Section 190.120  Automobile Renting Use Tax Must be Separately Stated

a)         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 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.  [35 ILCS 155/4]

b)         If a rentor does not keep a detailed record for the return period of the Automobile Renting Use Tax (ARUT) which the rentor collects so as clearly to segregate these added charges from other receipts, absent information to the contrary, it will be assumed that the ARUT collected equals 5% of the taxable receipts received in such return period from taxable automobile rentals.

c)         The rentor may eliminate the amount of ARUT the rentor collects from total rental receipts to arrive at the rentor's taxable rental receipts by:  

1)         subtracting the amount collected from the rentee as ARUT, as shown by such rentor's books and records, from total rental receipts; or

2)         by subtracting, from the total rental receipts which the rentor receives from taxable automobile rentals, the figure obtained by dividing such rental receipts by 105 and multiplying the result by 5.

(Source:  Amended at 49 Ill. Reg. 7684, effective May 19, 2025)