Illinois 2023-2024 Regular Session

Illinois House Bill HB1497 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0520
2	1		HB1497 EnrolledLRB103 04797 HEP 49807 b HB1497 Enrolled LRB103 04797 HEP 49807 b
3	2		HB1497 Enrolled LRB103 04797 HEP 49807 b
4		-	AN ACT concerning transportation.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Automobile Renting Occupation and Use Tax
8		-	Act is amended by changing Section 2 and adding Section 6 as
9		-	follows:
10		-	(35 ILCS 155/2) (from Ch. 120, par. 1702)
11		-	Sec. 2. Definitions. "Renting" means any transfer of the
12		-	possession or right to possession of an automobile to a user
13		-	for a valuable consideration for a period of one year or less.
14		-	"Renting" does not include making a charge for the use of
15		-	an automobile where the rentor, either himself or through an
16		-	agent, furnishes a service of operating an automobile so that
17		-	the rentor remains in possession of the automobile, because
18		-	this does not constitute a transfer of possession or right to
19		-	possession of the automobile.
20		-	"Renting" does not include the making of a charge by an
21		-	automobile dealer for the use of an automobile as a
22		-	demonstrator in connection with the dealer's business of
23		-	selling, where the charge is merely made to recover the costs
24		-	of operating the automobile as a demonstrator and is not
25		-	intended as a rental or leasing charge in the ordinary sense.
26		-	"Renting" does not include peer-to-peer car sharing, as
	3	+	1 AN ACT concerning transportation.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Automobile Renting Occupation and Use Tax
	7	+	5 Act is amended by changing Section 2 and adding Section 6 as
	8	+	6 follows:
	9	+	7 (35 ILCS 155/2) (from Ch. 120, par. 1702)
	10	+	8 Sec. 2. Definitions. "Renting" means any transfer of the
	11	+	9 possession or right to possession of an automobile to a user
	12	+	10 for a valuable consideration for a period of one year or less.
	13	+	11 "Renting" does not include making a charge for the use of
	14	+	12 an automobile where the rentor, either himself or through an
	15	+	13 agent, furnishes a service of operating an automobile so that
	16	+	14 the rentor remains in possession of the automobile, because
	17	+	15 this does not constitute a transfer of possession or right to
	18	+	16 possession of the automobile.
	19	+	17 "Renting" does not include the making of a charge by an
	20	+	18 automobile dealer for the use of an automobile as a
	21	+	19 demonstrator in connection with the dealer's business of
	22	+	20 selling, where the charge is merely made to recover the costs
	23	+	21 of operating the automobile as a demonstrator and is not
	24	+	22 intended as a rental or leasing charge in the ordinary sense.
	25	+	23 "Renting" does not include peer-to-peer car sharing, as
27	26
28	27
29	28
30	29		HB1497 Enrolled LRB103 04797 HEP 49807 b
31	30
32	31
33		-	defined in Section 5 of the Car-Sharing Program Act, if tax due
34		-	on the automobile under the Retailers' Occupation Tax Act or
35		-	Use Tax Act was paid upon the purchase of the automobile or
36		-	when the automobile was brought into Illinois. The car-sharing
37		-	program shall ask a shared vehicle owner if the shared vehicle
38		-	owner paid applicable taxes at the time of purchase.
39		-	Notwithstanding any law to the contrary, the car-sharing
40		-	program shall have the right to rely on the shared vehicle
41		-	owner's response and to be held legally harmless for such
42		-	reliance.
43		-	"Automobile" means (1) any motor vehicle of the first
44		-	division, or (2) a motor vehicle of the second division which:
45		-	(A) is a self-contained motor vehicle designed or permanently
46		-	converted to provide living quarters for recreational, camping
47		-	or travel use, with direct walk through access to the living
48		-	quarters from the driver's seat; (B) is of the van
49		-	configuration designed for the transportation of not less than
50		-	7 nor more than 16 passengers, as defined in Section 1-146 of
51		-	the Illinois Vehicle Code; or (C) has a Gross Vehicle Weight
52		-	Rating, as defined in Section 1-124.5 of the Illinois Vehicle
53		-	Code, of 8,000 pounds or less.
54		-	"Department" means the Department of Revenue.
55		-	"Person" means any natural individual, firm, partnership,
56		-	association, joint stock company, joint adventure, public or
57		-	private corporation, limited liability company, or a receiver,
58		-	executor, trustee, conservator or other representative
	32	+	HB1497 Enrolled- 2 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 2 - LRB103 04797 HEP 49807 b
	33	+	HB1497 Enrolled - 2 - LRB103 04797 HEP 49807 b
	34	+	1 defined in Section 5 of the Car-Sharing Program Act, if tax due
	35	+	2 on the automobile under the Retailers' Occupation Tax Act or
	36	+	3 Use Tax Act was paid upon the purchase of the automobile or
	37	+	4 when the automobile was brought into Illinois. The car-sharing
	38	+	5 program shall ask a shared vehicle owner if the shared vehicle
	39	+	6 owner paid applicable taxes at the time of purchase.
	40	+	7 Notwithstanding any law to the contrary, the car-sharing
	41	+	8 program shall have the right to rely on the shared vehicle
	42	+	9 owner's response and to be held legally harmless for such
	43	+	10 reliance.
