Full Text of HB1497 103rd General Assembly
HB1497sam006 103RD GENERAL ASSEMBLY | Sen. Christopher Belt Filed: 5/18/2023
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| 1 | | AMENDMENT TO HOUSE BILL 1497
| 2 | | AMENDMENT NO. ______. Amend House Bill 1497, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Automobile Renting Occupation and Use Tax | 6 | | Act is amended by changing Section 2 and adding Section 6 as | 7 | | follows:
| 8 | | (35 ILCS 155/2) (from Ch. 120, par. 1702)
| 9 | | Sec. 2. Definitions. "Renting" means any transfer of the | 10 | | possession
or right to possession of an automobile to a user | 11 | | for a valuable consideration
for a period of one year or less.
| 12 | | "Renting" does not include making a charge for the use of | 13 | | an
automobile where the rentor, either himself or through an | 14 | | agent, furnishes a
service of operating an automobile so that | 15 | | the rentor remains in possession of
the automobile, because | 16 | | this does not constitute a transfer of possession
or right to |
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| 1 | | possession of the automobile.
| 2 | | "Renting" does not include the making of a charge by an
| 3 | | automobile dealer for the use of an automobile as a | 4 | | demonstrator in connection
with the dealer's business of | 5 | | selling, where the charge is merely made to
recover the costs | 6 | | of operating the automobile as a demonstrator and is not
| 7 | | intended as a rental or leasing charge in the ordinary sense.
| 8 | | "Renting" does not include peer-to-peer car sharing, as | 9 | | defined in Section 5 of the Car-Sharing Program Act, if tax due | 10 | | on the automobile under the Retailers' Occupation Tax Act or | 11 | | Use Tax Act was paid upon the purchase of the automobile or | 12 | | when the automobile was brought into Illinois. The car-sharing | 13 | | program shall ask a shared vehicle owner if the shared vehicle | 14 | | owner paid applicable taxes at the time of purchase. | 15 | | Notwithstanding any law to the contrary, the car-sharing | 16 | | program shall have the right to rely on the shared vehicle | 17 | | owner's response and to be held legally harmless for such | 18 | | reliance. | 19 | | "Automobile" means (1) any motor vehicle of the first | 20 | | division, or (2) a motor vehicle
of the second division which: | 21 | | (A) is a self-contained motor vehicle designed or
permanently | 22 | | converted to provide living quarters for recreational, camping | 23 | | or
travel use, with direct walk through access to the living | 24 | | quarters from the
driver's seat; (B) is of the van
| 25 | | configuration designed for the transportation of not less than | 26 | | 7 nor more than
16 passengers, as defined in Section 1-146 of |
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| 1 | | the Illinois Vehicle
Code; or (C) has a Gross Vehicle Weight | 2 | | Rating, as defined in Section 1-124.5 of the Illinois Vehicle | 3 | | Code, of 8,000 pounds or less.
| 4 | | "Department" means the Department of Revenue.
| 5 | | "Person" means any natural individual, firm, partnership, | 6 | | association,
joint stock company, joint adventure, public or | 7 | | private corporation, limited
liability company, or a receiver, | 8 | | executor, trustee, conservator or other
representative | 9 | | appointed by order of any court.
| 10 | | "Rentor" means any person, firm, corporation or | 11 | | association engaged in
the business of renting or leasing | 12 | | automobiles to users. For this purpose,
the objective of | 13 | | making a profit is not necessary to make the renting activity
a | 14 | | business.
| 15 | | "Rentor" does not include a car-sharing program or a | 16 | | shared-vehicle owner, as defined in Section 5 of the | 17 | | Car-Sharing Program Act, if tax due on the automobile under | 18 | | the Retailers' Occupation Tax Act or Use Tax Act was paid upon | 19 | | the purchase of the automobile or when the automobile was | 20 | | brought into Illinois. The car-sharing program shall ask a | 21 | | shared vehicle owner if the shared vehicle owner paid | 22 | | applicable taxes at the time of purchase. Notwithstanding any | 23 | | law to the contrary, the car-sharing program shall have the | 24 | | right to rely on the shared vehicle owner's response and to be | 25 | | held legally harmless for such reliance. | 26 | | "Rentee" means any user to whom the possession, or the |
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| 1 | | right to possession,
of an automobile is transferred for a | 2 | | valuable consideration for a period
of one year or less, | 3 | | whether paid for by the "rentee" or by someone else.
