Illinois Imposes New State Parking Excise Tax and Collection Process
Effective January 1, 2020, operators of parking areas, spaces, and garages are required to collect and remit a new state Parking Excise Tax which was passed by the Illinois General Assembly last year.
This new tax is based on the purchase price paid by the purchaser to park in a parking area, space or garage.
The Park Excise Tax is an additional tax that is imposed at the following rates:
* 6% of the purchase price for a parking space paid for on an hourly, daily, or weekly basis; and
* 9% of the purchase price for a parking space paid for on a monthly or annual basis.
The operator of a parking area, space, or garage is responsible for collecting and remitting the Parking Excise Tax to the Illinois Department of Revenue (IDOR).
The IDOR recently posted a detailed FAQ about the tax, including instructions for its collection and remittance.
Operators are reminded that the tax should be calculated on the cost of the use or privilege of parking a motor vehicle but not on the other taxes already included in the price for parking. Detailed examples of the calculations are available on the IDOR FAQ document.