	44	+	11 "Automobile" means (1) any motor vehicle of the first
	45	+	12 division, or (2) a motor vehicle of the second division which:
	46	+	13 (A) is a self-contained motor vehicle designed or permanently
	47	+	14 converted to provide living quarters for recreational, camping
	48	+	15 or travel use, with direct walk through access to the living
	49	+	16 quarters from the driver's seat; (B) is of the van
	50	+	17 configuration designed for the transportation of not less than
	51	+	18 7 nor more than 16 passengers, as defined in Section 1-146 of
	52	+	19 the Illinois Vehicle Code; or (C) has a Gross Vehicle Weight
	53	+	20 Rating, as defined in Section 1-124.5 of the Illinois Vehicle
	54	+	21 Code, of 8,000 pounds or less.
	55	+	22 "Department" means the Department of Revenue.
	56	+	23 "Person" means any natural individual, firm, partnership,
	57	+	24 association, joint stock company, joint adventure, public or
	58	+	25 private corporation, limited liability company, or a receiver,
	59	+	26 executor, trustee, conservator or other representative
59	60
60	61
61		-	appointed by order of any court.
62		-	"Rentor" means any person, firm, corporation or
63		-	association engaged in the business of renting or leasing
64		-	automobiles to users. For this purpose, the objective of
65		-	making a profit is not necessary to make the renting activity a
66		-	business.
67		-	"Rentor" does not include a car-sharing program or a
68		-	shared-vehicle owner, as defined in Section 5 of the
69		-	Car-Sharing Program Act, if tax due on the automobile under
70		-	the Retailers' Occupation Tax Act or Use Tax Act was paid upon
71		-	the purchase of the automobile or when the automobile was
72		-	brought into Illinois. The car-sharing program shall ask a
73		-	shared vehicle owner if the shared vehicle owner paid
74		-	applicable taxes at the time of purchase. Notwithstanding any
75		-	law to the contrary, the car-sharing program shall have the
76		-	right to rely on the shared vehicle owner's response and to be
77		-	held legally harmless for such reliance.
78		-	"Rentee" means any user to whom the possession, or the
79		-	right to possession, of an automobile is transferred for a
80		-	valuable consideration for a period of one year or less,
81		-	whether paid for by the "rentee" or by someone else.
82		-	"Rentee" does not include a shared-vehicle driver, as
83		-	defined in Section 5 of the Car-Sharing Program Act, if tax due
84		-	on the automobile under the Retailers' Occupation Tax Act or
85		-	Use Tax Act was paid upon the purchase of the automobile or
86		-	when the automobile was brought into Illinois. The car-sharing
87	62
88	63
89		-	program shall ask a shared vehicle owner if the shared vehicle
90		-	owner paid applicable taxes at the time of purchase.
91		-	Notwithstanding any law to the contrary, the car-sharing
92		-	program shall have the right to rely on the shared vehicle
93		-	owner's response and to be held legally harmless for such
94		-	reliance.
95		-	"Gross receipts" from the renting of tangible personal
96		-	property or "rent" means the total rental price or leasing
97		-	price. In the case of rental transactions in which the
98		-	consideration is paid to the rentor on an installment basis,
99		-	the amounts of such payments shall be included by the rentor in
100		-	gross receipts or rent only as and when payments are received
101		-	by the rentor.
102		-	"Gross receipts" does not include receipts received by an
103		-	automobile dealer from a manufacturer or service contract
104		-	provider for the use of an automobile by a person while that
105		-	person's automobile is being repaired by that automobile
106		-	dealer and the repair is made pursuant to a manufacturer's
107		-	warranty or a service contract where a manufacturer or service
108		-	contract provider reimburses that automobile dealer pursuant
109		-	to a manufacturer's warranty or a service contract and the
110		-	reimbursement is merely made to recover the costs of operating
111		-	the automobile as a loaner vehicle.
112		-	"Rental price" means the consideration for renting or
113		-	leasing an automobile valued in money, whether received in
114		-	money or otherwise, including cash credits, property and
	64	+
	65	+	HB1497 Enrolled - 2 - LRB103 04797 HEP 49807 b
115	66
116	67
117		-	services, and shall be determined without any deduction on
118		-	account of the cost of the property rented, the cost of
119		-	materials used, labor or service cost, or any other expense
120		-	whatsoever, but does not include charges that are added by a
121		-	rentor on account of the rentor's tax liability under this Act
122		-	or on account of the rentor's duty to collect, from the rentee,
123		-	the tax that is imposed by Section 4 of this Act. The phrase
124		-	"rental price" does not include compensation paid to a rentor
125		-	by a rentee in consideration of the waiver by the rentor of any
126		-	right of action or claim against the rentee for loss or damage
127		-	to the automobile rented and also does not include a
128		-	separately stated charge for insurance or recovery of
129		-	refueling costs or other separately stated charges that are
130		-	not for the use of tangible personal property.
