You may recall that we reported on a new excise tax enacted by the Illinois General Assembly that would impose a state tax on the use of parking facilities. As we noted in our post, the Act applies to any “person” who operates a parking area or parking garage as defined by the Act. The definition of person does not reference municipalities or other units of local government, so it seemed that the tax would not apply to municipal parking garages and lots. As we noted in our previous report, we reached out to various state agencies and organizations to get more clarification on this interpretation. Unfortunately, we received inconsistent messaging on our interpretation.
We wanted to update you, however, because we recently learned that the Illinois Municipal League is urging the General Assembly to amend the Act prior to it taking effect in January to expressly exempt municipal-owned parking facilities. Although we have not yet seen draft legislation, we hope this does, in fact, move forward soon. We are also waiting to see the rules that the Illinois Department of Revenue have been working on to implement this new tax.
As noted before, we will keep you updated as we learn more about this tax and any changes.