AUTHORITY: Implementing the Rental Purchase Agreement Occupation and Use Tax Act [35 ILCS 180] and authorized by Section 40 of the Rental Purchase Agreement Occupation and Use Tax Act and Sections 2505-790 and 2505-795 of the Civil Administrative Code Illinois (Department of Revenue Law) [20 ILCS 2505].DEPARTMENT OF REVENUE
a) an agreement for the use of tangible personal property which is required to be titled and registered by a State agency [35 ILCS 180/35];
b) an agreement for the use of merchandise by an individual for personal, family, or household purposes for an initial period of more than 4 months;
c) an agreement for the use of merchandise by an individual for personal, family, or household purposes that is not automatically renewable;
d) an agreement for the use of merchandise by an individual for personal, family, or household purposes that does not permit the consumer to become the owner of the merchandise;
e) an isolated or occasional agreement for the rental of merchandise; and
f) transactions protected by the Commerce Clause of the United States Constitution (U.S. Const. Art. 1, Sec. 8, Cl. 3). (See Section 150.310 Exemptions to Avoid Multi-State Taxation.)
The tax does not apply to rental receipts from the following transactions: