Automobile Renting Occupation & Use Taxes
Statutory Reference
Definition
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.
Local taxes
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.
See
all Local Automobile Renting Occupation & Use Taxes
Tax Rate
The
state tax rate for both taxes
is 5%.
Form/Filing &
Payment Requirements
The ART-1 is due monthly or annually, based on the taxpayer’s
average monthly liability. The department determines how often
a return must be filed.
- A monthly return is due the 20th day of the month
following the month for which the return is filed.
- An annual return is due January 20th of the year
following the year for which the return is filed.
- Form
ART-1-X, Amended Automobile Renting Occupation and Use Tax Return | Instructions
- Form
ART-2, Multiple Site Form
- Form
ART-2-X, Amended Multiple Site Form
- Create
your own form
Exemptions
The following automobile rentals are exempt from
tax:
- Automobiles rented for more than
one year
- Receipts received by automobile dealers
from a manufacturer or service contract provider for the use
of “loaner” vehicles while the dealer is making
a warranty or service contract repair on the person’s
vehicle
- Vehicles rented by exempt organizations
who provide a copy of the organization’s active Illinois
exemption number issued by the department. The exemption number
begins with the letter “E” and is followed by 10
digits (e.g., E 9999-9999-01).
Questions?
Call
us at: 1 800 732-8866
or 1 217 782-3336
Call TDD:
1 800 544-5304
Mail your
ART-1 forms to:
Illinois Department of Revenue
P.O. Box 19037
Springfield, Illinois 62794-9037
Mail your
ART-1-X forms to:
Illinois Department of Revenue
P.O. Box 19034
Springfield, Illinois 62794-9034
