Would IDOR certify a private vehicle-tax reference book, and what lease-tax corrections did it suggest?

Plain-English summary

A publisher asked IDOR to verify tax, lease, fee, and procedural information for a private vehicle-law reference book.

IDOR refused to approve the accuracy of a private legal publication and advised the publisher to rely on Illinois statutes, administrative rules, and Department publications. It nevertheless suggested two corrections to limit incorrect or incomplete information:

1. The guide should describe long-term leased vehicles as leases for more than one year, not “one year or more.” The Automobile Renting Occupation Tax applied to rentals for one year or less.
2. In the rental-vehicle discussion, the guide should use “rentor” instead of “lessor,” because “rentor” was the defined term in the Automobile Renting Occupation and Use Tax Act.

IDOR also enclosed the 2012 RUT-50 Vehicle Use Tax Chart.

Common questions

Did IDOR certify the private guide as accurate? No.

What rental period triggered the tax described in the letter? One year or less.

What statutory term did IDOR require? “Rentor.”

Citations and references

• 35 ILCS 155/2

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2012.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2012/st-12-0057.pdf

Original ruling text

ST 12-0057-GIL 11/02/2012 MISCELLANEOUS
The Department will not approve the accuracy of private legal publications. (This is a
GIL.)
November 2, 2012
Dear:
This letter is in response to your letter dated July 2, 2012, in which you request information. The
Department issues two types of letter rulings. Private Letter Rulings (“PLRs”) are issued by the
Department in response to specific taxpayer inquiries concerning the application of a tax statute or
rule to a particular fact situation. A PLR is binding on the Department, but only as to the taxpayer
who is the subject of the request for ruling and only to the extent the facts recited in the PLR are
correct and complete. Persons seeking PLRs must comply with the procedures for PLRs found in the
Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter
(“GIL”) is to direct taxpayers to Department regulations or other sources of information regarding the
topic about which they have inquired. A GIL is not a statement of Department policy and is not
binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website at
www.tax.illinois.gov to review regulations, letter rulings and other types of information relevant to your
inquiry.
The nature of your inquiry and the information you have provided require that we respond with a GIL.
In your letter you have stated and made inquiry as follows:
We are in the process of compiling necessary information that will enable us to include
your state's procedures and fees in the 2013 edition of the TEXTBOOK.
Submitting correct information for the next year is extremely important. Our publication
is utilized by hundreds of thousands of subscribers nationwide including members of
ASSOCIATION, DEPARTMENT, dealerships, government agencies, and law
enforcement. The return of accurate data will help ensure proper transactions AND cut
down on calls made to your offices!
1.)

Please verify the tax and lease information shown including address and
phone number(s), fees, and procedures making changes and/or adding new
data for the next year.

2.)

Please send new ORIGINAL sample documents (no photocopies) if
applicable.

THE DEADLINE TO
SEPTEMBER 9, 2012

RETURN

YOUR

INFORMATION

IS

Your assistance is greatly appreciated and I encourage you to contact me throughout
the year as changes in procedures occur. As an Advisory Board Member you will
receive a complimentary copy of the new edition once it becomes available.
If you have any questions please give me a call at X.
DEPARTMENT’S RESPONSE:

ST 12-0057-GIL
November 2, 2012
Page 2
We cannot approve the accuracy of private legal publications. We advise you to consult Illinois
Statutes and administrative rules as well as Department Publications on these matters. However, in
the interest of limiting the dissemination of incorrect or incomplete information, we make the following
suggestions.
In Part VI, “GENERAL INFORMATION”, under the heading “LEASED VEHICLES”, in the portion that
discusses “TAXES”:

1. The sentence that begins “For LEASED VEHICLES (periods of one year or more):” should
   read “For LEASED VEHICLES (periods of more than one year):”. That is because this part
   of the publication discusses, in part, the tax consequences resulting from the length of the
   lease (i.e. whether Automobile Renting Occupation Tax is owed). While a different cut-off
   may be applicable in other regards, with respect to the Automobile Renting Occupation
   Tax, that tax is triggered upon the rental of vehicles for periods of one year or less, and
   does not apply for leases of more than one year. See 35 ILCS 155/2.
2. In this same paragraph, beginning with the sentence that begins “For RENTAL VEHICLES
   (one year or less):”, the term “Lessor” should be replaced with “Rentor”. Rentor is the
   defined term in the Automobile Renting Occupation and Use Tax Act. See 35 ILCS 155/2.
   So, the sentences should read “Rentor is considered the user of the vehicle.”; and “If rentor
   is currently registered to collect Automobile Renting Tax . . .”; and “Rentor pays Automobile
   Renting Tax each month . . . .”
   I have enclosed the 2012 RUT-50 Vehicle Use Tax Chart.
   I hope this information is helpful. If you require additional information, please visit our website at
   www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.

Sincerely,

Samuel J. Moore
Associate Counsel