MOTOR VEHICLE LESSOR TAX

Municipal Code of Chicago tit. 3, ch. 3-48

in effect

Municipal Code of Chicago § 3-48-010 Title.

3-48-010 Title. This chapter shall be known and cited as the "Motor Vehicle Lessor Tax Ordinance" and the tax herein imposed shall be known and cited as the " Motor Vehicle Lessor Tax". (Prior code § 200.7; Added Coun. J. 12-7-84, p. 11501)

Municipal Code of Chicago § 3-48-020 Definitions.

3-48-020 Definitions. A. For the purposes of this chapter, when any of the following words or terms are used herein they shall have the meaning or construction ascribed to them in this section: "City" means the City of Chicago, Illinois. "Daily or weekly basis" includes in addition to its usual and popular meaning, any period of time for which a daily or weekly rate is charged for a lease. "Department" means the department of finance of the City of Chicago. "Leasing" or any similar term means any transfer of the possession or the right to possession of a motor vehicle to a user for a valuable consideration. “Lessor” means any person who leases a motor vehicle on a daily or weekly basis. This term includes, but is not limited to, persons engaged in the business of facilitating the lease or rental of motor vehicles for any consideration, whether conducted online, in person, or otherwise. "Motor vehicle" means any motor vehicle as defined in section 1-146 of "The Illinois Motor Vehicle Code". “Person” means any natural individual, firm, trust, partnership, association, joint venture, corporation or other legal entity, in his or its own capacity or as administrator, conservator, guardian, executor, trustee, receiver or other representative appointed by the court, and, as applied to partnerships, associations or joint ventures, the word shall include the members thereof, and as applied to corporations, shall include the officers, agents or employees. B. In this chapter, unless the context otherwise requires, words in the singular number include the plural, and in the plural include the singular; words of the masculine gender include the feminine and the neuter; and when the sense so indicates, words of the neuter gender may refer to any gender. (Prior code § 200.7-1; Added Coun. J. 12-7-84, p. 11501; Amend Coun. J. 2-11-87, p. 39574; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 11-15-23, p. 6700, Art. IV, § 1)

Municipal Code of Chicago § 3-48-030 Tax imposed.

3-48-030 Tax imposed. A. A tax is hereby imposed upon the privilege of leasing motor vehicles within the City to a lessee on a daily or weekly basis in the amount of $0.50 per vehicle per rental period specified in the lease agreement. B. Any tax herein imposed is in addition to any other taxes authorized by law. C. The lessor shall be required to pay this tax to the department as provided in subsection E. below. The lessor shall be allowed to pass this tax along to his lessees as a separate charge on his rental bills or invoices. D. This tax shall not apply to: (i) any lessor who is a governmental body; (ii) any lessor of a ground transportation vehicle, as that term is defined by Chapter 3-46 of this code, but only with respect to ground transportation vehicles that it leases; or (iii) any lessor upon whom the imposition of the tax would violate the United States Constitution or the constitution of the State of Illinois. The exemption set forth in Section D(ii) is not available to a transportation network provider, transportation network driver, or transportation network vehicle owner. E. Except as provided herein, the lessor shall pay this tax on a monthly basis, with the tax due on motor vehicles leased within the month by the last day of the following month. A remittance return shall accompany each monthly payment. The format of such remittance return shall be prescribed by the comptroller, and such return shall include the number of motor vehicles leased within that month and any other reasonable information the comptroller deems necessary. The remittance returns shall be filed and signed by the lessor under penalty as provided in Section 3-4-186. The comptroller may allow a lessor to pay this tax on an annual basis, if the lessor's average monthly tax liability is less than $20.00, with the tax due for the calendar year by the last day of January of the following year. A remittance form prescribed by the comptroller, with requirements similar to the monthly remittance return referred to above, shall be signed and filed by the lessor with his annual payment. F. Notwithstanding any other provision of this chapter, for all periods beginning on or after January 1, 2000, (1) all tax returns shall be filed with the department on an annual basis on or before August 15 of each year in accordance with Sections 3-4-186 and 3-4-189 of this Code, (2) all tax payments and remittances shall be made in accordance with either Section 3-4-187 (payment of actual tax liabilities) or Section 3-4-188 (payment of estimated taxes), and (3) the provisions of Sections 3-4-186, 3-4-187, 3-4-188 and 3-4-189 shall control over any contrary provisions in this chapter regarding the subjects covered by those sections. (Prior code § 200-7-2; Added Coun. J. 12-7-84, p. 11501; Amend Coun. J. 12-21-84, p. 12104; Amend Coun. J. 2-11-87, p. 39574; Amend Coun. J. 12-15-92, p. 27387; Amend Coun. J. 11-17-99, p. 18040, § 2.1; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 11-26-19, p. 11514, Art. IX, § 1; Amend Coun. J. 12-19-25, p. 38125, Art. IV, § 4)

Municipal Code of Chicago § 3-48-050 Recordkeeping - Burden of proof.

3-48-050 Recordkeeping - Burden of proof. A. Every lessor subject to the tax imposed herein shall keep accurate and complete books and records of his leasing business which will include invoices, rental agreements, annual inventories of motor vehicles available for rental and other pertinent papers and documents. All such books and records which are required to be kept by this chapter shall be kept in the English language and shall, at all times during business hours of the day, be subject to inspection by the department or its duly authorized agents and employees. B. It shall be presumed that all leases of motor vehicles are subject to tax under this chapter until the contrary is established. The burden of proving that a lease is not taxable hereunder shall be upon the lessor. (Prior code § 200.7-4; Added Coun. J. 12-7-84, p. 11501)

Municipal Code of Chicago § 3-48-060 Comptroller authority.

3-48-060 Comptroller authority. The comptroller is hereby empowered to adopt, promulgate, and to enforce, rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this chapter. (Prior code § 200.7-5; Added Coun. J. 12-7-84, p. 11501; Amend Coun. J. 11-14-91, p. 7458; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

Municipal Code of Chicago § 3-48-120 Deposit of funds.

3-48-120 Deposit of funds. All proceeds resulting from the imposition of this tax including interest and penalties shall be deposited in the corporate fund of the city. (Prior code § 200.7-11; Added Coun. J. 12-7-84, p. 11501)

Municipal Code of Chicago § 3-48-140 Severability.

3-48-140 Severability. If any provision of this chapter or application thereof to any person or circumstance is held unconstitutional or otherwise invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid application or provision, and to this end each such invalid provision or invalid application of this chapter is severable, unless otherwise provided by this chapter. In particular, but without limitation, each provision creating an exception to or an exemption or exclusion from the imposition of the tax is severable. It is hereby declared to be the legislative intent of the city council that this chapter would have been adopted had any such unconstitutional or otherwise invalid provision or application not been included. (Prior code § 200.7-13; Added Coun. J. 12-7-84, p. 11501)

Municipal Code of Chicago § 3-48-150 Application of Uniform Revenue Procedures Ordinance.

3-48-150 Application of Uniform Revenue Procedures Ordinance. Whenever not inconsistent with the provisions of this chapter or whenever this chapter is silent, the provisions of the uniform revenue procedures ordinance, Chapter 3-4 of the Municipal Code of Chicago, as amended, shall apply to and supplement this chapter. (Added Coun. J. 11-14-91, p. 7458)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2607538Fetched: 10/24/2026