131		-	"Rental price" does not include consideration paid for
132		-	peer-to-peer car sharing to a shared-vehicle owner or a
133		-	car-sharing program, as those terms are defined in Section 5
134		-	of the Car-Sharing Program Act, if tax due on the automobile
135		-	under the Retailers' Occupation Tax Act or Use Tax Act was paid
136		-	upon the purchase of the automobile or when the automobile was
137		-	brought into Illinois. The car-sharing program shall ask a
138		-	shared vehicle owner if the shared vehicle owner paid
139		-	applicable taxes at the time of purchase. Notwithstanding any
140		-	law to the contrary, the car-sharing program shall have the
141		-	right to rely on the shared vehicle owner's response and to be
142		-	held legally harmless for such reliance.
	68	+	HB1497 Enrolled- 3 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 3 - LRB103 04797 HEP 49807 b
	69	+	HB1497 Enrolled - 3 - LRB103 04797 HEP 49807 b
	70	+	1 appointed by order of any court.
	71	+	2 "Rentor" means any person, firm, corporation or
	72	+	3 association engaged in the business of renting or leasing
	73	+	4 automobiles to users. For this purpose, the objective of
	74	+	5 making a profit is not necessary to make the renting activity a
	75	+	6 business.
	76	+	7 "Rentor" does not include a car-sharing program or a
	77	+	8 shared-vehicle owner, as defined in Section 5 of the
	78	+	9 Car-Sharing Program Act, if tax due on the automobile under
	79	+	10 the Retailers' Occupation Tax Act or Use Tax Act was paid upon
	80	+	11 the purchase of the automobile or when the automobile was
	81	+	12 brought into Illinois. The car-sharing program shall ask a
	82	+	13 shared vehicle owner if the shared vehicle owner paid
	83	+	14 applicable taxes at the time of purchase. Notwithstanding any
	84	+	15 law to the contrary, the car-sharing program shall have the
	85	+	16 right to rely on the shared vehicle owner's response and to be
	86	+	17 held legally harmless for such reliance.
	87	+	18 "Rentee" means any user to whom the possession, or the
	88	+	19 right to possession, of an automobile is transferred for a
	89	+	20 valuable consideration for a period of one year or less,
	90	+	21 whether paid for by the "rentee" or by someone else.
	91	+	22 "Rentee" does not include a shared-vehicle driver, as
	92	+	23 defined in Section 5 of the Car-Sharing Program Act, if tax due
	93	+	24 on the automobile under the Retailers' Occupation Tax Act or
	94	+	25 Use Tax Act was paid upon the purchase of the automobile or
	95	+	26 when the automobile was brought into Illinois. The car-sharing
143	96
144	97
145		-	(Source: P.A. 98-574, eff. 1-1-14.)
146		-	(35 ILCS 155/6 new)
147		-	Sec. 6. Applicability. The taxes imposed by Sections 3 and
148		-	4 of this Act do not apply to any amounts paid or received for
149		-	peer-to-peer car sharing, as defined in Section 5 of the
150		-	Car-Sharing Program Act, or the privilege of sharing a shared
151		-	vehicle through a car-sharing program, as defined in Section 5
152		-	of the Car-Sharing Program Act, if the shared vehicle owner
153		-	paid applicable taxes upon the purchase of the automobile.
154		-	As used in this Section, "applicable taxes" means, with
155		-	respect to vehicles purchased in Illinois, the retailers'
156		-	occupation tax levied under the Retailers' Occupation Tax Act
157		-	or the use tax levied under the Use Tax Act. "Applicable
158		-	taxes", with respect to vehicles not purchased in Illinois,
159		-	refers to the sales, use, excise, or other generally
160		-	applicable tax that is due upon the purchase of a vehicle in
161		-	the jurisdiction in which the vehicle was purchased.
162		-	Notwithstanding any law to the contrary, the car-sharing
163		-	program shall have the right to rely on the shared vehicle
164		-	owner's response and to be held legally harmless for such
165		-	reliance.
166		-	Section 10. The Illinois Vehicle Code is amended by
167		-	changing Section 6-305.2 as follows:
168	98
169	99
170		-	(625 ILCS 5/6-305.2)
171		-	Sec. 6-305.2. Limited liability for damage.
172		-	(a) Damage to private passenger vehicle. A person who
173		-	rents a motor vehicle to another may hold the renter liable to
174		-	the extent permitted under subsections (b) through (d) for
175		-	physical or mechanical damage to the rented motor vehicle that
176		-	occurs during the time the motor vehicle is under the rental
177		-	agreement.
