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New Illinois Tax: Paid parking lots must be licensed and pay tax –

SPRINGFIELD, IL. (ECWd) –

Charge people to park on your property?

You must register with the State of Illinois by January 1, 2020, and you must pay an excise tax. Failure to do so is a Class A Misdemeanor.

The tax is 6% or 9% depending on how the parking space is rented.

Public Act 101-0031 (pdf of Parking Excise Tax Act) and the Department of Revenue Informational Bulletin “explains” the new tax and registration process (pdf of IDOR Bulletin). This was part of Senate Bill 690 (see who voted for it here).

Press release:

Effective January 1, 2020, parking area operators will be required to register with the state of Illinois and begin collecting and remitting tax on the rental of parking spaces. The Illinois Department of Revenue (IDOR) wants to ensure that parking area operators are aware of their responsibility to ensure compliance with the new registration and tax requirement. Qualified operators will be required to collect and remit the tax monthly to IDOR. (read the press release).

“Those who operate parking lots or garages will need to make sure they are properly registered with the state by January 1st,” said acting Director David Harris. “Revenue from this new program will go to rebuilding our state’s infrastructure and building a stronger economy. It is this department’s duty to help achieve compliance, so all taxpayers are treated fairly and consistently.”

Parking area operators can include those who rent spaces for parking or storing vehicles or provide valet services for a fee. There are exemptions for parking areas owned and operated by government entities or by hospitals for employees, residential off-street parking that is part of a lease agreement, or those renting fewer than four spots.

Revenue from the new requirements will go to vertical projects, like universities, early childhood centers and state facilities as part of the state’s Rebuild Illinois Capital plan. The bipartisan plan will invest $45 billion in critical infrastructure projects all over the state and is projected to create 540,000 jobs over the life of the plan.

Parking operators can register today with IDOR by visiting mytax.illinois.gov. To learn more about the requirements for both registration with the Department and for remitting the tax, please read IDOR’s parking area operators Informational Bulletin FY2020-07 and Frequently Asked Questions (FAQs) located on IDOR’s website tax.illinois.gov.

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The below article reprinted with permission from McHenry County Blog.

State Parking Lot Tax Goes into Effect January 1st

Who knew that part of the Democrat’s tax hike package was a parking lot tax?

Here’s a press release from the Governor:

New Law Requires Parking Area Operators to Collect and Remit Tax from Customers Beginning January 1st

SPRINGFIELD – Effective January 1, 2020, parking area operators will be required to register with the state of Illinois and begin collecting and remitting tax on the rental of parking spaces.

The Illinois Department of Revenue (IDOR) wants to ensure that parking area operators are aware of their responsibility to ensure compliance with the new registration and tax requirement.

Qualified operators will be required to collect and remit the tax monthly to IDOR.

“Those who operate parking lots or garages will need to make sure they are properly registered with the state by January 1st,” said acting Director David Harris.

“Revenue from this new program will go to rebuilding our state’s infrastructure and building a stronger economy.

“It is this department’s duty to help achieve compliance, so all taxpayers are treated fairly and consistently.”

Parking area operators can include those who rent spaces for parking or storing vehicles or provide valet services for a fee.

There are exemptions for parking areas owned and operated by government entities or by hospitals for employees, residential off-street parking that is part of a lease agreement, or those renting fewer than four spots.

Revenue from the new requirements will go to vertical projects, like universities, early childhood centers and state facilities as part of the state’s Rebuild Illinois Capital plan.

The bipartisan plan will invest $45 billion in critical infrastructure projects all over the state and is projected to create 540,000 jobs over the life of the plan.

Parking operators can register today with IDOR by visiting mytax.illinois.gov.

To learn more about the requirements for both registration with the Department and for remitting the tax, please read IDOR’s parking area operators Informational Bulletin FY2020-07 and Frequently Asked Questions (FAQs) located on IDOR’s website tax.illinois.gov.

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Note that the tax dollars collected will not even go to finance highway improvements, but to entirely unrelated purposes.

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8 replies »

  1. How y’all feel about big boy now that you voted him in ?? What happened to Not raising taxes and all the other bs he promised and convinced you all he would do for you? He’s been signing new taxes n bs since he walked into the office lol…

  2. It won’t be long until they decide to tax public parks and impose a “reasonable” usage fee. What they won’t tax are kickbacks. Washington state wants every car to have a GPS device sending information to the state in order to tax mileage driven in addition to the 49.4 cent a gallon gas tax.

    • Roger,
      You are on the money for sure. Just think of all the things that could be registered or licensed. Want to change your own oil? Get a license and register as a mechanic or face criminal charges! Want to maintain your own lawn? Leaf Rake Owners Identification card required. (LROID card) Want to plant a garden? Wrong! That’s sales tax evasion. License required. (GOID card) Did you buy some stuff while on vacation? Declare that at the state line and pay up or face criminal charges. I know, it’s silly but where will it stop. Answer: it will not stop.

  3. interesting – though I thought (assumed) parking garages already registered as businesses as duh… they were a business – charging people to parking on their land — It appears like the change is a “tax” like a sales tax – which is just a pass through tax, that the garage owner will charge the customer & then send off to the state, like retail shops do, not a big deal — & the infrastructure does need help.
    My only question/concern would be the guy/gal who rents parking spaces during the state fair or special events – are they a business or not – just wondering?

  4. “ Revenue from the new requirements will go to vertical projects, like universities, early childhood centers and state facilities as part of the state’s Rebuild Illinois Capital plan. The bipartisan plan will invest $45 billion in critical infrastructure projects all over the state and is projected to create 540,000 jobs over the life of the plan.”

    FYI: the type of jobs the government (of illinois) creates are not economically beneficial to the tax payers. Also, allowing infrastructure (roads, bridges, etc) to decline and then count the repairs as “new” jobs is totally BS. I have a great idea, let’s build roads to last only one year and then we can create new jobs every year!

    “ There are exemptions for parking areas owned and operated by government entities or by hospitals for employees, residential off-street parking that is part of a lease agreement, or those renting fewer than four spots.”

    As always, the government (of illinois) gets it all and wants someone else to pay for it. Someone explain to me why a state employee should not participate in funding the state because of who whey work for? (Work for the state, park in a state lot…and yes they charge to park.) U of I charges it’s employees a percent of salary (pre-tax) to park and are at the high end of the pay scale.

    “It is this department’s duty to help achieve compliance, so all taxpayers are treated fairly and consistently.”

    Why does this not include government employees who pay to park?

    AP

  5. Just imagine how bad it would be if the state of IL was cash strapped and didn’t have such a thriving economy thanks to Pritzker policies and supported by the elected intellectual elite …… BTW what is JB’s tax rate on renting moving equipment?

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