOT SUBJECT TO THE TAX › Section 190.125 - Exemptions to Avoid Multi-State Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
a) To prevent actual multi-state taxation,
				the Automobile Renting Use Tax does not apply to the use in this State of
				automobiles rented under lease terms of one year or less under the following
				circumstances:
1) the use, in this State, of
				an automobile rented outside this State by a non-resident and brought into this
				State by that non-resident for his or her own use while temporarily within this
				State or while passing through this State, and
2) the use, in this State, of an automobile
				rented outside this State by any person who has already paid a rental tax in
				another state to the extent of the amount of such tax properly due and paid in
				such other state (for this purpose, "State" includes the District of
				Columbia).
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart B - EXEMPT AUTO RENTING USES AND AUTO RENTEES NOT SUBJECT TO THE TAX › Section 190.130 - Non-Resident Exemptions

Current through Register Vol. 48, No. 28, July 12, 2024
The Automobile Renting Use Tax does not apply to the use, in
				  this State, of an automobile rented outside this State by a non-resident
				  individual who then brings that automobile to this State for use here if that
				  individual has used the rented automobile outside this State at least three
				  months before bringing the rented automobile to this State.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart B - EXEMPT AUTO RENTING USES AND AUTO RENTEES NOT SUBJECT TO THE TAX › Section 190.135 - Meaning of "Rented Outside This State"

Current through Register Vol. 48, No. 28, July 12, 2024
"Rented Outside This State", in addition to its usual and
				  popular meaning, shall include the delivery, by the rentor, outside Illinois,
				  of an automobile rented in Illinois under a lease term of one year or less and
				  delivered by the rentor from a point in this State to a point outside this
				  State.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart B - EXEMPT AUTO RENTING USES AND AUTO RENTEES NOT SUBJECT TO THE TAX › Section 190.140 - Exempt Rentees

Current through Register Vol. 48, No. 28, July 12, 2024
a) Governmental
				bodies are exempt from the Automobile Renting Use Tax.
b) Corporations, societies, associations,
				foundations or institutions organized and operated exclusively for charitable,
				religious or educational purposes are exempt from Automobile Renting Use
				Tax.
c) Not-for-profit
				corporations, societies, associations, foundations, institutions or
				organizations which have no compensated officers or employees and which are
				organized and operated primarily for the recreation of persons 55 years of age
				or older are exempt from Automobile Renting Use Tax. (Ill. Rev. Stat. 1983, ch.
				120, par. 1703).
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart C - RECEIPT FOR THE TAX › Section 190.145 - Receipt

Current through Register Vol. 48, No. 28, July 12, 2024
When an automobile rentor collects Automobile Renting Use Tax
				  from a rentee, the rentor should give the rentee a receipt for the tax so
				  collected if the rentee demands such a receipt. The receipt should show the
				  name and address of the rentor and the rentee, the place and date of the
				  automobile rental, a brief description of the automobile rented, the amount of
				  the rental price, the lease term, the amount of the tax and the date on which
				  the tax was paid. The Automobile Renting Use Tax shall be stated as a distinct
				  item separate and apart from the rental price of the automobile. The best
				  evidence that the tax was stated as a separate item is a receipt given to the
				  rentee which shows the tax as a distinct item separate and apart from the
				  rental price of the automobile.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart D - INFORMATION CONCERNING PAYMENT OF THE AUTOMOBILE RENTING USE TAX › Section 190.150 - How the Tax is Paid

Current through Register Vol. 48, No. 28, July 12, 2024
a) If a rentee
				rents an automobile from an automobile rentor authorized to collect Illinois
				Automobile Renting Use Tax, the rentee shall pay the tax to that
				rentor.
b) If a rentee rents an
				automobile from an automobile rentor but does not pay the Automobile Renting
				Use Tax to that rentor, the rentee must pay the tax directly to the Department.
				This would be the case, for example, where the rental was made from an
				out-of-State rentor not registered to collect Illinois Automobile Renting Use
				Tax. When the rentee reports the tax directly to the Department, the tax for
				any rental payment is due no later than the last day of the month following the
				month in which the rentee makes that rental payment to the rentor and the
				remittance shall be accompanied by a return form which the Department shall
				provide on request.
c) A rentee who
				is liable to pay the Automobile Renting Use Tax directly to the Department only
				occasionally and not on a frequently recurring basis (and who is not required
				to file returns as an automobile rentor) need not register with the Department.
				Such rentees may pay the tax and file Automobile Renting Use Tax returns only
				as and when they incur their occasional liability.
d) However, if a rentee has a frequently
				recurring direct Automobile Renting Use Tax liability, that rentee must
				register with the Department and file regular monthly tax returns on which the
				tax is reported.
e) If a rentee who
				must remit the Automobile Renting Use Tax directly to the Department is also
				registered with the Department as an automobile rentor, that rentee shall
				report the Automobile Renting Use Tax information in the space provided for
				that purpose on the Automobile Renting Occupation Tax return.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart D - INFORMATION CONCERNING PAYMENT OF THE AUTOMOBILE RENTING USE TAX › Section 190.155 - Procedure to Obtain Letter Ruling Documenting Exemption