178		-	(b) Limits on liability due to theft for a : vehicle having
179		-	an MSRP of $50,000 or less. The total liability of a renter who
180		-	rents from another a motor vehicle that has an MSRP of $50,000
181		-	or less and that is stolen shall be the actual and reasonable
182		-	costs incurred by the loss due to theft of the rental motor
183		-	vehicle up to $5,000; provided, however, that if it is
184		-	established that the renter or authorized driver failed to
185		-	exercise ordinary care while in possession of the vehicle or
186		-	that the renter or authorized driver committed or aided and
187		-	abetted the commission of a theft, then the damages shall be
188		-	the actual and reasonable costs of the rental vehicle up to its
189		-	fair market value, as determined by the customary market for
190		-	the sale of the vehicle. renter under subsection (a) for
191		-	damage to a motor vehicle with a Manufacturer's Suggested
192		-	Retail Price (MSRP) of $50,000 or less may not exceed all of
193		-	the following:
194		-	(1) The lesser of:
195		-	(A) Actual and reasonable costs that the person
	100	+
	101	+	HB1497 Enrolled - 3 - LRB103 04797 HEP 49807 b
196	102
197	103
198		-	who rents a motor vehicle to another incurred to
199		-	repair the motor vehicle or that the rental company
200		-	would have incurred if the motor vehicle had been
201		-	repaired, which shall reflect any discounts, price
202		-	reductions, or adjustments available to the rental
203		-	company; or
204		-	(B) The fair market value of that motor vehicle
205		-	immediately before the damage occurred, as determined
206		-	in the customary market for the retail sale of that
207		-	motor vehicle; and
208		-	(2) Actual and reasonable costs incurred by the loss
209		-	due to theft of the rental motor vehicle up to $2,000;
210		-	provided, however, that if it is established that the
211		-	renter or an authorized driver failed to exercise ordinary
212		-	care while in possession of the vehicle or that the renter
213		-	or an authorized driver committed or aided and abetted the
214		-	commission of the theft, then the damages shall be the
215		-	actual and reasonable costs of the rental vehicle up to
216		-	its fair market value, as determined by the customary
217		-	market for the sale of that vehicle.
218		-	For purposes of this subsection (b), for the period prior
219		-	to June 1, 1998, the maximum amount that may be recovered from
220		-	an authorized driver shall not exceed $6,000; for the period
221		-	beginning June 1, 1998 through May 31, 1999, the maximum
222		-	recovery shall not exceed $7,500; and for the period beginning
223		-	June 1, 1999 through May 31, 2000, the maximum recovery shall
	104	+	HB1497 Enrolled- 4 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 4 - LRB103 04797 HEP 49807 b
	105	+	HB1497 Enrolled - 4 - LRB103 04797 HEP 49807 b
	106	+	1 program shall ask a shared vehicle owner if the shared vehicle
	107	+	2 owner paid applicable taxes at the time of purchase.
	108	+	3 Notwithstanding any law to the contrary, the car-sharing
	109	+	4 program shall have the right to rely on the shared vehicle
	110	+	5 owner's response and to be held legally harmless for such
	111	+	6 reliance.
	112	+	7 "Gross receipts" from the renting of tangible personal
	113	+	8 property or "rent" means the total rental price or leasing
	114	+	9 price. In the case of rental transactions in which the
	115	+	10 consideration is paid to the rentor on an installment basis,
	116	+	11 the amounts of such payments shall be included by the rentor in
	117	+	12 gross receipts or rent only as and when payments are received
	118	+	13 by the rentor.
	119	+	14 "Gross receipts" does not include receipts received by an
	120	+	15 automobile dealer from a manufacturer or service contract
	121	+	16 provider for the use of an automobile by a person while that
	122	+	17 person's automobile is being repaired by that automobile
	123	+	18 dealer and the repair is made pursuant to a manufacturer's
	124	+	19 warranty or a service contract where a manufacturer or service
	125	+	20 contract provider reimburses that automobile dealer pursuant
	126	+	21 to a manufacturer's warranty or a service contract and the
	127	+	22 reimbursement is merely made to recover the costs of operating
	128	+	23 the automobile as a loaner vehicle.
	129	+	24 "Rental price" means the consideration for renting or
	130	+	25 leasing an automobile valued in money, whether received in
	131	+	26 money or otherwise, including cash credits, property and
224	132
225	133
226		-	not exceed $9,000. Beginning June 1, 2000, and annually each
227		-	June 1 thereafter, the maximum amount that may be recovered
228		-	from an authorized driver under this subsection (b) shall be
229		-	increased by $500 above the maximum recovery allowed
230		-	immediately prior to June 1 of that year.
231		-	(b-5) Limits on liability due to theft for a : vehicle
232		-	having an MSRP of more than $50,000. The total liability of a
233		-	renter who rents from another a motor vehicle that has an MSRP
234		-	of more than $50,000 and that is stolen shall be the actual and
235		-	reasonable cost incurred by the loss due to theft of the rental
236		-	motor vehicle up to $40,000; provided, however that if it is
237		-	established that the renter or authorized driver failed to
238		-	exercise ordinary care while in possession of the vehicle or
239		-	that the renter or authorized driver committed or aided and
240		-	abetted the commission of a theft, then the damages shall be
241		-	the actual and reasonable costs of the rental vehicle up to its
242		-	fair market value, as determined by the customary market for
243		-	the sale of the vehicle. renter under subsection (a) for
244		-	damage to a motor vehicle with a Manufacturer's Suggested
245		-	Retail Price (MSRP) of more than $50,000 may not exceed all of
246		-	the following:
247		-	(1) the lesser of:
248		-	(A) actual and reasonable costs that the person
249		-	who rents a motor vehicle to another incurred to
250		-	repair the motor vehicle or that the rental company
251		-	would have incurred if the motor vehicle had been
252	134
253	135
254		-	repaired, which shall reflect any discounts, price
255		-	reductions, or adjustments available to the rental
256		-	company; or
257		-	(B) the fair market value of that motor vehicle
258		-	immediately before the damage occurred, as determined
259		-	in the customary market for the retail sale of that
260		-	motor vehicle; and
261		-	(2) the actual and reasonable costs incurred by the
262		-	loss due to theft of the rental motor vehicle up to
263		-	$40,000.
