Illinois Administrative Code
Title 86 - REVENUE
Part 160 - SERVICE USE TAX
Section 160.117 - Persons Who Lease Tangible Personal Property to Governmental Bodies
Current through Register Vol. 48, No. 38, September 20, 2024
a) Effective January 1, 1996, through December 31, 2000, and on and after August 2, 2001, tangible personal property transferred incident to a sale of service to a lessor who leases that property to a governmental body is not subject to Service Use Tax provided that:
b) When this exemption may be properly claimed, the service customer must give the serviceman a certification that contains the following information:
c) If the property is leased in a manner that does not qualify for this exemption or is used in any other nonexempt manner, the lessor shall be liable for the tax imposed under the Act or the Use Tax Act, as the case may be, based on the fair market value of the property at the time the nonqualifying use occurs.
d) No lessor shall collect or attempt to collect an amount (however designated) that purports to reimburse that lessor for the tax imposed by the Act or the Use Tax Act, as the case may be, if the tax has not been paid by the lessor. If a lessor improperly collects any such amount from the lessee, the lessee shall have a legal right to claim a refund of that amount from the lessor. If, however, that amount is not refunded to the lessee for any reason, the lessor is liable to pay that amount to the Department. [35 ILCS 110/3-5(16) and 3-5(25)]