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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
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91_SB0132eng SB132 Engrossed 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 Engrossed -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 Engrossed -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.