102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0852

 

Introduced 2/10/2021, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 525/10-5
35 ILCS 525/10-20

    Amends the Parking Excise Tax Act. Removes provisions from the Act providing that a booking intermediary is not considered an operator. Provides that separately stated charges that are not optional are presumed to be part of the purchase price unless proven otherwise. Provides that the tax does not apply to: (1) parking in a lot or garage that is owned or operated by a federal, State, or local government entity if the purchase price does not exceed a stated amount; or (2) if the purchase price is paid by any federal, State, or local government entity. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0852LRB102 10258 HLH 15584 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Parking Excise Tax Act is amended by
5changing Sections 10-5 and 10-20 as follows:
 
6    (35 ILCS 525/10-5)
7    Sec. 10-5. Definitions.
8    "Booking intermediary" means any person or entity that
9facilitates the processing and fulfillment of reservation
10transactions between an operator and a person or entity
11desiring parking in a parking lot or garage of that operator.
12    "Charge or fee paid for parking" means the gross amount of
13consideration for the use or privilege of parking a motor
14vehicle in or upon any parking lot or garage in the State,
15collected by an operator and valued in money, whether received
16in money or otherwise, including cash, credits, property, and
17services, determined without any deduction for costs or
18expenses, but not including charges that are added to the
19charge or fee on account of the tax imposed by this Act or on
20account of any other tax imposed on the charge or fee. "Charge
21or fee paid for parking" excludes separately stated charges
22not for the use or privilege or parking and excludes amounts
23retained by or paid to a booking intermediary for services

 

 

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1provided by the booking intermediary. If any separately stated
2charge is not optional, it shall be presumed that it is part of
3the charge for the use or privilege or parking.
4    "Department" means the Department of Revenue.
5    "Operator" means any person who engages in the business of
6operating a parking area or garage, or who, directly or
7through an agreement or arrangement with another party,
8collects the consideration for parking or storage of motor
9vehicles, recreational vehicles, or other self-propelled
10vehicles, at that parking place. This includes, but is not
11limited to, any facilitator or aggregator that collects from
12the purchaser the charge or fee paid for parking. "Operator"
13does not include a bank, credit card company, payment
14processor, booking intermediary, or person whose involvement
15is limited to performing functions that are similar to those
16performed by a bank, credit card company, or payment
17processor, or booking intermediary.
18    "Parking area or garage" means any real estate, building,
19structure, premises, enclosure or other place, whether
20enclosed or not, except a public way, within the State, where
21motor vehicles, recreational vehicles, or other self-propelled
22vehicles, are stored, housed or parked for hire, charge, fee
23or other valuable consideration in a condition ready for use,
24or where rent or compensation is paid to the owner, manager,
25operator or lessee of the premises for the housing, storing,
26sheltering, keeping or maintaining motor vehicles,

 

 

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1recreational vehicles, or other self-propelled vehicles.
2"Parking area or garage" includes any parking area or garage,
3whether the vehicle is parked by the owner of the vehicle or by
4the operator or an attendant.
5    "Person" means any natural individual, firm, trust,
6estate, partnership, association, joint stock company, joint
7venture, corporation, limited liability company, or a
8receiver, trustee, guardian, or other representative appointed
9by order of any court.
10    "Purchase price" means the consideration paid for the
11purchase of a parking space in a parking area or garage, valued
12in money, whether received in money or otherwise, including
13cash, gift cards, credits, and property, and shall be
14determined without any deduction on account of the cost of
15materials used, labor or service costs, or any other expense
16whatsoever.
17    "Purchase price" includes any and all charges that the
18recipient pays related to or incidental to obtaining the use
19or privilege of using a parking space in a parking area or
20garage, including but not limited to any and all related
21markups, service fees, convenience fees, facilitation fees,
22cancellation fees, overtime fees, or other such charges,
23regardless of terminology. However, "purchase price" shall not
24include consideration paid for:
25        (1) optional, separately stated charges not for the
26    use or privilege of using a parking space in the parking

