Instructions for Form ST-244 "Rental Purchase Agreement Use Tax Return" - Illinois

This document contains official instructions for Form ST-244, Rental Purchase Agreement Use Tax Return - a form released and collected by the Illinois Department of Revenue.

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Illinois Department of Revenue
Instructions for Form ST-244 Rental Purchase Agreement
Use Tax Return
General Information
Who must file Form ST-244?
When is my return due?
You must file this return and pay Rental Purchase Agreement Use
You must file this return and pay the Rental Purchase Agreement
Tax if you rent merchandise under a rental purchase agreement
Use Tax monthly during the term of the of the rental purchase
(commonly referred to as a "rent-to-own" agreement) from a
agreement. Each month of the term of the rental purchase
business that does not collect Illinois tax from you. Illinois requires
agreement is a separate reporting period, and you must submit a
that Rental Purchase Agreement Use Tax not paid to a merchant
separate Form ST-244, along with a payment for any tax due, for
shall be paid to the Department directly by any person using the
each reporting period. Form ST-244 and its accompanying payment
rented merchandise in Illinois.
are due on or before the last day of the month following the end of
What is a rental purchase agreement?
each reporting period. However, if your total tax liability for the year
is $600 or less, you may pay the tax for the entire year (January 1
A "rental purchase agreement” is an agreement for the use of
through December 31) by filing one Form ST-244 on or before
merchandise by a consumer for personal, family, or household
April 15 of the following year.
purposes for an initial period of four months or less that is
automatically renewable with each payment after the initial period
Note: If the due date falls on a weekend or holiday, your return and
and that permits the consumer to become the owner of the
payment are due the next business day.
merchandise.
How do I file this return and pay the tax due?
What receipts are subject to tax?
Illinois law requires Form ST-244 to be filed electronically, and
The Rental Purchase Agreement Use Tax is imposed on the gross
the tax to be paid electronically. Use MyTax Illinois, available at
mytax.illinois.gov, to file your Form ST-244 and pay any tax due.
receipts paid for renting tangible personal property. "Renting" is
considered any transfer of the possession or right to possession of
To request a waiver of the electronic return filing and payment
merchandise to a user for a valuable consideration under a rental
mandate, complete Form IL-900-EW, Electronic Waiver Request,
purchase agreement. Gross receipts include the total rental price
which is available from the Department by request at 217 782-7897,
or leasing price but do not include receipts received for delivery,
1 800 732-8866, or 217 782-3336. If granted and unless renewed,
reinstatement, processing, waiver, or club program fees.
this waiver shall not exceed two years.
"Rental price" means the consideration for renting merchandise
What if I need help?
valued in money, whether received in money or otherwise,
If you need help, call us at 1 800 732-8866, 217 782-3336, or TDD
including cash, credits, property, and services. Rental price shall
(telecommunications device for the deaf) at 1 800 544-5304, or visit
be determined without any deduction on account of the cost of the
our website at tax.illinois.gov.
property rented, the cost of materials used, labor, or service cost, or
Where do I mail my completed return?
any other expense whatsoever.
If you have been granted a waiver of the electronic return filing
Rental price does not include the following:
mandate, mail your completed return to the following address:
charges added by a merchant on account of the merchant's tax
RENTAL PURCHASE AGREEMENT TAX
liability under the Rental Purchase Agreement Occupation and
ILLINOIS DEPARTMENT OF REVENUE
Use Tax Act or on account of the merchant's duty to collect from
PO BOX 19013
the consumer the Rental Purchase Agreement Use Tax imposed
SPRINGFIELD IL 62794-9013
by the Act;
compensation paid to a merchant by a consumer in
consideration of the merchant's waiver of any right of action
or claim against the consumer for loss or damage to the
merchandise rented;
separately stated charges for insurance; or
other separately stated charges that are not for the use of
tangible personal property.
Specific Instructions
Penalty Information
You must round your figures to whole numbers.
Step 2: Figure your Rental Purchase Agreement Use
You owe a late-filing penalty if you do not file a processable
Tax
return by the due date, a late-payment penalty if you do not pay
the amount you owe by the original due date of the return or were
Line 1 - Enter the total amount paid under rental purchase
required to make quarter-monthly payments and failed to do so,
agreements for this reporting period.
a bad check penalty if your remittance is not honored by your
Line 2 - Multiply Line 1 by 6.25% (.0625).
financial institution, and a cost of collection fee if you do not pay
Line 3 - Enter the amount of Rental Purchase Agreement Use
the amount you owe within 30 days of the date printed on a bill.
Tax you paid to another state (not to another country) on the items
For more information, see Publication 103, Penalty and Interest for
included on Line 1.
Illinois Taxes, available on our website at tax.illinois.gov.
Line 4 - Compare Line 2 and Line 3. If Line 3 is equal to or greater
We will bill you for any penalty and interest amounts owed.
than Line 2, you do not owe Illinois Rental Purchase Agreement Use
Tax. If Line 2 is greater than Line 3, subtract Line 3 from Line 2. This
is the total amount due.