| 4 | | "Rentee" does not include a shared-vehicle driver, as | 5 | | defined in Section 5 of the Car-Sharing Program Act, if tax due | 6 | | on the automobile under the Retailers' Occupation Tax Act or | 7 | | Use Tax Act was paid upon the purchase of the automobile or | 8 | | when the automobile was brought into Illinois. The car-sharing | 9 | | program shall ask a shared vehicle owner if the shared vehicle | 10 | | owner paid applicable taxes at the time of purchase. | 11 | | Notwithstanding any law to the contrary, the car-sharing | 12 | | program shall have the right to rely on the shared vehicle | 13 | | owner's response and to be held legally harmless for such | 14 | | reliance. | 15 | | "Gross receipts" from the renting of tangible personal | 16 | | property or
"rent" means the total rental price or leasing | 17 | | price. In the case of
rental transactions in which the | 18 | | consideration is paid to the rentor on an
installment basis, | 19 | | the amounts of such payments shall be included by the rentor
in | 20 | | gross receipts or rent only as and when payments are received | 21 | | by the rentor.
| 22 | | "Gross receipts" does not include receipts received by an | 23 | | automobile dealer
from a manufacturer or service contract | 24 | | provider
for the use of an automobile by a person while that | 25 | | person's automobile is
being repaired by that automobile | 26 | | dealer and the repair is made pursuant to a
manufacturer's |
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| 1 | | warranty or a service contract where a manufacturer or service
| 2 | | contract provider reimburses that automobile dealer pursuant | 3 | | to a
manufacturer's warranty or a service contract and the | 4 | | reimbursement is merely
made
to recover the costs of operating | 5 | | the automobile as a loaner vehicle.
| 6 | | "Rental price" means the consideration for renting or | 7 | | leasing an automobile
valued in money, whether received in | 8 | | money or otherwise, including cash
credits, property and | 9 | | services, and shall be determined without any deduction
on | 10 | | account of the cost of the property rented, the cost of | 11 | | materials used,
labor or service cost, or any other expense | 12 | | whatsoever, but does not
include charges that are added by a | 13 | | rentor on account of the
rentor's tax liability under this Act | 14 | | or on account of the rentor's duty
to collect, from the rentee, | 15 | | the tax that is imposed by Section 4 of this Act.
The phrase | 16 | | "rental price" does not include compensation paid to a rentor | 17 | | by a
rentee in consideration of the waiver by the rentor of any | 18 | | right of action or
claim against the rentee for loss or damage | 19 | | to the automobile
rented and also does not include a | 20 | | separately stated charge for insurance or
recovery of | 21 | | refueling costs or other separately stated charges that are | 22 | | not for
the use of tangible personal property.
| 23 | | "Rental price" does not include consideration paid for | 24 | | peer-to-peer car sharing to a shared-vehicle owner or a | 25 | | car-sharing program, as those terms are defined in Section 5 | 26 | | of the Car-Sharing Program Act, if tax due on the automobile |
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| 1 | | under the Retailers' Occupation Tax Act or Use Tax Act was paid | 2 | | upon the purchase of the automobile or when the automobile was | 3 | | brought into Illinois. The car-sharing program shall ask a | 4 | | shared vehicle owner if the shared vehicle owner paid | 5 | | applicable taxes at the time of purchase. Notwithstanding any | 6 | | law to the contrary, the car-sharing program shall have the | 7 | | right to rely on the shared vehicle owner's response and to be | 8 | | held legally harmless for such reliance. | 9 | | (Source: P.A. 98-574, eff. 1-1-14.)
| 10 | | (35 ILCS 155/6 new) | 11 | | Sec. 6. Applicability. The taxes imposed by Sections 3 and | 12 | | 4 of this Act do not apply to any amounts paid or received for | 13 | | peer-to-peer car sharing, as defined in Section 5 of the | 14 | | Car-Sharing Program Act, or the privilege of sharing a shared | 15 | | vehicle through a car-sharing program, as defined in Section 5 | 16 | | of the Car-Sharing Program Act, if the shared vehicle owner | 17 | | paid applicable taxes upon the purchase of the automobile. | 18 | | As used in this Section, "applicable taxes" means, with | 19 | | respect to vehicles purchased in Illinois, the retailers' | 20 | | occupation tax levied under the Retailers' Occupation Tax Act | 21 | | or the use tax levied under the Use Tax Act. "Applicable | 22 | | taxes", with respect to vehicles not purchased in Illinois, | 23 | | refers to the sales, use, excise, or other generally | 24 | | applicable tax that is due upon the purchase of a vehicle in | 25 | | the jurisdiction in which the vehicle was purchased. |
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| 1 | | Notwithstanding any law to the contrary, the car-sharing | 2 | | program shall have the right to rely on the shared vehicle | 3 | | owner's response and to be held legally harmless for such | 4 | | reliance. | 5 | | Section 10. The Illinois Vehicle Code is amended by | 6 | | changing Section 6-305.2 as follows:
| 7 | | (625 ILCS 5/6-305.2)
| 8 | | Sec. 6-305.2. Limited liability for damage.
