Full Text of SB2369 94th General Assembly
SB2369eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Automobile Renting Occupation and Use Tax | 5 |
| Act is amended by changing Section 2 as follows:
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| (35 ILCS 155/2) (from Ch. 120, par. 1702)
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| Sec. 2. Definitions. "Renting" means any transfer of the | 8 |
| possession
or right to possession of an automobile to a user | 9 |
| 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 | 12 |
| agent, furnishes a
service of operating an automobile so that | 13 |
| the rentor remains in possession of
the automobile, because | 14 |
| this does not constitute a transfer of possession
or right to | 15 |
| 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 | 18 |
| demonstrator in connection
with the dealer's business of | 19 |
| selling, where the charge is merely made to
recover the costs | 20 |
| 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.
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| "Automobile" means any motor vehicle of the first division, | 23 |
| a motor vehicle
of the second division which is a | 24 |
| self-contained motor vehicle designed or
permanently converted | 25 |
| to provide living quarters for recreational, camping or
travel | 26 |
| use, with direct walk through access to the living quarters | 27 |
| from the
driver's seat, or a motor vehicle of the second | 28 |
| division which is of the van
configuration designed for the | 29 |
| transportation of not less than 7 nor more than
16 passengers, | 30 |
| as defined in Section 1-146 of the Illinois Vehicle
Code.
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| "Car-sharing organization" means a membership-based | 32 |
| organization: (i) with a qualified fleet of automobiles that |
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| are rented or leased to members primarily for hourly use | 2 |
| through a self-service, fully automated reservation system; | 3 |
| (ii) that charges a membership fee separately from the hourly | 4 |
| charge for the rental or lease of a specific vehicle; (iii) | 5 |
| that provides all legally required insurance as part of its | 6 |
| initiation fees, membership dues, or leasing or rental charges; | 7 |
| and (iv) that does not require a separate written agreement | 8 |
| each time a member rents or leases a specific automobile. | 9 |
| For the purposes of this definition: | 10 |
| "Qualified fleet" means a distributed fleet of | 11 |
| automobiles: | 12 |
| (1) at least 10% of which is comprised of automobiles | 13 |
| that have hybrid engines, with a goal of at least 20% | 14 |
| within 3 years after the effective date of this amendatory | 15 |
| Act of the 94th General Assembly; and | 16 |
| (2) at least 50% of which is comprised of automobiles | 17 |
| that are ultra-low emission vehicles. | 18 |
| "Department" means the Department of Revenue.
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| "Person" means any natural individual, firm, partnership, | 20 |
| association,
joint stock company, joint adventure, public or | 21 |
| private corporation, limited
liability company, or a receiver, | 22 |
| executor, trustee, conservator or other
representative | 23 |
| appointed by order of any court.
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| "Rentor" means any person, firm, corporation or | 25 |
| association engaged in
the business of renting or leasing | 26 |
| automobiles to users. For this purpose,
the objective of making | 27 |
| a profit is not necessary to make the renting activity
a | 28 |
| business.
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| "Rentee" means any user to whom the possession, or the | 30 |
| right to possession,
of an automobile is transferred for a | 31 |
| valuable consideration for a period
of one year or less, | 32 |
| whether paid for by the "rentee" or by someone else.
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| "Gross receipts" from the renting of tangible personal | 34 |
| property or
"rent" means the total rental price or leasing | 35 |
| price. In the case of
rental transactions in which the | 36 |
| 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 | 2 |
| gross receipts or rent only as and when payments are received | 3 |
| by the rentor.
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| "Gross receipts" does not include receipts received by an | 5 |
| automobile dealer
from a manufacturer or service contract | 6 |
| provider
for the use of an automobile by a person while that | 7 |
| person's automobile is
being repaired by that automobile dealer | 8 |
| and the repair is made pursuant to a
manufacturer's warranty or | 9 |
| a service contract where a manufacturer or service
contract | 10 |
| provider reimburses that automobile dealer pursuant to a
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| manufacturer's warranty or a service contract and the | 12 |
| reimbursement is merely
made
to recover the costs of operating | 13 |
| the automobile as a loaner vehicle.
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| "Rental price" means the consideration for renting or | 15 |
| leasing an automobile
valued in money, whether received in | 16 |
| money or otherwise, including cash
credits, property and | 17 |
| services, and shall be determined without any deduction
on | 18 |
| account of the cost of the property rented, the cost of | 19 |
| materials used,
labor or service cost, or any other expense | 20 |
| whatsoever, but does not
include charges that are added by a | 21 |
| rentor on account of the
rentor's tax liability under this Act | 22 |
| or on account of the rentor's duty
to collect, from the rentee, | 23 |
| the tax that is imposed by Section 4 of this Act.
The phrase | 24 |
| "rental price" does not include compensation paid to a rentor | 25 |
| by a
rentee in consideration of the waiver by the rentor of any | 26 |
| right of action or
claim against the rentee for loss or damage | 27 |
| to the automobile
rented and also does not include a separately | 28 |
| stated charge for insurance or
recovery of refueling costs or | 29 |
| other separately stated charges that are not for
the use of | 30 |
| tangible personal property.
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| (Source: P.A. 90-14, eff. 7-1-97; 91-193, eff. 7-20-99.)
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