What receipts are subject to Rental Purchase Agreement Occupation Tax?

The Rental Purchase Agreement Occupation Tax is imposed on the gross receipts received on or after January 1, 2018, from the renting of tangible personal property under a rental purchase agreement. “Renting” is considered any transfer of the possession or right to possession of merchandise to a user for a valuable consideration under a rental purchase agreement. Gross receipts include the total rental price or leasing price but do not include receipts received for delivery, reinstatement, processing, waiver, or club program fees.

Note: Rental Purchase Agreement Occupation and Use Tax does not apply to items that must be titled or registered by an agency of the state of Illinois (e.g., motor vehicles, watercraft, etc.).

If you have additional inquiries, you may submit them to the Questions, Comments, or Request form.