| 9 | | (a) Damage to private
passenger vehicle. A person who | 10 | | rents a motor vehicle to another may hold
the renter liable to | 11 | | the extent permitted under subsections (b) through (d) for
| 12 | | physical or mechanical damage to the rented motor vehicle that | 13 | | occurs during
the time the motor vehicle is under the rental | 14 | | agreement.
| 15 | | (b) Limits on liability due to theft for a : vehicle having | 16 | | an MSRP of $50,000 or less. The total liability of a renter who | 17 | | rents from another a motor vehicle that has an MSRP of $50,000 | 18 | | or less and that is stolen shall be the actual and reasonable | 19 | | costs incurred by the loss due to theft of the rental motor | 20 | | vehicle up to $5,000; provided, however, that if it is | 21 | | established that the renter or authorized driver failed to | 22 | | exercise ordinary care while in possession of the vehicle or | 23 | | that the renter or authorized driver committed or aided and | 24 | | abetted the commission of a theft, then the damages shall be |
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| 1 | | the actual and reasonable costs of the rental vehicle up to its | 2 | | fair market value, as determined by the customary market for | 3 | | the sale of the vehicle. renter under subsection
(a) for | 4 | | damage to a motor vehicle with a Manufacturer's Suggested | 5 | | Retail Price (MSRP) of $50,000 or less may not exceed all of | 6 | | the following:
| 7 | | (1) The lesser of:
| 8 | | (A) Actual and reasonable costs that the person | 9 | | who rents a motor
vehicle to another incurred to | 10 | | repair the motor vehicle or that the rental
company | 11 | | would have incurred if the motor vehicle had been
| 12 | | repaired, which shall reflect any discounts, price | 13 | | reductions, or adjustments
available to the rental | 14 | | company; or
| 15 | | (B) The fair market value of that motor vehicle | 16 | | immediately before the
damage occurred, as determined | 17 | | in the customary market for the retail sale of
that | 18 | | motor vehicle; and
| 19 | | (2) Actual and reasonable costs incurred by the loss | 20 | | due to theft of the
rental motor vehicle up to $2,000; | 21 | | provided, however, that if it is
established that the | 22 | | renter or an authorized driver failed to exercise ordinary
| 23 | | care while in possession of the vehicle or that the renter | 24 | | or an authorized
driver committed or aided and abetted the | 25 | | commission of the theft, then the
damages shall be the | 26 | | actual and reasonable costs of the rental vehicle up to
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| 1 | | its fair market value, as determined by the customary | 2 | | market for the sale of
that vehicle.
| 3 | | For purposes of this subsection (b), for the period prior | 4 | | to June 1, 1998,
the
maximum amount that may be recovered from | 5 | | an authorized driver shall not exceed
$6,000; for the period | 6 | | beginning June 1, 1998 through May 31, 1999, the maximum
| 7 | | recovery shall not exceed $7,500; and for the period beginning | 8 | | June 1, 1999
through May 31, 2000, the maximum recovery shall | 9 | | not exceed $9,000. Beginning
June
1, 2000,
and annually each | 10 | | June 1 thereafter, the maximum amount that may be recovered
| 11 | | from an authorized driver under this subsection (b) shall be | 12 | | increased by $500 above the maximum recovery
allowed | 13 | | immediately prior to June 1 of that year.
