Bill > HB4037

This bill amends four Illinois tax acts (Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act) to exclude short-term sporting goods leases from taxation. Specifically, beginning January 1, 2026, the bill defines a new exemption for sporting goods leased for less than 10 days. The bill provides a detailed definition of "sporting goods" as tangible personal property used for recreational, health, fitness, or sporting activities, which includes a wide range of items such as golf equipment, tennis rackets, basketball gear, baseball and softball equipment, fishing gear, pickleball paddles, skating equipment, hockey gear, skiing equipment, and various boating equipment. The bill clarifies that this exemption applies across all four tax acts and is part of ongoing efforts to modernize and clarify tax regulations around leased personal property. The changes are designed to provide clarity for businesses and reduce tax complexity for short-term recreational equipment rentals. The bill takes effect immediately upon becoming law, with the specific tax provision becoming operative on January 1, 2026.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=4037&GAID=18&DocTypeID=HB&SessionID=114&GA=104