For more detailed information including Illinois law references, please see the Department of Revenue web site.
The occupation tax is imposed on automobile rental businesses based on their charges for automobile rentals in Illinois for periods of one year or less.
The use tax is imposed on persons renting automobiles in Illinois based on the rental price. Rentors collect the use tax from rentees and in turn meet their occupation tax liability by remitting the tax to the Department of Revenue. If the use tax is not paid to the rentor, the person using the automobile in Illinois must pay the tax directly to the department.
Note: Counties, municipalities, certain mass transportation districts, and the Metropolitan Pier and Exposition Authority (MPEA) are allowed to impose automobile renting occupation and use taxes. If imposed, the department collects the taxes for these local governments and returns the collections to them. The specific names of these local taxes are identified below.
- County Automobile Renting Tax
- Metro-East Mass Transit (MED) Automobile Renting Tax
- Metropolitan Pier and Exposition Authority (MPEA) Automobile Renting Tax
- Municipal Automobile Renting Tax
Regional Transportation Authority (RTA) Automobile Renting Tax |
