A. Except as otherwise provided in this chapter, a tax is imposed upon: (1) the lease or rental in the city of personal property, or (2) the privilege of using in the city personal property that is leased or rented outside the city. The incidence of the tax and the obligation to pay the tax are upon the lessee of the personal property.
B. The rate of the tax shall be eight percent of the lease or rental price. The tax shall be paid by the lessee at the time of each lease or rental payment, and each tax payment shall be determined by applying the tax rate to the lease or rental payment.
C. For purposes of this chapter, the lease or rental of personal property shall be deemed to take place at the location where the lessee takes possession or delivery of the personal property.
D. Notwithstanding subsection3-32-030" destination-id="JD_3-32-030">3-32-030 A., a lessee of personal property leased or rented in the city shall not be required to pay tax for any lease or rental payment period in which the personal property is used solely outside the city; provided, however, that this subsection 3-32-030" destination-id="JD_3-32-030">3-32-030 D. shall not apply to the lease or rental payment period in which the lessee takes possession or delivery of the personal property at a location in the city.
E. To prevent multiple taxation, any lessee that uses in the city personal property leased or rented outside the city may claim a credit against the tax imposed by this chapter equal to any municipal tax properly due and actually paid to another municipality with respect to the lease or rental of such personal property. The credit may not exceed the amount of the tax imposed by this chapter that otherwise would be due.
F. Nothing in this chapter shall be construed to impose a tax upon any transaction or privilege which, under the constitutions of the United States or the State of Illinois, may not be made the subject of taxation by the city.
(Added Coun. J. 12-15-92, p. 27387; Corrected. 10-7-93, p. 39594; Amend Coun. J. 11-13-07, p. 15814, § 1)