Many Illinois rental operators have received inquiries from their fuel suppliers asking whether they are affected by the Illinois Department of Revenue P.A. 102-1019 notices, which address changes to the motor fuel law for the sale of dyed diesel.
The American Rental Association (ARA) has received direction that indicates equipment rental businesses are not impacted by this change, according to Alysia Ryan, ARA director of government affairs. “Rental operators do not rent fuel. They rent equipment. When the renter returns the equipment with the same amount of fuel or is charged a service fee — part of which is the value of the fuels and part of which is the expense associated with filling — this is not considered selling or reselling fuel.”
“If anyone allows people to fill from a pump, that is an entirely different matter,” she adds.
This change apparently came about as the Department of Revenue sought to include out-of-state fuel brokers among those who need to be licensed.
“But Illinois rental operators need to know that they are not renting fuel. They are renting the equipment and providing a service,” she says. “ARA will continue to research the term ‘end user.’ Until/if the determination is made, no Illinois rental operator should seek a private letter ruling.”
For more information on the notices, click here. For questions, contact Ryan at 309-277-4271 or firstname.lastname@example.org.