Executive Director
Tax Institute

(217) 522-5512 ext. 231

All Key Chamber Legislation

Upcoming Events

August 13:  
The spring session of the Illinois General Assembly resulted in the most significant tax law changes in many years. All Illinois businesses will be affected. In this seminar, veteran state and local tax practitioners Joe Bigane and Paul Bogdanski will go beneath the surface of the new legislation and discuss the subtleties of the changes to the sales tax and income tax laws that you need to know. Register here

October 28:
Illinois General Assembly returns to Springfield for the first day of the fall veto session.
July 26, 2019
State and Local Tax  
This Week 

Illinois General Assembly
The House and Senate have adjourned until the fall veto session.  The first day of the veto session is scheduled for October 28.

This week, I review the new statewide parking tax, enacted as a portion of SB 690, P.A. 101-0031  

The tax is imposed on the privilege of using a parking space in a parking area of a garage for the use of parking one or more motor vehicles, recreational vehicles or other self-propelled vehicles.  The tax is effective January 1, 2020.


The tax is imposed at the rate of 6% on a parking space paid on an hourly, daily or weekly basis and 9% of the purchase price for a parking space paid for on a monthly or annual basis.


The charge or fee for parking is the gross amount of consideration for the use or privilege of parking.  The charge subject to tax does not include the amount of the tax imposed by the Act or any other tax imposed on the charge or fee.  The charge subject to tax also excludes amounts retained by or paid to a booking intermediary for services provided by the booking intermediary.


An "operator" is "any person who engages in the business of operating a parking area or garage."  


The term "parking area or garage" means "any real estate, building, structure, premises, enclosure or other place, whether enclosed or not, except a public way, within the State where motor vehicles, . . . are stored, housed or parked for hire, charge fee or other valuable consideration in a condition ready for use . . . ."


The term "person" means "any natural individual, firm, trust, estate, partnership, association, joint stock company, joint venture, corporation, limited liability company, or a receiver, trustee, guardian, or other representative appointed by order of any court."


Some things to note from the definitions -


First, the definition of the term "person" does not include governmental units.  Therefore, it appears governmental units do not fall with the definition of the term "operator" in the Act.


Second, the term "parking area or garage" excludes a "public way" so it appears that tax does not apply on street parking.  This would appear to exclude parking at meters in City of Chicago.


However, the definition of parking area or garage seems to include parking areas or garages owned by governmental bodies.


Section 10-40 of the Act provides that persons engaged in valet services are subject to the tax on the purchase price received in connection with their valet parking operations.  Persons who provide valet services can take a credit for the amount of tax they pay to the operator of a parking lot or garage when they park cars subject to their valet service in a lot or garage owned by another operator.


The imposition of the tax on valet services appears to be on the provider of the valet service and not the purchaser.  Contrast this with Section 10-10 of the Act which imposes the tax on the privilege of using a parking space and is collected from the purchaser by the operator.


Returns are due on the last day of the month for the preceding month


Exemptions include:


1) The Federal government,


2) Residential off-street parking for home or apartment tenants or condo occupants,


3 ) Parking by hospital employees in a parking space owned and operated by the hospital - (question about a hospital with multiple legal entities),


4) Parking in an area or garage where 3 or fewer motor vehicles are parked

The Illinois Department of Revenue recently issued a General Information Letter in response to questions posed about the scope of the applicability of the parking tax.  In ST-19-0013-GIL, the Department was asked to rule on whether the tax applies to municipally-owned parking lots and structures.

The Department did not issue a ruling on this request.  The Department explained that it is in the process of drafting rules for the Act.  The Department explained that it recognizes that the definition of "person" in the Act does not include the State of Illinois, the federal government and units of local government.  The Department stated only that it will address the issue of whether tax applies to parking lots and structures owned by units of government in its rules.

The July 26 edition of the Illinois Register  did not contain any new rulemakings by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity or any state agency.  There were no adopted rulemakings by the IDOR or DCEO.
Court cases
The appellate court for the second district reversed a decision of the circuit court of Lake County in  In re Application of the County Treasurerand ex officio County Collector of Lake County.  The Lake County Treasurer appeals the trial court's order granting a sale in error to the petitioner, Fina IP, LLC pursuant to Section 22-35 of the Property Tax Code.  The Treasurer contended that Section 22-35 does not allow a tax purchaser to petition for a sale in error on the basis of a lien from a special district for unpaid usage fees.  The appelllate court determined that because Section 22-35 does not include special district liens, the legislature did not intend to allow them as a basis to petition for a sale in error.  

Tax Tribunal 
No new decisions were posted this week.  One of the new cases filed with the Tribunal may be of interest.

Associated Energy Group LLC v. Illinois Department of Revenue is a challenge to an audit of an aviation fuel provider,  At issue, is whether certain sales of aviation fuel were for resale, to air carriers that are for flights in which the air common carriers were engaged in foreign trade or trade between the United States and any of its possessions for the transportation of at least one individual or package for hire from an airport located in the State of Illinois to a city of final destination on the same aircraft, exempt organizations, and purchased aviation fuel from providers to whiom it paid Retailers' Occupation Tax. 

The taxpayer is represented by Tax Institute member law firm Horwood Marcus & Berk.

IDOR Letter rulings
Thus far this year, the Illinois Department of Revenue has published one sales tax private letter ruling and no income tax private letter rulings.  

In  ST19-0001-PLR, IDOR ruled that comic books currently published at least twice per year are exempt from sales taxation under the newsprint and ink exemption.   86 Ill. Adm. Code 130.2105  The Department also ruled that comic books sold as collector items are subject to retailers' occupation tax based on the gross receipts from the sale.

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