SB2213 EngrossedLRB103 28715 HLH 55097 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Parking Excise Tax Act is amended by
5changing Sections 10-5, 10-10, 10-15, 10-25, 10-30, and 10-45
6as follows:
 
7    (35 ILCS 525/10-5)
8    (Text of Section before amendment by P.A. 102-700)
9    Sec. 10-5. Definitions.
10    "Booking intermediary" means any person or entity that
11facilitates the processing and fulfillment of reservation
12transactions between an operator and a person or entity
13desiring parking in a parking lot or garage of that operator.
14    "Charge or fee paid for parking" means the gross amount of
15consideration for the use or privilege of parking a motor
16vehicle in or upon any parking lot or garage in the State,
17collected by an operator and valued in money, whether received
18in money or otherwise, including cash, credits, property, and
19services, determined without any deduction for costs or
20expenses, but not including charges that are added to the
21charge or fee on account of the tax imposed by this Act or on
22account of any other tax imposed on the charge or fee. "Charge
23or fee paid for parking" excludes separately stated charges

 

 

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1not for the use or privilege or parking and excludes amounts
2retained by or paid to a booking intermediary for services
3provided by the booking intermediary. If any separately stated
4charge is not optional, it shall be presumed that it is part of
5the charge for the use or privilege or parking.
6    "Department" means the Department of Revenue.
7    "Online booking platform" means a web-based or mobile
8platform that enables a person to book a parking reservation
9electronically.
10    "Operator" means any person who engages in the business of
11operating a parking area or garage, or who, directly or
12through an agreement or arrangement with another party,
13collects the consideration for parking or storage of motor
14vehicles, recreational vehicles, or other self-propelled
15vehicles, at that parking place. This includes, but is not
16limited to, any facilitator or aggregator that collects from
17the purchaser the charge or fee paid for parking. "Operator"
18does not include a bank, credit card company, payment
19processor, booking intermediary, or person whose involvement
20is limited to performing functions that are similar to those
21performed by a bank, credit card company, payment processor,
22or booking intermediary.
23    "Parking area or garage" means any real estate, building,
24structure, premises, enclosure or other place, whether
25enclosed or not, except a public way, within the State, where
26motor vehicles, recreational vehicles, or other self-propelled

 

 

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1vehicles, are stored, housed or parked for hire, charge, fee
2or other valuable consideration in a condition ready for use,
3or where rent or compensation is paid to the owner, manager,
4operator or lessee of the premises for the housing, storing,
5sheltering, keeping or maintaining motor vehicles,
6recreational vehicles, or other self-propelled vehicles.
7"Parking area or garage" includes any parking area or garage,
8whether the vehicle is parked by the owner of the vehicle or by
9the operator or an attendant.
10    "Person" means any natural individual, firm, trust,
11estate, partnership, association, joint stock company, joint
12venture, corporation, limited liability company, or a
13receiver, trustee, guardian, or other representative appointed
14by order of any court.
15    "Purchase price" means the consideration paid for the
16purchase of a parking space in a parking area or garage, valued
17in money, whether received in money or otherwise, including
18cash, gift cards, credits, and property, and shall be
19determined without any deduction on account of the cost of
20materials used, labor or service costs, or any other expense
21whatsoever.
22    "Purchase price" includes any and all charges that the
23recipient pays related to or incidental to obtaining the use
24or privilege of using a parking space in a parking area or
25garage, including but not limited to any and all related
26markups, service fees, convenience fees, facilitation fees,

 

 

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1cancellation fees, overtime fees, or other such charges,
2regardless of terminology. However, "purchase price" shall not
3include consideration paid for:
4        (1) optional, separately stated charges not for the
5    use or privilege of using a parking space in the parking
6    area or garage;
7        (2) any charge for a dishonored check;
8        (3) any finance or credit charge, penalty or charge
9    for delayed payment, or discount for prompt payment;
10        (4) any purchase by a purchaser if the operator is
11    prohibited by federal or State Constitution, treaty,
12    convention, statute or court decision from collecting the
13    tax from such purchaser;
14        (5) the isolated or occasional sale of parking spaces
15    subject to tax under this Act by a person who does not hold
16    himself out as being engaged (or who does not habitually
17    engage) in selling of parking spaces; and
18        (6) any amounts added to a purchaser's bills because
19    of charges made pursuant to the tax imposed by this Act. If
20    credit is extended, then the amount thereof shall be
21    included only as and when payments are made; .
22        (7) any charges retained or added to the purchase
23    price by a booking intermediary to compensate the booking
24    intermediary for services provided by the booking
25    intermediary; and
26        (8) in a transaction between a customer and an

 

 

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1    operator completed through an online booking platform
2    owned and operated by such operator, any charges added to
3    the purchase price by such operator to compensate the
4    operator for facilitating the processing and fulfillment
5    of the reservation.
6    "Purchaser" means any person who acquires a parking space
7in a parking area or garage for use for valuable
8consideration.
9    "Use" means the exercise by any person of any right or
10power over, or the enjoyment of, a parking space in a parking
11area or garage subject to tax under this Act.
12(Source: P.A. 101-31, eff. 6-28-19.)
 
