Sen. Christopher Belt

Filed: 5/18/2023

 

 


 

 


 
10300HB1497sam006LRB103 04797 JDS 62229 a

1
AMENDMENT TO HOUSE BILL 1497

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

 

 

10300HB1497sam006- 2 -LRB103 04797 JDS 62229 a

1possession of the automobile.
2    "Renting" does not include the making of a charge by an
3automobile dealer for the use of an automobile as a
4demonstrator in connection with the dealer's business of
5selling, where the charge is merely made to recover the costs
6of operating the automobile as a demonstrator and is not
7intended as a rental or leasing charge in the ordinary sense.
8    "Renting" does not include peer-to-peer car sharing, as
9defined in Section 5 of the Car-Sharing Program Act, if tax due
10on the automobile under the Retailers' Occupation Tax Act or
11Use Tax Act was paid upon the purchase of the automobile or
12when the automobile was brought into Illinois. The car-sharing
13program shall ask a shared vehicle owner if the shared vehicle
14owner paid applicable taxes at the time of purchase.
15Notwithstanding any law to the contrary, the car-sharing
16program shall have the right to rely on the shared vehicle
17owner's response and to be held legally harmless for such
18reliance.
19    "Automobile" means (1) any motor vehicle of the first
20division, or (2) a motor vehicle of the second division which:
21(A) is a self-contained motor vehicle designed or permanently
22converted to provide living quarters for recreational, camping
23or travel use, with direct walk through access to the living
24quarters from the driver's seat; (B) is of the van
25configuration designed for the transportation of not less than
267 nor more than 16 passengers, as defined in Section 1-146 of

 

 

10300HB1497sam006- 3 -LRB103 04797 JDS 62229 a

1the Illinois Vehicle Code; or (C) has a Gross Vehicle Weight
2Rating, as defined in Section 1-124.5 of the Illinois Vehicle
3Code, of 8,000 pounds or less.
4    "Department" means the Department of Revenue.
5    "Person" means any natural individual, firm, partnership,
6association, joint stock company, joint adventure, public or
7private corporation, limited liability company, or a receiver,
8executor, trustee, conservator or other representative
9appointed by order of any court.
10    "Rentor" means any person, firm, corporation or
11association engaged in the business of renting or leasing
12automobiles to users. For this purpose, the objective of
13making a profit is not necessary to make the renting activity a
14business.
15    "Rentor" does not include a car-sharing program or a
16shared-vehicle owner, as defined in Section 5 of the
17Car-Sharing Program Act, if tax due on the automobile under
18the Retailers' Occupation Tax Act or Use Tax Act was paid upon
19the purchase of the automobile or when the automobile was
20brought into Illinois. The car-sharing program shall ask a
21shared vehicle owner if the shared vehicle owner paid
22applicable taxes at the time of purchase. Notwithstanding any
23law to the contrary, the car-sharing program shall have the
24right to rely on the shared vehicle owner's response and to be
25held legally harmless for such reliance.
26    "Rentee" means any user to whom the possession, or the

 

 

10300HB1497sam006- 4 -LRB103 04797 JDS 62229 a

1right to possession, of an automobile is transferred for a
2valuable consideration for a period of one year or less,
3whether paid for by the "rentee" or by someone else.
4    "Rentee" does not include a shared-vehicle driver, as
5defined in Section 5 of the Car-Sharing Program Act, if tax due
6on the automobile under the Retailers' Occupation Tax Act or
7Use Tax Act was paid upon the purchase of the automobile or
8when the automobile was brought into Illinois. The car-sharing
9program shall ask a shared vehicle owner if the shared vehicle
10owner paid applicable taxes at the time of purchase.
11Notwithstanding any law to the contrary, the car-sharing
12program shall have the right to rely on the shared vehicle
13owner's response and to be held legally harmless for such
14reliance.
15    "Gross receipts" from the renting of tangible personal
16property or "rent" means the total rental price or leasing
17price. In the case of rental transactions in which the
18consideration is paid to the rentor on an installment basis,
19the amounts of such payments shall be included by the rentor in
20gross receipts or rent only as and when payments are received
21by the rentor.
22    "Gross receipts" does not include receipts received by an
23automobile dealer from a manufacturer or service contract
24provider for the use of an automobile by a person while that
25person's automobile is being repaired by that automobile
26dealer and the repair is made pursuant to a manufacturer's

 

 

