Can someone translate 4 me? Illinois Department of Revenue Regulations Title 86 Part 130 Section 130.430?
I seriously can't figure out what the hell this thing is actually telling me. for all practical purposes what does it mean?
- cactusgeneLv 78 years agoFavorite Answer
Basically, what they are trying to tell you here, that if you are in the business of renting out equipment and other personal property (e.g. construction equipment, lawn mowers, steam cleaners, pick axes, or whatever) you have to collect the state use tax, which is equal to the state sales tax, and remit it to the state.
- 8 years ago
When you buy an item in Illinois with the intention of renting it out, the law says you are the "end user" of the item. This is because you retain ownership of the item when you rent it out. Because you are the end user, you are the one that owes the sales/use tax on the item. Your renters do not pay tax in Illinois (except for automobiles I think).
This regulation is aimed at businesses that both sell and rent items - usually the same items (like tools, for instance), and as a result may have trouble determining what they owe use tax on. Does this describe your business? It would probably be easier to answer your question if I had an idea of your business model.Source(s): Worked at Revenue for several years, including with sales/use tax issues.