264		-	The maximum recovery for a motor vehicle with a
265		-	Manufacturer's Suggested Retail Price (MSRP) of more than
266		-	$50,000 under this subsection (b-5) shall not exceed $40,000
267		-	on the effective date of this amendatory Act of the 99th
268		-	General Assembly. On October 1, 2016, and for the next 3 years
269		-	thereafter, the maximum amount that may be recovered from an
270		-	authorized driver under this subsection (b-5) shall be
271		-	increased by $2,500 above the prior year's maximum recovery.
272		-	On October 1, 2020, and for each year thereafter, the maximum
273		-	amount that may be recovered from an authorized driver under
274		-	this subsection (b-5) shall be increased by $1,000 above the
275		-	prior year's maximum recovery.
276		-	(b-10) Beginning on the effective date of this amendatory
277		-	Act of the 103rd General Assembly and for 6 months after, a
278		-	person who rents a motor vehicle to another shall provide
279		-	notice to the renter of the motor vehicle of the changes
	136	+
	137	+	HB1497 Enrolled - 4 - LRB103 04797 HEP 49807 b
280	138
281	139
282		-	reflected in this amendatory Act of the 103rd General
283		-	Assembly. The notice shall be posted in a conspicuous and
284		-	unobscured place that is separate and apart from any other
285		-	information.
286		-	(c) Multiple recoveries prohibited. Any person who rents a
287		-	motor vehicle to another may not hold the renter liable for any
288		-	amounts that the rental company recovers from any other party.
289		-	(d) Repair estimates. A person who rents a motor vehicle
290		-	to another may not collect or attempt to collect the amount
291		-	described in subsection (b) or (b-5) unless the rental company
292		-	obtains an estimate from a repair company or an appraiser in
293		-	the business of providing such appraisals on the costs of
294		-	repairing the motor vehicle, makes a copy of the estimate
295		-	available upon request to the renter who may be liable under
296		-	subsection (a), or the insurer of the renter, and submits a
297		-	copy of the estimate with any claim to collect the amount
298		-	described in subsection (b) or (b-5). In order to collect the
299		-	amount described in subsection (b-5), a person renting a motor
300		-	vehicle to another must also provide the renter's personal
301		-	insurance company with reasonable notice and an opportunity to
302		-	inspect damages.
303		-	(d-5) In the event of loss due to theft of the rental motor
304		-	vehicle with a MSRP more than $50,000, the rental company
305		-	shall provide reasonable notice of the theft to the renter's
306		-	personal insurance company.
307		-	(e) Duty to mitigate. A claim against a renter resulting
	140	+	HB1497 Enrolled- 5 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 5 - LRB103 04797 HEP 49807 b
	141	+	HB1497 Enrolled - 5 - LRB103 04797 HEP 49807 b
	142	+	1 services, and shall be determined without any deduction on
	143	+	2 account of the cost of the property rented, the cost of
	144	+	3 materials used, labor or service cost, or any other expense
	145	+	4 whatsoever, but does not include charges that are added by a
	146	+	5 rentor on account of the rentor's tax liability under this Act
	147	+	6 or on account of the rentor's duty to collect, from the rentee,
	148	+	7 the tax that is imposed by Section 4 of this Act. The phrase
	149	+	8 "rental price" does not include compensation paid to a rentor
	150	+	9 by a rentee in consideration of the waiver by the rentor of any
	151	+	10 right of action or claim against the rentee for loss or damage
	152	+	11 to the automobile rented and also does not include a
	153	+	12 separately stated charge for insurance or recovery of
	154	+	13 refueling costs or other separately stated charges that are
	155	+	14 not for the use of tangible personal property.
	156	+	15 "Rental price" does not include consideration paid for
	157	+	16 peer-to-peer car sharing to a shared-vehicle owner or a
	158	+	17 car-sharing program, as those terms are defined in Section 5
	159	+	18 of the Car-Sharing Program Act, if tax due on the automobile
	160	+	19 under the Retailers' Occupation Tax Act or Use Tax Act was paid
	161	+	20 upon the purchase of the automobile or when the automobile was
	162	+	21 brought into Illinois. The car-sharing program shall ask a
	163	+	22 shared vehicle owner if the shared vehicle owner paid
	164	+	23 applicable taxes at the time of purchase. Notwithstanding any
	165	+	24 law to the contrary, the car-sharing program shall have the
	166	+	25 right to rely on the shared vehicle owner's response and to be
	167	+	26 held legally harmless for such reliance.
308	168
309	169
310		-	from damage or loss to a rental vehicle must be reasonably and
311		-	rationally related to the actual loss incurred. A rental
312		-	company shall mitigate damages where possible and shall not
313		-	assert or collect any claim for physical damage which exceeds
314		-	the actual costs of the repair, including all discounts or
315		-	price reductions.
316		-	(f) No rental company shall require a deposit or an
317		-	advance charge against the credit card of a renter, in any
318		-	form, for damages to a vehicle which is in the renter's
319		-	possession, custody, or control. No rental company shall
320		-	require any payment for damage to the rental vehicle, upon the
321		-	renter's return of the vehicle in a damaged condition, until
322		-	after the cost of the damage to the vehicle and liability
323		-	therefor is agreed to between the rental company and renter or
324		-	is determined pursuant to law.
