Section 130.103 Leases or Rentals of Trailers other than Semitrailers and Items that are Titled but not Registered

TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 130 RETAILERS' OCCUPATION TAX

SECTION 130.103 LEASES OR RENTALS OF TRAILERS OTHER THAN SEMITRAILERS AND ITEMS THAT ARE TITLED BUT NOT REGISTERED

Section

130.103  Leases or Rentals of Trailers other than Semitrailers and Items that

are Titled but not Registered

a)         The provisions of Article 75 of Public Act

103-592 that apply the Retailers' Occupation Tax to persons engaged in the

business of leasing tangible personal property at retail

do not extend to

motor vehicles, watercraft, aircraft, and semitrailers, as defined in Section

1-187 of the Illinois Vehicle Code, that are required to be registered with an

agency of this State. The taxation of these items shall continue in effect as

prior to the

enactment of Public Act 103-592

(i.e. dealers owe retailers'

occupation tax, lessors owe use tax, and lessees are not subject to retailers'

occupation or use tax).

[35 ILCS 120/2]  See, however, Section 130.454

regarding the definition of "selling price" when certain motor

vehicles are purchased for lease.

b)         The lease or rental of trailers, other than

semitrailers as defined in Section 1-187 of the Illinois Vehicle Code, however,

is subject to the provisions of Article 75 of Public Act 103-592 that apply the

Retailers' Occupation Tax to persons engaged in the business of leasing

tangible personal property at retail.  In addition, the lease or rental of the kinds

of items that are required to be titled with an agency of this State but that

are not required to be registered with an agency of this State, such as

all-terrain vehicles (ATVs) and off-road motorcycles, is subject to the

provisions of Article 75 of Public Act 103-592 that apply the Retailers'

Occupation Tax to persons engaged in the business of leasing tangible personal

property at retail.  As such, the lease or rental of these items is subject to

the parameters set forth in Section 130.102

registered with an agency of this State, such as

all-terrain vehicles (ATVs) and off-road motorcycles, is subject to the

provisions of Article 75 of Public Act 103-592 that apply the Retailers'

Occupation Tax to persons engaged in the business of leasing tangible personal

property at retail.  As such, the lease or rental of these items is subject to

the parameters set forth in Section 130.102.

c)         Items identified in subsection (b) that are

purchased for lease and that are subject to tax on lease receipts may be

purchased tax-free for resale.  Lessors of such items

must remit, for each

tax return period, only the tax applicable to that part of the selling price

(i.e.,

the lease payment)

actually received during such tax return period.

[35

ILCS 120/2]