13    (Text of Section after amendment by P.A. 102-700)
14    Sec. 10-5. Definitions. As used in this Act:
15    "Booking intermediary" means any person or entity that
16facilitates the processing and fulfillment of reservation
17transactions between an operator and a person or entity
18desiring parking in a parking lot or garage of that operator.
19    "Department" means the Department of Revenue.
20    "Online booking platform" means a web-based or mobile
21platform that enables a person to book a parking reservation
22electronically.
23    "Operator" means any person who engages in the business of
24operating a parking area or garage, or who, directly or
25through an agreement or arrangement with another party,

 

 

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1collects the consideration for parking or storage of motor
2vehicles, recreational vehicles, or other self-propelled
3vehicles, at that parking place. This includes, but is not
4limited to, any facilitator or aggregator that collects the
5purchase price from the purchaser. "Operator" does not include
6a bank, credit card company, payment processor, booking
7intermediary, or person whose involvement is limited to
8performing functions that are similar to those performed by a
9bank, credit card company, or payment processor, or booking
10intermediary.
11    "Parking area or garage" means any real estate, building,
12structure, premises, enclosure or other place, whether
13enclosed or not, except a public way, within the State, where
14motor vehicles, recreational vehicles, or other self-propelled
15vehicles, are stored, housed or parked for hire, charge, fee
16or other valuable consideration in a condition ready for use,
17or where rent or compensation is paid to the owner, manager,
18operator or lessee of the premises for the housing, storing,
19sheltering, keeping or maintaining motor vehicles,
20recreational vehicles, or other self-propelled vehicles.
21"Parking area or garage" includes any parking area or garage,
22whether the vehicle is parked by the owner of the vehicle or by
23the operator or an attendant.
24    "Person" means any natural individual, firm, trust,
25estate, partnership, association, joint stock company, joint
26venture, corporation, limited liability company, or a

 

 

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1receiver, trustee, guardian, or other representative appointed
2by order of any court.
3    "Purchase price" means the consideration paid for the
4purchase of a parking space in a parking area or garage, valued
5in money, whether received in money or otherwise, including
6cash, gift cards, credits, and property, and shall be
7determined without any deduction on account of the cost of
8materials used, labor or service costs, or any other expense
9whatsoever.
10    "Purchase price" includes any and all charges that the
11recipient pays related to or incidental to obtaining the use
12or privilege of using a parking space in a parking area or
13garage, including but not limited to any and all related
14markups, service fees, convenience fees, facilitation fees,
15cancellation fees, overtime fees, or other such charges,
16regardless of terminology. However, "purchase price" shall not
17include consideration paid for:
18        (1) optional, separately stated charges not for the
19    use or privilege of using a parking space in the parking
20    area or garage;
21        (2) any charge for a dishonored check;
22        (3) any finance or credit charge, penalty or charge
23    for delayed payment, or discount for prompt payment;
24        (4) any purchase by a purchaser if the operator is
25    prohibited by federal or State Constitution, treaty,
26    convention, statute or court decision from collecting the

 

 

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1    tax from such purchaser;
2        (5) the isolated or occasional sale of parking spaces
3    subject to tax under this Act by a person who does not hold
4    himself out as being engaged (or who does not habitually
5    engage) in selling of parking spaces; and
6        (6) any amounts added to a purchaser's bills because
7    of charges made pursuant to the tax imposed by this Act. If
8    credit is extended, then the amount thereof shall be
9    included only as and when payments are made; .
10        (7) any charges retained or added to the purchase
11    price by a booking intermediary to compensate the booking
12    intermediary for services provided by the booking
13    intermediary; and
14        (8) in a transaction between a customer and an
15    operator completed through an online booking platform
16    owned and operated by such operator, any charges added to
17    the purchase price by such operator to compensate the
18    operator for facilitating the processing and fulfillment
19    of the reservation.
20    "Purchaser" means any person who acquires a parking space
21in a parking area or garage for use for valuable
22consideration.
23    "Use" means the exercise by any person of any right or
24power over, or the enjoyment of, a parking space in a parking
25area or garage subject to tax under this Act.
26(Source: P.A. 101-31, eff. 6-28-19; 102-700, eff. 7-1-23.)
 