ST-244 Instructions (N-12/17)
Illinois Department of Revenue
Instructions for Form ST-244 Rental Purchase Agreement
Use Tax Return
General Information
Who must file Form ST-244?
When is my return due?
You must file this return and pay Rental Purchase Agreement Use
You must file this return and pay the Rental Purchase Agreement
Tax if you rent merchandise under a rental purchase agreement
Use Tax monthly during the term of the of the rental purchase
(commonly referred to as a "rent-to-own" agreement) from a
agreement. Each month of the term of the rental purchase
business that does not collect Illinois tax from you. Illinois requires
agreement is a separate reporting period, and you must submit a
that Rental Purchase Agreement Use Tax not paid to a merchant
separate Form ST-244, along with a payment for any tax due, for
shall be paid to the Department directly by any person using the
each reporting period. Form ST-244 and its accompanying payment
rented merchandise in Illinois.
are due on or before the last day of the month following the end of
What is a rental purchase agreement?
each reporting period. However, if your total tax liability for the year
is $600 or less, you may pay the tax for the entire year (January 1
A "rental purchase agreement” is an agreement for the use of
through December 31) by filing one Form ST-244 on or before
merchandise by a consumer for personal, family, or household
April 15 of the following year.
purposes for an initial period of four months or less that is
automatically renewable with each payment after the initial period
Note: If the due date falls on a weekend or holiday, your return and
and that permits the consumer to become the owner of the
payment are due the next business day.
merchandise.
How do I file this return and pay the tax due?
What receipts are subject to tax?
Illinois law requires Form ST-244 to be filed electronically, and
The Rental Purchase Agreement Use Tax is imposed on the gross
the tax to be paid electronically. Use MyTax Illinois, available at
mytax.illinois.gov, to file your Form ST-244 and pay any tax due.
receipts paid for renting tangible personal property. "Renting" is
considered any transfer of the possession or right to possession of
To request a waiver of the electronic return filing and payment
merchandise to a user for a valuable consideration under a rental
mandate, complete Form IL-900-EW, Electronic Waiver Request,
purchase agreement. Gross receipts include the total rental price
which is available from the Department by request at 217 782-7897,
or leasing price but do not include receipts received for delivery,
1 800 732-8866, or 217 782-3336. If granted and unless renewed,
reinstatement, processing, waiver, or club program fees.
this waiver shall not exceed two years.
"Rental price" means the consideration for renting merchandise
What if I need help?
valued in money, whether received in money or otherwise,
If you need help, call us at 1 800 732-8866, 217 782-3336, or TDD
including cash, credits, property, and services. Rental price shall
(telecommunications device for the deaf) at 1 800 544-5304, or visit
be determined without any deduction on account of the cost of the
our website at tax.illinois.gov.
property rented, the cost of materials used, labor, or service cost, or
Where do I mail my completed return?
any other expense whatsoever.
If you have been granted a waiver of the electronic return filing
Rental price does not include the following:
mandate, mail your completed return to the following address:
charges added by a merchant on account of the merchant's tax
RENTAL PURCHASE AGREEMENT TAX
liability under the Rental Purchase Agreement Occupation and
ILLINOIS DEPARTMENT OF REVENUE
Use Tax Act or on account of the merchant's duty to collect from
PO BOX 19013
the consumer the Rental Purchase Agreement Use Tax imposed
SPRINGFIELD IL 62794-9013
by the Act;
compensation paid to a merchant by a consumer in
consideration of the merchant's waiver of any right of action
or claim against the consumer for loss or damage to the
merchandise rented;
separately stated charges for insurance; or
other separately stated charges that are not for the use of
tangible personal property.
Specific Instructions
Penalty Information
You must round your figures to whole numbers.
Step 2: Figure your Rental Purchase Agreement Use
You owe a late-filing penalty if you do not file a processable
Tax
return by the due date, a late-payment penalty if you do not pay
the amount you owe by the original due date of the return or were
Line 1 - Enter the total amount paid under rental purchase
required to make quarter-monthly payments and failed to do so,
agreements for this reporting period.
a bad check penalty if your remittance is not honored by your
Line 2 - Multiply Line 1 by 6.25% (.0625).
financial institution, and a cost of collection fee if you do not pay
Line 3 - Enter the amount of Rental Purchase Agreement Use
the amount you owe within 30 days of the date printed on a bill.
Tax you paid to another state (not to another country) on the items
For more information, see Publication 103, Penalty and Interest for
included on Line 1.
Illinois Taxes, available on our website at tax.illinois.gov.
Line 4 - Compare Line 2 and Line 3. If Line 3 is equal to or greater
We will bill you for any penalty and interest amounts owed.
than Line 2, you do not owe Illinois Rental Purchase Agreement Use
Tax. If Line 2 is greater than Line 3, subtract Line 3 from Line 2. This
is the total amount due.
ST-244 Instructions (N-12/17)