August 28, 2018
To the Honorable Members of
The Illinois Senate
100th General Assembly:
Today, I return Senate Bill 2641 with specific recommendations for change.
Peer-to-peer car sharing is an innovative new service that simultaneously allows vehicle owners the freedom to realize additional income on an existing household asset, while also affording consumers a new service to meet their mobility needs. Illinoisans can expect to see this expansion result in lower prices and more choice.
There are meaningful and direct benefits to car sharing that Illinoisans will enjoy at every level; it will reduce congestion, lower the strain placed on scarce parking space inventory, and it will make it easier for people to afford vehicles while simultaneously lowering the cost of transportation for those who cannot afford full-time car ownership.
Oversight of this new industry is important to protect consumers; however, we should be careful not to unintentionally smother its growth before it has a chance to get off the ground.
Senate Bill 2641 was passed rapidly by the General Assembly in the final hours of the legislative session, potentially strangling a nascent new service industry while also adding a large tax increase on the millions of Illinoisans who desire to use this service as either car owners or car users; all without any meaningful time for public input or debate.
Many of the structures this sweeping legislation proposes are ill-suited to thoughtfully regulate this new industry. For example, it is unclear that the current car rental tax rate, which in some cases was meant to compensate for the benefits to the rental car industry derived from the positive spillover of conferences and tourism, has anything to do with Illinoisans providing a nominal service for their neighbor’s trip to the grocery store or weekend vacation out of town. There could also be instances of redundant taxation where a user is taxed on a taxi, Uber or Lyft ride from the airport to a nearby household, just to be taxed again on the vehicle they reserved through a ride sharing platform. Further state and local regulatory burdens that make little or no sense placed on car sharing platforms include regulations regarding pamphlets and font sizes, print advertising, real estate design requirements, document inspection, and other restrictions that undermine the innovation in the platform.
In contrast, this recommended amendment was crafted in close coordination with the broader stakeholder community, with the guiding principle of ensuring maximum consumer choice and an equitable treatment under tax law.
Therefore, pursuant to Section 9(e) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 2641, entitled “AN ACT concerning transportation,” with specific recommendations for change listed below.
On page 1, immediately after line 3, by inserting the following:
“Section 1. Short title. This Act may be cited as the Illinois Peer-to-Peer Car Sharing Act.
Section 5. Definitions. As used in this Chapter:
(a)”Car sharing period” means the period of time that commences at the car sharing start time and ends at the car sharing termination time.
(b) “Car sharing start time” means the time when a shared motor vehicle becomes subject to the control of the shared vehicle driver at or after the time the reservation of a shared motor vehicle is scheduled to begin as documented in the records of a peer-to-peer car sharing program.
(c)”Car sharing termination time” means the time when the shared motor vehicle is returned to the location designated by the shared vehicle owner or peer-to-peer car sharing company through a peer-to-peer car sharing program, and the earliest of the following occurs:
(1) the expiration of the agreed period of time established for the use of the shared motor vehicle;
(2) the intent to terminate the use of the shared motor vehicle is verifiably communicated to the peer-to-peer car sharing program; or
(3) the shared vehicle owner or the shared vehicle owner’s authorized designee, takes possession and control of the shared motor vehicle.
(d) “Intentional or fraudulent material misrepresentation” means an affirmative statement or an omission by a shared vehicle owner that misrepresents material facts about the shared vehicle owner or the shared motor vehicle.
(e) ”Peer-to-peer car sharing” means the authorized use of a motor vehicle by an individual other than the vehicle’s owner through a peer-to-peer car sharing program.
(f) “Peer-to-peer car sharing transaction” has the meaning ascribed to in Sec. 1-110.06 of the Illinois Vehicle Code.
(g) “Peer-to-peer car sharing program” means a platform provided by a legal entity qualified to business in this State that is engaged in the business of connecting vehicle owners with drivers to enable the sharing of motor vehicles for financial consideration
(h) “Peer-to-peer car sharing program agreement” means the written terms and conditions applicable to a shared vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-to-peer car sharing program under the provisions of this Section.
(i) “Shared motor vehicle” means a motor vehicle that is available for sharing through a peer-to-peer car sharing program.
(j) “Shared vehicle driver” means an individual who has:
(1) reserved the use of a shared motor vehicle through a peer-to peer car sharing program; and
(2) been authorized to drive the shared motor vehicle by the peer-to-peer car sharing program.
(k) “Shared vehicle owner” means the registered owner of a motor vehicle made available for sharing to shared vehicle drivers through a peer-to-peer car sharing program.
Section 10. Peer-to-Peer Car Sharing Program Liabilities and Obligations
(a) Except as provided in subparagraph (1) of this paragraph, a peer-to-peer car sharing program shall assume the liability of a shared vehicle owner for any bodily injury or property damage to third parties or uninsured and underinsured motorist or personal injury protection losses during the car sharing period in an amount stated in the peer-to-peer car sharing program agreement which amount may not be less than those set forth in Section 7-203 of the Illinois Insurance Code.
(1) The assumption of liability under Paragraph (a) of this Subsection does not apply if the shared vehicle owner made an intentional or fraudulent material misrepresentation to the peer-to-peer car sharing program before the car sharing period in which the loss occurred.
(b) Nothing in Paragraph (a) of this Subsection:
(1) Limits the liability of the peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program itself that results in injury to any person as a result of the use of a shared motor vehicle through a peer-to-peer car sharing program; or
(2) Limits the ability of the peer-to-peer car sharing program to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the peer-to-peer car sharing program agreement.
(c) Each peer-to-peer car sharing program agreement made with respect to a car sharing arrangement in the State shall disclose to the shared vehicle owner and the shared vehicle driver:
(1) Any right of the peer-to-peer car sharing program to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the peer-to-peer car sharing program agreement;
(2) That a motor vehicle liability insurance policy issued to the shared vehicle owner for the shared motor vehicle or to the shared vehicle driver does not provide a defense or indemnification for any claim asserted by the peer-to-peer car sharing program;
(3) That the peer-to-peer car sharing program’s insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each car sharing period and that, for any use of the shared motor vehicle by the shared vehicle driver after the car sharing termination time, the shared vehicle driver and the shared vehicle owner should contact the shared vehicle driver’s or the shared vehicle owner’s insurer regarding insurance coverage;
(4) The daily rate, fees, and if applicable, any insurance or protection package costs that are charged to the shared vehicle owner or the shared vehicle driver.
(5) That the shared vehicle owner’s motor vehicle liability insurance may not provide coverage for a shared motor vehicle.
(6) An emergency telephone number to personnel capable of fielding roadside assistance and other customer service inquiries.
(d) At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a shared motor vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing program shall notify the shared vehicle owner that, if the shared motor vehicle has a lien against it, the use of the shared motor vehicle through a peer-to-peer car sharing program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.
(e) A peer-to-peer car sharing program shall ensure that, during each car sharing period, the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that:
(1) Recognizes that the vehicle insured under the policy is made available and used through a peer-to-peer car sharing program; and
(2) Provides insurance coverage in amounts no less than the minimum amounts set forth in Section 7-203 of the Illinois Insurance Code.
(f) The insurance described under paragraph (e) of this subsection may be satisfied by motor vehicle liability insurance maintained by:
1) A shared vehicle owner;
2) A shared vehicle driver;
3) A peer-to-peer car sharing program; or
4) Both a shared vehicle owner, a shared vehicle driver, and a peer-to-peer car sharing program.
The insurance described in this paragraph that is satisfying the insurance requirement of paragraph (e) shall be primary during each car sharing period.
(g) An authorized insurer that writes motor vehicle liability insurance in the State may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a shared vehicle owner’s personal motor vehicle liability insurance policy. Nothing in this Act invalidates or limits an exclusion contained in a motor vehicle liability insurance policy, including any insurance policy in use or approved for use that excludes coverage for motor vehicles made available for rent, sharing, or hire or for any business use.
(h) No policy of personal private passenger automobile liability insurance shall be cancelled, voided, terminated, rescinded, or nonrenewed solely on the basis that the vehicle has been made available for car sharing pursuant to a car sharing program that is in compliance with the provisions of this section.
(i) A peer-to-peer car sharing company may not enter into a car sharing program agreement with a driver unless the driver who will operate the shared vehicle is duly licensed under Chapter 6 of the Illinois Vehicle Code or, in the case of a nonresident, then duly licensed under the laws of the State or country of his residence unless the State or country of his residence does not require that a driver be licensed.
(j) A peer-to-peer car sharing company shall keep a record of the registration number of the shared vehicle, the name and address of the shared vehicle driver, the number of the driver’s license, if any, of the shared vehicle driver, and the place where the license, if any, was issued. Such record shall be open to inspection by any officer or designated agent of the Secretary of State.
(k) A peer-to-peer car sharing company shall have sole responsibility for any equipment, such as a GPS system or other special equipment that is put in or on the vehicle to monitor or facilitate the car sharing transaction, and shall agree to indemnify and hold harmless the vehicle owner for any damage to or theft of such equipment, except to the extent the damage or theft was caused directly by the vehicle’s owner.
(l) The peer-to-peer car sharing company shall collect and verify records pertaining to the use of a vehicle, including, but not limited to, times used, fees paid by the shared vehicle driver, and revenues received by the shared vehicle owner and provide that information upon request to the shared vehicle owner, the shared vehicle owner's insurer, or the shared vehicle driver’s insurer to facilitate a claim coverage investigation. The peer-to-peer car sharing company shall retain the records for a reasonable period after the expiration of the applicable personal injury statute of limitations.
(m) A peer–to–peer car sharing program and a shared vehicle owner shall be exempt from vicarious liability in accordance with 49 14 U.S.C. § 30106 and under any state or local law that imposes liability solely based on vehicle ownership.
(n) A motor vehicle insurer that defends or indemnifies a claim against a shared motor vehicle that is excluded under the terms of its policy shall have the right to seek contribution against the motor vehicle insurer of the peer–to–peer car sharing program if the claim is: (i) made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period; and (ii) excluded under the terms of its policy.
(o) A peer-to-peer car sharing program may not be considered to be a motor vehicle rental company under Illinois State or local law including but not limited to 625 ILCS 5/6-305.3
(p) Notwithstanding any other law, statute, rule or regulation to the contrary, a peer-to-peer car sharing program shall have an insurable interest in a shared motor vehicle during the car sharing period.
Section 15. Recall and Safety Provisions
(a) At the time when a vehicle owner registers as a shared vehicle owner with a peer-to-peer car sharing platform and prior to the time when the shared vehicle owner makes a shared vehicle available for car sharing on the car sharing platform, the peer-to-peer car sharing platform shall:
(1) Verify that the shared vehicle does not have any safety recalls on the vehicle for which the repairs have not been made; and
(2) Notify the shared vehicle owner of the requirements under subsection (b) of this section.
(b) If the shared vehicle owner has received an actual notice of a safety recall on the vehicle, a shared vehicle owner may not make a vehicle available as a shared vehicle on a peer-to-peer car sharing platform until the safety recall repair has been made.
(c) If a shared vehicle owner receives an actual notice of a safety recall on a shared vehicle while the shared vehicle is made available on the peer-to-peer car sharing platform, the shared vehicle owner shall remove the shared vehicle as available on the peer-to-peer car sharing platform, as soon as practicably possible but no later than 72 hours after receiving the notice of the safety recall and until the safety recall repair has been made.