| 14 | | (b-5) Limits on liability due to theft for a : vehicle | 15 | | having an MSRP of more than $50,000. The total liability of a | 16 | | renter who rents from another a motor vehicle that has an MSRP | 17 | | of more than $50,000 and that is stolen shall be the actual and | 18 | | reasonable cost incurred by the loss due to theft of the rental | 19 | | motor vehicle up to $40,000; provided, however that if it is | 20 | | established that the renter or authorized driver failed to | 21 | | exercise ordinary care while in possession of the vehicle or | 22 | | that the renter or authorized driver committed or aided and | 23 | | abetted the commission of a theft, then the damages shall be | 24 | | the actual and reasonable costs of the rental vehicle up to its | 25 | | fair market value, as determined by the customary market for | 26 | | the sale of the vehicle. renter under subsection (a) for |
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| 1 | | damage to a motor vehicle with a Manufacturer's Suggested | 2 | | Retail Price (MSRP) of more than $50,000 may not exceed all of | 3 | | the following: | 4 | | (1) the lesser of: | 5 | | (A) actual and reasonable costs that the person | 6 | | who rents a motor vehicle to another incurred to | 7 | | repair the motor vehicle or that the rental company | 8 | | would have incurred if the motor vehicle had been | 9 | | repaired, which shall reflect any discounts, price | 10 | | reductions, or adjustments available to the rental | 11 | | company; or | 12 | | (B) the fair market value of that motor vehicle | 13 | | immediately before the damage occurred, as determined | 14 | | in the customary market for the retail sale of that | 15 | | motor vehicle; and | 16 | | (2) the actual and reasonable costs incurred by the | 17 | | loss due to theft of the rental motor vehicle up to | 18 | | $40,000. | 19 | | The maximum recovery for a motor vehicle with a | 20 | | Manufacturer's Suggested Retail Price (MSRP) of more than | 21 | | $50,000 under this subsection (b-5) shall not exceed $40,000 | 22 | | on the effective date of this amendatory Act of the 99th | 23 | | General Assembly. On October 1, 2016, and for the next 3 years | 24 | | thereafter, the maximum amount that may be recovered from an | 25 | | authorized driver under this subsection (b-5) shall be | 26 | | increased by $2,500 above the prior year's maximum recovery. |
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| 1 | | On October 1, 2020, and for each year thereafter, the maximum | 2 | | amount that may be recovered from an authorized driver under | 3 | | this subsection (b-5) shall be increased by $1,000 above the | 4 | | prior year's maximum recovery. | 5 | | (b-10) Beginning on the effective date of this amendatory | 6 | | Act of the 103rd General Assembly and for 6 months after, a | 7 | | person who rents a motor vehicle to another shall provide | 8 | | notice to the renter of the motor vehicle of the changes | 9 | | reflected in this amendatory Act of the 103rd General | 10 | | Assembly. The notice shall be posted in a conspicuous and | 11 | | unobscured place that is separate and apart from any other | 12 | | information. | 13 | | (c) Multiple recoveries prohibited. Any person who rents a | 14 | | motor
vehicle to another may not hold the renter liable for any | 15 | | amounts that the
rental company recovers from any other party.
| 16 | | (d) Repair estimates. A person who rents a motor vehicle | 17 | | to another may
not collect or attempt to collect the amount | 18 | | described in subsection (b) or (b-5) unless
the rental company | 19 | | obtains an estimate from a repair company or an appraiser in
| 20 | | the business of providing such appraisals on the costs of | 21 | | repairing the motor
vehicle, makes a copy of the estimate | 22 | | available upon request to the renter who
may be liable under | 23 | | subsection (a), or the insurer of the renter, and submits a
| 24 | | copy of the estimate with any claim to collect the amount | 25 | | described in
subsection (b) or (b-5). In order to collect the | 26 | | amount described in subsection (b-5), a person renting a motor |
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| 1 | | vehicle to another must also provide the renter's personal | 2 | | insurance company with reasonable notice and an opportunity to | 3 | | inspect damages.
| 4 | | (d-5) In the event of loss due to theft of the rental motor | 5 | | vehicle with a MSRP more than $50,000, the rental company | 6 | | shall provide reasonable notice of the theft to the renter's | 7 | | personal insurance company. | 8 | | (e) Duty to mitigate. A claim against a renter resulting | 9 | | from damage or
loss to a rental vehicle must be reasonably and | 10 | | rationally related to the
actual loss incurred. A rental | 11 | | company shall mitigate damages where possible
and shall not | 12 | | assert or collect any claim for physical damage which exceeds | 13 | | the
actual costs of the repair, including all discounts or | 14 | | price reductions.
| 15 | | (f) No rental company shall require a deposit or an | 16 | | advance charge
against
the credit card of a renter, in any | 17 | | form, for damages to a vehicle which is in
the renter's | 18 | | possession, custody, or control. No rental company shall | 19 | | require
any payment for damage to the rental vehicle, upon the | 20 | | renter's return of the
vehicle in a
damaged condition, until | 21 | | after the cost of the damage to the vehicle and
liability | 22 | | therefor is agreed to between the rental company and renter or | 23 | | is
determined pursuant to law.
| 24 | | (g) If insurance coverage exists under the renter's | 25 | | personal insurance
policy and the coverage is confirmed during | 26 | | regular business hours, the renter
may require that the rental
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| 1 | | company must submit any claims to the renter's personal | 2 | | insurance carrier as
the renter's agent. The rental company | 3 | | shall not make any written or oral
representations that it | 4 | | will not present claims or negotiate with the renter's
| 5 | | insurance carrier. For purposes of this Section, confirmation | 6 | | of coverage
includes telephone confirmation from insurance | 7 | | company representatives during
regular business hours. After
| 8 | | confirmation of coverage, the amount of claim shall be | 9 | | resolved between the
insurance carrier and the rental company.
| 10 | | (Source: P.A. 99-201, eff. 10-1-15 .)
| 11 | | Section 99. Effective date. This Act takes upon becoming | 12 | | law, except that Section 10 takes effect on January 1, 2024.".
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