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Public Act 103-0520
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| HB1497 Enrolled | LRB103 04797 HEP 49807 b |
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AN ACT concerning transportation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Automobile Renting Occupation and Use Tax |
Act is amended by changing Section 2 and adding Section 6 as |
follows:
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(35 ILCS 155/2) (from Ch. 120, par. 1702)
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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.
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"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.
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"Renting" does not include the making of a charge by an
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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
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intended as a rental or leasing charge in the ordinary sense.
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"Renting" does not include peer-to-peer car sharing, as |
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defined in Section 5 of the Car-Sharing Program Act, if tax due |
on the automobile under the Retailers' Occupation Tax Act or |
Use Tax Act was paid upon the purchase of the automobile or |
when the automobile was brought into Illinois. The car-sharing |
program shall ask a shared vehicle owner if the shared vehicle |
owner paid applicable taxes at the time of purchase. |
Notwithstanding any law to the contrary, the car-sharing |
program shall have the right to rely on the shared vehicle |
owner's response and to be held legally harmless for such |
reliance. |
"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
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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.
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"Department" means the Department of Revenue.
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"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 |
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appointed by order of any court.
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"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.
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"Rentor" does not include a car-sharing program or a |
shared-vehicle owner, as defined in Section 5 of the |
Car-Sharing Program Act, if tax due on the automobile under |
the Retailers' Occupation Tax Act or Use Tax Act was paid upon |
the purchase of the automobile or when the automobile was |
brought into Illinois. The car-sharing program shall ask a |
shared vehicle owner if the shared vehicle owner paid |
applicable taxes at the time of purchase. Notwithstanding any |
law to the contrary, the car-sharing program shall have the |
right to rely on the shared vehicle owner's response and to be |
held legally harmless for such reliance. |
"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.
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"Rentee" does not include a shared-vehicle driver, as |
defined in Section 5 of the Car-Sharing Program Act, if tax due |
on the automobile under the Retailers' Occupation Tax Act or |
Use Tax Act was paid upon the purchase of the automobile or |
when the automobile was brought into Illinois. The car-sharing |
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program shall ask a shared vehicle owner if the shared vehicle |
owner paid applicable taxes at the time of purchase. |
Notwithstanding any law to the contrary, the car-sharing |
program shall have the right to rely on the shared vehicle |
owner's response and to be held legally harmless for such |
reliance. |
"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.
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"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
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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.
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"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 |
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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.
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"Rental price" does not include consideration paid for |
peer-to-peer car sharing to a shared-vehicle owner or a |
car-sharing program, as those terms are defined in Section 5 |
of the Car-Sharing Program Act, if tax due on the automobile |
under the Retailers' Occupation Tax Act or Use Tax Act was paid |
upon the purchase of the automobile or when the automobile was |
brought into Illinois. The car-sharing program shall ask a |
shared vehicle owner if the shared vehicle owner paid |
applicable taxes at the time of purchase. Notwithstanding any |
law to the contrary, the car-sharing program shall have the |
right to rely on the shared vehicle owner's response and to be |
held legally harmless for such reliance. |
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(Source: P.A. 98-574, eff. 1-1-14.)
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(35 ILCS 155/6 new) |
Sec. 6. Applicability. The taxes imposed by Sections 3 and |
4 of this Act do not apply to any amounts paid or received for |
peer-to-peer car sharing, as defined in Section 5 of the |
Car-Sharing Program Act, or the privilege of sharing a shared |
vehicle through a car-sharing program, as defined in Section 5 |
of the Car-Sharing Program Act, if the shared vehicle owner |
paid applicable taxes upon the purchase of the automobile. |
As used in this Section, "applicable taxes" means, with |
respect to vehicles purchased in Illinois, the retailers' |
occupation tax levied under the Retailers' Occupation Tax Act |
or the use tax levied under the Use Tax Act. "Applicable |
taxes", with respect to vehicles not purchased in Illinois, |
refers to the sales, use, excise, or other generally |
applicable tax that is due upon the purchase of a vehicle in |
the jurisdiction in which the vehicle was purchased. |
Notwithstanding any law to the contrary, the car-sharing |
program shall have the right to rely on the shared vehicle |
owner's response and to be held legally harmless for such |
reliance.