(d) If a shared vehicle owner receives an actual notice of a safety recall while the shared vehicle is being used in the possession of a shared vehicle driver, as soon as practicably possible but no later than 72 hours after receiving the notice of the safety recall, the shared vehicle owner shall notify the peer-to-peer car sharing platform about the safety recall so that the shared vehicle owner may address the safety recall repair.
Section 20. Penalties
(a) A Uniform Traffic Citation issued under the Automated Traffic Control Systems in Highway Construction or Maintenance Zones Act to a peer-to-peer car sharing program, or, shared vehicle owner, shall be dismissed with respect to the peer-to-peer car sharing program, or, shared vehicle owner, if:
(1) the peer-to-peer car sharing program or, shared vehicle owner responds to the Uniform Traffic Citation by submitting, within 30 days of the receipt of the citation, an affidavit or declaration of non-liability stating that, at the time of the alleged speeding or other traffic violation, the vehicle was in the custody and control of a shared vehicle driver under the terms of a peer-to-peer car sharing program agreement; and
(2) the driver’s license number, name, and last known address of the shared vehicle driver is provided.
(b) A Uniform Traffic Citation dismissed with respect to a peer-to-peer car sharing program or, shared vehicle owner in accordance with subsection (1) may then be issued and delivered by mail or other means to the shared vehicle driver identified in the affidavit of non-liability.
Section 905. The Use
Tax Act is amended by changing Section 3-5 as follows:
(35 ILCS
105/3-5)
(Text
of Section from P.A. 100-22)
Sec.
3-5. Exemptions. Use of the following tangible personal property is exempt from
the tax imposed by this Act:
(1)
Personal property purchased from a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2)
Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3)
Personal property purchased by a not-for-profit arts or cultural organization
that establishes, by proof required by the Department by rule, that it has
received an exemption under Section 501(c)(3) of the Internal Revenue Code and
that is organized and operated primarily for the presentation or support of
arts or cultural programming, activities, or services. These organizations
include, but are not limited to, music and dramatic arts organizations such as
symphony orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations, and media arts
organizations. On and after the effective date of this amendatory Act of the
92nd General Assembly, however, an entity otherwise eligible for this exemption
shall not make tax-free purchases unless it has an active identification number
issued by the Department.
(4)
Personal property purchased by a governmental body, by a corporation, society,
association, foundation, or institution organized and operated exclusively for
charitable, religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or organization
that has no compensated officers or employees and that is organized and
operated primarily for the recreation of persons 55 years of age or older. A
limited liability company may qualify for the exemption under this paragraph
only if the limited liability company is organized and operated exclusively for
educational purposes. On and after July 1, 1987, however, no entity otherwise
eligible for this exemption shall make tax-free purchases unless it has an
active exemption identification number issued by the Department.
(5)
Until July 1, 2003, a passenger car that is a replacement vehicle to the extent
that the purchase price of the car is subject to the Replacement Vehicle Tax.
(6)
Until July 1, 2003 and beginning again on September 1, 2004 through August 30,
2014, graphic arts machinery and equipment, including repair and replacement
parts, both new and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic arts production,
and including machinery and equipment purchased for lease. Equipment includes
chemicals or chemicals acting as catalysts but only if the chemicals or
chemicals acting as catalysts effect a direct and immediate change upon a
graphic arts product. Beginning on July 1, 2017, graphic arts machinery and
equipment is included in the manufacturing and assembling machinery and
equipment exemption under paragraph (18).
(7)
Farm chemicals.
(8)
Legal tender, currency, medallions, or gold or silver coinage issued by the
State of Illinois, the government of the United States of America, or the
government of any foreign country, and bullion.
(9)
Personal property purchased from a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(10)
A motor vehicle that is used for automobile renting, as defined in the
Automobile Renting Occupation and Use Tax Act. This exemption does not
include a motor vehicle that is used in a peer-to-peer car
sharing transaction, as defined in Section 1-110.06 of the Illinois Vehicle
Code, unless the motor vehicle is used exclusively in peer-to-peer car sharing
transactions.
(11)
Farm machinery and equipment, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for production
agriculture or State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including machinery and
equipment purchased for lease, and including implements of husbandry defined in
Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code, but excluding other motor
vehicles required to be registered under the Illinois Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under this item (11).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm
machinery and equipment shall include precision farming equipment that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment includes, but is not limited
to, soil testing sensors, computers, monitors, software, global positioning and
mapping systems, and other such equipment.
Farm
machinery and equipment also includes computers, sensors, software, and related
equipment used primarily in the computer-assisted operation of production
agriculture facilities, equipment, and activities such as, but not limited to,
the collection, monitoring, and correlation of animal and crop data for the
purpose of formulating animal diets and agricultural chemicals. This item (11)
is exempt from the provisions of Section 3-90.
(12)
Until June 30, 2013, fuel and petroleum products sold to or used by an air
common carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations outside the United
States without regard to previous or subsequent domestic stopovers.
Beginning
July 1, 2013, fuel and petroleum products sold to or used by an air carrier,
certified by the carrier to be used for consumption, shipment, or storage in
the conduct of its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the United States and
any of its possessions and (ii) transports at least one individual or package
for hire from the city of origination to the city of final destination on the
same aircraft, without regard to a change in the flight number of that
aircraft.
(13)
Proceeds of mandatory service charges separately stated on customers' bills for
the purchase and consumption of food and beverages purchased at retail from a
retailer, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is imposed.
(14)
Until July 1, 2003, oil field exploration, drilling, and production equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and
workover rigs, (ii) pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration, drilling, and production
equipment, and (vi) machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois Vehicle Code.
(15)
Photoprocessing machinery and equipment, including repair and replacement
parts, both new and used, including that manufactured on special order,
certified by the purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment purchased for lease.
(16)
Coal and aggregate exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but excluding motor
vehicles required to be registered under the Illinois Vehicle Code. The changes
made to this Section by Public Act 97-767 apply on and after July 1, 2003, but
no claim for credit or refund is allowed on or after August 16, 2013 (the
effective date of Public Act 98-456) for such taxes paid during the period
beginning July 1, 2003 and ending on August 16, 2013 (the effective date of
Public Act 98-456).
(17)
Until July 1, 2003, distillation machinery and equipment, sold as a unit or
kit, assembled or installed by the retailer, certified by the user to be used
only for the production of ethyl alcohol that will be used for consumption as
motor fuel or as a component of motor fuel for the personal use of the user,
and not subject to sale or resale.
(18)
Manufacturing and assembling machinery and equipment used primarily in the
process of manufacturing or assembling tangible personal property for wholesale
or retail sale or lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials used in the process
are owned by the manufacturer or some other person, or whether that sale or
lease is made apart from or as an incident to the seller's engaging in the
service occupation of producing machines, tools, dies, jigs, patterns, gauges,
or other similar items of no commercial value on special order for a particular
purchaser. The exemption provided by this paragraph (18) does not include
machinery and equipment used in (i) the generation of electricity for wholesale
or retail sale; (ii) the generation or treatment of natural or artificial gas
for wholesale or retail sale that is delivered to customers through pipes,
pipelines, or mains; or (iii) the treatment of water for wholesale or retail
sale that is delivered to customers through pipes, pipelines, or mains. The
provisions of Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. Beginning on July 1, 2017, the exemption
provided by this paragraph (18) includes, but is not limited to, graphic arts
machinery and equipment, as defined in paragraph (6) of this Section.
(19)
Personal property delivered to a purchaser or purchaser's donee inside Illinois
when the purchase order for that personal property was received by a florist
located outside Illinois who has a florist located inside Illinois deliver the
personal property.
(20)
Semen used for artificial insemination of livestock for direct agricultural
production.
(21)
Horses, or interests in horses, registered with and meeting the requirements of
any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American
Quarter Horse Association, United States Trotting Association, or Jockey Club,
as appropriate, used for purposes of breeding or racing for prizes. This item
(21) is exempt from the provisions of Section 3-90, and the exemption provided
for under this item (21) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1, 2008 for such
taxes paid during the period beginning May 30, 2000 and ending on January 1,
2008.
(22)
Computers and communications equipment utilized for any hospital purpose and
equipment used in the diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would otherwise be subject
to the tax imposed by this Act, to a hospital that has been issued an active
tax exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a manner that does
not qualify for this exemption or is used in any other non-exempt manner, the
lessor shall be liable for the tax imposed under this Act or the Service Use
Tax Act, as the case may be, based on the fair market value of the property at
the time the non-qualifying use occurs. No lessor shall collect or attempt to
collect an amount (however designated) that purports to reimburse that lessor
for the tax imposed by this Act or the Service Use Tax Act, as the case may be,
if the tax has not been paid by the lessor. If a lessor improperly collects any
such amount from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount is not refunded
to the lessee for any reason, the lessor is liable to pay that amount to the
Department.
(23)
Personal property purchased by a lessor who leases the property, under a lease
of one year or longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a governmental body
that has been issued an active sales tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act. If the
property is leased in a manner that does not qualify for this exemption or used
in any other non-exempt manner, the lessor shall be liable for the tax imposed
under this Act or the Service Use Tax Act, as the case may be, based on the
fair market value of the property at the time the non-qualifying use occurs. No
lessor shall collect or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been paid by the
lessor. If a lessor improperly collects any such amount from the lessee, the
lessee shall have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee for any reason,
the lessor is liable to pay that amount to the Department.
(24)
Beginning with taxable years ending on or after December 31, 1995 and ending
with taxable years ending on or before December 31, 2004, personal property
that is donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25)
Beginning with taxable years ending on or after December 31, 1995 and ending
with taxable years ending on or before December 31, 2004, personal property
that is used in the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(26)
Beginning July 1, 1999, game or game birds purchased at a "game breeding
and hunting preserve area" as that term is used in the Wildlife Code. This
paragraph is exempt from the provisions of Section 3-90.
(27)
A motor vehicle, as that term is defined in Section 1-146 of the Illinois
Vehicle Code, that is donated to a corporation, limited liability company,
society, association, foundation, or institution that is determined by the
Department to be organized and operated exclusively for educational purposes.
For purposes of this exemption, "a corporation, limited liability company,
society, association, foundation, or institution organized and operated
exclusively for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in useful branches
of learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial occupation.
(28)
Beginning January 1, 2000, personal property, including food, purchased through
fundraising events for the benefit of a public or private elementary or
secondary school, a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school district that
consists primarily of volunteers and includes parents and teachers of the
school children. This paragraph does not apply to fundraising events (i) for
the benefit of private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from another
individual or entity that sold the property for the purpose of resale by the
fundraising entity and that profits from the sale to the fundraising entity.
This paragraph is exempt from the provisions of Section 3-90.
(29)
Beginning January 1, 2000 and through December 31, 2001, new or used automatic
vending machines that prepare and serve hot food and beverages, including
coffee, soup, and other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement and vending business if a
use or occupation tax is paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This paragraph is
exempt from the provisions of Section 3-90.