 

 

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1    area or garage; if any separately stated charge is not
2    optional, it shall be presumed until proven otherwise that
3    it is part of the charge for the use or privilege or
4    parking;
5        (2) any charge for a dishonored check;
6        (3) any finance or credit charge, penalty or charge
7    for delayed payment, or discount for prompt payment;
8        (4) any purchase by a purchaser if the operator is
9    prohibited by federal or State Constitution, treaty,
10    convention, statute or court decision from collecting the
11    tax from such purchaser;
12        (5) the isolated or occasional sale of parking spaces
13    subject to tax under this Act by a person who does not hold
14    himself out as being engaged (or who does not habitually
15    engage) in selling of parking spaces; and
16        (6) any amounts added to a purchaser's bills, whether
17    or not separately stated, because of charges made pursuant
18    to the tax imposed by this Act, or on account of any other
19    tax imposed on the charge or fee. If credit is extended,
20    then the amount thereof shall be included only as and when
21    payments are made.
22    "Purchaser" means any person who acquires a parking space
23in a parking area or garage for use for valuable
24consideration.
25    "Use" means the exercise by any person of any right or
26power over, or the enjoyment of, a parking space in a parking

 

 

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1area or garage subject to tax under this Act.
2(Source: P.A. 101-31, eff. 6-28-19.)
 
3    (35 ILCS 525/10-20)
4    Sec. 10-20. Exemptions. The tax imposed by this Act shall
5not apply to:
6        (1) parking in a parking area or garage operated by
7    the federal government or its instrumentalities that has
8    been issued an active tax exemption number by the
9    Department under Section 1g of the Retailers' Occupation
10    Tax Act; for this exemption to apply, the parking area or
11    garage must be operated by the federal government or its
12    instrumentalities; the exemption under this paragraph (1)
13    does not apply if the parking area or garage is operated by
14    a third party, whether under a lease or other contractual
15    arrangement, or any other manner whatsoever;
16        (2) residential off-street parking for home or
17    apartment tenants or condominium occupants, if the
18    arrangement for such parking is provided in the home or
19    apartment lease or in a separate writing between the
20    landlord and tenant, or in a condominium agreement between
21    the condominium association and the owner, occupant, or
22    guest of a unit, whether the parking charge is payable to
23    the landlord, condominium association, or to the operator
24    of the parking spaces; this paragraph (2) is intended to
25    exempt from tax not only written agreements for

 

 

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1    residential off-street parking directly between the
2    landlord or condominium association and the apartment
3    occupant or condo owner, occupant, or guest, but also any
4    written parking agreement between the landlord's or
5    association's designated parking lot or garage operator
6    and the apartment occupant or the condo owner, occupant,
7    or guest, whether or not coterminous with the lease or
8    ownership period of the residence;
9        (3) parking by hospital employees in a parking space
10    that is owned and operated by the hospital for which they
11    work; and
12        (4) parking in a parking area or garage where 3 or
13    fewer motor vehicles are stored, housed, or parked for
14    hire, charge, fee or other valuable consideration, if the
15    operator of the parking area or garage does not act as the
16    operator of more than a total of 3 parking spaces located
17    in the State; if any operator of parking areas or garages,
18    including any facilitator or aggregator, acts as an
19    operator of more than 3 parking spaces in total that are
20    located in the State, then this exemption shall not apply
21    to any of those spaces; .
22        (5) parking in a lot or garage that is owned or
23    operated by the federal government, the State, a
24    municipality, the Regional Transportation Authority or any
25    of its service boards, the Chicago Park District, or any
26    other government entity, if the purchase price for the

 

 

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1    privilege of parking does not exceed $3 for a 24-hour
2    period or less, $15 for a weekly period, or $60 for a
3    monthly period; and
4        (6) parking when the purchase price is paid by any
5    federal, State, or local government entity.
6(Source: P.A. 101-31, eff. 6-28-19.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.