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Section 10. The Illinois Vehicle Code is amended by |
changing Section 6-305.2 as follows:
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(625 ILCS 5/6-305.2)
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Sec. 6-305.2. Limited liability for damage.
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(a) Damage to private
passenger vehicle. A person who |
rents a motor vehicle to another may hold
the renter liable to |
the extent permitted under subsections (b) through (d) for
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physical or mechanical damage to the rented motor vehicle that |
occurs during
the time the motor vehicle is under the rental |
agreement.
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(b) Limits on liability due to theft for a : vehicle having |
an MSRP of $50,000 or less. The total liability of a renter who |
rents from another a motor vehicle that has an MSRP of $50,000 |
or less and that is stolen shall be the actual and reasonable |
costs incurred by the loss due to theft of the rental motor |
vehicle up to $5,000; provided, however, that if it is |
established that the renter or authorized driver failed to |
exercise ordinary care while in possession of the vehicle or |
that the renter or authorized driver committed or aided and |
abetted the commission of a theft, then the damages shall be |
the actual and reasonable costs of the rental vehicle up to its |
fair market value, as determined by the customary market for |
the sale of the vehicle. renter under subsection
(a) for |
damage to a motor vehicle with a Manufacturer's Suggested |
Retail Price (MSRP) of $50,000 or less may not exceed all of |
the following:
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(1) The lesser of:
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(A) Actual and reasonable costs that the person |
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who rents a motor
vehicle to another incurred to |
repair the motor vehicle or that the rental
company |
would have incurred if the motor vehicle had been
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repaired, which shall reflect any discounts, price |
reductions, or adjustments
available to the rental |
company; or
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(B) The fair market value of that motor vehicle |
immediately before the
damage occurred, as determined |
in the customary market for the retail sale of
that |
motor vehicle; and
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(2) Actual and reasonable costs incurred by the loss |
due to theft of the
rental motor vehicle up to $2,000; |
provided, however, that if it is
established that the |
renter or an authorized driver failed to exercise ordinary
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care while in possession of the vehicle or that the renter |
or an authorized
driver committed or aided and abetted the |
commission of the theft, then the
damages shall be the |
actual and reasonable costs of the rental vehicle up to
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its fair market value, as determined by the customary |
market for the sale of
that vehicle.
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For purposes of this subsection (b), for the period prior |
to June 1, 1998,
the
maximum amount that may be recovered from |
an authorized driver shall not exceed
$6,000; for the period |
beginning June 1, 1998 through May 31, 1999, the maximum
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recovery shall not exceed $7,500; and for the period beginning |
June 1, 1999
through May 31, 2000, the maximum recovery shall |
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not exceed $9,000. Beginning
June
1, 2000,
and annually each |
June 1 thereafter, the maximum amount that may be recovered
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from an authorized driver under this subsection (b) shall be |
increased by $500 above the maximum recovery
allowed |
immediately prior to June 1 of that year.
