State of Illinois
91st General Assembly
Legislation

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91_SB0132enr

 
SB132 Enrolled                                 LRB9101787PTpk

 1        AN ACT to amend the Automobile Renting Occupation and Use
 2    Tax Act by changing Section 2.

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

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

 7        (35 ILCS 155/2) (from Ch. 120, par. 1702)
 8        Sec. 2.  Definitions.  "Renting" means  any  transfer  of
 9    the  possession  or right to possession of an automobile to a
10    user for a valuable consideration for a period of one year or
11    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
17    possession of the automobile.
18        "Renting" does not include the making of a charge  by  an
19    automobile   dealer  for  the  use  of  an  automobile  as  a
20    demonstrator in connection  with  the  dealer's  business  of
21    selling, where the charge is merely made to recover the costs
22    of  operating  the  automobile  as  a demonstrator and is not
23    intended as a rental or leasing charge in the ordinary sense.
24        "Automobile"  means  any  motor  vehicle  of  the   first
25    division,  a  motor vehicle of the second division which is a
26    self-contained  motor   vehicle   designed   or   permanently
27    converted   to  provide  living  quarters  for  recreational,
28    camping or travel use, with direct walk through access to the
29    living quarters from the driver's seat, or a motor vehicle of
30    the  second  division  which  is  of  the  van  configuration
31    designed for the transportation of not less than 7  nor  more
 
SB132 Enrolled              -2-                LRB9101787PTpk
 1    than  16  passengers,  as  defined  in  Section  1-146 of the
 2    Illinois Vehicle Code.
 3        "Department" means the Department of Revenue.
 4        "Person" means any natural individual, firm, partnership,
 5    association, joint stock company, joint adventure, public  or
 6    private   corporation,   limited   liability  company,  or  a
 7    receiver,   executor,   trustee,   conservator    or    other
 8    representative appointed by order of any court.
 9        "Rentor"   means   any   person,   firm,  corporation  or
10    association engaged in the business  of  renting  or  leasing
11    automobiles  to  users.   For  this purpose, the objective of
12    making a profit is not necessary to make the renting activity
13    a business.
14        "Rentee" means any user to whom the  possession,  or  the
15    right  to  possession,  of an automobile is transferred for a
16    valuable consideration for a period  of  one  year  or  less,
17    whether paid for by the "rentee" or by someone else.
18        "Gross  receipts"  from  the renting of tangible personal
19    property or "rent" means the total rental  price  or  leasing
20    price.   In  the  case  of  rental  transactions in which the
21    consideration is paid to the rentor on an installment  basis,
22    the  amounts of such payments shall be included by the rentor
23    in gross receipts or rent  only  as  and  when  payments  are
24    received by the rentor.
25        "Gross receipts" does not include receipts received by an
26    automobile  dealer  from  a  manufacturer or service contract
27    provider for the use of an automobile by a person while  that
28    person's  automobile  is  being  repaired  by that automobile
29    dealer and the repair is made pursuant  to  a  manufacturer's
30    warranty  or  a  service  contract  where  a  manufacturer or
31    service contract provider reimburses that  automobile  dealer
32    pursuant  to  a manufacturer's warranty or a service contract
33    and the reimbursement is merely made to recover the costs  of
34    operating the automobile as a loaner vehicle.
 
SB132 Enrolled              -3-                LRB9101787PTpk
 1        "Rental  price"  means  the  consideration for renting or
 2    leasing an automobile valued in money,  whether  received  in
 3    money  or  otherwise,  including  cash  credits, property and
 4    services, and shall be determined without  any  deduction  on
 5    account  of  the  cost  of  the  property rented, the cost of
 6    materials used, labor or service cost, or any  other  expense
 7    whatsoever,  but does not include charges that are added by a
 8    rentor on account of the rentor's tax  liability  under  this
 9    Act  or  on account of the rentor's duty to collect, from the
10    rentee, the tax that is imposed by Section  4  of  this  Act.
11    The  phrase "rental price" does not include compensation paid
12    to a rentor by a rentee in consideration of the waiver by the
13    rentor of any right of action or claim against the rentee for
14    loss or damage to the automobile rented  and  also  does  not
15    include  a separately stated charge for insurance or recovery
16    of refueling costs or other separately  stated  charges  that
17    are not for the use of tangible personal property.
18    (Source: P.A. 90-14, eff. 7-1-97.)

19        Section  99.  Effective date.  This Act takes effect upon
20    becoming law.

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