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| [ Senate Amendment 001 ] |
91_SB0132sam002
LRB9101787PTmbam02
1 AMENDMENT TO SENATE BILL 132
2 AMENDMENT NO. . Amend Senate Bill 132, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
5 "Section 5. The Automobile Renting Occupation and Use
6 Tax 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
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1 intended as a rental or leasing charge in the ordinary sense.
2 "Automobile" means any motor vehicle of the first
3 division, a motor vehicle of the second division which is a
4 self-contained motor vehicle designed or permanently
5 converted to provide living quarters for recreational,
6 camping or travel use, with direct walk through access to the
7 living quarters from the driver's seat, or a motor vehicle of
8 the second division which is of the van configuration
9 designed for the transportation of not less than 7 nor more
10 than 16 passengers, as defined in Section 1-146 of the
11 Illinois Vehicle Code.
12 "Department" means the Department of Revenue.
13 "Person" means any natural individual, firm, partnership,
14 association, joint stock company, joint adventure, public or
15 private corporation, limited liability company, or a
16 receiver, executor, trustee, conservator or other
17 representative appointed by order of any court.
18 "Rentor" means any person, firm, corporation or
19 association engaged in the business of renting or leasing
20 automobiles to users. For this purpose, the objective of
21 making a profit is not necessary to make the renting activity
22 a business.
23 "Rentee" means any user to whom the possession, or the
24 right to possession, of an automobile is transferred for a
25 valuable consideration for a period of one year or less,
26 whether paid for by the "rentee" or by someone else.
27 "Gross receipts" from the renting of tangible personal
28 property or "rent" means the total rental price or leasing
29 price. In the case of rental transactions in which the
30 consideration is paid to the rentor on an installment basis,
31 the amounts of such payments shall be included by the rentor
32 in gross receipts or rent only as and when payments are
33 received by the rentor.
34 "Gross receipts" does not include receipts received by an
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1 automobile dealer from a manufacturer or service contract
2 provider for the use of an automobile by a person while that
3 person's automobile is being repaired by that automobile
4 dealer and the repair is made pursuant to a manufacturer's
5 warranty or a service contract where a manufacturer or
6 service contract provider reimburses that automobile dealer
7 pursuant to a manufacturer's warranty or a service contract
8 and the reimbursement is merely made to recover the costs of
9 operating the automobile as a loaner vehicle.
10 "Rental price" means the consideration for renting or
11 leasing an automobile valued in money, whether received in
12 money or otherwise, including cash credits, property and
13 services, and shall be determined without any deduction on
14 account of the cost of the property rented, the cost of
15 materials used, labor or service cost, or any other expense
16 whatsoever, but does not include charges that are added by a
17 rentor on account of the rentor's tax liability under this
18 Act or on account of the rentor's duty to collect, from the
19 rentee, the tax that is imposed by Section 4 of this Act.
20 The phrase "rental price" does not include compensation paid
21 to a rentor by a rentee in consideration of the waiver by the
22 rentor of any right of action or claim against the rentee for
23 loss or damage to the automobile rented and also does not
24 include a separately stated charge for insurance or recovery
25 of refueling costs or other separately stated charges that
26 are not for the use of tangible personal property.
27 (Source: P.A. 90-14, eff. 7-1-97.)
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.".