325		-	(g) If insurance coverage exists under the renter's
326		-	personal insurance policy and the coverage is confirmed during
327		-	regular business hours, the renter may require that the rental
328		-	company must submit any claims to the renter's personal
329		-	insurance carrier as the renter's agent. The rental company
330		-	shall not make any written or oral representations that it
331		-	will not present claims or negotiate with the renter's
332		-	insurance carrier. For purposes of this Section, confirmation
333		-	of coverage includes telephone confirmation from insurance
334		-	company representatives during regular business hours. After
335		-	confirmation of coverage, the amount of claim shall be
336	170
337	171
338		-	resolved between the insurance carrier and the rental company.
339		-	(Source: P.A. 99-201, eff. 10-1-15.)
340		-	Section 99. Effective date. This Act takes upon becoming
341		-	law, except that Section 10 takes effect on January 1, 2024.
	172	+
	173	+	HB1497 Enrolled - 5 - LRB103 04797 HEP 49807 b
	174	+
	175	+
	176	+	HB1497 Enrolled- 6 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 6 - LRB103 04797 HEP 49807 b
	177	+	HB1497 Enrolled - 6 - LRB103 04797 HEP 49807 b
	178	+	1 (Source: P.A. 98-574, eff. 1-1-14.)
	179	+	2 (35 ILCS 155/6 new)
	180	+	3 Sec. 6. Applicability. The taxes imposed by Sections 3 and
	181	+	4 4 of this Act do not apply to any amounts paid or received for
	182	+	5 peer-to-peer car sharing, as defined in Section 5 of the
	183	+	6 Car-Sharing Program Act, or the privilege of sharing a shared
	184	+	7 vehicle through a car-sharing program, as defined in Section 5
	185	+	8 of the Car-Sharing Program Act, if the shared vehicle owner
	186	+	9 paid applicable taxes upon the purchase of the automobile.
	187	+	10 As used in this Section, "applicable taxes" means, with
	188	+	11 respect to vehicles purchased in Illinois, the retailers'
	189	+	12 occupation tax levied under the Retailers' Occupation Tax Act
	190	+	13 or the use tax levied under the Use Tax Act. "Applicable
	191	+	14 taxes", with respect to vehicles not purchased in Illinois,
	192	+	15 refers to the sales, use, excise, or other generally
	193	+	16 applicable tax that is due upon the purchase of a vehicle in
	194	+	17 the jurisdiction in which the vehicle was purchased.
	195	+	18 Notwithstanding any law to the contrary, the car-sharing
	196	+	19 program shall have the right to rely on the shared vehicle
	197	+	20 owner's response and to be held legally harmless for such
	198	+	21 reliance.
	199	+	22 Section 10. The Illinois Vehicle Code is amended by
	200	+	23 changing Section 6-305.2 as follows:
	201	+
	202	+
	203	+
	204	+
	205	+
	206	+	HB1497 Enrolled - 6 - LRB103 04797 HEP 49807 b
	207	+
	208	+
	209	+	HB1497 Enrolled- 7 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 7 - LRB103 04797 HEP 49807 b
	210	+	HB1497 Enrolled - 7 - LRB103 04797 HEP 49807 b
	211	+	1 (625 ILCS 5/6-305.2)
	212	+	2 Sec. 6-305.2. Limited liability for damage.
	213	+	3 (a) Damage to private passenger vehicle. A person who
	214	+	4 rents a motor vehicle to another may hold the renter liable to
	215	+	5 the extent permitted under subsections (b) through (d) for
	216	+	6 physical or mechanical damage to the rented motor vehicle that
	217	+	7 occurs during the time the motor vehicle is under the rental
	218	+	8 agreement.
	219	+	9 (b) Limits on liability due to theft for a : vehicle having
	220	+	10 an MSRP of $50,000 or less. The total liability of a renter who
	221	+	11 rents from another a motor vehicle that has an MSRP of $50,000
	222	+	12 or less and that is stolen shall be the actual and reasonable
	223	+	13 costs incurred by the loss due to theft of the rental motor
	224	+	14 vehicle up to $5,000; provided, however, that if it is
	225	+	15 established that the renter or authorized driver failed to
	226	+	16 exercise ordinary care while in possession of the vehicle or
	227	+	17 that the renter or authorized driver committed or aided and
	228	+	18 abetted the commission of a theft, then the damages shall be
	229	+	19 the actual and reasonable costs of the rental vehicle up to its
	230	+	20 fair market value, as determined by the customary market for
	231	+	21 the sale of the vehicle. renter under subsection (a) for
	232	+	22 damage to a motor vehicle with a Manufacturer's Suggested
	233	+	23 Retail Price (MSRP) of $50,000 or less may not exceed all of
	234	+	24 the following:
	235	+	25 (1) The lesser of:
	236	+	26 (A) Actual and reasonable costs that the person
	237	+
	238	+
	239	+
	240	+
	241	+
	242	+	HB1497 Enrolled - 7 - LRB103 04797 HEP 49807 b
	243	+
	244	+
	245	+	HB1497 Enrolled- 8 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 8 - LRB103 04797 HEP 49807 b
	246	+	HB1497 Enrolled - 8 - LRB103 04797 HEP 49807 b
	247	+	1 who rents a motor vehicle to another incurred to
	248	+	2 repair the motor vehicle or that the rental company
	249	+	3 would have incurred if the motor vehicle had been
	250	+	4 repaired, which shall reflect any discounts, price
	251	+	5 reductions, or adjustments available to the rental
	252	+	6 company; or
	253	+	7 (B) The fair market value of that motor vehicle
	254	+	8 immediately before the damage occurred, as determined
	255	+	9 in the customary market for the retail sale of that
	256	+	10 motor vehicle; and
	257	+	11 (2) Actual and reasonable costs incurred by the loss
	258	+	12 due to theft of the rental motor vehicle up to $2,000;
	259	+	13 provided, however, that if it is established that the
	260	+	14 renter or an authorized driver failed to exercise ordinary
	261	+	15 care while in possession of the vehicle or that the renter
	262	+	16 or an authorized driver committed or aided and abetted the
	263	+	17 commission of the theft, then the damages shall be the
	264	+	18 actual and reasonable costs of the rental vehicle up to
	265	+	19 its fair market value, as determined by the customary
	266	+	20 market for the sale of that vehicle.