(30)
Beginning January 1, 2001 and through June 30, 2016, food for human consumption
that is to be consumed off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines, drugs, medical
appliances, and insulin, urine testing materials, syringes, and needles used by
diabetics, for human use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who resides in a
licensed long-term care facility, as defined in the Nursing Home Care Act, or
in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD
Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(31)
Beginning on the effective date of this amendatory Act of the 92nd General
Assembly, computers and communications equipment utilized for any hospital
purpose and equipment used in the diagnosis, analysis, or treatment of hospital
patients purchased by a lessor who leases the equipment, under a lease of one
year or longer executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a hospital that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act. If the equipment is leased in a manner
that does not qualify for this exemption or is used in any other nonexempt
manner, the lessor shall be liable for the tax imposed under this Act or the
Service Use Tax Act, as the case may be, based on the fair market value of the
property at the time the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports to reimburse
that lessor for the tax imposed by this Act or the Service Use Tax Act, as the
case may be, if the tax has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have a legal right
to claim a refund of that amount from the lessor. If, however, that amount is
not refunded to the lessee for any reason, the lessor is liable to pay that
amount to the Department. This paragraph is exempt from the provisions of
Section 3-90.
(32)
Beginning on the effective date of this amendatory Act of the 92nd General
Assembly, personal property purchased by a lessor who leases the property,
under a lease of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this Act, to a
governmental body that has been issued an active sales tax exemption identification
number by the Department under Section 1g of the Retailers' Occupation Tax Act.
If the property is leased in a manner that does not qualify for this exemption
or used in any other nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case may be, based on
the fair market value of the property at the time the nonqualifying use occurs.
No lessor shall collect or attempt to collect an amount (however designated)
that purports to reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been paid by the
lessor. If a lessor improperly collects any such amount from the lessee, the
lessee shall have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee for any reason,
the lessor is liable to pay that amount to the Department. This paragraph is
exempt from the provisions of Section 3-90.
(33)
On and after July 1, 2003 and through June 30, 2004, the use in this State of
motor vehicles of the second division with a gross vehicle weight in excess of
8,000 pounds and that are subject to the commercial distribution fee imposed
under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004
and through June 30, 2005, the use in this State of motor vehicles of the
second division: (i) with a gross vehicle weight rating in excess of 8,000
pounds; (ii) that are subject to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for
commercial purposes. Through June 30, 2005, this exemption applies to repair
and replacement parts added after the initial purchase of such a motor vehicle
if that motor vehicle is used in a manner that would qualify for the rolling
stock exemption otherwise provided for in this Act. For purposes of this
paragraph, the term "used for commercial purposes" means the
transportation of persons or property in furtherance of any commercial or
industrial enterprise, whether for-hire or not.
(34)
Beginning January 1, 2008, tangible personal property used in the construction
or maintenance of a community water supply, as defined under Section 3.145 of
the Environmental Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under Title IV of the
Environmental Protection Act. This paragraph is exempt from the provisions of
Section 3-90.
(35)
Beginning January 1, 2010, materials, parts, equipment, components, and
furnishings incorporated into or upon an aircraft as part of the modification,
refurbishment, completion, replacement, repair, or maintenance of the aircraft.
This exemption includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and maintenance of aircraft,
but excludes any materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and maintenance of
aircraft engines or power plants, whether such engines or power plants are
installed or uninstalled upon any such aircraft. "Consumable
supplies" include, but are not limited to, adhesive, tape, sandpaper,
general purpose lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying tangible personal
property by persons who modify, refurbish, complete, repair, replace, or
maintain aircraft and who (i) hold an Air Agency Certificate and are empowered
to operate an approved repair station by the Federal Aviation Administration,
(ii) have a Class IV Rating, and (iii) conduct operations in accordance with
Part 145 of the Federal Aviation Regulations. The exemption does not include
aircraft operated by a commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129 of the Federal
Aviation Regulations. The changes made to this paragraph (35) by Public Act
98-534 are declarative of existing law.
(36)
Tangible personal property purchased by a public-facilities corporation, as
described in Section 11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but only if the legal
title to the municipal convention hall is transferred to the municipality
without any further consideration by or on behalf of the municipality at the
time of the completion of the municipal convention hall or upon the retirement
or redemption of any bonds or other debt instruments issued by the
public-facilities corporation in connection with the development of the
municipal convention hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-90.
(37)
Beginning January 1, 2017, menstrual pads, tampons, and menstrual cups.
(Source: P.A. 99-180, eff.
7-29-15; 99-855, eff. 8-19-16; 100-22, eff. 7-6-17.)
Section 910. The Retailers’ Occupation Tax Act is amended by changing Section 2-5 as follows:
(35 ILCS
120/2-5)
(Text of Section from P.A. 100-22)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale
of the following tangible personal property are exempt from the tax imposed by
this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the purchaser to be
used primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code,
farm machinery and agricultural chemical and fertilizer spreaders, and nurse
wagons required to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be registered under the
Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for
propagating, growing, or overwintering plants shall be considered farm
machinery and equipment under this item (2). Agricultural chemical tender tanks
and dry boxes shall include units sold separately from a motor vehicle required
to be licensed and units sold mounted on a motor vehicle required to be
licensed, if the selling price of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be installed on farm
machinery and equipment including, but not limited to, tractors, harvesters,
sprayers, planters, seeders, or spreaders. Precision farming equipment
includes, but is not limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but not limited to, the collection, monitoring, and
correlation of animal and crop data for the purpose of formulating animal diets
and agricultural chemicals. This item (2) is exempt from the provisions of
Section 2-70.
(3) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the retailer,
certified by the user to be used only for the production of ethyl alcohol that
will be used for consumption as motor fuel or as a component of motor fuel for
the personal use of the user, and not subject to sale or resale.
(4) Until July 1, 2003 and beginning again September
1, 2004 through August 30, 2014, graphic arts machinery and equipment,
including repair and replacement parts, both new and used, and including that
manufactured on special order or purchased for lease, certified by the
purchaser to be used primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the chemicals or
chemicals acting as catalysts effect a direct and immediate change upon a
graphic arts product. Beginning on July 1, 2017, graphic arts machinery and
equipment is included in the manufacturing and assembling machinery and
equipment exemption under paragraph (14).
(5) A motor vehicle that is used for automobile
renting, as defined in the Automobile Renting Occupation and Use Tax Act. This
exemption does not include a motor vehicle that is used in a peer-to-peer car sharing
transaction, as defined in Section 1-110.06 of the Illinois Vehicle Code,
unless the motor vehicle is used exclusively in peer-to-peer car sharing
transactions. This paragraph is exempt from the provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or secondary school located
in Illinois.
(7) Until July 1, 2003, proceeds of that portion of
the selling price of a passenger car the sale of which is subject to the
Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(9) Personal property sold to a not-for-profit arts
or cultural organization that establishes, by proof required by the Department
by rule, that it has received an exemption under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation or support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to, music and
dramatic arts organizations such as symphony orchestras and theatrical groups,
arts and cultural service organizations, local arts councils, visual arts
organizations, and media arts organizations. On and after the effective date of
this amendatory Act of the 92nd General Assembly, however, an entity otherwise
eligible for this exemption shall not make tax-free purchases unless it has an
active identification number issued by the Department.
(10) Personal property sold by a corporation,
society, association, foundation, institution, or organization, other than a
limited liability company, that is organized and operated as a not-for-profit
service enterprise for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the purpose of resale
by the enterprise.
(11) Personal property sold to a governmental body,
to a corporation, society, association, foundation, or institution organized
and operated exclusively for charitable, religious, or educational purposes, or
to a not-for-profit corporation, society, association, foundation, institution,
or organization that has no compensated officers or employees and that is
organized and operated primarily for the recreation of persons 55 years of age
or older. A limited liability company may qualify for the exemption under this
paragraph only if the limited liability company is organized and operated
exclusively for educational purposes. On and after July 1, 1987, however, no entity
otherwise eligible for this exemption shall make tax-free purchases unless it
has an active identification number issued by the Department.
(12) Tangible personal property sold to interstate
carriers for hire for use as rolling stock moving in interstate commerce or to
lessors under leases of one year or longer executed or in effect at the time of
purchase by interstate carriers for hire for use as rolling stock moving in
interstate commerce and equipment operated by a telecommunications provider,
licensed as a common carrier by the Federal Communications Commission, which is
permanently installed in or affixed to aircraft moving in interstate commerce.
(12-5) On and after July 1, 2003 and through June 30,
2004, motor vehicles of the second division with a gross vehicle weight in
excess of 8,000 pounds that are subject to the commercial distribution fee
imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
1, 2004 and through June 30, 2005, the use in this State of motor vehicles of
the second division: (i) with a gross vehicle weight rating in excess of 8,000
pounds; (ii) that are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used
for commercial purposes. Through June 30, 2005, this exemption applies to
repair and replacement parts added after the initial purchase of such a motor
vehicle if that motor vehicle is used in a manner that would qualify for the
rolling stock exemption otherwise provided for in this Act. For purposes of
this paragraph, "used for commercial purposes" means the
transportation of persons or property in furtherance of any commercial or
industrial enterprise whether for-hire or not.
(13) Proceeds from sales to owners, lessors, or
shippers of tangible personal property that is utilized by interstate carriers
for hire for use as rolling stock moving in interstate commerce and equipment
operated by a telecommunications provider, licensed as a common carrier by the
Federal Communications Commission, which is permanently installed in or affixed
to aircraft moving in interstate commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the process of manufacturing
or assembling tangible personal property for wholesale or retail sale or lease,
whether the sale or lease is made directly by the manufacturer or by some other
person, whether the materials used in the process are owned by the manufacturer
or some other person, or whether the sale or lease is made apart from or as an
incident to the seller's engaging in the service occupation of producing
machines, tools, dies, jigs, patterns, gauges, or other similar items of no
commercial value on special order for a particular purchaser. The exemption
provided by this paragraph (14) does not include machinery and equipment used
in (i) the generation of electricity for wholesale or retail sale; (ii) the
generation or treatment of natural or artificial gas for wholesale or retail
sale that is delivered to customers through pipes, pipelines, or mains; or
(iii) the treatment of water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions of Public Act 98-583
are declaratory of existing law as to the meaning and scope of this exemption.
Beginning on July 1, 2017, the exemption provided by this paragraph (14)
includes, but is not limited to, graphic arts machinery and equipment, as
defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of food and beverages,
to the extent that the proceeds of the service charge are in fact turned over
as tips or as a substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or beverage function
with respect to which the service charge is imposed.
(16) Petroleum products sold to a purchaser if the
seller is prohibited by federal law from charging tax to the purchaser.
(17) Tangible personal property sold to a common
carrier by rail or motor that receives the physical possession of the property
in Illinois and that transports the property, or shares with another common
carrier in the transportation of the property, out of Illinois on a standard
uniform bill of lading showing the seller of the property as the shipper or
consignor of the property to a destination outside Illinois, for use outside
Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the government of the United
States of America, or the government of any foreign country, and bullion.
