Instructions For Preparing The Chicago Personal Property Lease/rental Transaction Tax Return For Lessors And Lessees

Use these instructions for periods beginning July 1, 1995

INSTRUCTIONS FOR PREPARING THE CHICAGO PERSONAL PROPERTY LEASE/RENTAL

TRANSACTION TAX RETURN FOR LESSORS AND LESSEES - 7550

Ground transportation vehicle leases where the lessor is subject to the Ground Transportation Tax (Municipal Code Chapter 3-46)

are not to be reported on this return (pursuant to Ch.3-32, Sec. 3-32-050 (A)(6). Do not include these leases on line 1.

LINE 1.

Lessor gross receipts (lessors who lease/rent personal property to lessees must complete lines 1a through 1d):

a. Enter gross receipts from all leases/rentals of personal property where the lessee takes

possession or delivery of property in Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11a.

b. Enter gross receipts from all leases/rentals of personal property where the lessee takes

possession or delivery of property outside Chicago and the property is used at least 50%

of the time in Chicago. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1b.

c. Enter gross receipts from all leases/rentals of personal property where the lessee takes

possession or delivery of property outside Chicago and the property is used more than 50%

of the time outside Chicago. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c.

d. Total lessor gross receipts (add lines 1a, 1b and 1c) . . . . . . . . . . . . . . . . . . . . . . . . .1d.

Lessee payments subject to tax (lessees/renters of personal property must complete line 1e):

e. Enter rental/lease payments, that are subject to Chicago Transaction Tax, on leases where the

lessor did not charge the Chicago Transaction Tax. (see Ch.3-32, Sec. 3-32-080 (3)(B)) . . . . . . 1e.

Total gross receipts and lessee payments (add lines 1d and 1e)

. . . . . . . . . . . . . . . . . . 1f.

LINE 2.

Lessor deductions/exemptions: (Please refer to Municipal Code Chapter 3-32 for details)

a. Receipts from leases/rentals where the lessee takes possession or delivery of personal property

outside Chicago and more than 50% of use occurs outside Chicago . . . . . . . . . . . . . . . . 2a.

b. Leases for re-lease (Ch.3-32, Sec. 3-32-060): Receipts from the lease or rental of certain personal

property where the lessee acts as a lessor of same property. (The lessee must supply

to its lessor a written verification that the property is being leased for release, together with

either (A) a re-lease certificate issued by the department or (B) documentary evidence that the

subsequent lease is exempt from, or otherwise not subject to, the tax.) . . . . . . . . . . . . . . .2b.

c. Receipts from a lessee that is a governmental body . . . . . . . . . . . . . . . . . . . . . . . . . 2c.

d. Receipts from a lessee that is an organization operated exclusively for charitable, educational,

or religious purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2d.

e. Receipts from rental/lease of medical appliances or medical equipment by persons for their

own use to correct or treat their own bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e.

Receipts from lease, rental or use by an interstate carrier for hire of rolling stock actually

moving in interstate commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2f.

g. Separately stated, optional service charges (see Ch.3-32, Sec. 3-32-020 (J)) . . . . . . . . . . . .2g.

h. Chicago Transaction Tax, included in line 1, collected from lessees (6%) . . . . . . . . . . . . . .2h.

State and Metropolitan Pier and Exposition Authority automobile rental taxes included in line 1

. 2i.

Receipts from leases between members of the same "related group" as defined by Ch.3-32,

Sec. 3-32-050 (A) (7).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2j.

k. Receipts from certain leases between membership organizations and their members as stated in

Ch.3-32, Sec. 3-32-050 (A) (8).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2k.

Receipts from the nonpossessory lease of computers to execute, clear, process, match or

record trades on a securities exchange. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2l.

m. Receipts from the nonpossessory lease of computers to deposit, withdraw, transfer or

loan money or securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 m.

n. Receipts from the nonpossessory lease of computers in which the customer's use or control of

the computer is de minimis (see Ch. 3-32, Sec. 3-32-050 (A) (11)).

. . . . . . . . . . . . . . . .2n.

o. Receipts from lease, rental or use of motion picture films by certain amusement providers as stated

in Ch. 3-32, Sec. 3-32-050 (A) (12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2o.

p. Total lessor deductions/exemptions (add lines 2a through 2o) . . . . . . . . . . . . . . . . . . . .2p.

LINE 3.

Lessor receipts and/or lessee payments subject to tax (subtract line 2p from line 1f).

LINE 4.

Preprinted tax rate.

LINE 5.

Tax due before credit (multiply line 3 by line 4).

LINE 6.

Enter credit for overpayment of tax only if you have received a letter of credit from the Chicago Department

of Revenue. Enter the letter of credit number in the bracketed area provided. You must submit a copy of

the letter of credit or the credit will be disallowed.

LINE 7.

Tax due (subtract line 6 from line 5).

LINE 8.

Enter 10% of line 7 to compute penalty if the tax is not paid when due. The tax is due on or before the last

day of the month following the month in which receipts are received. For example, the tax for receipts

received in March is due on or before April 30th.

LINE 9.

Enter 1.25% of line 7 for each month or fraction of a month your payment is past due.

9a. Amount from line 7 . . . . . . . . . . . . . . . . . . 9a.

9b. Multiply by 1.25% . . . . . . . . . . . . . . . . . . . 9b.

.0125

9c.

Total monthly interest . . . . . . . . . . . . . . . . . 9c.

9d. Number of months past due . . . . . . . . . . . . . 9d.

9e. Total due (c x d) . . . . . . . . . . . . . . . . . . . . 9e.

LINE 10. Enter the total amount of tax, penalty and interest due to the City of Chicago (add lines 7, 8 and 9).

LINE 11. Place an "X" in the appropriate payment method box and enter the amount of payment in

the "amount paid" box.

FOR ADDITIONAL INFORMATION CALL 312/747-9723 (TDD 312/744-2975).

NOTE: YOU MUST COMPLETE ALL INFORMATION ON THIS PAGE FOR THIS RETURN TO BE CONSIDERED COMPLETE.

DR 5U 06/95

Instructions For Preparing The Chicago Personal Property Lease/rental Transaction Tax Return For Lessors And Lessees - 7550

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