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Parking Excise Tax

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Parking Excise Tax Accounts Report

Definitions

The Parking Excise Tax is imposed on the privilege of using a parking space in a parking area or garage for the use of parking one or more motor vehicles, recreational vehicles, or other self-propelled vehicles in Illinois. Effective January 1, 2020, operators of parking areas, spaces, and garages will be required to collect and remit the Parking Excise Tax based on the purchase price paid by the purchaser to park in a parking area, space or garage.  Effective January 1, 2024, Public Act 103-0009 amended the Parking Excise Tax Act to clarify when entities operating as booking intermediaries for parking operators must themselves register with the Illinois Department of Revenue (IDOR) to collect and remit the parking excise tax.

"Parking area or garage" is defined as any real estate, building, structure, premises, enclosure or other place, whether enclosed or not, except a public way, within the State:

  • where motor vehicles, recreational vehicles, or other self-propelled vehicles, are stored, housed or parked for hire, charge, fee or other valuable consideration in a condition ready for use, or

  • where rent or compensation is paid to the owner, manager, operator or lessee of the premises for the housing, storing, sheltering, keeping or maintaining motor vehicles, recreational vehicles, or other self-propelled vehicles.

This definition includes any parking area or garage, whether the vehicle is parked by the owner of the vehicle or by the operator or an attendant.

“Booking Intermediary” is defined as any person or entity that facilitates the processing and fulfillment of reservation transactions between an operator and a person or entity desiring parking in a parking lot or garage of that operator. Booking intermediaries must register with IDOR, collect the tax, file returns, and remit the tax to IDOR if they:

  • facilitate the renting of parking spaces for unregistered operators, or
  • separately state a service fee that is charged to their customers.

"Operator" is defined as any person who engages in the business of operating a parking area or garage, or who, directly or through an agreement or arrangement with another party, collects the consideration for parking or storage of motor vehicles, recreational vehicles, or other self-propelled vehicles, at that parking place. “Operator” does not include a bank, credit card company, payment processor, booking intermediary, or person whose involvement is limited to performing functions that are similar to those performed by a bank, credit card company, payment processor, or booking intermediary.

Tax rates

The Parking Excise Tax is imposed at the rate of:

  • 6% of the purchase price for a parking space paid for on an hourly, daily, or weekly basis; or
  • 9% of the purchase price for a parking space paid for on a monthly or annual basis.

Exemptions

The Parking Excise Tax does not apply to:

  • parking areas, spaces, or garages that are operated by the federal government and its instrumentalities, the State, State universities created by statute, and units of local government (e.g., counties municipalities, townships, and special districts) that possesses an active Illinois Sales Tax exemption number issued by IDOR;

    Note: This exemption does not apply if the parking area, space, or garage owned by these entities is operated by a third party.

  • residential off-street parking for home, apartment tenants, or condominium occupants, if the parking is provided in the lease or in a separate agreement between the landlord and tenant;
  • parking by public, private, non-public hospital employees in a parking area, space, or garage that is owned and operated by the hospital for which they work;
  • parking in a parking area, space, or garage where three or fewer motor vehicles are stored, housed, or parked for hire if the operator does not act as an operator of more than a total of three spaces;

  • receipts for parking in a parking area or garage operated for the use of attendees, vendors, or employees of the State Fair and not otherwise subject to taxation under this Act in the ordinary course of business for the duration of the Illinois State Fair or the Du Quoin State Fair. 

    Note: If you are engaged in the operation of parking areas, spaces, or garages in the ordinary course of business, this exemption does not apply to you.

  • parking in a parking area or garage owned and operated by a person engaged in the business of renting real estate if the parking area or garage is used by the lessee to park motor vehicles, recreational vehicles, or self-propelled vehicles for the lessee's own use and not for the purpose of subleasing parking spaces for consideration;
  • the purchase of a parking space by the State, a State university created by statute, or a unit of local government that possesses an active Illinois Sales Tax exemption number issued by IDOR, for use by employees of the State, State university, or unit of local government, provided that the purchase price is paid directly by the governmental entity; and
  • parking in a parking space leased to a governmental entity that is exempt when the exempt entity rents or leases the parking spaces in the parking area or garage to the public; the purchase price must be paid by the governmental entity, but the exempt government entity does not need to collect the tax. 

Filing requirements

Form PE-100, Parking Excise Tax Return, is used to report and pay the parking area, space, and garage tax by an operator of a parking area. Form PE-100 must be filed and the tax must be paid electronically at MyTax Illinois. 

Operators or booking intermediaries that have an average monthly liability of $20,000 or more must make quarter-monthly (accelerated) payments. Payments are due on the 7th, 15th, 22nd, and the last day of the month. For additional information regarding quarter-monthly (accelerated) payments, refer to the IDR-825, Guidelines for Quarter-monthly (Accelerated) Payments.

Additional Forms & Resources

  • Form PE-100, Parking Excise Tax Return  |  Instructions
  • Form PE-100-X, Amended Parking Excise Tax Return  |   Instructions
  • Form PE-144, Parking Use Tax Return  |   Instructions

Questions?