The Upcoming Parking Lot Tax

From State Rep. Allen Skillicorn:

Parking space tax more costly and intrusive than most realize

Crystal Lake, IL – A new parking space tax is set to go into effect on January 1, 2020 and State Rep. Allen Skillicorn (R-Crystal Lake) says the tax will cost more than people think and the money from the parking tax will not even go to pay for roads.

The General Assembly approved a Capital bill (SB 690) that included an increase in the state’s motor fuel tax and other tax increases such as the parking space tax.

Some of the tax increases are going to pay for roads and bridges while money from the parking space tax and other taxes are going to pay for building repairs and other vertical projects.

“Parking is already expensive enough especially in the City of Chicago,” Skillicorn said.

“In addition to having the third highest gas tax in the country, Illinois residents are now going to have pay more to park their vehicle. 

“Parked or moving, Illinois is making it tougher for Illinois families to own and operate a vehicle.”

Under the new law, parking spots rented on a monthly or yearlybasis will be taxed at 9 percent while a 6 percent tax would be applied to spots rented on an hourly, daily or weekly basis. 

The tax even applies to people who charge to park on their property during special events that bring in a lot of people for special events such as concerts and fairs.

“People have long used their property to make money by charging for parking during festivals, fairs, sporting events and concerts, but under this new law, even those parking spaces would be subject to the tax,” Skillicorn said.

“The scope and the full cost of this tax goes well beyond what we were told when the bill was first introduced.

“This is a text-book example of government overreach. The parking tax like the motor fuel tax will hurt middle class families and it should be repealed.”


Comments

The Upcoming Parking Lot Tax — 7 Comments

  1. I assume that this tax also applies to municipalities (Crystal Lake, Cary, Fox River Grove) currently charging cars to park in train station parking lots.

  2. Well there are 19 Republicans in the senate but only 10 people voted no.

    There are 44 Republicans in the house but only 27 voted no.

    It appears many Republicans did vote for this.

  3. Illinois Department of Revenue

    Informational Bulletin FY 2020-07

    November 2019

    New Tax Requirements for Operators of Parking Areas, Spaces, or Garages

    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.).

    “An operator is not required to collect the tax in the following circumstances:”

    “The parking space is owned and operated by the federal government and its instrumentalities, the State of Illinois, State universities created by statute, and units of local government (e.g., counties, municipalities, townships, and special districts that possess an active exemption number from the Illinois Department of Revenue (IDOR)).”

    – Informational Bulletin FY 2020-07 includes additional exemptions.

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

    +++++++++++

    Public Act 101-0031 (PA 101-0031) was labeled as the vertical revenue budget.

    It included many new sources of revenue to be primarily used for vertical construction projects such as universities.

    Other new revenue sources included:

    – Gambling expansion in general

    – casinos

    – sports betting

    – several types of video gaming expansion including,

    a) increase the maximum bet from $2 to $4.

    b) increase the number of allowable terminals per location from 5 to 6, except,

    c) large truck stop establishments may have up to 10 terminals per location.

    d) increase the tax from 30% to 33%, then 34%.

    e) increase the maximum cash award from the maximum wager from $500 to $1,199.

    f) authorizes progressive jackpots

    ++++++++++

    Senate Bill 690 (SB 690), which passed under the leadership of Democrat House Speaker Michael Madigan and Democrat Senate President John Cullerton, was signed into law as Public Act 100-0031 by Democrat Governor JB Pritzker on June 28, 2019.

    SB 690 > PA 31

    ilga.gov

  4. What did I say ? not even the pot tax will suffice for them…

    just keep bending over citizens…

    as they pick pocket us to death…

  5. Typo in previous comment.

    Should be SB 690 > PA 101-31

    +++++++++++

    The motor fuel tax hike was not part of SB 0690 / PA 101-0031.

    The motor fuel tax hike was part of Senate Bill 1931 (SB 1939) which was signed into law as Public Act 101-0032 (PA 101-0032) on June 28, 2019.

    SB 1931 > PA 101-32

    PA 101-0032 was labeled the horizontal revenue budget, with expenditures generally earmarked for items such as road construction.

    ++++++++

    Here are some of the other revenue increases (revenue enhancements) in PA 101-0032, per a June 6, 2019 Chicago Metropolitan Agency for Planning (CMAP) article titled, “State of Illinois approves motor fuel tax increase and other revenues to support capital infrastructure.”

    “These include increasing passenger vehicle registration fees by $50, truck registration fees by $100, and certificate of title fees by $55.”

    “In addition, fees for electric vehicles would be changed.

    Instead of a discounted $35 biennial electric vehicle registration fee, electric vehicle owners would now pay the same base registration fee as all vehicle owners plus an additional $100 fee in lieu of paying the MFT.”

    “The higher rate imposed on diesel fuel, known as the diesel differential, will also increase from 2.5 cents per gallon at present to 7.5 cents per gallon.”

    “Lastly, the legislation repeals the Commercial Distribution Fee, a surcharge on heavy truck registrations, which had previously been directed to the General Funds.”

    http://www.cmap.illinois.gov/updates/all/-/asset_publisher/UIMfSLnFfMB6/content/state-of-illinois-approves-motor-fuel-tax-increase-and-other-revenues-to-support-capital-infrastructure

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