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 unrelatred purposes.


Comments

State Parking Lot Tax Goes into Effect January 1st — 8 Comments

  1. It’s time to revisit government exemptions.

    If government employers paid taxes that would impact government budgets.

    The government employers would have less money available for salary and benefit hikes, and thus lower pensions when that employee eventually retires.

    Employer taxes and tax exemptions are a reason why public sector compensation has increased faster than private sector compensation.

  2. Illinois Department of Revenue

    Informational Bulletin

    Bulletin Number FY 2020-07

    November 2019

    “To: Owners and Operators of Parking Areas, Spaces, or Garages

    Illinois Public Act (P.A.) 101-0031, enacted the Parking Excise Tax Act (35 ILCS 525/10-1 et seq.).

    Effective January 1, 2020, operators of parking spaces, parking areas, and garages will be required to collect and remit Parking Excise Tax based on the purchase price (rent) paid by the purchaser to park a motor vehicle, recreational vehicle, or other self-propelled vehicle in the parking space.”

    “What is the tax rate?

    The Parking Excise Tax is imposed at the rate of:

    6% of the purchase price for a parking space paid for on an hourly, daily, or weekly basis; or

    9% of the purchase price for a parking space paid for on a monthly or annual basis.”

    https://www2.illinois.gov/rev/research/publications/bulletins/Documents/2020/FY2020-07.pdf

    ++++++++++++++++

    Democrat Governor JB Pritzker signed Senate Bill 690 (SB 0690) into law as Public Act 101-0031 (PA 101-0031) on June 28, 2019.

    SB 690 > PA 101-31.

    The bill was passed under the leadership of Democrat House Speaker Michael Madigan and Democrat Senate President John Cullerton.

    ilga.gov

    ++++++++

    PA 101-0031 was informally labeled the vertical revenue budget and included new casinos, sports betting, video gaming expansion, parking lot taxes, and more.

    The tax revenue was earmarked for “vertical” projects such as university construction.

    ++++++++

    The horizontal revenue budget was Senate Bill 1939 (SB 1939) which was signed into law as Public Act 100-0032 (PA 101-0032) on June 28, 2019.

    SB 1939 > PA 101-32

    The horizontal revenue budget included the gasoline tax hike (motor fuel tax increase) which revenues were earmarked for “horizontal” projects such as road construction.

    +++++++++++++

    There are many state laws which are part of the budget or budget related.

    Others include:

    Public Act 101-0010 (PA 101-0010), the budget implementation aka BIMP.

    Public Act 101-0029 (PA 101-0029), the spending budget, that included construction projects as part of capital appropriations.

  3. Illinois, tax anything and everything.

    It’s time to vote the punks out.

  4. How about a tax on idiocy?

    There’s so much of it in this state.

  5. Algonquin Township is property tax capital of the whole damn state.

  6. What next from Democrats in this State? They flail about with dumb measures but nothing will save this State’s current fiscal disaster. Bankruptcy is the answer and that will end up requiring huge haircuts for the lavish pensions of government retirees and future retirees.

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