Illinois enacted legislation which will impose a sales tax of 6.25% on rental purchase agreements (also known as rent-to-own agreements) effective January 1, 2018. Rental purchase agreements covered by this tax include agreements for the use of merchandise by a consumer for personal, family, or household purposes for an initial period of 4 months or less and which permit the consumer to become the owner of the merchandise.
About the Author
Alex Samuel is a Junior Regulatory Counsel at Sovos Compliance. Within Sovos' Regulatory Analysis function, Alex focuses on enterprise sales tax issues arising in various domestic and international jurisdictions. Prior to Sovos, Alex worked as an attorney at New Hampshire Legal Assistance. Alex is a member of the New Hampshire and Massachusetts Bars, earned his B.S. from the University of Minnesota and his J.D./LL.M from the University of New Hampshire School of Law.More Content by Alex Samuel