93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB7303


 
Introduced 5/12/2004, by Rep. Lovana Jones
 
SYNOPSIS AS INTRODUCED:
 		














35 ILCS 155/2
  from Ch. 120, par. 1702







    Amends the Automobile Renting Occupation and Use Tax Act.  In a provision that excludes from the definition of "gross receipts" certain receipts received by an automobile manufacturer or service contract provider for the use of an automobile by a person while that person's automobile is being repaired, provides that the exclusion applies whether the automobile is provided from the automobile dealer's inventory or provided by a lease from a car rental or car leasing company.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB7303

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1
    AN ACT concerning taxes.

 
2
    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
4
    Section 5. The Automobile Renting Occupation and Use Tax 
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Act is amended  by changing Section 2 as follows:
 



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    (35 ILCS 155/2)  (from Ch. 120, par. 1702)



7
    Sec. 2. Definitions. "Renting" means any transfer of the 
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possession
or right to possession of an automobile to a user 
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for a valuable consideration
for a period of one year or less.

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    "Renting" does not include making a charge for the use of 
11
an
automobile where the rentor, either himself or through an 
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agent, furnishes a
service of operating an automobile so that 
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the rentor remains in possession of
the automobile, because 
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this does not constitute a transfer of possession
or right to 
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possession of the automobile.

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    "Renting" does not include the making of a charge by an

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automobile dealer for the use of an automobile as a 
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demonstrator in connection
with the dealer's business of 
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selling, where the charge is merely made to
recover the costs 
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of operating the automobile as a demonstrator and is not

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intended as a rental or leasing charge in the ordinary sense.

22
    "Automobile" means any motor vehicle of the first division, 
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a motor vehicle
of the second division
which is a 
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self-contained motor vehicle designed or
permanently converted 
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to provide living quarters for recreational, camping or
travel 
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use, with direct walk through access to the living quarters 
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from the
driver's seat, or a motor vehicle of the second 
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division which is of the van
configuration designed for the 
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transportation of not less than 7 nor more than
16 passengers, 
30
as defined in Section 1-146 of the Illinois Vehicle
Code.

31
    "Department" means the Department of Revenue.

32
    "Person" means any natural individual, firm, partnership, 
 


 






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association,
joint stock company, joint adventure, public or 
2
private corporation, limited
liability company, or a receiver, 
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executor, trustee, conservator or other
representative 
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appointed by order of any court.

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    "Rentor" means any person, firm, corporation or 
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association engaged in
the business of renting or leasing 
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automobiles to users.  For this purpose,
the objective of making 
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a profit is not necessary to make the renting activity
a 
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business.

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    "Rentee" means any user to whom the possession, or the 
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right to possession,
of an automobile is transferred for a 
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valuable consideration for a period
of one year or less, 
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whether paid for by the "rentee" or by someone else.

14
    "Gross receipts" from the renting of tangible personal 
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property or
"rent" means the total rental price or leasing 
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price.  In the case of
rental transactions in which the 
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consideration is paid to the rentor on an
installment basis, 
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the amounts of such payments shall be included by the rentor
in 
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gross receipts or rent only as and when payments are received 
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by the rentor.

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    "Gross receipts" does not include receipts received by an 
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automobile dealer
from a manufacturer or service contract 
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provider
for the use of an automobile, whether the automobile 
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is provided from the automobile dealer's inventory or provided 
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by a lease from a car rental or car leasing company, by a 
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person while that person's automobile is
being repaired by that 
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automobile dealer and the repair is made pursuant to a

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manufacturer's warranty or a service contract where a 
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manufacturer or service
contract provider reimburses that 
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automobile dealer pursuant to a
manufacturer's warranty or a 
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service contract and the reimbursement is merely
made
to 
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recover the costs of operating the automobile as a loaner 
33
vehicle.

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    "Rental price" means the consideration for renting or 
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leasing an automobile
valued in money, whether received in 
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money or otherwise, including cash
credits, property and 
 


 






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services, and shall be determined without any deduction
on 
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account of the cost of the property rented, the cost of 
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materials used,
labor or service cost, or any other expense 
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whatsoever, but does not
include charges that are added by a 
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rentor on account of the
rentor's tax liability under this Act 
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or on account of the rentor's duty
to collect, from the rentee, 
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the tax that is imposed by Section 4 of this Act.
The phrase 
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"rental price" does not include compensation paid to a rentor 
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by a
rentee in consideration of the waiver by the rentor of any 
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right of action or
claim against the rentee for loss or damage 
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to the automobile
rented and also does not include a separately 
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stated charge for insurance or
recovery of refueling costs or 
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other separately stated charges that are not for
the use of 
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tangible personal property.

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(Source: P.A. 90-14, eff. 7-1-97; 91-193, eff. 7-20-99.)