	267	+	21 For purposes of this subsection (b), for the period prior
	268	+	22 to June 1, 1998, the maximum amount that may be recovered from
	269	+	23 an authorized driver shall not exceed $6,000; for the period
	270	+	24 beginning June 1, 1998 through May 31, 1999, the maximum
	271	+	25 recovery shall not exceed $7,500; and for the period beginning
	272	+	26 June 1, 1999 through May 31, 2000, the maximum recovery shall
	273	+
	274	+
	275	+
	276	+
	277	+
	278	+	HB1497 Enrolled - 8 - LRB103 04797 HEP 49807 b
	279	+
	280	+
	281	+	HB1497 Enrolled- 9 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 9 - LRB103 04797 HEP 49807 b
	282	+	HB1497 Enrolled - 9 - LRB103 04797 HEP 49807 b
	283	+	1 not exceed $9,000. Beginning June 1, 2000, and annually each
	284	+	2 June 1 thereafter, the maximum amount that may be recovered
	285	+	3 from an authorized driver under this subsection (b) shall be
	286	+	4 increased by $500 above the maximum recovery allowed
	287	+	5 immediately prior to June 1 of that year.
	288	+	6 (b-5) Limits on liability due to theft for a : vehicle
	289	+	7 having an MSRP of more than $50,000. The total liability of a
	290	+	8 renter who rents from another a motor vehicle that has an MSRP
	291	+	9 of more than $50,000 and that is stolen shall be the actual and
	292	+	10 reasonable cost incurred by the loss due to theft of the rental
	293	+	11 motor vehicle up to $40,000; provided, however that if it is
	294	+	12 established that the renter or authorized driver failed to
	295	+	13 exercise ordinary care while in possession of the vehicle or
	296	+	14 that the renter or authorized driver committed or aided and
	297	+	15 abetted the commission of a theft, then the damages shall be
	298	+	16 the actual and reasonable costs of the rental vehicle up to its
	299	+	17 fair market value, as determined by the customary market for
	300	+	18 the sale of the vehicle. renter under subsection (a) for
	301	+	19 damage to a motor vehicle with a Manufacturer's Suggested
	302	+	20 Retail Price (MSRP) of more than $50,000 may not exceed all of
	303	+	21 the following:
	304	+	22 (1) the lesser of:
	305	+	23 (A) actual and reasonable costs that the person
	306	+	24 who rents a motor vehicle to another incurred to
	307	+	25 repair the motor vehicle or that the rental company
	308	+	26 would have incurred if the motor vehicle had been
	309	+
	310	+
	311	+
	312	+
	313	+
	314	+	HB1497 Enrolled - 9 - LRB103 04797 HEP 49807 b
	315	+
	316	+
	317	+	HB1497 Enrolled- 10 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 10 - LRB103 04797 HEP 49807 b
	318	+	HB1497 Enrolled - 10 - LRB103 04797 HEP 49807 b
	319	+	1 repaired, which shall reflect any discounts, price
	320	+	2 reductions, or adjustments available to the rental
	321	+	3 company; or
	322	+	4 (B) the fair market value of that motor vehicle
	323	+	5 immediately before the damage occurred, as determined
	324	+	6 in the customary market for the retail sale of that
	325	+	7 motor vehicle; and
	326	+	8 (2) the actual and reasonable costs incurred by the
	327	+	9 loss due to theft of the rental motor vehicle up to
	328	+	10 $40,000.
	329	+	11 The maximum recovery for a motor vehicle with a
	330	+	12 Manufacturer's Suggested Retail Price (MSRP) of more than
	331	+	13 $50,000 under this subsection (b-5) shall not exceed $40,000
	332	+	14 on the effective date of this amendatory Act of the 99th
	333	+	15 General Assembly. On October 1, 2016, and for the next 3 years
	334	+	16 thereafter, the maximum amount that may be recovered from an
	335	+	17 authorized driver under this subsection (b-5) shall be
	336	+	18 increased by $2,500 above the prior year's maximum recovery.
	337	+	19 On October 1, 2020, and for each year thereafter, the maximum
	338	+	20 amount that may be recovered from an authorized driver under
	339	+	21 this subsection (b-5) shall be increased by $1,000 above the
	340	+	22 prior year's maximum recovery.
