Bill Text: IL HB3968 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Parking Excise Tax Act. Removes provisions from the Act providing that a booking intermediary is not considered an operator. Provides that separately stated charges that are not optional are presumed to be part of the purchase price unless proven otherwise. Provides that the tax does not apply to: (1) parking in a lot or garage that is owned or operated by a federal, State, or local government entity if the purchase price does not exceed a stated amount; or (2) if the purchase price is paid by any federal, State, or local government entity. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-02-06 - Chief Sponsor Changed to Rep. Michael J. Zalewski [HB3968 Detail]

Download: Illinois-2019-HB3968-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3968 Introduced , by Rep. Arthur Turner SYNOPSIS AS INTRODUCED:
35 ILCS 525/10-5
35 ILCS 525/10-20
Amends the Parking Excise Tax Act. Removes provisions from the Act providing that a booking intermediary is not considered an operator. Provides that separately stated charges that are not optional are presumed to be part of the purchase price unless proven otherwise. Provides that the tax does not apply to: (1) parking in a lot or garage that is owned or operated by a federal, State, or local government entity if the purchase price does not exceed a stated amount; or (2) if the purchase price is paid by any federal, State, or local government entity. Effective immediately.
LRB101 14456 HLH 63347 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Parking Excise Tax Act is amended by
changing Sections 10-5 and 10-20 as follows:
(35 ILCS 525/10-5)
Sec. 10-5. Definitions.
"Booking intermediary" means 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.
"Charge or fee paid for parking" means the gross amount of
consideration for the use or privilege of parking a motor
vehicle in or upon any parking lot or garage in the State,
collected by an operator and valued in money, whether received
in money or otherwise, including cash, credits, property, and
services, determined without any deduction for costs or
expenses, but not including charges that are added to the
charge or fee on account of the tax imposed by this Act or on
account of any other tax imposed on the charge or fee. "Charge
or fee paid for parking" excludes separately stated charges not
for the use or privilege or parking and excludes amounts
retained by or paid to a booking intermediary for services

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provided by the booking intermediary. If any separately stated
charge is not optional, it shall be presumed that it is part of
the charge for the use or privilege or parking.
"Department" means the Department of Revenue.
"Operator" means 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. This includes, but is not limited to, any
facilitator or aggregator that collects from the purchaser the
charge or fee paid for parking. "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, or payment processor, or booking
intermediary.
"Parking area or garage" means 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,

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recreational vehicles, or other self-propelled vehicles.
"Parking area or garage" includes any parking area or garage,
whether the vehicle is parked by the owner of the vehicle or by
the operator or an attendant.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court.
"Purchase price" means the consideration paid for the
purchase of a parking space in a parking area or garage, valued
in money, whether received in money or otherwise, including
cash, gift cards, credits, and property, and shall be
determined without any deduction on account of the cost of
materials used, labor or service costs, or any other expense
whatsoever.
"Purchase price" includes any and all charges that the
recipient pays related to or incidental to obtaining the use or
privilege of using a parking space in a parking area or garage,
including but not limited to any and all related markups,
service fees, convenience fees, facilitation fees,
cancellation fees, overtime fees, or other such charges,
regardless of terminology. However, "purchase price" shall not
include consideration paid for:
(1) optional, separately stated charges not for the use
or privilege of using a parking space in the parking area

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or garage; if any separately stated charge is not optional,
it shall be presumed until proven otherwise that it is part
of the charge for the use or privilege or parking;
(2) any charge for a dishonored check;
(3) any finance or credit charge, penalty or charge for
delayed payment, or discount for prompt payment;
(4) any purchase by a purchaser if the operator is
prohibited by federal or State Constitution, treaty,
convention, statute or court decision from collecting the
tax from such purchaser;
(5) the isolated or occasional sale of parking spaces
subject to tax under this Act by a person who does not hold
himself out as being engaged (or who does not habitually
engage) in selling of parking spaces; and
(6) any amounts added to a purchaser's bills, whether
or not separately stated, because of charges made pursuant
to the tax imposed by this Act, or on account of any other
tax imposed on the charge or fee. If credit is extended,
then the amount thereof shall be included only as and when
payments are made.
"Purchaser" means any person who acquires a parking space
in a parking area or garage for use for valuable consideration.
"Use" means the exercise by any person of any right or
power over, or the enjoyment of, a parking space in a parking
area or garage subject to tax under this Act.
(Source: P.A. 101-31, eff. 6-28-19.)

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(35 ILCS 525/10-20)
Sec. 10-20. Exemptions. The tax imposed by this Act shall
not apply to:
(1) parking in a parking area or garage operated by the
federal government or its instrumentalities that has been
issued an active tax exemption number by the Department
under Section 1g of the Retailers' Occupation Tax Act; for
this exemption to apply, the parking area or garage must be
operated by the federal government or its
instrumentalities; the exemption under this paragraph (1)
does not apply if the parking area or garage is operated by
a third party, whether under a lease or other contractual
arrangement, or any other manner whatsoever;
(2) residential off-street parking for home or
apartment tenants or condominium occupants, if the
arrangement for such parking is provided in the home or
apartment lease or in a separate writing between the
landlord and tenant, or in a condominium agreement between
the condominium association and the owner, occupant, or
guest of a unit, whether the parking charge is payable to
the landlord, condominium association, or to the operator
of the parking spaces; this paragraph (2) is intended to
exempt from tax not only written agreements for residential
off-street parking directly between the landlord or
condominium association and the apartment occupant or

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condo owner, occupant, or guest, but also any written
parking agreement between the landlord's or association's
designated parking lot or garage operator and the apartment
occupant or the condo owner, occupant, or guest, whether or
not coterminous with the lease or ownership period of the
residence;
(3) parking by hospital employees in a parking space
that is owned and operated by the hospital for which they
work; and
(4) parking in a parking area or garage where 3 or
fewer motor vehicles are stored, housed, or parked for
hire, charge, fee or other valuable consideration, if the
operator of the parking area or garage does not act as the
operator of more than a total of 3 parking spaces located
in the State; if any operator of parking areas or garages,
including any facilitator or aggregator, acts as an
operator of more than 3 parking spaces in total that are
located in the State, then this exemption shall not apply
to any of those spaces; .
(5) parking in a lot or garage that is owned or
operated by the federal government, the State, a
municipality, the Regional Transportation Authority or any
of its service boards, the Chicago Park District, or any
other government entity, if the purchase price for the
privilege of parking does not exceed $3 for a 24-hour
period or less, $15 for a weekly period, or $60 for a

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monthly period; and
(6) parking when the purchase price is paid by any
federal, State, or local government entity.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.