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


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[2] (pdf of Parking Excise Tax Act[3]) and the Department of Revenue Informational Bulletin “explains” the new tax and registration process (pdf of IDOR Bulletin[4]). This was part of Senate Bill 690 (see who voted for it here[5]).

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[6]).

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