Ill. Admin. Code tit. 86, § 190.120 - Automobile Renting Use Tax Must be Separately Stated
a) In collecting the Automobile Renting Use
Tax from a rentee, the rentor must state the tax as a distinct item
separate and apart from the rental price of the automobile. If the tax
is not stated as a separate item, it will be presumed that the tax was not
collected from the rentee, and the rentor will be entitled to no deduction from
total rental receipts for collection of the tax from the rentee. The best
evidence that the tax was stated as a separate item is a receipt given to the
rentee which shows the tax as a distinct item separate and apart from
the rental price of the automobile. [35 ILCS 155/4
]
b) If a rentor does not keep a
detailed record for the return period of the Automobile Renting Use Tax (ARUT)
which the rentor collects so as clearly to segregate these added charges from
other receipts, absent information to the contrary, it will be assumed that the
ARUT collected equals 5% of the taxable receipts received in such return period
from taxable automobile rentals.
c)
The rentor may eliminate the amount of ARUT the rentor collects from total
rental receipts to arrive at the rentor's taxable rental receipts by:
1) subtracting the amount collected from the
rentee as ARUT, as shown by such rentor's books and records, from total rental
receipts; or
2) by subtracting,
from the total rental receipts which the rentor receives from taxable
automobile rentals, the figure obtained by dividing such rental receipts by 105
and multiplying the result by 5.
Notes
Amended at 16 Ill. Reg. 4867, effective March 12, 1992
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a) Taxable rental receipts, on the basis of which Automobile Renting Use Tax must be collected and remitted to the Department in transactions that are subject to the Automobile Renting Use Tax despite being exempt from the Automobile Renting Occupation Tax because of interstate commerce, do not include separately stated charges which are added to the rental price on account of the rentor's duty to collect the Automobile Renting Use Tax.
b) If a rentor does not keep a detailed record for the return period of the Automobile Renting Use Tax which he collects so as clearly to segregate these added charges from other receipts, absent information to the contrary, it will be assumed that the Automobile Renting Use Tax collected equals 5% of the taxable receipts received in such return period from taxable automobile rentals if the rentor collects the Automobile Renting Use Tax in accordance with the bracket system prescribed by the Department in 86 Ill. Adm. Code 150.Table A and states such tax to rentees separately from the rental price of the automobile as the rentor is required to do.
c) The rentor may eliminate the amount of Automobile Renting Use Tax he collects from total rental receipts to arrive at his taxable rental receipts by subtracting the amount collected from the rentee as Automobile Renting Use Tax, as shown by such rentor's books and records , from those total rental receipts. The rentor may also accomplish this result by subtracting, from the total rental receipts which he receives from taxable automobile rentals, the figure obtained by dividing such rental receipts by 105 and multiplying the result by 5.
d) In collecting the Automobile Renting Use Tax from a rentee, the rentor must state the tax as a distinct item separate and apart from the rental price of the automobile. If the tax is not stated as a separate item, it will be irrebutably presumed that the tax was not collected from the rentee, and the rentor will be entitled to no deduction from total rental receipts for collection of the tax from the rentee. The best evidence that the tax was stated as a separate item is a receipt given to the rentee which shows the tax as a distinct item separate and apart from the rental price of the automobile. ( Section 4 of the Act )
Notes
Amended at 16 Ill. Reg. 4867, effective March 12, 1992