Chicago City Tax – Can there truly be such a thing and do I need a lawyer?
If you have been contacted by the City of Chicago and have been told that you owe tax to the City, do not be surprised. Under this title, at issue is Chicago Personal Property Lease Transaction Tax or Chicago Transaction Tax. Such a tax is imposed in addition to all other taxes that you are currently paying. Yes, doing business in Chicago, Illinois, is probably not looking as favorable to you right now. If you just found out and need help paying or filing, our team of experienced Chicago city tax lawyers can help.
The most important part of this title is the definitions of the words lease and rental. The words lease and/or rental apply to anything that is not a sale – obviously! Let’s take it a step further. The payment must be equal to the lessor’s cost of the personal property AND the lessee has the option to purchase the property for nominal or no cost.
3-32-030 TAX IMPOSED ON RENTAL
A tax is imposed on:
1. The lease or rental in the city of personal property, OR
2. Using personal property in the city that is leased or rented outside of the city. The obligation to pay the tax are the responsibility of the lessee.
There are numerous exceptions and details to the two factors mentioned above. Where the rental takes places, where the property is used, and tax credits, are all issues that will change the outcome of a case.
If you suspect you need the help of a city tax attorney to pay Chicago taxes, you are probably right. Don’t go it alone, give our local law firm a call today to schedule a free case evaluation.