Illinois General Assembly - Full Text of HB3968
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Full Text of HB3968  101st General Assembly




State of Illinois
2019 and 2020


Introduced 11/13/2019___________, by


35 ILCS 525/10-5
35 ILCS 525/10-20

    Amends the Parking Excise Tax Act. Removes provisions from the Act providing that a booking intermediary is not considered an operator. Provides that separately stated charges that are not optional are presumed to be part of the purchase price unless proven otherwise. Provides that the tax does not apply to: (1) parking in a lot or garage that is owned or operated by a federal, State, or local government entity if the purchase price does not exceed a stated amount; or (2) if the purchase price is paid by any federal, State, or local government entity. Effective immediately.

LRB101 14456 HLH 63347 b






HB3968LRB101 14456 HLH 63347 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 and 10-20 as follows:
6    (35 ILCS 525/10-5)
7    Sec. 10-5. Definitions.
8    "Booking intermediary" means any person or entity that
9facilitates the processing and fulfillment of reservation
10transactions between an operator and a person or entity
11desiring parking in a parking lot or garage of that operator.
12    "Charge or fee paid for parking" means the gross amount of
13consideration for the use or privilege of parking a motor
14vehicle in or upon any parking lot or garage in the State,
15collected by an operator and valued in money, whether received
16in money or otherwise, including cash, credits, property, and
17services, determined without any deduction for costs or
18expenses, but not including charges that are added to the
19charge or fee on account of the tax imposed by this Act or on
20account of any other tax imposed on the charge or fee. "Charge
21or fee paid for parking" excludes separately stated charges not
22for the use or privilege or parking and excludes amounts
23retained by or paid to a booking intermediary for services



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1provided by the booking intermediary. If any separately stated
2charge is not optional, it shall be presumed that it is part of
3the charge for the use or privilege or parking.
4    "Department" means the Department of Revenue.
5    "Operator" means any person who engages in the business of
6operating a parking area or garage, or who, directly or through
7an agreement or arrangement with another party, collects the
8consideration for parking or storage of motor vehicles,
9recreational vehicles, or other self-propelled vehicles, at
10that parking place. This includes, but is not limited to, any
11facilitator or aggregator that collects from the purchaser the
12charge or fee paid for parking. "Operator" does not include a
13bank, credit card company, payment processor, booking
14intermediary, or person whose involvement is limited to
15performing functions that are similar to those performed by a
16bank, credit card company, or payment processor, or booking
18    "Parking area or garage" means any real estate, building,
19structure, premises, enclosure or other place, whether
20enclosed or not, except a public way, within the State, where
21motor vehicles, recreational vehicles, or other self-propelled
22vehicles, are stored, housed or parked for hire, charge, fee or
23other valuable consideration in a condition ready for use, or
24where rent or compensation is paid to the owner, manager,
25operator or lessee of the premises for the housing, storing,
26sheltering, keeping or maintaining motor vehicles,



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1recreational vehicles, or other self-propelled vehicles.
2"Parking area or garage" includes any parking area or garage,
3whether the vehicle is parked by the owner of the vehicle or by
4the operator or an attendant.
5    "Person" means any natural individual, firm, trust,
6estate, partnership, association, joint stock company, joint
7venture, corporation, limited liability company, or a
8receiver, trustee, guardian, or other representative appointed
9by order of any court.
10    "Purchase price" means the consideration paid for the
11purchase of a parking space in a parking area or garage, valued
12in money, whether received in money or otherwise, including
13cash, gift cards, credits, and property, and shall be
14determined without any deduction on account of the cost of
15materials used, labor or service costs, or any other expense
17    "Purchase price" includes any and all charges that the
18recipient pays related to or incidental to obtaining the use or
19privilege of using a parking space in a parking area or garage,
20including but not limited to any and all related markups,
21service fees, convenience fees, facilitation fees,
22cancellation fees, overtime fees, or other such charges,
23regardless of terminology. However, "purchase price" shall not
24include consideration paid for:
25        (1) optional, separately stated charges not for the use
26    or privilege of using a parking space in the parking area