 

 

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1    (35 ILCS 525/10-10)
2    Sec. 10-10. Imposition of tax; calculation of tax.
3    (a) Beginning on January 1, 2020, a tax is imposed on the
4privilege of using in this State a parking space in a parking
5area or garage for the use of parking one or more motor
6vehicles, recreational vehicles, or other self-propelled
7vehicles, at the rate of:
8        (1) 6% of the purchase price for a parking space paid
9    for on an hourly, daily, or weekly basis; and
10        (2) 9% of the purchase price for a parking space paid
11    for on a monthly or annual basis.
12    (b) The tax shall be collected from the purchaser by the
13operator. Notwithstanding the provisions of this subsection,
14beginning on January 1, 2024, if a booking intermediary
15facilitates the processing and fulfillment of the reservation
16for an operator that is not registered under Section 10-30,
17then the tax shall be collected from the purchaser by the
18booking intermediary on behalf of the operator.
19    (c) An operator that has paid or remitted the tax imposed
20by this Act to another operator in connection with the same
21parking transaction, or the use of the same parking space,
22that is subject to tax under this Act, shall be entitled to a
23credit for such tax paid or remitted against the amount of tax
24owed under this Act, provided that the other operator is
25registered under this Act. The operator claiming the credit

 

 

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1shall have the burden of proving it is entitled to claim a
2credit.
3    (d) If any operator or booking intermediary erroneously
4collects tax or collects more from the purchaser than the
5purchaser's liability for the transaction, the purchaser shall
6have a legal right to claim a refund of such amount from the
7operator or booking intermediary. However, if such amount is
8not refunded to the purchaser for any reason, the operator or
9booking intermediary is liable to pay such amount to the
10Department.
11    (e) The tax imposed by this Section is not imposed with
12respect to any transaction in interstate commerce, to the
13extent that the transaction may not, under the Constitution
14and statutes of the United States, be made the subject of
15taxation by this State.
16(Source: P.A. 101-31, eff. 6-28-19.)
 
17    (35 ILCS 525/10-15)
18    Sec. 10-15. Filing of returns and deposit of proceeds. On
19or before the last day of each calendar month, every operator
20engaged in the business of providing to purchasers parking
21areas and garages in this State during the preceding calendar
22month and every booking intermediary required to collect tax
23on behalf of an operator under Section 10-10 shall file a
24return with the Department, stating:
25        (1) the name of the operator or booking intermediary;

 

 

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1        (2) the address of its principal place of business
2    and, if applicable, the address of the principal place of
3    business from which it provides parking areas and garages
4    in this State;
5        (3) the total amount of receipts received by the
6    operator during the preceding calendar month or quarter,
7    as the case may be, from sales of parking spaces to
8    purchasers in parking areas or garages during the
9    preceding calendar month or quarter; if the return is
10    filed by a booking intermediary that collects the tax
11    under this Act on behalf of an unregistered operator, as
12    provided in Section 10-10, then the total amount of
13    receipts received by that unregistered operator during the
14    preceding calendar month or quarter, as the case may be,
15    from sales of parking spaces to purchasers in parking
16    areas or garages during the preceding calendar month or
17    quarter;
18        (4) deductions allowed by law;
19        (5) the total amount of receipts received by the
20    operator during the preceding calendar month or quarter
21    upon which the tax was computed; if the return is filed by
22    a booking intermediary that collects the tax under this
23    Act on behalf of an unregistered operator, as provided in
24    Section 10-10, then the total amount of receipts received
25    by that unregistered operator during the preceding
26    calendar month or quarter upon which the tax was computed;

 

 

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1        (6) the amount of tax due; and
2        (7) such other reasonable information as the
3    Department may require.
4    If an operator or booking intermediary ceases to engage in
5the kind of business that makes it responsible for filing
6returns under this Act, then that operator or booking
7intermediary shall file a final return under this Act with the
8Department on or before the last day of the month after
9discontinuing such business.
10    All returns required to be filed and payments required to
11be made under this Act shall be by electronic means. Taxpayers
12who demonstrate hardship in filing or paying electronically
13may petition the Department to waive the electronic filing or
14payment requirement, or both. The Department may require a
15separate return for the tax under this Act or combine the
16return for the tax under this Act with the return for other
17taxes.
18    If the same person has more than one business registered
19with the Department under separate registrations under this
20Act, that person shall not file each return that is due as a
21single return covering all such registered businesses but
22shall file separate returns for each such registered business.
23    If the operator or booking intermediary is a corporation,
24the return filed on behalf of that corporation shall be signed
25by the president, vice-president, secretary, or treasurer, or
26by a properly accredited agent of such corporation.