	341	+	23 (b-10) Beginning on the effective date of this amendatory
	342	+	24 Act of the 103rd General Assembly and for 6 months after, a
	343	+	25 person who rents a motor vehicle to another shall provide
	344	+	26 notice to the renter of the motor vehicle of the changes
	345	+
	346	+
	347	+
	348	+
	349	+
	350	+	HB1497 Enrolled - 10 - LRB103 04797 HEP 49807 b
	351	+
	352	+
	353	+	HB1497 Enrolled- 11 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 11 - LRB103 04797 HEP 49807 b
	354	+	HB1497 Enrolled - 11 - LRB103 04797 HEP 49807 b
	355	+	1 reflected in this amendatory Act of the 103rd General
	356	+	2 Assembly. The notice shall be posted in a conspicuous and
	357	+	3 unobscured place that is separate and apart from any other
	358	+	4 information.
	359	+	5 (c) Multiple recoveries prohibited. Any person who rents a
	360	+	6 motor vehicle to another may not hold the renter liable for any
	361	+	7 amounts that the rental company recovers from any other party.
	362	+	8 (d) Repair estimates. A person who rents a motor vehicle
	363	+	9 to another may not collect or attempt to collect the amount
	364	+	10 described in subsection (b) or (b-5) unless the rental company
	365	+	11 obtains an estimate from a repair company or an appraiser in
	366	+	12 the business of providing such appraisals on the costs of
	367	+	13 repairing the motor vehicle, makes a copy of the estimate
	368	+	14 available upon request to the renter who may be liable under
	369	+	15 subsection (a), or the insurer of the renter, and submits a
	370	+	16 copy of the estimate with any claim to collect the amount
	371	+	17 described in subsection (b) or (b-5). In order to collect the
	372	+	18 amount described in subsection (b-5), a person renting a motor
	373	+	19 vehicle to another must also provide the renter's personal
	374	+	20 insurance company with reasonable notice and an opportunity to
	375	+	21 inspect damages.
	376	+	22 (d-5) In the event of loss due to theft of the rental motor
	377	+	23 vehicle with a MSRP more than $50,000, the rental company
	378	+	24 shall provide reasonable notice of the theft to the renter's
	379	+	25 personal insurance company.
	380	+	26 (e) Duty to mitigate. A claim against a renter resulting
	381	+
	382	+
	383	+
	384	+
	385	+
	386	+	HB1497 Enrolled - 11 - LRB103 04797 HEP 49807 b
	387	+
	388	+
	389	+	HB1497 Enrolled- 12 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 12 - LRB103 04797 HEP 49807 b
	390	+	HB1497 Enrolled - 12 - LRB103 04797 HEP 49807 b
	391	+	1 from damage or loss to a rental vehicle must be reasonably and
	392	+	2 rationally related to the actual loss incurred. A rental
	393	+	3 company shall mitigate damages where possible and shall not
	394	+	4 assert or collect any claim for physical damage which exceeds
	395	+	5 the actual costs of the repair, including all discounts or
	396	+	6 price reductions.
	397	+	7 (f) No rental company shall require a deposit or an
	398	+	8 advance charge against the credit card of a renter, in any
	399	+	9 form, for damages to a vehicle which is in the renter's
	400	+	10 possession, custody, or control. No rental company shall
	401	+	11 require any payment for damage to the rental vehicle, upon the
	402	+	12 renter's return of the vehicle in a damaged condition, until
	403	+	13 after the cost of the damage to the vehicle and liability
	404	+	14 therefor is agreed to between the rental company and renter or
	405	+	15 is determined pursuant to law.
	406	+	16 (g) If insurance coverage exists under the renter's
	407	+	17 personal insurance policy and the coverage is confirmed during
	408	+	18 regular business hours, the renter may require that the rental
	409	+	19 company must submit any claims to the renter's personal
	410	+	20 insurance carrier as the renter's agent. The rental company
	411	+	21 shall not make any written or oral representations that it
	412	+	22 will not present claims or negotiate with the renter's
	413	+	23 insurance carrier. For purposes of this Section, confirmation
	414	+	24 of coverage includes telephone confirmation from insurance
	415	+	25 company representatives during regular business hours. After
	416	+	26 confirmation of coverage, the amount of claim shall be
	417	+
	418	+
	419	+
	420	+
	421	+
	422	+	HB1497 Enrolled - 12 - LRB103 04797 HEP 49807 b
	423	+
	424	+
	425	+	HB1497 Enrolled- 13 -LRB103 04797 HEP 49807 b HB1497 Enrolled - 13 - LRB103 04797 HEP 49807 b
	426	+	HB1497 Enrolled - 13 - LRB103 04797 HEP 49807 b
	427	+	1 resolved between the insurance carrier and the rental company.
	428	+	2 (Source: P.A. 99-201, eff. 10-1-15.)
	429	+	3 Section 99. Effective date. This Act takes upon becoming
	430	+	4 law, except that Section 10 takes effect on January 1, 2024.
	431	+
	432	+
	433	+
	434	+
	435	+
	436	+	HB1497 Enrolled - 13 - LRB103 04797 HEP 49807 b