Sen. Napoleon Harris, III

Filed: 5/3/2023





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2    AMENDMENT NO. ______. Amend House Bill 1497 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Automobile Renting Occupation and Use Tax
5Act is amended by changing Section 2 as follows:
6    (35 ILCS 155/2)  (from Ch. 120, par. 1702)
7    Sec. 2. Definitions. "Renting" means any transfer of the
8possession or right to possession of an automobile to a user
9for a valuable consideration for a period of one year or less.
10    "Renting" does not include making a charge for the use of
11an automobile where the rentor, either himself or through an
12agent, furnishes a service of operating an automobile so that
13the rentor remains in possession of the automobile, because
14this does not constitute a transfer of possession or right to
15possession of the automobile.
16    "Renting" does not include the making of a charge by an



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1automobile dealer for the use of an automobile as a
2demonstrator in connection with the dealer's business of
3selling, where the charge is merely made to recover the costs
4of operating the automobile as a demonstrator and is not
5intended as a rental or leasing charge in the ordinary sense.
6    "Renting" does not include peer-to-peer car sharing, as
7defined in Section 5 of the Car-Sharing Program Act.
8    "Automobile" means (1) any motor vehicle of the first
9division, or (2) a motor vehicle of the second division which:
10(A) is a self-contained motor vehicle designed or permanently
11converted to provide living quarters for recreational, camping
12or travel use, with direct walk through access to the living
13quarters from the driver's seat; (B) is of the van
14configuration designed for the transportation of not less than
157 nor more than 16 passengers, as defined in Section 1-146 of
16the Illinois Vehicle Code; or (C) has a Gross Vehicle Weight
17Rating, as defined in Section 1-124.5 of the Illinois Vehicle
18Code, of 8,000 pounds or less.
19    "Department" means the Department of Revenue.
20    "Person" means any natural individual, firm, partnership,
21association, joint stock company, joint adventure, public or
22private corporation, limited liability company, or a receiver,
23executor, trustee, conservator or other representative
24appointed by order of any court.
25    "Rentor" means any person, firm, corporation or
26association engaged in the business of renting or leasing



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1automobiles to users. For this purpose, the objective of
2making a profit is not necessary to make the renting activity a
4    "Rentor" does not include a car-sharing program or a
5shared-vehicle owner, as defined in Section 5 of the
6Car-Sharing Program Act.
7    "Rentee" means any user to whom the possession, or the
8right to possession, of an automobile is transferred for a
9valuable consideration for a period of one year or less,
10whether paid for by the "rentee" or by someone else.
11    "Rentee" does not include a shared-vehicle driver, as
12defined in Section 5 of the Car-Sharing Program Act.
13    "Gross receipts" from the renting of tangible personal
14property or "rent" means the total rental price or leasing
15price. In the case of rental transactions in which the
16consideration is paid to the rentor on an installment basis,
17the amounts of such payments shall be included by the rentor in
18gross receipts or rent only as and when payments are received
19by the rentor.
20    "Gross receipts" does not include receipts received by an
21automobile dealer from a manufacturer or service contract
22provider for the use of an automobile by a person while that
23person's automobile is being repaired by that automobile
24dealer and the repair is made pursuant to a manufacturer's
25warranty or a service contract where a manufacturer or service
26contract provider reimburses that automobile dealer pursuant



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1to a manufacturer's warranty or a service contract and the
2reimbursement is merely made to recover the costs of operating
3the automobile as a loaner vehicle.
4    "Rental price" means the consideration for renting or
5leasing an automobile valued in money, whether received in
6money or otherwise, including cash credits, property and
7services, and shall be determined without any deduction on
8account of the cost of the property rented, the cost of
9materials used, labor or service cost, or any other expense
10whatsoever, but does not include charges that are added by a
11rentor on account of the rentor's tax liability under this Act
12or on account of the rentor's duty to collect, from the rentee,
13the tax that is imposed by Section 4 of this Act. The phrase
14"rental price" does not include compensation paid to a rentor
15by a rentee in consideration of the waiver by the rentor of any
16right of action or claim against the rentee for loss or damage
17to the automobile rented and also does not include a
18separately stated charge for insurance or recovery of
19refueling costs or other separately stated charges that are
20not for the use of tangible personal property.
21    "Rental price" does not include consideration paid for
22peer-to-peer car sharing to a shared-vehicle owner or a
23car-sharing program, as those terms are defined in Section 5
24of the Car-Sharing Program Act.
25(Source: P.A. 98-574, eff. 1-1-14.)".