Ill. Admin. Code tit. 86, § 150.332 - Persons Who Lease Tangible Personal Property to Governmental Bodies
a) Effective
January 1, 1996 through December 31, 2000, and on and after August 2, 2001,
sales of tangible personal property to a lessor who leases that property to a
governmental body are not subject to Use Tax. As noted in this subsection, the
exemption is not available during the period January 1, 2001 through August 1,
2001 because it expired under the provisions of Section 3-90 of the Use Tax Act
[35 ILCS
105/3-90 ] and was not reinstated until August 2,
2001. The exemption is otherwise available, provided that:
1) the tangible personal property must be
purchased for lease to a governmental body under a lease that has been executed
or is in effect at the time of purchase;
2) the lease must be for a period of one year
or longer; and
3) the lease must be
to a governmental body that has an active tax exemption identification number
issued by the Department under Section 1g of the Retailers' Occupation Tax Act
(see 86 Ill. Adm. Code
130.2007
).
b) When this
exemption may be properly claimed, the purchaser must give the seller a
certification stating that the property is being purchased for lease to a
governmental body, under a lease of one year or longer executed or in effect at
the time of the purchase, and containing all of the following:
1) The seller's name and address;
2) The purchaser's name and
address;
3) A description of the
tangible personal property being purchased;
4) The purchaser's signature and date of
signing;
5) The name of the
governmental body and its tax exemption identification number issued by the
Department; and
6) The date the
lease was executed and the lease period.
c) If the property is purchased by a lessor
under the provisions of this Section and the property is used in a manner that
does not qualify for the exemption or is used in any other non-exempt manner,
the lessor is liable for the appropriate tax imposed under the Use Tax Act. The
property being leased under qualifying leases that were entered into between
January 1, 1996 and December 31, 2000 pursuant to the provisions of this
Section continue to be exempt after January 1, 2001 until such time as the
property is no longer being leased under those qualifying leases or is used in
any other non-qualifying manner. In the event that the property is no longer
leased in an exempt manner or is used in any other non-exempt manner, the
amount of Use Tax liability incurred by the lessor is based on the fair market
value of the property at the time the non-qualifying use occurred.
Notes
Amended at 26 Ill. Reg. 971, effective January 15, 2002
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.