Section 125.115  Nontaxable Transactions

The tax does not apply to rental receipts from the following transactions:

a)         an agreement for the use of tangible personal property which is required to be titled and registered by a State agency [35 ILCS 180/35];

b)         an agreement for the use of merchandise by an individual for personal, family, or household purposes for an initial period of more than 4 months;

c)         an agreement for the use of merchandise by an individual for personal, family, or household purposes that is not automatically renewable;

d)         an agreement for the use of merchandise by an individual for personal, family, or household purposes that does not permit the consumer to become the owner of the merchandise;

e)         an isolated or occasional agreement for the rental of merchandise; and

f)         transactions protected by the Commerce Clause of the United States Constitution (U.S. Const. Art. 1, Sec. 8, Cl. 3).  (See Section 150.310 Exemptions to Avoid Multi-State Taxation.)