 

 

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1    The operator or booking intermediary filing the return
2under this Act shall, at the time of filing the return, pay to
3the Department the amount of tax imposed by this Act less a
4discount of 1.75%, not to exceed $1,000 per month, which is
5allowed to reimburse the operator or booking intermediary for
6the expenses incurred in keeping records, preparing and filing
7returns, remitting the tax, and supplying data to the
8Department on request.
9    If any payment provided for in this Section exceeds the
10taxpayer's liabilities under this Act, as shown on an original
11return, the Department may authorize the taxpayer to credit
12such excess payment against liability subsequently to be
13remitted to the Department under this Act, in accordance with
14reasonable rules adopted by the Department. If the Department
15subsequently determines that all or any part of the credit
16taken was not actually due to the taxpayer, the taxpayer's
17discount shall be reduced by an amount equal to the difference
18between the discount as applied to the credit taken and that
19actually due, and that taxpayer shall be liable for penalties
20and interest on such difference.
21(Source: P.A. 101-31, eff. 6-28-19.)
 
22    (35 ILCS 525/10-25)
23    Sec. 10-25. Collection of tax.
24    (a) Beginning with bills issued or charges collected for a
25purchase of a parking space in a parking area or garage on and

 

 

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1after January 1, 2020, the tax imposed by this Act shall be
2collected from the purchaser by the operator (or by a booking
3intermediary, as provided in Section 10-10) at the rate stated
4and under the circumstances set forth in Section 10-10 and
5shall be remitted to the Department as provided in this Act.
6All charges for parking spaces in a parking area or garage are
7presumed subject to tax collection. Operators and booking
8intermediaries, as applicable, shall collect the tax from
9purchasers by adding the tax to the amount of the purchase
10price received from the purchaser. The tax imposed by the Act
11shall when collected be stated as a distinct item separate and
12apart from the purchase price of the service subject to tax
13under this Act. However, where it is not possible to state the
14tax separately the Department may by rule exempt such
15purchases from this requirement so long as purchasers are
16notified by language on the invoice or notified by a sign that
17the tax is included in the purchase price.
18    (b) Any person purchasing a parking space in a parking
19area or garage subject to tax under this Act as to which there
20has been no charge made to him of the tax imposed by Section
2110-10, shall make payment of the tax imposed by Section 10-10
22of this Act in the form and manner provided by the Department,
23such payment to be made to the Department in the manner and
24form required by the Department not later than the 20th day of
25the month following the month of purchase of the parking
26space.

 

 

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1(Source: P.A. 101-31, eff. 6-28-19.)
 
2    (35 ILCS 525/10-30)
3    Sec. 10-30. Registration of operators.
4    (a) A person who engages in business as an operator of a
5parking area or garage in this State, or as a booking
6intermediary that facilitates the processing and fulfillment
7of the reservation for an operator that is not registered
8under Section 10-30, shall register with the Department.
9Application for a certificate of registration shall be made to
10the Department, by electronic means, in the form and manner
11prescribed by the Department and shall contain any reasonable
12information the Department may require. Upon receipt of the
13application for a certificate of registration in proper form
14and manner, the Department shall issue to the applicant a
15certificate of registration. Operators who demonstrate that
16they do not have access to the Internet or demonstrate
17hardship in applying electronically may petition the
18Department to waive the electronic application requirements.
19    (b) The Department may refuse to issue or reissue a
20certificate of registration to any applicant for the reasons
21set forth in Section 2505-380 of the Department of Revenue Law
22of the Civil Administrative Code of Illinois.
23    (c) Any person aggrieved by any decision of the Department
24under this Section may, within 20 days after notice of such
25decision, protest and request a hearing, whereupon the

 

 

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1Department shall give notice to such person of the time and
2place fixed for such hearing and shall hold a hearing in
3conformity with the provisions of this Act and then issue its
4final administrative decision in the matter to such person. In
5the absence of such a protest within 20 days, the Department's
6decision shall become final without any further determination
7being made or notice given.
8(Source: P.A. 101-31, eff. 6-28-19.)
 
9    (35 ILCS 525/10-45)
10    Sec. 10-45. Tax collected as debt owed to State. The tax
11herein required to be collected by any operator, booking
12intermediary, or valet business and any such tax collected by
13that person, shall constitute a debt owed by that person to
14this State.
15(Source: P.A. 101-31, eff. 6-28-19.)
 
16    Section 95. No acceleration or delay. Where this Act makes
17changes in a statute that is represented in this Act by text
18that is not yet or no longer in effect (for example, a Section
19represented by multiple versions), the use of that text does
20not accelerate or delay the taking effect of (i) the changes
21made by this Act or (ii) provisions derived from any other
22Public Act.
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.