(19) Until July 1 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including
casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks
and flow lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but excluding motor vehicles required to be registered under the
Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,
including repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be used primarily
for photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(21) Coal and aggregate exploration, mining,
off-highway hauling, processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and including equipment purchased
for lease, but excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by Public Act 97-767
apply on and after July 1, 2003, but no claim for credit or refund is allowed
on or after August 16, 2013 (the effective date of Public Act 98-456) for such
taxes paid during the period beginning July 1, 2003 and ending on August 16,
2013 (the effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its business as an air
common carrier, for a flight destined for or returning from a location or
locations outside the United States without regard to previous or subsequent
domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its business as an air
common carrier, for a flight that (i) is engaged in foreign trade or is engaged
in trade between the United States and any of its possessions and (ii)
transports at least one individual or package for hire from the city of
origination to the city of final destination on the same aircraft, without
regard to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but who has a florist
located in Illinois deliver the property to the purchaser or the purchaser's
donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the transportation of
property or the conveyance of persons for hire on rivers bordering on this State
if the fuel is delivered by the seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this
Section, a motor vehicle sold in this State to a nonresident even though the
motor vehicle is delivered to the nonresident in this State, if the motor
vehicle is not to be titled in this State, and if a drive-away permit is issued
to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code
or if the nonresident purchaser has vehicle registration plates to transfer to
the motor vehicle upon returning to his or her home state. The issuance of the
drive-away permit or having the out-of-state registration plates to be
transferred is prima facie evidence that the motor vehicle will not be titled
in this State.
(25-5) The exemption under item (25) does not apply
if the state in which the motor vehicle will be titled does not allow a
reciprocal exemption for a motor vehicle sold and delivered in that state to an
Illinois resident but titled in Illinois. The tax collected under this Act on
the sale of a motor vehicle in this State to a resident of another state that
does not allow a reciprocal exemption shall be imposed at a rate equal to the
state's rate of tax on taxable property in the state in which the purchaser is
a resident, except that the tax shall not exceed the tax that would otherwise
be imposed under this Act. At the time of the sale, the purchaser shall execute
a statement, signed under penalty of perjury, of his or her intent to title the
vehicle in the state in which the purchaser is a resident within 30 days after
the sale and of the fact of the payment to the State of Illinois of tax in an
amount equivalent to the state's rate of tax on taxable property in his or her
state of residence and shall submit the statement to the appropriate tax
collection agency in his or her state of residence. In addition, the retailer
must retain a signed copy of the statement in his or her records. Nothing in
this item shall be construed to require the removal of the vehicle from this
state following the filing of an intent to title the vehicle in the purchaser's
state of residence if the purchaser titles the vehicle in his or her state of
residence within 30 days after the date of sale. The tax collected under this
Act in accordance with this item (25-5) shall be proportionately distributed as
if the tax were collected at the 6.25% general rate imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed
under this Act on the sale of an aircraft, as defined in Section 3 of the
Illinois Aeronautics Act, if all of the following conditions are met:
(1) the aircraft
leaves this State within 15 days after the later of either the issuance of the
final billing for the sale of the aircraft, or the authorized approval for
return to service, completion of the maintenance record entry, and completion
of the test flight and ground test for inspection, as required by 14 C.F.R.
91.407;
(2) the aircraft is not based or registered in this State after the sale of the aircraft; and
(3) the seller retains in his or her books and records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department, certifying that the requirements of this item (25-7) are met. The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
For
purposes of this item (25-7):
"Based in this State" means hangared,
stored, or otherwise used, excluding post-sale customizations as defined in
this Section, for 10 or more days in each 12-month period immediately following
the date of the sale of the aircraft.
"Registered in this State" means an
aircraft registered with the Department of Transportation, Aeronautics
Division, or titled or registered with the Federal Aviation Administration to
an address located in this State.
This paragraph (25-7) is exempt from the provisions of Section 2-70.
(26) Semen used for artificial insemination of
livestock for direct agricultural production.
(27) Horses, or interests in horses, registered with
and meeting the requirements of any of the Arabian Horse Club Registry of
America, Appaloosa Horse Club, American Quarter Horse Association, United
States Trotting Association, or Jockey Club, as appropriate, used for purposes
of breeding or racing for prizes. This item (27) is exempt from the provisions
of Section 2-70, and the exemption provided for under this item (27) applies
for all periods beginning May 30, 1995, but no claim for credit or refund is
allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
for such taxes paid during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
(28) Computers and communications equipment utilized
for any hospital purpose and equipment used in the diagnosis, analysis, or
treatment of hospital patients sold to a lessor who leases the equipment, under
a lease of one year or longer executed or in effect at the time of the purchase,
to a hospital that has been issued an active tax exemption identification
number by the Department under Section 1g of this Act.
(29) Personal property sold to a lessor who leases
the property, under a lease of one year or longer executed or in effect at the
time of the purchase, to a governmental body that has been issued an active tax
exemption identification number by the Department under Section 1g of this Act.
(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or before December
31, 2004, personal property that is donated for disaster relief to be used in a
State or federally declared disaster area in Illinois or bordering Illinois by
a manufacturer or retailer that is registered in this State to a corporation,
society, association, foundation, or institution that has been issued a sales
tax exemption identification number by the Department that assists victims of
the disaster who reside within the declared disaster area.
(31) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or before December
31, 2004, personal property that is used in the performance of infrastructure
repairs in this State, including but not limited to municipal roads and
streets, access roads, bridges, sidewalks, waste disposal systems, water and
sewer line extensions, water distribution and purification facilities, storm
water drainage and retention facilities, and sewage treatment facilities, resulting
from a State or federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the declared disaster
area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold
at a "game breeding and hunting preserve area" as that term is used
in the Wildlife Code. This paragraph is exempt from the provisions of Section
2-70.
(33) A motor vehicle, as that term is defined in
Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation,
limited liability company, society, association, foundation, or institution
that is determined by the Department to be organized and operated exclusively
for educational purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation, or institution
organized and operated exclusively for educational purposes" means all
tax-supported public schools, private schools that offer systematic instruction
in useful branches of learning by methods common to public schools and that
compare favorably in their scope and intensity with the course of study
presented in tax-supported schools, and vocational or technical schools or
institutes organized and operated exclusively to provide a course of study of
not less than 6 weeks duration and designed to prepare individuals to follow a
trade or to pursue a manual, technical, mechanical, industrial, business, or
commercial occupation.
(34) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the benefit of a
public or private elementary or secondary school, a group of those schools, or
one or more school districts if the events are sponsored by an entity
recognized by the school district that consists primarily of volunteers and
includes parents and teachers of the school children. This paragraph does not
apply to fundraising events (i) for the benefit of private home instruction or
(ii) for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits from the sale to
the fundraising entity. This paragraph is exempt from the provisions of Section
2-70.
(35) Beginning January 1, 2000 and through December
31, 2001, new or used automatic vending machines that prepare and serve hot
food and beverages, including coffee, soup, and other items, and replacement
parts for these machines. Beginning January 1, 2002 and through June 30, 2003,
machines and parts for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the gross receipts
derived from the use of the commercial, coin-operated amusement and vending
machines. This paragraph is exempt from the provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,
2016, food for human consumption that is to be consumed off the premises where
it is sold (other than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, and insulin, urine testing materials,
syringes, and needles used by diabetics, for human use, when purchased for use
by a person receiving medical assistance under Article V of the Illinois Public
Aid Code who resides in a licensed long-term care facility, as defined in the
Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community
Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of
2013.
(36) Beginning August 2, 2001, computers and
communications equipment utilized for any hospital purpose and equipment used
in the diagnosis, analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer executed or in
effect at the time of the purchase, to a hospital that has been issued an
active tax exemption identification number by the Department under Section 1g
of this Act. This paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold
to a lessor who leases the property, under a lease of one year or longer
executed or in effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number by the Department
under Section 1g of this Act. This paragraph is exempt from the provisions of
Section 2-70.
(38) Beginning on January 1, 2002 and through June
30, 2016, tangible personal property purchased from an Illinois retailer by a
taxpayer engaged in centralized purchasing activities in Illinois who will,
upon receipt of the property in Illinois, temporarily store the property in Illinois
(i) for the purpose of subsequently transporting it outside this State for use
or consumption thereafter solely outside this State or (ii) for the purpose of
being processed, fabricated, or manufactured into, attached to, or incorporated
into other tangible personal property to be transported outside this State and
thereafter used or consumed solely outside this State. The Director of Revenue
shall, pursuant to rules adopted in accordance with the Illinois Administrative
Procedure Act, issue a permit to any taxpayer in good standing with the
Department who is eligible for the exemption under this paragraph (38). The
permit issued under this paragraph (38) shall authorize the holder, to the
extent and in the manner specified in the rules adopted under this Act, to
purchase tangible personal property from a retailer exempt from the taxes
imposed by this Act. Taxpayers shall maintain all necessary books and records
to substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(39) Beginning January 1, 2008, tangible personal
property used in the construction or maintenance of a community water supply,
as defined under Section 3.145 of the Environmental Protection Act, that is
operated by a not-for-profit corporation that holds a valid water supply permit
issued under Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 2-70.
(40) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or upon an aircraft as
part of the modification, refurbishment, completion, replacement, repair, or
maintenance of the aircraft. This exemption includes consumable supplies used
in the modification, refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials, parts, equipment,
components, and consumable supplies used in the modification, replacement,
repair, and maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any such aircraft.
"Consumable supplies" include, but are not limited to, adhesive,
tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves,
and protective films. This exemption applies only to the sale of qualifying
tangible personal property to persons who modify, refurbish, complete, replace,
or maintain an aircraft and who (i) hold an Air Agency Certificate and are
empowered to operate an approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations. The exemption
does not include aircraft operated by a commercial air carrier providing
scheduled passenger air service pursuant to authority issued under Part 121 or
Part 129 of the Federal Aviation Regulations. The changes made to this
paragraph (40) by Public Act 98-534 are declarative of existing law.
(41) Tangible personal property sold to a
public-facilities corporation, as described in Section 11-65-10 of the Illinois
Municipal Code, for purposes of constructing or furnishing a municipal
convention hall, but only if the legal title to the municipal convention hall
is transferred to the municipality without any further consideration by or on
behalf of the municipality at the time of the completion of the municipal
convention hall or upon the retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in connection with the
development of the municipal convention hall. This exemption includes existing
public-facilities corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017, menstrual pads,
tampons, and menstrual cups.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; 100-22, eff.
7-6-17.)”; and
On page 1, by replacing lines 4 and 5 with:
Section 915. The Automobile Renting Occupation and Use Tax Act is amended by changing Sections 2 and 3 as follows:”; and
On page 1, by replacing lines 10 through 13 with:
“excluding the
facilitation of the use of an individually-owned passenger motor vehicle by
persons other than the vehicle’s registered owner as a part of a peer-to-peer
car sharing transaction, as defined in Section 1-110.06 of the Illinois Vehicle
Code.”; and
On
page 2, by inserting immediately after line 2:
“Peer-to-peer car sharing transaction” has the meaning ascribed to in Sec. 1-110.06 of the Illinois Vehicle Code.”
On
page 2, by replacing line 24 with:
“business. “Rentor”
excludes a person, firm, corporation or association that facilitates the use of
an individually-owned passenger motor vehicle by a person other than the
vehicle’s registered owner as part of a peer-to-peer car sharing transaction,
as defined in Section 1-110.06 of the Illinois Vehicle Code.
