EXAMPLE: A purchaser contracts with an operator to rent a parking space on a month-to-month basis. The contract permits the purchaser to make payments twice a month. The tax is imposed at the rate of 9%.
EXAMPLE 1: A company provides a service in which an individual may contact the company by use of the Internet to locate and rent a parking space in a parking area or garage near a particular venue. The company charges the purchaser $21.20 for the parking space and a fee of $5 payable to the company. The garage owner charged the company $20 for the parking space and $1.20 in tax that is separately stated on the invoice. The company forwards the $21.20 to the garage owner and retains the $5 fee. The company must collect and remit tax on $26.20. The company owes $1.57 in tax and may take a credit for $1.20 in tax paid to the owner of the parking area or garage. The garage owner must remit tax in the amount of $1.20.
EXAMPLE 2: A company provides a service in which an individual may contact the company by use of the Internet to locate and rent a parking space in a parking area or garage. The company charges the purchaser $30.00 for the parking space and a fee of $5 payable to the company. The garage owner charged the company $30 for the parking space and failed to separately state and collect the tax or state that all taxes are included in the purchase price. The company forwards the $30 to the garage owner and retains the $5 fee. The company must collect and remit tax on $35. The company owes $2.10 in tax. The garage owner must remit tax on the $30, or $1.80. Because the garage owner failed to separately state and collect tax on the $30 from the company or state that all taxes are included in the purchase price, the company may not take a credit for the tax paid by the garage owner.
EXAMPLE 3: A hotel purchases the privilege of using 50 parking spaces at an adjacent parking garage at a price of $100 per space per month for the purpose of reselling the use of the spaces to its hotel guests. The garage must charge the hotel $109 per parking space ($100 plus tax of $9, using the monthly rate of 9%), and it must remit the $9 in tax per parking space to the Department. If the hotel resells the use of a parking space to a guest at a price of $20 per day, it must charge its guest $21.20 ($20 plus tax of $1.20, using the daily rate of 6%). At the end of the month, the hotel will be required to remit the difference between the total amount of tax it collected from its guests for daily parking during the month and the $450 in tax that it paid to the garage for the parking spaces.
EXAMPLE 4: A grocery store owner rents 10 parking spaces from an adjoining landowner for $1,000 per month and allows its customers to park free while shopping in its store. The landowner must collect and remit tax (9% x $1,000, or $90) on the purchase price paid by the grocery store owner to the landowner to lease the parking spaces. The grocery store has no tax liability for providing free spaces to its customers.
EXAMPLE: A company provides a service in which an individual may contact the company by use of the Internet to locate and reserve a parking space in a parking area or garage near a particular venue. The company does not have any ownership interest in, or legal right to operate, lease or license, parking areas or garages. The operator of a garage with which the company has an agreement has advised the company that the company can reserve up to 10 spaces in the operator's garage and the purchase price for parking spaces in the garage is $15. The company charges the purchaser $15 for the parking space. The company states on its website that all taxes are included in the purchase price. Based on the agreement with the owner of the garage, for each space that is rented by the company, the company retains $1 plus 10% of the $15 purchase price paid by the purchaser. ($1 + .10 x $15 = $2.50.) Per the agreement, the company forwards the balance of $12.50 to the garage owner. The garage owner is registered with the Department and remits tax on the $15 purchase price. Because the agreement between the company and operator meets the requirements of subsection (e)(1), the company is not required to register with the Department and remit tax on $2.50.
EXAMPLE: A company provides a web application that allows a person to locate and rent available parking spaces in the area the person wishes to find a parking space. The app also provides the purchaser with the prices for each of the available parking spaces. The fee for finding a parking space is $5. The person selects a parking space that costs $15 and is charged the $5 fee. The company charges the purchaser the $5 fee but does not charge the person the $15 for the cost of the parking space. The garage owner collects the $15 parking fee and the tax of $0.90 from the purchaser when the purchaser enters or exits the garage. The $5 fee is not taxable.
EXAMPLE 1: A lessor leases 2,000 square feet of office space to a lessee for $15,000 a month. The terms of the lease require the lessor to provide the tenant with 20 parking spaces in the parking garage and 10 surface parking spaces. The consideration for the parking spaces is not specified in monthly lease rental or on the books and records of the lessor. The parking spaces are not subject to tax.
EXAMPLE 2: A professional sports team sells season skybox tickets to attend home games for $100,000. Six parking passes at no additional charge are included in the price of the skybox. The sports team does not separately state the value of the 6 parking passes on its books and records. The person renting a skybox also can purchase extra tickets for the standard rate of $50 per game. The 6 parking passes included in the price of the skyboxes are not subject to tax. The purchase price paid for the extra tickets are taxable.
EXAMPLE 1: A parking operator charges a customer a single rate of $200 per week. The amount includes the 6% State tax. The operator must determine the base amount of the purchase price paid for parking. The calculation used to calculate the base amount of the purchase price paid for parking is $200 / (1 + .06) = $188.68. The amount of $188.68 is the base amount of the purchase price for determining the amount of tax. The State tax that the operator must remit is $11.32 (.06 x 188.68).
EXAMPLE 2: A parking operator charges a customer a single rate of $200 per week. The amount includes a 22% city tax, 9% county tax, and the 6% State tax. To determine the base amount of the purchase price paid for parking, the operator must first determine the combined tax rate for all qualifying parking taxes charged the customer (0.22 + 0.09 + 0.06 = .37). The calculation used to calculate the base amount of the purchase price paid for parking is $200 / (1 + .37) = $145.99. The amount of $145.99 is the base amount of the purchase price used for determining the taxes that can be deducted from the single rate of $200 and the amount of State tax that must be remitted by the operator. The city tax would be $32.12 (.22 x $145.98 ), the county tax would be $13.14 (.09 x $145.99), and the State tax that the operator must remit is $8.76 (.06 x $145.99).
EXAMPLE: The purchaser pays $2,400 in January to park in a parking space for a year. The entire $2,400 is subject to tax when received and reported on the return for January.
EXAMPLE: A municipality operates a parking area. It retains a company to install machines on the lot that accept electronic payments. The company also provides a mobile application that permits a person to pay for parking electronically. All payments made by a customer, either by using the machine on the lot or the mobile application, are paid to the municipality. The municipality pays the company a fee for its services. The municipality is the operator of the lot and, pursuant to Section 195.115(b), is not required to collect and remit the tax.
Ill. Admin. Code tit. 86, § 195.110