Tax Exemption for vehicles Sold for Rental

              Beginning with vehicles sold on or
after January 11, 2008, Public Act 95-
707 reinstates the exemption under
the Retailers’ Occupation Tax Act for
vehicles sold that will be rented for a
period of one year or less.
How is “vehicle” defi ned?
“A motor vehicle of the fi rst division,
a motor vehicle of the second
division that is a self contained motor
vehicle designed or permanently
converted to provide living quarters
for recreational, camping, or travel
use, with direct walk through access
to the living quarters from the
driver’s seat, or a motor vehicle of
the second division that is of the
van confi guration designed for the
transportation of not less than 7 nor
more than 16 passengers, as defi ned
in Section 1-146 of the Illinois Vehicle
Code, that is used for automobile
renting, as defi ned in the Automobile
Renting Occupation and Use Tax
Act.“
How does this change affect
vehicle retailers?
To qualify for the exemption, the
purchaser must give their Illinois
Business Tax Number to the vehicle
retailer. The vehicle must be rented
for a period of one year or less
and be subject to the Automobile
Renting Occupation and Use Tax
Act.“ Retailers must once again mark
Line 5 (e), Sold for rental use, on
Form ST-556, when making this type
of sale to claim the exemption.
Is this exemption retroactive?
No. For the period of time beginning
September 1, 2007 through
January 10, 2008, the exemption
does not apply and you must
follow the instructions provided in
Informational Bulletin FY 2008-01.
The reinstatement of this exemption
begins January 11, 2008.
Retailers’ Occupation Tax Exemption for
Vehicles Sold for Rental
All Business that fi le Form ST-556, Sales
Tax Transaction Return
For information . . .
Visit our web site —
tax.illinois.gov
Call us —
1 800 732-8866 or
1 217 782-3336
1 800 544-5304 (TDD only)
Write us —
Illinois Department of Revenue
P.O. Box 19044
Springfi eld, IL 62794-9044
For forms . . .
Visit our web site —
tax.illinois.gov
Call our Forms Order Line —
1 800 356-6302
This bulletin is written to
inform you of recent changes;
it does not replace statutes,
rules and regulations, or court
decisions.
Illinois Department of Revenue
Informational Bulletin
Printed by authority of the State of Illinois
55 copies - 2/08 - P.O. Number 2080549
FY 2008-12
February 2008
Brian Hamer
Director of Revenue