“Peer-to-peer car
sharing program” means a person, firm, corporation or association that
facilitates the use of an individually-owned passenger motor vehicle by a
person other than the vehicle’s registered owner as part of a peer-to-peer car
sharing transaction, as defined in Section 1-110.06 of the Illinois Vehicle
Code.”;
and
On
page 4, immediately after line 11, by inserting:
“(35 ILCS 155/3) (from Ch. 120, par. 1703)
Sec. 3. A tax is imposed upon persons engaged in this State in the business of renting automobiles in Illinois and on persons engaged in the business of a peer-to-peer car sharing program at the rate of 5% of the gross receipts received from such business. The tax herein imposed does not apply to the renting of automobiles, or to peer-to-peer car sharing transactions, to any governmental body, nor to any corporation, society, association, foundation or institution organized and operated exclusively for charitable, religious or educational purposes, nor to any not for profit corporation, society, association, foundation, institution or organization which has no compensated officers or employees and which is organized and operated primarily for the recreation of persons 55 years of age or older. Every person engaged in this State in the business of renting automobiles and every person engaged in the business of a peer-to-peer car sharing program shall apply to the Department (upon a form prescribed and furnished by the Department) for a certificate of registration under this Act. The certificate of registration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act shall permit such rentor to engage in a business which is taxable under this Section without registering separately with the Department.
The Department shall have full power to administer and enforce this Section, to collect all taxes and penalties due hereunder, to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ the same modes of procedure, as are prescribed in Sections 1, 1a, 2 through 2-65 (in respect to all provisions therein other than the State rate of tax), 2a, 2b, 2c, 3 (except provisions relating to transaction returns, electronic filing of returns, and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act as fully as if those provisions were set forth herein.
(Source: P.A. 100-303, eff. 8-24-17.)”; and
On page 4, by replacing
lines 12 and 13 with:
“Section 920. The
Counties Code is amended by changing Section 5-1032 and adding Section 5-1032.1
as follows:”; and
By
replacing page 4, line 20 through page 5, line 1 with:
“purposes of
imposing a tax under this Section, the facilitation of the use of an
individually-owned passenger motor vehicle by a person other than the vehicle’s
registered owner as a part of a peer-to-peer car sharing transaction, as
defined in Section 1-110.06 of the Illinois Vehicle Code, does not constitute
engaging in the business of renting automobiles in the county. Notwithstanding
the foregoing, when the owner of an individually-owned passenger motor vehicle
or vehicles used in peer-to-peer car sharing transactions, as defined in
Section 1-110.06 of the Illinois Vehicle Code, has shared such vehicle or
vehicles in the aggregate for more than 1,825 vehicle days, as defined in
Section 5 of the Illinois Peer-to-Peer Car Sharing Act, during a calendar year, an equivalent
tax may be imposed under this Section. The tax imposed by a”;
and
On
page 9, by inserting immediately after line 3 the following:
“(55 ILCS
5/5-1032.1 new)
Sec. 5-1032.1. No
home rule county has the authority to impose, pursuant to its home rule
authority, any tax on the sharing of individually-owned passenger motor
vehicles used in peer-to-peer car sharing transactions, as defined in Section
1-110.06 of the Illinois Vehicle Code, until the owner of such vehicle or
vehicles has shared such vehicle or vehicles in the aggregate for more than
1,825 vehicle days, as defined in Section 5 of the Illinois Peer-to-Peer Car
Sharing Act, in a calendar year. This limitation does not preclude taxation
under Section 5-1008 of this Code of individually-owned passenger motor
vehicles used in peer-to-peer car sharing transactions. This section is a
limitation, pursuant to subsection (g) of Section 6 of Article VII of the
Illinois Constitution, on the power of home rule units to tax.”; and
On page 9, by replacing
lines 4 and 5 with:
“Section 925. The Illinois Municipal Code is amended by changing Sections 8-11-7 and 8-11-11 and adding Section 8-11-8.1 as follows:”; and
On page 9, by replacing lines 11 through 16 with the following:
“purposes of
imposing a tax under this Section, the facilitation of the use of an
individually-owned passenger motor vehicle or vehicles by a person other than
the vehicle’s registered owner as a part of a peer-to-peer car sharing
transaction, as defined in Section 1-110.06 of the Illinois Vehicle Code, does
not constitute engaging in the business of renting automobiles in the
municipality. Notwithstanding the foregoing, when the owner of an
individually-owned passenger motor vehicle or vehicles used in peer-to-peer car
sharing transactions, as defined in Section 1-110.06 of the Illinois Vehicle
Code, has shared such vehicle or vehicles in the aggregate for more than 1,825 vehicle
days, as defined in Section 5 of the Illinois Peer-to-Peer Car Sharing Act, in
a calendar year, an equivalent tax shall not be imposed under this Section. The tax imposed by”;
and
On page 13, by
inserting immediately after line 22 the following:
“(65 ILCS 5/8-11-8.1.
new)
(65 ILCS 5/8-11-11) (from Ch. 24, par. 8-11-11)
Sec.
8-11-11. In addition to any other taxes authorized by law, the corporate
authorities of a municipality may impose a tax upon the privilege of leasing
motor vehicles within the municipality to a lessee on a daily or weekly basis
in an amount not to exceed $2.75 per vehicle per rental period specified in the
lease agreement. The tax may be stated separately in such lease agreement,
invoice or bill. Until the owner of
an individually-owned passenger motor vehicle or vehicles used in peer-to-peer
car sharing transactions, as defined in Section 1-110.06 of the Illinois
Vehicle Code, has shared such vehicle or vehicles in the aggregate for more
than 1,825 vehicle days, as defined in Section 5 of the Illinois Peer-to-Peer
Car Sharing Act, in a calendar year, tax shall not be imposed under this
Section.
The ordinance or
resolution imposing any such tax shall provide for the means of its
administration, collection and enforcement by the municipality.
As
used in this Section, "municipality" means a city, village or
incorporated town, including an incorporated town which has superseded a civil
township, and "motor vehicle" has the meaning ascribed to it in
Section 1-146 of The Illinois Vehicle Code.
(Source: P.A. 84-1479.
Section 930. The Metropolitan Pier and Exposition Authority Act is amended by changing Section 13 as follows:
(70 ILCS 210/13)
(Text of
Section from P.A. 100-23, Article 35, Section 35-25)
Sec. 13. (a) The Authority shall not have power
to levy taxes for any purpose, except as provided in subsections (b), (c), (d),
(e), and (f).
(b) By ordinance the Authority shall, as soon as
practicable after the effective date of this amendatory Act of 1991, impose a
Metropolitan Pier and Exposition Authority Retailers' Occupation Tax upon all persons
engaged in the business of selling tangible personal property at retail within
the territory described in this subsection at the rate of 1.0% of the gross
receipts (i) from the sale of food, alcoholic beverages, and soft drinks sold
for consumption on the premises where sold and (ii) from the sale of food,
alcoholic beverages, and soft drinks sold for consumption off the premises
where sold by a retailer whose principal source of gross receipts is from the
sale of food, alcoholic beverages, and soft drinks prepared for immediate
consumption.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident to that tax shall be collected
and enforced by the Illinois Department of Revenue. The Department shall have full
power to administer and enforce this subsection, to collect all taxes and
penalties so collected in the manner provided in this subsection, and to
determine all rights to credit memoranda arising on account of the erroneous
payment of tax or penalty under this subsection. In the administration of and
compliance with this subsection, the Department and persons who are subject to
this subsection shall have the same rights, remedies, privileges, immunities,
powers, and duties, shall be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and definitions of terms, and
shall employ the same modes of procedure applicable to this Retailers'
Occupation Tax as are prescribed in Sections 1, 2 through 2-65 (in respect to all
provisions of those Sections other than the State rate of taxes), 2c, 2h, 2i, 3
(except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and, until
January 1, 1994, 13.5 of the Retailers' Occupation Tax Act, and, on and after
January 1, 1994, all applicable provisions of the Uniform Penalty and Interest
Act that are not inconsistent with this Act, as fully as if provisions
contained in those Sections of the Retailers' Occupation Tax Act were set forth
in this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their seller's tax
liability under this subsection by separately stating that tax as an additional
charge, which charge may be stated in combination, in a single amount, with
State taxes that sellers are required to collect under the Use Tax Act,
pursuant to bracket schedules as the Department may prescribe. The retailer
filing the return shall, at the time of filing the return, pay to the
Department the amount of tax imposed under this subsection, less a discount of
1.75%, which is allowed to reimburse the retailer for the expenses incurred in
keeping records, preparing and filing returns, remitting the tax, and supplying
data to the Department on request.
Whenever the Department determines that a refund should
be made under this subsection to a claimant instead of issuing a credit
memorandum, the Department shall notify the State Comptroller, who shall cause
a warrant to be drawn for the amount specified and to the person named in the
notification from the Department. The refund shall be paid by the State
Treasurer out of the Metropolitan Pier and Exposition Authority trust fund held
by the State Treasurer as trustee for the Authority.
Nothing in this subsection authorizes the Authority to
impose a tax upon the privilege of engaging in any business that under the
Constitution of the United States may not be made the subject of taxation by
this State.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee for the Authority, all taxes and penalties
collected under this subsection for deposit into a trust fund held outside of
the State Treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department of Revenue, the
Comptroller shall order transferred, and the Treasurer shall transfer, to the
STAR Bonds Revenue Fund the local sales tax increment, as defined in the
Innovation Development and Economy Act, collected under this subsection during
the second preceding calendar month for sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue
Fund, on or before the 25th day of each calendar month, the Department shall
prepare and certify to the Comptroller the amounts to be paid under subsection
(g) of this Section, which shall be the amounts, not including credit
memoranda, collected under this subsection during the second preceding calendar
month by the Department, less any amounts determined by the Department to be
necessary for the payment of refunds, less 2% of such balance, which sum shall
be deposited by the State Treasurer into the Tax Compliance and Administration
Fund in the State Treasury from which it shall be appropriated to the
Department to cover the costs of the Department in administering and enforcing
the provisions of this subsection, and less any amounts that are transferred to
the STAR Bonds Revenue Fund. Within 10 days after receipt by the Comptroller of
the certification, the Comptroller shall cause the orders to be drawn for the
remaining amounts, and the Treasurer shall administer those amounts as required
in subsection (g).
A certificate of registration issued by the Illinois
Department of Revenue to a retailer under the Retailers' Occupation Tax Act
shall permit the registrant to engage in a business that is taxed under the tax
imposed under this subsection, and no additional registration shall be required
under the ordinance imposing the tax or under this subsection.
A certified copy of any ordinance imposing or
discontinuing any tax under this subsection or effecting a change in the rate
of that tax shall be filed with the Department, whereupon the Department shall
proceed to administer and enforce this subsection on behalf of the Authority as
of the first day of the third calendar month following the date of filing.