10300HB1497sam006- 5 -LRB103 04797 JDS 62229 a

1warranty or a service contract where a manufacturer or service
2contract provider reimburses that automobile dealer pursuant
3to a manufacturer's warranty or a service contract and the
4reimbursement is merely made to recover the costs of operating
5the automobile as a loaner vehicle.
6    "Rental price" means the consideration for renting or
7leasing an automobile valued in money, whether received in
8money or otherwise, including cash credits, property and
9services, and shall be determined without any deduction on
10account of the cost of the property rented, the cost of
11materials used, labor or service cost, or any other expense
12whatsoever, but does not include charges that are added by a
13rentor on account of the rentor's tax liability under this Act
14or on account of the rentor's duty to collect, from the rentee,
15the tax that is imposed by Section 4 of this Act. The phrase
16"rental price" does not include compensation paid to a rentor
17by a rentee in consideration of the waiver by the rentor of any
18right of action or claim against the rentee for loss or damage
19to the automobile rented and also does not include a
20separately stated charge for insurance or recovery of
21refueling costs or other separately stated charges that are
22not for the use of tangible personal property.
23    "Rental price" does not include consideration paid for
24peer-to-peer car sharing to a shared-vehicle owner or a
25car-sharing program, as those terms are defined in Section 5
26of the Car-Sharing Program Act, if tax due on the automobile

 

 

10300HB1497sam006- 6 -LRB103 04797 JDS 62229 a

1under the Retailers' Occupation Tax Act or Use Tax Act was paid
2upon the purchase of the automobile or when the automobile was
3brought into Illinois. The car-sharing program shall ask a
4shared vehicle owner if the shared vehicle owner paid
5applicable taxes at the time of purchase. Notwithstanding any
6law to the contrary, the car-sharing program shall have the
7right to rely on the shared vehicle owner's response and to be
8held 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
124 of this Act do not apply to any amounts paid or received for
13peer-to-peer car sharing, as defined in Section 5 of the
14Car-Sharing Program Act, or the privilege of sharing a shared
15vehicle through a car-sharing program, as defined in Section 5
16of the Car-Sharing Program Act, if the shared vehicle owner
17paid applicable taxes upon the purchase of the automobile.
18    As used in this Section, "applicable taxes" means, with
19respect to vehicles purchased in Illinois, the retailers'
20occupation tax levied under the Retailers' Occupation Tax Act
21or the use tax levied under the Use Tax Act. "Applicable
22taxes", with respect to vehicles not purchased in Illinois,
23refers to the sales, use, excise, or other generally
24applicable tax that is due upon the purchase of a vehicle in
25the jurisdiction in which the vehicle was purchased.

 

 

10300HB1497sam006- 7 -LRB103 04797 JDS 62229 a

1    Notwithstanding any law to the contrary, the car-sharing
2program shall have the right to rely on the shared vehicle
3owner's response and to be held legally harmless for such
4reliance.
 
5    Section 10. The Illinois Vehicle Code is amended by
6changing 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
10rents a motor vehicle to another may hold the renter liable to
11the extent permitted under subsections (b) through (d) for
12physical or mechanical damage to the rented motor vehicle that
13occurs during the time the motor vehicle is under the rental
14agreement.
15    (b) Limits on liability due to theft for a : vehicle having
16an MSRP of $50,000 or less. The total liability of a renter who
17rents from another a motor vehicle that has an MSRP of $50,000
18or less and that is stolen shall be the actual and reasonable
19costs incurred by the loss due to theft of the rental motor
20vehicle up to $5,000; provided, however, that if it is
21established that the renter or authorized driver failed to
22exercise ordinary care while in possession of the vehicle or
23that the renter or authorized driver committed or aided and
24abetted the commission of a theft, then the damages shall be

 

 

10300HB1497sam006- 8 -LRB103 04797 JDS 62229 a

1the actual and reasonable costs of the rental vehicle up to its
2fair market value, as determined by the customary market for
3the sale of the vehicle. renter under subsection (a) for
4damage to a motor vehicle with a Manufacturer's Suggested
5Retail Price (MSRP) of $50,000 or less may not exceed all of
6the 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

 

 

