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1 | AN ACT concerning taxes.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Automobile Renting Occupation and Use Tax | |||||||||||||||||||
5 | Act is amended by changing Section 2 as follows:
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6 | (35 ILCS 155/2) (from Ch. 120, par. 1702)
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7 | Sec. 2. Definitions. "Renting" means any transfer of the | |||||||||||||||||||
8 | possession
or right to possession of an automobile to a user | |||||||||||||||||||
9 | for a valuable consideration
for a period of one year or less.
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10 | "Renting" does not include making a charge for the use of | |||||||||||||||||||
11 | an
automobile where the rentor, either himself or through an | |||||||||||||||||||
12 | agent, furnishes a
service of operating an automobile so that | |||||||||||||||||||
13 | the rentor remains in possession of
the automobile, because | |||||||||||||||||||
14 | this does not constitute a transfer of possession
or right to | |||||||||||||||||||
15 | possession of the automobile.
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16 | "Renting" does not include the making of a charge by an
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17 | automobile dealer for the use of an automobile as a | |||||||||||||||||||
18 | demonstrator in connection
with the dealer's business of | |||||||||||||||||||
19 | selling, where the charge is merely made to
recover the costs | |||||||||||||||||||
20 | of operating the automobile as a demonstrator and is not
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21 | intended as a rental or leasing charge in the ordinary sense.
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22 | "Automobile" means any motor vehicle of the first division, | |||||||||||||||||||
23 | a motor vehicle
of the second division that
which is a | |||||||||||||||||||
24 | self-contained motor vehicle designed or
permanently converted | |||||||||||||||||||
25 | to provide living quarters for recreational, camping or
travel | |||||||||||||||||||
26 | use, with direct walk through access to the living quarters | |||||||||||||||||||
27 | from the
driver's seat, or a motor vehicle of the second | |||||||||||||||||||
28 | division which is of the van
configuration designed for the | |||||||||||||||||||
29 | transportation of not less than 7 nor more than
16 passengers, | |||||||||||||||||||
30 | as defined in Section 1-146 of the Illinois Vehicle
Code.
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31 | "Department" means the Department of Revenue.
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32 | "Person" means any natural individual, firm, partnership, |
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1 | association,
joint stock company, joint adventure, public or | ||||||
2 | private corporation, limited
liability company, or a receiver, | ||||||
3 | executor, trustee, conservator or other
representative | ||||||
4 | appointed by order of any court.
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5 | "Rentor" means any person, firm, corporation or | ||||||
6 | association engaged in
the business of renting or leasing | ||||||
7 | automobiles to users. For this purpose,
the objective of making | ||||||
8 | a profit is not necessary to make the renting activity
a | ||||||
9 | business.
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10 | "Rentee" means any user to whom the possession, or the | ||||||
11 | right to possession,
of an automobile is transferred for a | ||||||
12 | valuable consideration for a period
of one year or less, | ||||||
13 | whether paid for by the "rentee" or by someone else.
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14 | "Gross receipts" from the renting of tangible personal | ||||||
15 | property or
"rent" means the total rental price or leasing | ||||||
16 | price. In the case of
rental transactions in which the | ||||||
17 | consideration is paid to the rentor on an
installment basis, | ||||||
18 | the amounts of such payments shall be included by the rentor
in | ||||||
19 | gross receipts or rent only as and when payments are received | ||||||
20 | by the rentor.
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21 | "Gross receipts" does not include receipts received by an | ||||||
22 | automobile dealer
from a manufacturer or service contract | ||||||
23 | provider
for the use of an automobile by a person while that | ||||||
24 | person's automobile is
being repaired by that automobile dealer | ||||||
25 | and the repair is made pursuant to a
manufacturer's warranty or | ||||||
26 | a service contract where a manufacturer or service
contract | ||||||
27 | provider reimburses that automobile dealer pursuant to a
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28 | manufacturer's warranty or a service contract and the | ||||||
29 | reimbursement is merely
made
to recover the costs of operating | ||||||
30 | the automobile as a loaner vehicle.
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31 | "Rental price" means the consideration for renting or | ||||||
32 | leasing an automobile
valued in money, whether received in | ||||||
33 | money or otherwise, including cash
credits, property and | ||||||
34 | services, and shall be determined without any deduction
on | ||||||
35 | account of the cost of the property rented, the cost of | ||||||
36 | materials used,
labor or service cost, or any other expense |
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1 | whatsoever, but does not
include charges that are added by a | ||||||
2 | rentor on account of the
rentor's tax liability under this Act | ||||||
3 | or on account of the rentor's duty
to collect, from the rentee, | ||||||
4 | the tax that is imposed by Section 4 of this Act.
The phrase | ||||||
5 | "rental price" does not include compensation paid to a rentor | ||||||
6 | by a
rentee in consideration of the waiver by the rentor of any | ||||||
7 | right of action or
claim against the rentee for loss or damage | ||||||
8 | to the automobile
rented and also does not include a separately | ||||||
9 | stated charge for insurance or
recovery of refueling costs or | ||||||
10 | other separately stated charges that are not for
the use of | ||||||
11 | tangible personal property.
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12 | (Source: P.A. 90-14, eff. 7-1-97; 91-193, eff. 7-20-99.)
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