Application for Small New Business Exemption

January 11, 2016

Click here for the Transaction Tax Exemption Application for Small New Business

Complete this application if you are requesting an exemption for nonpossessory computer leases in accordance with Section 3-32-030A(13)(a) of the Transaction Tax ordinance.

Please note, in order to qualify for this exemption your business must:

1) Hold a valid and current business license issued by the City or another jurisdiction.

2) Have under $25 Million in gross receipts or sales for the most recent full calendar year prior to the annual tax year for which the exemption is sought.

3) Have been in operation for fewer than 60 months.

 

If you do not meet ALL of the above requirements, you will not qualify for the exemption.

 

Section 3-32-030A(13)(a) of the Personal Property Lease Transaction Tax Ordinance provides for an exemption for Nonpossessory Computer Leases for small new businesses. A "small new business" is defined as a business that (i) holds a valid and current business license issued by the City or another jurisdiction, (ii) during the most recent full calendar year prior to the annual tax year for which the exemption provided by this subsection is sought had under $25 million in gross receipts or sales, as the term "gross receipts or sales" is defined for federal income tax purposes, and (iii) has been in operation for fewer than 60 months. For the purpose of calculating the $25 million limit, gross receipts or sales will be combined if they are received by members of a single unitary business group. For purposes of this subsection, the term "unitary business group" is as defined for Illinois income tax purposes. For the purpose of calculating the 60 month limit, time in operation will be deemed to have begun during the first calendar month in which the business seeking the exemption first received any gross receipts or sales. Also for the purpose of calculating the 60 month limit, time in operation will include any earlier time during which any of the following businesses were in operation (i) another existing business, if that business is a member of the same unitary business group as the business seeking the exemption, (ii) a business that is no longer in operation, but that would be a member of the same unitary business group as the business seeking the exemption, if it were still in operation; (iii) a business whose liabilities would be liabilities of the business seeking the exemption, pursuant to Illinois law concerning successor liability; or (iv) any other business that is reasonably determined by the Comptroller to be substantially similar or a predecessor to the one seeking the exemption, based on factors including, but not limited to, common ownership, management, employees, assets, line of business and location.

News Release Facts

I Want To