The City of Chicago imposes a personal property lease transaction tax (lease tax) on personal property that is leased or rented in the city, as well as on personal property that is leased or rented outside the city but that is used in the city. The rate of lease tax is 9%, effective January 1, 2015.
The guidance—Information Bulletin (November 2015)—discusses a tax ruling issued in June 2015 and certain recent amendments made to the city lease tax ordinances, as passed by the city council in late October 2015. The bulletin also provides for a voluntary disclosure program for taxpayers that may not have been aware of how the lease tax applies to certain transactions.
Read a November 2015 report [PDF 84 KB] prepared by KPMG LLP: Additional Guidance Issued on Application of City of Chicago Personal Property Lease Transaction Tax to Cloud Services
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