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1    or garage; if any separately stated charge is not optional,
2    it shall be presumed until proven otherwise that it is part
3    of the charge for the use or privilege or parking;
4        (2) any charge for a dishonored check;
5        (3) any finance or credit charge, penalty or charge for
6    delayed payment, or discount for prompt payment;
7        (4) any purchase by a purchaser if the operator is
8    prohibited by federal or State Constitution, treaty,
9    convention, statute or court decision from collecting the
10    tax from such purchaser;
11        (5) the isolated or occasional sale of parking spaces
12    subject to tax under this Act by a person who does not hold
13    himself out as being engaged (or who does not habitually
14    engage) in selling of parking spaces; and
15        (6) any amounts added to a purchaser's bills, whether
16    or not separately stated, because of charges made pursuant
17    to the tax imposed by this Act, or on account of any other
18    tax imposed on the charge or fee. If credit is extended,
19    then the amount thereof shall be included only as and when
20    payments are made.
21    "Purchaser" means any person who acquires a parking space
22in a parking area or garage for use for valuable consideration.
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.)



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1    (35 ILCS 525/10-20)
2    Sec. 10-20. Exemptions. The tax imposed by this Act shall
3not apply to:
4        (1) parking in a parking area or garage operated by the
5    federal government or its instrumentalities that has been
6    issued an active tax exemption number by the Department
7    under Section 1g of the Retailers' Occupation Tax Act; for
8    this exemption to apply, the parking area or garage must be
9    operated by the federal government or its
10    instrumentalities; the exemption under this paragraph (1)
11    does not apply if the parking area or garage is operated by
12    a third party, whether under a lease or other contractual
13    arrangement, or any other manner whatsoever;
14        (2) residential off-street parking for home or
15    apartment tenants or condominium occupants, if the
16    arrangement for such parking is provided in the home or
17    apartment lease or in a separate writing between the
18    landlord and tenant, or in a condominium agreement between
19    the condominium association and the owner, occupant, or
20    guest of a unit, whether the parking charge is payable to
21    the landlord, condominium association, or to the operator
22    of the parking spaces; this paragraph (2) is intended to
23    exempt from tax not only written agreements for residential
24    off-street parking directly between the landlord or
25    condominium association and the apartment occupant or



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1    condo owner, occupant, or guest, but also any written
2    parking agreement between the landlord's or association's
3    designated parking lot or garage operator and the apartment
4    occupant or the condo owner, occupant, or guest, whether or
5    not coterminous with the lease or ownership period of the
6    residence;
7        (3) parking by hospital employees in a parking space
8    that is owned and operated by the hospital for which they
9    work; and
10        (4) parking in a parking area or garage where 3 or
11    fewer motor vehicles are stored, housed, or parked for
12    hire, charge, fee or other valuable consideration, if the
13    operator of the parking area or garage does not act as the
14    operator of more than a total of 3 parking spaces located
15    in the State; if any operator of parking areas or garages,
16    including any facilitator or aggregator, acts as an
17    operator of more than 3 parking spaces in total that are
18    located in the State, then this exemption shall not apply
19    to any of those spaces; .
20        (5) parking in a lot or garage that is owned or
21    operated by the federal government, the State, a
22    municipality, the Regional Transportation Authority or any
23    of its service boards, the Chicago Park District, or any
24    other government entity, if the purchase price for the
25    privilege of parking does not exceed $3 for a 24-hour
26    period or less, $15 for a weekly period, or $60 for a



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1    monthly period; and
2        (6) parking when the purchase price is paid by any
3    federal, State, or local government entity.
4(Source: P.A. 101-31, eff. 6-28-19.)
5    Section 99. Effective date. This Act takes effect upon
6becoming law.