IL HR0121

Chicago imposes an 8% personal property lease transaction tax on car rentals within the city and Cook, DuPage, Kane, Lake, McHenry, and Will counties.

Chicago's Department of Revenue presumes rental transactions are subject to the tax if suburban car rental companies lack written residency documentation or if the lessee resides in Chicago; this presumption can only be rebutted by a sworn affidavit from the lessee certifying they will not spend more than 50% of their time in Chicago during the rental period.

The resolution characterizes this practice as a burden on suburban drivers and businesses that unfairly requires non-city residents to fund Chicago's budget through taxation on car rentals.

The resolution urges the City of Chicago to cease attempts to collect this transaction tax on non-city residents in suburban areas.

Copies of the resolution are to be presented to the Mayor of Chicago and the Director of the Department of Revenue.