The tax authorized to be levied under this subsection
may be levied within all or any part of the following described portions of the
metropolitan area:
(1) that portion of the City of
Chicago located within the following area: Beginning at the point of
intersection of the Cook County - DuPage County line and York Road, then North
along York Road to its intersection with Touhy Avenue, then east along Touhy
Avenue to its intersection with the Northwest Tollway, then southeast along the
Northwest Tollway to its intersection with Lee Street, then south along Lee
Street to Higgins Road, then south and east along Higgins Road to its
intersection with Mannheim Road, then south along Mannheim Road to its
intersection with Irving Park Road, then west along Irving Park Road to its
intersection with the Cook County - DuPage County line, then north and west
along the county line to the point of beginning; and
(2) that portion of the City of Chicago located within the following area: Beginning at the intersection of West 55th Street with Central Avenue, then east along West 55th Street to its intersection with South Cicero Avenue, then south along South Cicero Avenue to its intersection with West 63rd Street, then west along West 63rd Street to its intersection with South Central Avenue, then north along South Central Avenue to the point of beginning; and
(3) that portion of the City of Chicago located within the following area: Beginning at the point 150 feet west of the intersection of the west line of North Ashland Avenue and the north line of West Diversey Avenue, then north 150 feet, then east along a line 150 feet north of the north line of West Diversey Avenue extended to the shoreline of Lake Michigan, then following the shoreline of Lake Michigan (including Navy Pier and all other improvements fixed to land, docks, or piers) to the point where the shoreline of Lake Michigan and the Adlai E. Stevenson Expressway extended east to that shoreline intersect, then west along the Adlai E. Stevenson Expressway to a point 150 feet west of the west line of South Ashland Avenue, then north along a line 150 feet west of the west line of South and North Ashland Avenue to the point of beginning.
The tax
authorized to be levied under this subsection may also be levied on food,
alcoholic beverages, and soft drinks sold on boats and other watercraft
departing from and returning to the shoreline of Lake Michigan (including Navy
Pier and all other improvements fixed to land, docks, or piers) described in
item (3).
(c) By ordinance the Authority shall, as soon as
practicable after the effective date of this amendatory Act of 1991, impose an
occupation tax upon all persons engaged in the corporate limits of the City of
Chicago in the business of renting, leasing, or letting rooms in a hotel, as
defined in the Hotel Operators' Occupation Tax Act, at a rate of 2.5% of the
gross rental receipts from the renting, leasing, or letting of hotel rooms
within the City of Chicago, excluding, however, from gross rental receipts the
proceeds of renting, leasing, or letting to permanent residents of a hotel, as
defined in that Act. Gross rental receipts shall not include charges that are
added on account of the liability arising from any tax imposed by the State or
any governmental agency on the occupation of renting, leasing, or letting rooms
in a hotel.
The tax imposed by the Authority under this subsection
and all civil penalties that may be assessed as an incident to that tax shall
be collected and enforced by the Illinois Department of Revenue. The
certificate of registration that is issued by the Department to a lessor under
the Hotel Operators' Occupation Tax Act shall permit that registrant to engage
in a business that is taxable under any ordinance enacted under this subsection
without registering separately with the Department under that ordinance or
under this subsection. The Department shall have full power to administer and
enforce this subsection, to collect all taxes and penalties due under this
subsection, to dispose of taxes and penalties so collected in the manner
provided in this subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty under this
subsection. In the administration of and compliance with this subsection, the
Department and persons who are subject to this subsection shall have the same
rights, remedies, privileges, immunities, powers, and duties, shall be subject
to the same conditions, restrictions, limitations, penalties, and definitions
of terms, and shall employ the same modes of procedure as are prescribed in the
Hotel Operators' Occupation Tax Act (except where that Act is inconsistent with
this subsection), as fully as if the provisions contained in the Hotel
Operators' Occupation Tax Act were set out in this subsection.
Whenever the Department determines that a refund should
be made under this subsection to a claimant instead of issuing a credit
memorandum, the Department shall notify the State Comptroller, who shall cause
a warrant to be drawn for the amount specified and to the person named in the
notification from the Department. The refund shall be paid by the State
Treasurer out of the Metropolitan Pier and Exposition Authority trust fund held
by the State Treasurer as trustee for the Authority.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their tax liability for
that tax by separately stating that tax as an additional charge, which charge
may be stated in combination, in a single amount, with State taxes imposed
under the Hotel Operators' Occupation Tax Act, the municipal tax imposed under
Section 8-3-13 of the Illinois Municipal Code, and the tax imposed under
Section 19 of the Illinois Sports Facilities Authority Act.
The person filing the return shall, at the time of
filing the return, pay to the Department the amount of tax, less a discount of
2.1% or $25 per calendar year, whichever is greater, which is allowed to
reimburse the operator for the expenses incurred in keeping records, preparing
and filing returns, remitting the tax, and supplying data to the Department on
request.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex officio, as
trustee for the Authority, all taxes and penalties collected under this
subsection for deposit into a trust fund held outside the State Treasury. On or
before the 25th day of each calendar month, the Department shall certify to the
Comptroller the amounts to be paid under subsection (g) of this Section, which
shall be the amounts (not including credit memoranda) collected under this
subsection during the second preceding calendar month by the Department, less
any amounts determined by the Department to be necessary for payment of
refunds, less 2% of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the time of each
monthly disbursement to the Authority, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax Compliance and
Administration Fund under this subsection. Within 10 days after receipt by the
Comptroller of the Department's certification, the Comptroller shall cause the
orders to be drawn for such amounts, and the Treasurer shall administer the
amounts distributed to the Authority as required in subsection (g).
A certified copy of any ordinance imposing or discontinuing
a tax under this subsection or effecting a change in the rate of that tax shall
be filed with the Illinois Department of Revenue, whereupon the Department
shall proceed to administer and enforce this subsection on behalf of the
Authority as of the first day of the third calendar month following the date of
filing.
(d) By ordinance the Authority shall, as soon as
practicable after the effective date of this amendatory Act of 1991, impose a
tax upon all persons engaged in the business of renting automobiles in the
metropolitan area at the rate of 6% of the gross receipts from that business,
except that no tax shall be imposed on the business of renting automobiles for
use as taxicabs or in livery service. Until the owner of an individually-owned passenger
motor vehicle or vehicles used in peer-to-peer car sharing transactions, as
defined in Section 1-110.06 of the Illinois Vehicle Code, has shared such
vehicle or vehicles in the aggregate for more than 1,825 vehicle days, as
defined in Section 5 of the Illinois Peer-to-Peer Car Sharing Act, in a
calendar year, tax shall not be imposed under this Section.
The tax imposed under this subsection and all civil penalties that
may be assessed as an incident to that tax shall be collected and enforced by the
Illinois Department of Revenue. The certificate of registration issued by the
Department to a retailer under the Retailers' Occupation Tax Act or under the
Automobile Renting Occupation and Use Tax Act shall permit that person to
engage in a business that is taxable under any ordinance enacted under this
subsection without registering separately with the Department under that
ordinance or under this subsection. The Department shall have full power to
administer and enforce this subsection, to collect all taxes and penalties due
under this subsection, to dispose of taxes and penalties so collected in the
manner provided in this subsection, and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or penalty under this
subsection. In the administration of and compliance with this subsection, the
Department and persons who are subject to this subsection shall have the same
rights, remedies, privileges, immunities, powers, and duties, be subject to the
same conditions, restrictions, limitations, penalties, and definitions of
terms, and employ the same modes of procedure as are prescribed in Sections 2
and 3 (in respect to all provisions of those Sections other than the State rate
of tax; and in respect to the provisions of the Retailers' Occupation Tax Act
referred to in those Sections, except as to the disposition of taxes and
penalties collected, except for the provision allowing retailers a deduction
from the tax to cover certain costs, and except that credit memoranda issued
under this subsection may not be used to discharge any State tax liability) of
the Automobile Renting Occupation and Use Tax Act, as fully as if provisions
contained in those Sections of that Act were set forth in this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their tax liability
under this subsection by separately stating that tax as an additional charge,
which charge may be stated in combination, in a single amount, with State tax
that sellers are required to collect under the Automobile Renting Occupation
and Use Tax Act, pursuant to bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should
be made under this subsection to a claimant instead of issuing a credit
memorandum, the Department shall notify the State Comptroller, who shall cause
a warrant to be drawn for the amount specified and to the person named in the
notification from the Department. The refund shall be paid by the State
Treasurer out of the Metropolitan Pier and Exposition Authority trust fund held
by the State Treasurer as trustee for the Authority.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected under this subsection for deposit
into a trust fund held outside the State Treasury. On or before the 25th day of
each calendar month, the Department shall certify to the Comptroller the
amounts to be paid under subsection (g) of this Section (not including credit
memoranda) collected under this subsection during the second preceding calendar
month by the Department, less any amount determined by the Department to be
necessary for payment of refunds, less 2% of the remainder, which the
Department shall transfer into the Tax Compliance and Administration Fund. The
Department, at the time of each monthly disbursement to the Authority, shall
prepare and certify to the State Comptroller the amount to be transferred into
the Tax Compliance and Administration Fund under this subsection. Within 10
days after receipt by the Comptroller of the Department's certification, the
Comptroller shall cause the orders to be drawn for such amounts, and the
Treasurer shall administer the amounts distributed to the Authority as required
in subsection (g).
Nothing in this subsection authorizes the Authority to
impose a tax upon the privilege of engaging in any business that under the
Constitution of the United States may not be made the subject of taxation by
this State.
A certified copy of any ordinance imposing or
discontinuing a tax under this subsection or effecting a change in the rate of
that tax shall be filed with the Illinois Department of Revenue, whereupon the
Department shall proceed to administer and enforce this subsection on behalf of
the Authority as of the first day of the third calendar month following the
date of filing.
(e) By ordinance the Authority shall, as soon as practicable
after the effective date of this amendatory Act of 1991, impose a tax upon the
privilege of using in the metropolitan area an automobile that is rented from a
rentor outside Illinois and is titled or registered with an agency of this
State's government at a rate of 6% of the rental price of that automobile,
except that no tax shall be imposed on the privilege of using automobiles
rented for use as taxicabs or in livery service. The tax shall be collected
from persons whose Illinois address for titling or registration purposes is
given as being in the metropolitan area. The tax shall be collected by the
Department of Revenue for the Authority. The tax must be paid to the State or
an exemption determination must be obtained from the Department of Revenue
before the title or certificate of registration for the property may be issued.
The tax or proof of exemption may be transmitted to the Department by way of
the State agency with which or State officer with whom the tangible personal
property must be titled or registered if the Department and that agency or
State officer determine that this procedure will expedite the processing of
applications for title or registration.
The Department shall have full power to administer and
enforce this subsection, to collect all taxes, penalties, and interest due
under this subsection, to dispose of taxes, penalties, and interest so
collected in the manner provided in this subsection, and to determine all
rights to credit memoranda or refunds arising on account of the erroneous
payment of tax, penalty, or interest under this subsection. In the
administration of and compliance with this subsection, the Department and
persons who are subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, be subject to the same
conditions, restrictions, limitations, penalties, and definitions of terms, and
employ the same modes of procedure as are prescribed in Sections 2 and 4
(except provisions pertaining to the State rate of tax; and in respect to the
provisions of the Use Tax Act referred to in that Section, except provisions
concerning collection or refunding of the tax by retailers, except the
provisions of Section 19 pertaining to claims by retailers, except the last
paragraph concerning refunds, and except that credit memoranda issued under
this subsection may not be used to discharge any State tax liability) of the
Automobile Renting Occupation and Use Tax Act, as fully as if provisions
contained in those Sections of that Act were set forth in this subsection.
