- Effective January 1, 2025, businesses leasing or renting tangible personal property in Illinois are now classified as retailers
- The law targets all persons who lease or rent tangible personal property in the ordinary course of business
- Understanding the new definition of a lease is crucial for navigating the upcoming tax requirements
- Newly defined retailers must register with the Illinois Department of Revenue and remit sales tax on lease or rental receipts
- Businesses can claim a tax exemption on purchases for leasing or rental using Form CRT-61
- Lessor must remit tax only on the portion of the selling price they receive within a specific reporting period
- Existing contracts established before the new law takes effect are subject to the new tax regulations
Source: thompsontax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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