Can I request a credit for the tax I paid when I purchased merchandise that is now subject to Rental Purchase Agreement Occupation Tax?
Answer #587 -- ( Published 02/22/2018 02:30 PM | Updated 02/22/2018 5:37 PM )
If I am required to collect Rental Purchase Agreement Occupation Tax when I rent merchandise to a customer under a rental purchase agreement, can I request a credit for the tax I paid when I purchased the merchandise?
Yes. Illinois law allows taxpayers who are subject to the Rental Purchase Agreement Occupation Tax to claim a one-time credit for Use Tax paid on tangible personal property previously purchased for the purpose of renting to the business’s customers under rental purchase agreements. Taxpayers wanting to claim this credit must submit Form ST-206, Rental Purchase Agreement Occupation Tax One-Time Transitional Use Tax Credit Application Form. This form allows filers to claim credit for the Use Tax paid on merchandise that was purchased from July 1, 2017, through December 31, 2017, that is subject to the Rental Purchase Agreement Occupation Tax. Form ST-206 must be submitted no later than April 2, 2018. Credit is allowed only for Illinois Use Tax and does not include any payment made to reimburse a supplier for its home rule, non-home rule, or other local retailer’s occupation tax.
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