L. 2022, H4132 (P.A. 102-0920), effective 05/27/2022, exempts the following from the parking excise tax:
Exemptions from the Parking Excise Tax
1. Illinois State Fair and DuQuoin State Fair Parking
- For the duration of the Illinois State Fair or the DuQuoin State Fair, parking in a parking area or garage operated for the use of attendees, vendors, or employees of the State Fair is exempt.
- The exemption applies only if the parking area is not otherwise subject to tax in the ordinary course of business.
2. State or Government-Operated Parking Areas
- Parking in a parking area or garage operated by:
- The State of Illinois,
- A State university created by statute, or
- A unit of local government that has been issued an active tax exemption number by the Department.
3. Parking for Real Estate Lessees
- Parking in a parking area or garage owned and operated by a person engaged in the business of renting real estate is exempt if:
- The parking area is used by the lessee to park motor vehicles, recreational vehicles, or self-propelled vehicles.
- The use is solely for the lessee’s own purposes and not for the purpose of subleasing parking spaces for consideration.
4. Parking Space Purchases by Governmental Entities
- The purchase of a parking space by:
- The State of Illinois,
- A State university created by statute, or
- A unit of local government issued an active tax exemption number by the Department.
- The exemption applies only when the parking space is for use by employees of the State, university, or unit of local government and the purchase price is paid directly by the governmental entity.
5. Leased Parking Spaces to Governmental Entities
- Parking in a parking space leased to a governmental entity that is exempt pursuant to statute provisions.
- The exemption applies when the exempt entity rents or leases the parking spaces in the parking area or garage to the public.
Frequently Asked Questions
What types of parking are exempt from Illinois’ parking excise tax under P.A. 102-0920?
The exemptions include parking related to the Illinois and DuQuoin State Fairs, government-operated parking areas, parking for lessees of real estate, purchases made by governmental entities, and leased parking spaces to such entities. Each exemption has specific conditions for eligibility.
Is parking at the Illinois State Fair always exempt from the excise tax?
Parking is exempt only during the duration of the Illinois State Fair or DuQuoin State Fair and only in parking areas operated for fair attendees, vendors, or employees, provided those areas are not taxed in the ordinary course of business.
Are university-operated parking areas subject to the parking excise tax?
No, parking areas operated by state universities created by statute are exempt from the parking excise tax, as long as the university has an active tax exemption number issued by the Department.
Can a business that rents real estate be exempt from parking taxes?
Yes, if a real estate business owns and operates the parking area for use by its lessees and the use is exclusively for the lessee’s own purposes without subleasing, then the parking is exempt from the excise tax.
Do government purchases or leases of parking spaces qualify for exemption?
Yes, when the State of Illinois, a state university, or a unit of local government with an active exemption number purchases or leases parking for its employees and pays directly, those transactions are exempt from the parking excise tax.