Whenever the Department determines that a refund should
be made under this subsection to a claimant instead of issuing a credit
memorandum, the Department shall notify the State Comptroller, who shall cause
a warrant to be drawn for the amount specified and to the person named in the
notification from the Department. The refund shall be paid by the State
Treasurer out of the Metropolitan Pier and Exposition Authority trust fund held
by the State Treasurer as trustee for the Authority.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes, penalties, and interest collected under this subsection for
deposit into a trust fund held outside the State Treasury. On or before the
25th day of each calendar month, the Department shall certify to the State
Comptroller the amounts to be paid under subsection (g) of this Section, which
shall be the amounts (not including credit memoranda) collected under this
subsection during the second preceding calendar month by the Department, less
any amounts determined by the Department to be necessary for payment of
refunds, less 2% of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the time of each
monthly disbursement to the Authority, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax Compliance and
Administration Fund under this subsection. Within 10 days after receipt by the
State Comptroller of the Department's certification, the Comptroller shall
cause the orders to be drawn for such amounts, and the Treasurer shall
administer the amounts distributed to the Authority as required in subsection
(g).
A certified copy of any ordinance imposing or
discontinuing a tax or effecting a change in the rate of that tax shall be
filed with the Illinois Department of Revenue, whereupon the Department shall
proceed to administer and enforce this subsection on behalf of the Authority as
of the first day of the third calendar month following the date of filing.
(f) By ordinance the Authority shall, as soon as
practicable after the effective date of this amendatory Act of 1991, impose an
occupation tax on all persons, other than a governmental agency, engaged in the
business of providing ground transportation for hire to passengers in the
metropolitan area at a rate of (i) $4 per taxi or livery vehicle departure with
passengers for hire from commercial service airports in the metropolitan area,
(ii) for each departure with passengers for hire from a commercial service
airport in the metropolitan area in a bus or van operated by a person other
than a person described in item (iii): $18 per bus or van with a capacity of
1-12 passengers, $36 per bus or van with a capacity of 13-24 passengers, and
$54 per bus or van with a capacity of over 24 passengers, and (iii) for each
departure with passengers for hire from a commercial service airport in the metropolitan
area in a bus or van operated by a person regulated by the Interstate Commerce
Commission or Illinois Commerce Commission, operating scheduled service from
the airport, and charging fares on a per passenger basis: $2 per passenger for
hire in each bus or van. The term "commercial service airports" means
those airports receiving scheduled passenger service and enplaning more than
100,000 passengers per year.
In the ordinance imposing the tax, the Authority may
provide for the administration and enforcement of the tax and the collection of
the tax from persons subject to the tax as the Authority determines to be
necessary or practicable for the effective administration of the tax. The
Authority may enter into agreements as it deems appropriate with any
governmental agency providing for that agency to act as the Authority's agent
to collect the tax.
In the ordinance imposing the tax, the Authority may
designate a method or methods for persons subject to the tax to reimburse
themselves for the tax liability arising under the ordinance (i) by separately
stating the full amount of the tax liability as an additional charge to
passengers departing the airports, (ii) by separately stating one-half of the
tax liability as an additional charge to both passengers departing from and to
passengers arriving at the airports, or (iii) by some other method determined
by the Authority.
All taxes, penalties, and interest collected under any
ordinance adopted under this subsection, less any amounts determined to be
necessary for the payment of refunds and less the taxes, penalties, and
interest attributable to any increase in the rate of tax authorized by Public
Act 96-898, shall be paid forthwith to the State Treasurer, ex officio, for
deposit into a trust fund held outside the State Treasury and shall be
administered by the State Treasurer as provided in subsection (g) of this
Section. All taxes, penalties, and interest attributable to any increase in the
rate of tax authorized by Public Act 96-898 shall be paid by the State
Treasurer as follows: 25% for deposit into the Convention Center Support Fund,
to be used by the Village of Rosemont for the repair, maintenance, and
improvement of the Donald E. Stephens Convention Center and for debt service on
debt instruments issued for those purposes by the village and 75% to the
Authority to be used for grants to an organization meeting the qualifications
set out in Section 5.6 of this Act, provided the Metropolitan Pier and
Exposition Authority has entered into a marketing agreement with such an
organization.
(g) Amounts deposited from the proceeds of taxes
imposed by the Authority under subsections (b), (c), (d), (e), and (f) of this
Section and amounts deposited under Section 19 of the Illinois Sports Facilities
Authority Act shall be held in a trust fund outside the State Treasury and,
other than the amounts transferred into the Tax Compliance and Administration
Fund under subsections (b), (c), (d), and (e), shall be administered by the
Treasurer as follows:
(1) An amount necessary for the
payment of refunds with respect to those taxes shall be retained in the trust
fund and used for those payments.
(2) On July 20 and on the 20th of each month thereafter, provided that the amount requested in the annual certificate of the Chairman of the Authority filed under Section 8.25f of the State Finance Act has been appropriated for payment to the Authority, 1/8 of the local tax transfer amount, together with any cumulative deficiencies in the amounts transferred into the McCormick Place Expansion Project Fund under this subparagraph (2) during the fiscal year for which the certificate has been filed, shall be transferred from the trust fund into the McCormick Place Expansion Project Fund in the State treasury until 100% of the local tax transfer amount has been so transferred. "Local tax transfer amount" shall mean the amount requested in the annual certificate, minus the reduction amount. "Reduction amount" shall mean $41.7 million in fiscal year 2011, $36.7 million in fiscal year 2012, $36.7 million in fiscal year 2013, $36.7 million in fiscal year 2014, and $31.7 million in each fiscal year thereafter until 2032, provided that the reduction amount shall be reduced by (i) the amount certified by the Authority to the State Comptroller and State Treasurer under Section 8.25 of the State Finance Act, as amended, with respect to that fiscal year and (ii) in any fiscal year in which the amounts deposited in the trust fund under this Section exceed $318.3 million, exclusive of amounts set aside for refunds and for the reserve account, one dollar for each dollar of the deposits in the trust fund above $318.3 million with respect to that year, exclusive of amounts set aside for refunds and for the reserve account.
(3) On July 20, 2010, the Comptroller shall certify to the Governor, the Treasurer, and the Chairman of the Authority the 2010 deficiency amount, which means the cumulative amount of transfers that were due from the trust fund to the McCormick Place Expansion Project Fund in fiscal years 2008, 2009, and 2010 under Section 13(g) of this Act, as it existed prior to May 27, 2010 (the effective date of Public Act 96-898), but not made. On July 20, 2011 and on July 20 of each year through July 20, 2014, the Treasurer shall calculate for the previous fiscal year the surplus revenues in the trust fund and pay that amount to the Authority. On July 20, 2015 and on July 20 of each year thereafter, as long as bonds and notes issued under Section 13.2 or bonds and notes issued to refund those bonds and notes are outstanding, the Treasurer shall calculate for the previous fiscal year the surplus revenues in the trust fund and pay one-half of that amount to the State Treasurer for deposit into the General Revenue Fund until the 2010 deficiency amount has been paid and shall pay the balance of the surplus revenues to the Authority. "Surplus revenues" means the amounts remaining in the trust fund on June 30 of the previous fiscal year (A) after the State Treasurer has set aside in the trust fund (i) amounts retained for refunds under subparagraph (1) and (ii) any amounts necessary to meet the reserve account amount and (B) after the State Treasurer has transferred from the trust fund to the General Revenue Fund 100% of any post-2010 deficiency amount. "Reserve account amount" means $15 million in fiscal year 2011 and $30 million in each fiscal year thereafter. The reserve account amount shall be set aside in the trust fund and used as a reserve to be transferred to the McCormick Place Expansion Project Fund in the event the proceeds of taxes imposed under this Section 13 are not sufficient to fund the transfer required in subparagraph (2). "Post-2010 deficiency amount" means any deficiency in transfers from the trust fund to the McCormick Place Expansion Project Fund with respect to fiscal years 2011 and thereafter. It is the intention of this subparagraph (3) that no surplus revenues shall be paid to the Authority with respect to any year in which a post-2010 deficiency amount has not been satisfied by the Authority.
Moneys
received by the Authority as surplus revenues may be used (i) for the purposes
of paying debt service on the bonds and notes issued by the Authority,
including early redemption of those bonds or notes, (ii) for the purposes of
repair, replacement, and improvement of the grounds, buildings, and facilities
of the Authority, and (iii) for the corporate purposes of the Authority in
fiscal years 2011 through 2015 in an amount not to exceed $20,000,000 annually
or $80,000,000 total, which amount shall be reduced $0.75 for each dollar of
the receipts of the Authority in that year from any contract entered into with
respect to naming rights at McCormick Place under Section 5(m) of this Act.
When bonds and notes issued under Section 13.2, or bonds or notes issued to
refund those bonds and notes, are no longer outstanding, the balance in the
trust fund shall be paid to the Authority.
(h) The ordinances imposing the taxes authorized by
this Section shall be repealed when bonds and notes issued under Section 13.2
or bonds and notes issued to refund those bonds and notes are no longer
outstanding.
(Source: P.A. 100-23, Article 35, Section 35-25, eff. 7-6-17.)
Section 935. The Local Mass Transit District Act is amended by changing Section 3610/5.02 as follows:
(70 ILCS 3610/5.02) (from Ch. 111 2/3, par. 355.02)
Sec.
5.02. (a) The Board of Trustees of any Metro East Mass Transit District may
impose a tax upon all persons engaged in the business of renting automobiles in
the district at the rate of not to exceed 1% of the gross receipts from such
business. The tax imposed by a district pursuant to this paragraph and all
civil penalties that may be assessed as an incident thereof shall be collected
and enforced by the State Department of Revenue. The certificate of
registration which is issued by the Department to a retailer under the
Retailers' Occupation Tax Act, or under the Automobile Renting Occupation and
Use Tax Act shall permit such person to engage in a business which is taxable
under any ordinance or resolution enacted pursuant to this paragraph without
registering separately with the Department under such ordinance or resolution
or under this paragraph. The Department shall have full power to administer and
enforce this paragraph; to collect all taxes and penalties due hereunder; to
dispose of taxes and penalties so collected in the manner hereinafter provided,
and to determine all rights to credit memoranda, arising on account of the
erroneous payment of tax or penalty hereunder. In the administration of, and
compliance with, this paragraph, the Department and persons who are subject to
this paragraph shall have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions, restrictions,
limitations, penalties and definitions of terms, and employ the same modes of
procedure, as are prescribed in Sections 2 and 3 (in respect to all provisions
therein other than the State rate of tax; and with relation to the provisions
of the Retailers' Occupation Tax referred to therein, except as to the
disposition of taxes and penalties collected, and except for the provision
allowing retailers a deduction from the tax to cover certain costs, and except
that credit memoranda issued hereunder may not be used to discharge any State
tax liability) of the Automobile Renting Occupation and Use Tax Act and Section
3-7 of the Uniform Penalty and Interest Act as fully as if provisions contained
in those Sections were set forth herein. Persons subject to any tax imposed
pursuant to the authority granted in this paragraph may reimburse themselves
for their tax liability hereunder by separately stating such tax as an
additional charge, which charge may be stated in combination, in a single amount
with State tax which sellers are required to collect under the Automobile
Renting Occupation and Use Tax Act pursuant to such bracket schedules as the
Department may prescribe. Nothing in this paragraph shall be construed to
authorize district to impose a tax upon the privilege of engaging in any
business which under the constitution of the United States may not be made the
subject of taxation by this State. Until the owner of an
individually-owned passenger motor vehicle or vehicles used in peer-to-peer car
sharing transactions, as defined in Section 1-110.06 of the Illinois Vehicle
Code, has shared such vehicle or vehicles in the aggregate for more than 1,825
vehicle days, as defined in Section 5 of the Illinois Peer-to-Peer Car Sharing
Act, in a calendar year, tax shall not be imposed under this Section.