10300HB1497sam006- 9 -LRB103 04797 JDS 62229 a

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
4to June 1, 1998, the maximum amount that may be recovered from
5an authorized driver shall not exceed $6,000; for the period
6beginning June 1, 1998 through May 31, 1999, the maximum
7recovery shall not exceed $7,500; and for the period beginning
8June 1, 1999 through May 31, 2000, the maximum recovery shall
9not exceed $9,000. Beginning June 1, 2000, and annually each
10June 1 thereafter, the maximum amount that may be recovered
11from an authorized driver under this subsection (b) shall be
12increased by $500 above the maximum recovery allowed
13immediately prior to June 1 of that year.
14    (b-5) Limits on liability due to theft for a : vehicle
15having an MSRP of more than $50,000. The total liability of a
16renter who rents from another a motor vehicle that has an MSRP
17of more than $50,000 and that is stolen shall be the actual and
18reasonable cost incurred by the loss due to theft of the rental
19motor vehicle up to $40,000; provided, however that if it is
20established that the renter or authorized driver failed to
21exercise ordinary care while in possession of the vehicle or
22that the renter or authorized driver committed or aided and
23abetted the commission of a theft, then the damages shall be
24the actual and reasonable costs of the rental vehicle up to its
25fair market value, as determined by the customary market for
26the sale of the vehicle. renter under subsection (a) for

 

 

10300HB1497sam006- 10 -LRB103 04797 JDS 62229 a

1damage to a motor vehicle with a Manufacturer's Suggested
2Retail Price (MSRP) of more than $50,000 may not exceed all of
3the 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
20Manufacturer's Suggested Retail Price (MSRP) of more than
21$50,000 under this subsection (b-5) shall not exceed $40,000
22on the effective date of this amendatory Act of the 99th
23General Assembly. On October 1, 2016, and for the next 3 years
24thereafter, the maximum amount that may be recovered from an
25authorized driver under this subsection (b-5) shall be
26increased by $2,500 above the prior year's maximum recovery.

 

 

10300HB1497sam006- 11 -LRB103 04797 JDS 62229 a

1On October 1, 2020, and for each year thereafter, the maximum
2amount that may be recovered from an authorized driver under
3this subsection (b-5) shall be increased by $1,000 above the
4prior year's maximum recovery.
5    (b-10) Beginning on the effective date of this amendatory
6Act of the 103rd General Assembly and for 6 months after, a
7person who rents a motor vehicle to another shall provide
8notice to the renter of the motor vehicle of the changes
9reflected in this amendatory Act of the 103rd General
10Assembly. The notice shall be posted in a conspicuous and
11unobscured place that is separate and apart from any other
12information.
13    (c) Multiple recoveries prohibited. Any person who rents a
14motor vehicle to another may not hold the renter liable for any
15amounts that the rental company recovers from any other party.
16    (d) Repair estimates. A person who rents a motor vehicle
17to another may not collect or attempt to collect the amount
18described in subsection (b) or (b-5) unless the rental company
19obtains an estimate from a repair company or an appraiser in
20the business of providing such appraisals on the costs of
21repairing the motor vehicle, makes a copy of the estimate
22available upon request to the renter who may be liable under
23subsection (a), or the insurer of the renter, and submits a
24copy of the estimate with any claim to collect the amount
25described in subsection (b) or (b-5). In order to collect the
26amount described in subsection (b-5), a person renting a motor

 

 

10300HB1497sam006- 12 -LRB103 04797 JDS 62229 a

1vehicle to another must also provide the renter's personal
2insurance company with reasonable notice and an opportunity to
3inspect damages.
4    (d-5) In the event of loss due to theft of the rental motor
5vehicle with a MSRP more than $50,000, the rental company
6shall provide reasonable notice of the theft to the renter's
7personal insurance company.
8    (e) Duty to mitigate. A claim against a renter resulting
9from damage or loss to a rental vehicle must be reasonably and
10rationally related to the actual loss incurred. A rental
11company shall mitigate damages where possible and shall not
12assert or collect any claim for physical damage which exceeds
13the actual costs of the repair, including all discounts or
14price reductions.
15    (f) No rental company shall require a deposit or an
16advance charge against the credit card of a renter, in any
17form, for damages to a vehicle which is in the renter's
18possession, custody, or control. No rental company shall
19require any payment for damage to the rental vehicle, upon the
20renter's return of the vehicle in a damaged condition, until
21after the cost of the damage to the vehicle and liability
22therefor is agreed to between the rental company and renter or
23is determined pursuant to law.
24    (g) If insurance coverage exists under the renter's
25personal insurance policy and the coverage is confirmed during
26regular business hours, the renter may require that the rental

 

 

10300HB1497sam006- 13 -LRB103 04797 JDS 62229 a

1company must submit any claims to the renter's personal
2insurance carrier as the renter's agent. The rental company
3shall not make any written or oral representations that it
4will not present claims or negotiate with the renter's
5insurance carrier. For purposes of this Section, confirmation
6of coverage includes telephone confirmation from insurance
7company representatives during regular business hours. After
8confirmation of coverage, the amount of claim shall be
9resolved 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
12law, except that Section 10 takes effect on January 1, 2024.".