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Public Act 91-0193
SB132 Enrolled LRB9101787PTpk
AN ACT to amend the Automobile Renting Occupation and Use
Tax Act by changing Section 2.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Automobile Renting Occupation and Use Tax
Act is amended by changing Section 2 as follows:
(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 any motor vehicle of the first
division, a motor vehicle of the second division which 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, or a motor vehicle of
the second division which 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.
"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. 90-14, eff. 7-1-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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