(b) The Board of
Trustees of any Metro East Mass Transit District may impose a tax upon the
privilege of using, in such district, an automobile which is rented from a
rentor outside Illinois, and which is titled or registered with an agency of
this State's government, at a rate not to exceed 1% of the rental price of such
automobile. Such tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in such district. Such tax
shall be collected by the Department of Revenue for any district imposing such
tax. Such tax must be paid to the State, or an exemption determination must be
obtained from the Department of Revenue, before the title or certificate of
registration for the property may be issued. The tax or proof of exemption may
be transmitted to the Department by way of the State agency with which, or
State officer with whom, the tangible personal property must be titled or
registered if the Department and such agency or State officer determine that
this procedure will expedite the processing of applications for title or
registration. The Department shall have full power to administer and enforce
this paragraph to collect all taxes, penalties and interest due hereunder; to
dispose of taxes, penalties and interest so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda or refunds arising on
account of the erroneous payment of tax, penalty or interest hereunder. In the
administration of and compliance with this paragraph, the Department and
persons who are subject to this paragraph shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and definitions of terms, and
employ the same modes of procedure, as are prescribed in Sections 2 and 4
(except provisions pertaining to the State rate off tax; and, with relation to
the provisions of the Use Tax Act referred to therein, except provisions
concerning collection or refunding of the tax by retailers, and except the
provisions of Section 19 pertaining to claims by retailers and except that last
paragraph concerning refunds, and except that credit memoranda issued hereunder
may not be used to discharge any State tax liability) of the Automobile Renting
Occupation and Use Tax Act and Section 3-7 of the Uniform Penalty and Interest
Act, which are not inconsistent with this paragraph, as fully as if provisions
contained in those Sections were set forth herein.
(c)
Whenever the Department determines that a refund should be made under this
Section to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the order to be drawn for
the amount specified, and to the person named, in such notification from the
Department. Such refunds shall be paid by the State Treasurer out of the Metro
East Mass Transit District tax fund created pursuant to Section 5.01 of this
Act.
(d)
The Department shall forth with pay over to the State Treasurer, ex-officio, as
trustee, all taxes, penalties and interest collected under this Section. On or
before the 25th day of each calendar month, the Department shall prepare and
certify to the State Comptroller the disbursement of stated sums of money to
named districts from which the Department, during the second preceding calendar
month, collected taxes imposed pursuant to this Section. The amount to be paid
to each district shall be the amount (not including credit memoranda) collected
hereunder during the second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such district, less 2%
of such balance, which sum shall be retained by the State Treasurer to cover
the costs incurred by the Department in administering and enforcing this
Section as provided herein. The Department at the time of each monthly
disbursement to the districts shall prepare and certify to the State
Comptroller the amount, so retained by the State Treasurer, to be paid into the
General Revenue Fund of the State Treasury. Within 10 days after receipt, by
the State Comptroller, of the disbursement certification to the districts and
the General Revenue Fund, provided for in this Section to be given to the State
Comptroller by the Department, the State comptroller shall cause the orders to
be drawn for the respective amounts in accordance with the directions contained
in such certification.
(e)
An ordinance or resolution imposing a tax hereunder or effecting a change in
the rate thereof shall be effective on the first day of the calendar month next
following the month in which such ordinance or resolution is passed. The Board
of Trustees of any district which levies a tax authorized by this Section shall
transmit to the Department of Revenue on or not later than 5 days after passage
of the ordinance or resolution a certified copy of the ordinance or resolution
imposing such tax whereupon the Department of Revenue shall proceed to
administer and enforce this Section on behalf of such district of the effective
date of the ordinance or resolution. Upon a change in rate of a tax levied
hereunder, or upon the discontinuance of the tax, the board of trustees shall,
on or not later than 5 days after passage of the ordinance or resolution
discontinuing the tax or effecting a change in rate, transmit to the Department
of Revenue a certified copy of the ordinance or resolution effecting such
change or discontinuance.
(Source: P.A. 87-205.)
Section 940. The Regional Transportation Authority Act is amended by changing Section 3615/4.03.1 as follows:
(70
ILCS 3615/4.03.1)
(from Ch. 111 2/3, par.
704.03.1)
Sec.
4.03.1. (a) The Board may impose a tax upon all persons engaged in the business
of renting automobiles in the metropolitan region at the rate of not to exceed
1% of the gross receipts from such business within Cook County and not to
exceed 1/4% of the gross receipts from such business within the Counties of
DuPage, Kane, Lake, McHenry and Will. The tax imposed pursuant to this
paragraph and all civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of Revenue. The
certificate of registration which is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or under the Automobile Renting
Occupation and Use Tax Act shall permit such person to engage in a business which
is taxable under any ordinance or resolution enacted pursuant to this paragraph
without registering separately with the Department under such ordinance or
resolution or under this paragraph. The Department shall have full power to
administer and enforce this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in the manner
hereinafter provided, and to determine all rights to credit memoranda, arising
on account of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this paragraph, the Department and
persons who are subject to this paragraph shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms, and employ the
same modes of procedure, as are prescribed in Sections 2 and 3 (in respect to
all provisions therein other than the State rate of tax; and with relation to
the provisions of the Retailers' Occupation Tax referred to therein, except as
to the disposition of taxes and penalties collected, and except for the
provision allowing retailers a deduction from the tax cover certain costs, and
except that credit memoranda issued hereunder may not be used to discharge any
State tax liability) of the Automobile Renting Occupation and Use Tax Act as
fully as if provisions contained in those Sections of said Act were set forth
herein. Persons subject to any tax imposed pursuant to the authority granted in
this paragraph may reimburse themselves for their tax liability hereunder by
separately stating such tax as an additional charge, which charge may be stated
in combination, in a single amount, with State tax which sellers are required
to collect under the Automobile Renting Occupation and Use Tax Act pursuant to
such bracket schedules as the Department may prescribe. Nothing in this
paragraph shall be construed to authorize the Authority to impose a tax upon
the privilege of engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this State. Until
the owner of an individually-owned passenger motor vehicle or vehicles used in
peer-to-peer car sharing transactions, as defined in Section 1-110.06 of the
Illinois Vehicle Code, has shared such vehicle or vehicles in the aggregate for
more than 1,825 vehicle days, as defined in Section 5 of the Illinois
Peer-to-Peer Car Sharing Act, in a calendar year, an equivalent tax shall not
be imposed under this Section.
(b)
The Board may impose a tax upon the privilege of using, in the metropolitan
region an automobile which is rented from a renter outside Illinois, and which
is titled or registered with an agency of this State's government, at a rate
not to exceed 1% of the rental price of such automobile within the County of
Cook, and not to exceed 1/4% of the rental price within the counties of DuPage,
Kane, Lake, McHenry and Will. Such tax shall be collected from persons whose
Illinois address for titling or registration purposes is given as being in the
metropolitan region. Such tax shall be collected by the Department of Revenue
for the Regional Transportation Authority. Such tax must be paid to the State,
or an exemption determination must be obtained from the Department of Revenue,
before the title or certificate of registration for the property may be issued.
The tax or proof of exemption may be transmitted to the Department by way of
the State agency with which, or State officer with whom, the tangible personal
property must be titled or registered if the Department and such agency or
State officer determine that this procedure will expedite the processing of
applications for title or registration. The Department shall have full power to
administer and enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and interest so
collected in the manner hereinafter provided, and to determine all rights to
credit memoranda or refunds arising on account of the erroneous payment of tax,
penalty or interest hereunder. In the administration of, and compliance with,
this paragraph, the Department and persons who are subject to this paragraph
shall have the same rights, remedies, privileges, immunities, powers and
duties, and be subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes of procedure, as
are prescribed in Sections 2 and 4 (except provisions pertaining to the State
rate of tax; and with relation to the provisions of the Use Tax Act referred to
therein, except provisions concerning collection or refunding of the tax by
retailers, and except the provisions of Section 19 pertaining to claims by
retailers and except the last paragraph concerning refunds, and except that
credit memoranda issued hereunder may not be used to discharge any State tax
liability) of the Automobile Renting Occupation and Use Tax Act which are not
inconsistent with this paragraph, as fully as if provisions contained in those
Sections of said Act were set forth herein.
(c)
Whenever the Department determines that a refund should be made under this
Section to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the order to be drawn for
the amount specified, and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer out of the
Regional Transportation Authority tax fund created pursuant to Section 4.03 of
this Act.
(d)
The Department shall forthwith pay over to the State Treasurer, ex-officio, as
trustee, all taxes, penalties and interest collected under this Section. On or
before the 25th day of each calendar month, the Department shall prepare and
certify to the State Comptroller the amount to be paid to the Authority. The
State Department of Revenue shall also certify to the Authority the amount of
taxes collected in each County other than Cook County in the metropolitan
region less the amount necessary for the payment of refunds to taxpayers in
such County. With regard to the County of Cook, the certification shall specify
the amount of taxes collected within the City of Chicago less the amount
necessary for the payment of refunds to taxpayers in the City of Chicago and
the amount collected in that portion of Cook County outside of Chicago less the
amount necessary for the payment of refunds to taxpayers in that portion of
Cook County outside of Chicago. The amount to be paid to the Authority shall be
the amount (not including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not including an amount
equal to the amount of refunds made during the second preceding calendar month
by the Department on behalf of the Authority. Within 10 days after receipt, by
the State Comptroller, of the disbursement certification to the Authority, the
State Comptroller shall cause the orders to be drawn in accordance with the
directions contained in such certification.
(e)
An ordinance imposing a tax hereunder or effecting a change in the rate thereof
shall be effective on the first day of the calendar month next following the
month in which such ordinance is passed. The Board shall transmit to the Department
of Revenue on or not later than 5 days after passage of the ordinance a
certified copy of the ordinance imposing such tax whereupon the Department of
Revenue shall proceed to administer and enforce this Section on behalf of the
Authority as of the effective date of the ordinance. Upon a change in rate of a
tax levied hereunder, or upon the discontinuance of the tax, the Board shall,
on or not later than 5 days after passage of the ordinance discontinuing the
tax or effecting a change in rate, transmit to the Department of Revenue a
certified copy of the ordinance effecting such change or discontinuance.
(Source: P.A. 91-357, eff.
7-29-99.)”; and
On page 13, by replacing lines 23 through 25 with:
“Section 945. The Illinois Vehicle Code is amended by adding Section 1-110.06 as follows:”; and
On page 14, by deleting lines 1 through 9; and
On page 14, by replacing lines 10 through 14 with:
“(625 ILCS 5/1-110.06 new)
Sec. 1-110.06. Peer-to-peer car sharing transaction. The use of an individually-owned passenger motor vehicle or vehicles by a person other than the vehicle's registered owner that is facilitated through a peer-to-peer car sharing program, as defined in Section 5 of the Illinois Peer-to-Peer Car Sharing Act.”; and
By deleting page 14, line 15 through page 28, line 5.
With these changes, Senate Bill 2641 will have my approval. I respectfully request your concurrence.
Sincerely,
Bruce Rauner
GOVERNOR