Current through Register Vol. 48, No. 28, July 12, 2024
If the rentee is exempt from Automobile Renting Use Tax
				  liability with respect to a particular transaction (as would be the case, for
				  example, where the rentee is a church, charity, school or governmental body),
				  the rentee may present pertinent facts to the Department and secure from the
				  Department an exemption ruling documenting the exempt status of the rentee or
				  of the particular rental transaction.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart E - REGISTRATION OF OUT-OF-STATE RENTORS › Section 190.160 - When Out-of-State Rentors Must Register to Collect Automobile Renting Use Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) A rentor who is
				registered under the Automobile Renting Occupation and Use Tax Act need not
				obtain a separate Certificate of Registration under the Automobile Renting
				Occupation and Use Tax Act. However, any automobile rentor maintaining a place
				of business in this State, if not registered under the Automobile Renting
				Occupation and Use Tax Act must apply to the Department for a Certificate of
				Registration on an application form furnished by the Department. Each such
				rentor shall list with the Department the names and addresses of all agents
				operating in this State and the location of any and all distribution points,
				warehouses, offices or other places of business in this State.
b) For a definition of "rentor maintaining a
				place of business in this State", see Section
				190.110(a)
				of this Part.
c) Every rentor
				maintaining a place of business in this State must act as an Automobile Renting
				Use Tax collector for this State when that rentor makes delivery of the rental
				automobile to the rentee in Illinois even though that rentor does not incur any
				Automobile Renting Occupation Tax liability as a result of the transaction. For
				example:
1) Out-of-State rentors having
				Illinois rental outlets which are subject to the Automobile Renting Occupation
				and Use Tax Act are required to collect and remit Automobile Renting Use Tax,
				as such, when shipping or delivering rental automobiles to rentees in Illinois,
				from outside Illinois in transactions which have no connection with the
				Illinois rental outlets. This is true even though the interstate delivery would
				not subject the out-of-State rentor to Automobile Renting Occupation
				Tax.
2) Out-of-State rentors having
				any kind of business in Illinois or any kind of representative or agent either
				stationed in Illinois or coming into Illinois from time to time must collect
				and remit Automobile Renting Use Tax, as such, when shipping or delivering the
				automobile to the rentee in Illinois. This is true even though the rentor would
				not incur Automobile Renting Occupation Tax liability on the transaction
				because the Illinois agent has no authority to accept orders so as to create
				Illinois rental contracts but is authorized only to solicit orders in Illinois
				for acceptance by the rentor outside Illinois and because the automobile is not
				located in Illinois at the time it is rented.
Illinois Administrative Code › Title 86 - REVENUE › Part 190 - AUTOMOBILE RENTING USE TAX › Subpart E - REGISTRATION OF OUT-OF-STATE RENTORS › Section 190.165 - Voluntary Registration by Out-of-State Rentors

Current through Register Vol. 48, No. 28, July 12, 2024
The Department will, upon application, authorize the
				  collection of the Automobile Renting Use Tax by any rentor not maintaining a
				  place of business in this State. Such a rentor, upon application, may be
				  issued, without charge, a permit to collect such tax. When so authorized, it
				  shall be the duty of such rentors to collect the tax upon rental receipts from
				  all rental automobiles shipped or delivered to rentees in Illinois pursuant to
				  orders accepted outside Illinois in the same manner and subject to the same
				  requirements as a rentor maintaining a place of business in this State.
				  However, no such authorization will be granted when the application is made for
				  a purpose other than the collection of the Automobile Renting Use
				  Tax.