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(b-5) Limits on liability due to theft for a : vehicle |
having an MSRP of more than $50,000. The total liability of a |
renter who rents from another a motor vehicle that has an MSRP |
of more than $50,000 and that is stolen shall be the actual and |
reasonable cost incurred by the loss due to theft of the rental |
motor vehicle up to $40,000; provided, however that if it is |
established that the renter or authorized driver failed to |
exercise ordinary care while in possession of the vehicle or |
that the renter or authorized driver committed or aided and |
abetted the commission of a theft, then the damages shall be |
the actual and reasonable costs of the rental vehicle up to its |
fair market value, as determined by the customary market for |
the sale of the vehicle. renter under subsection (a) for |
damage to a motor vehicle with a Manufacturer's Suggested |
Retail Price (MSRP) of more than $50,000 may not exceed all of |
the following: |
(1) the lesser of: |
(A) actual and reasonable costs that the person |
who rents a motor vehicle to another incurred to |
repair the motor vehicle or that the rental company |
would have incurred if the motor vehicle had been |
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repaired, which shall reflect any discounts, price |
reductions, or adjustments available to the rental |
company; or |
(B) the fair market value of that motor vehicle |
immediately before the damage occurred, as determined |
in the customary market for the retail sale of that |
motor vehicle; and |
(2) the actual and reasonable costs incurred by the |
loss due to theft of the rental motor vehicle up to |
$40,000. |
The maximum recovery for a motor vehicle with a |
Manufacturer's Suggested Retail Price (MSRP) of more than |
$50,000 under this subsection (b-5) shall not exceed $40,000 |
on the effective date of this amendatory Act of the 99th |
General Assembly. On October 1, 2016, and for the next 3 years |
thereafter, the maximum amount that may be recovered from an |
authorized driver under this subsection (b-5) shall be |
increased by $2,500 above the prior year's maximum recovery. |
On October 1, 2020, and for each year thereafter, the maximum |
amount that may be recovered from an authorized driver under |
this subsection (b-5) shall be increased by $1,000 above the |
prior year's maximum recovery. |
(b-10) Beginning on the effective date of this amendatory |
Act of the 103rd General Assembly and for 6 months after, a |
person who rents a motor vehicle to another shall provide |
notice to the renter of the motor vehicle of the changes |
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reflected in this amendatory Act of the 103rd General |
Assembly. The notice shall be posted in a conspicuous and |
unobscured place that is separate and apart from any other |
information. |
(c) Multiple recoveries prohibited. Any person who rents a |
motor
vehicle to another may not hold the renter liable for any |
amounts that the
rental company recovers from any other party.
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(d) Repair estimates. A person who rents a motor vehicle |
to another may
not collect or attempt to collect the amount |
described in subsection (b) or (b-5) unless
the rental company |
obtains an estimate from a repair company or an appraiser in
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the business of providing such appraisals on the costs of |
repairing the motor
vehicle, makes a copy of the estimate |
available upon request to the renter who
may be liable under |
subsection (a), or the insurer of the renter, and submits a
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copy of the estimate with any claim to collect the amount |
described in
subsection (b) or (b-5). In order to collect the |
amount described in subsection (b-5), a person renting a motor |
vehicle to another must also provide the renter's personal |
insurance company with reasonable notice and an opportunity to |
inspect damages.
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(d-5) In the event of loss due to theft of the rental motor |
vehicle with a MSRP more than $50,000, the rental company |
shall provide reasonable notice of the theft to the renter's |
personal insurance company. |
(e) Duty to mitigate. A claim against a renter resulting |
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from damage or
loss to a rental vehicle must be reasonably and |
rationally related to the
actual loss incurred. A rental |
company shall mitigate damages where possible
and shall not |
assert or collect any claim for physical damage which exceeds |
the
actual costs of the repair, including all discounts or |
price reductions.
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(f) No rental company shall require a deposit or an |
advance charge
against
the credit card of a renter, in any |
form, for damages to a vehicle which is in
the renter's |
possession, custody, or control. No rental company shall |
require
any payment for damage to the rental vehicle, upon the |
renter's return of the
vehicle in a
damaged condition, until |
after the cost of the damage to the vehicle and
liability |
therefor is agreed to between the rental company and renter or |
is
determined pursuant to law.
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(g) If insurance coverage exists under the renter's |
personal insurance
policy and the coverage is confirmed during |
regular business hours, the renter
may require that the rental
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company must submit any claims to the renter's personal |
insurance carrier as
the renter's agent. The rental company |
shall not make any written or oral
representations that it |
will not present claims or negotiate with the renter's
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insurance carrier. For purposes of this Section, confirmation |
of coverage
includes telephone confirmation from insurance |
company representatives during
regular business hours. After
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confirmation of coverage, the amount of claim shall be |