Based on Public Act 98-0628, effective January 1, 2015, lease payments made on certain vehicles that are leased for a period of 12 months plus one day with an option to continue leasing on a monthly basis were not subject to Illinois sales and use tax on the lease receipts because the lease is not for a defined period. In Illinois, the taxable selling price for cars does not include leases where the lease term is not a defined period. This could include leases for a defined initial period with the option to continue the lease on a month-to-month or other basis beyond the initial period. Tax is due on the leasing company’s purchases of the leased cars. (Private Letter Ruling, ST 14-0006-PLR, Illinois Department of Revenue, October 20, 2014)