Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart F - SPECIAL INFORMATION FOR TAXABLE USERS › Section 150.705 - Use Tax on Items that are Titled or Registered in Illinois

Current through Register Vol. 48, No. 28, July 12, 2024
a) Motor vehicles,
				as used in this Regulation, include passenger cars, trucks, busses,
				motorcycles, and any kind of vehicle which is required to be titled under the
				Illinois Vehicle Code [625 ILCS 5/1].
b) Implement of husbandry means:
Every vehicle designed and adapted exclusively for
				  agricultural, horticultural, or livestock raising operations, including farm
				  wagons, wagon trailers or like vehicles used in connection therewith, or for
				  lifting or carrying an implement of husbandry provided that no farm wagon,
				  wagon trailer or like vehicle having a gross weight of more than 36,000 pounds,
				  shall be included hereunder.
[625 ILCS
				  5/1-130 ]
c) Special mobile equipment means:
Every vehicle not designed or used primarily for the
				  transportation of persons or property and only incidentally operated or moved
				  over a highway, including but not limited to: street sweepers, ditch digging
				  apparatus, well boring apparatus and road construction and maintenance
				  machinery such as asphalt spreaders, bituminous mixers, bucket loaders,
				  tractors other than truck tractors, ditchers, levelling graders, finishing
				  machines, motor graders, road rollers, scarifiers, earth moving carryalls and
				  scrapers, power shovels and drag lines, and self-propelled cranes and earth
				  moving equipment. The term does not include house trailers, dump trucks, truck
				  mounted transit mixers, cranes or shovels, or other vehicles designed for the
				  transportation of persons or property to which machinery has been
				  attached.
[625 ILCS 5/1-191
				  ]
d)
For purposes
				of
this Section,
"watercraft" means a Class 2, Class 3, or
				Class 4 watercraft as defined in Section 3-2 of the Boat Registration and
				Safety Act
[625 ILCS 45/3-2 ]
, a
				personal watercraft, or any boat equipped with an inboard motor.
[35 ILCS
				105/10 ]
e) Where the purchaser is paying use tax
				directly to the Department with respect to a motor vehicle, watercraft, or
				aircraft, or with respect to an implement of husbandry or special mobile
				equipment as to which an optional certificate of title will be applied for to
				the Illinois Secretary of State, such payment shall be made separately from any
				other use tax liability, retailers' occupation tax liability, or other
				liability.
The return and tax remittance or proof of exemption from the
				tax that is imposed by
the Act
may be transmitted to the
				Department by way of the State agency with which, or State officer with whom,
				the tangible personal property must be titled or registered (if titling or
				registration is required) if the Department and such agency or State officer
				determine that this procedure will expedite the processing of applications for
				title or registration.
f)
With each return, the purchaser shall remit the proper amount of tax
				due (or shall submit satisfactory evidence that the sale is not taxable if that
				is the case), to the Department or its agents, whereupon the Department shall
				issue, in the purchaser's name, a tax receipt (or a certificate of exemption if
				the Department is satisfied that the particular sale is tax exempt) which such
				purchaser may submit to the agency with which, or State officer with
				whom,
the purchaser
must title or register the tangible
				personal property that is involved (if titling or registration is required) in
				support of such purchaser's application for an Illinois certificate or other
				evidence of title or registration to such tangible personal property.
When a purchaser pays a tax imposed by
the Act
directly to the Department, the Department (upon request therefor from
				such purchaser) shall issue an appropriate receipt to such purchaser showing
				that
the purchaser
has paid such tax to the Department. Such
				receipt shall be sufficient to relieve the purchaser from further liability for
				the tax to which such receipt may refer.
[35 ILCS
				105/10 ] The same comments apply to an implement of
				husbandry or special mobile equipment for which an optional title is being
				sought.
g) The receipt or
				certificate of exemption will be needed in securing an Illinois title to the
				watercraft from the Department of Natural Resources; or to the motor vehicle,
				implement of husbandry or special mobile equipment for which an optional title
				is being sought from the Illinois Secretary of State; or a certificate of
				registration for the aircraft from the Illinois Department of Transportation,
				Division of Aeronautics.
h) When a
				purchaser pays the tax directly to the Department on a motor vehicle,
				watercraft, or aircraft, or on an implement of husbandry or special mobile
				equipment for which the purchaser is seeking an optional title, so that the tax
				is being paid on a transaction by transaction basis, the purchaser should also
				send the Department a copy of the bill of sale or dealer's invoice relating to
				such property for examination.
i)
In addition,
beginning January 1, 2001
, with respect
				to motor vehicles, aircraft, watercraft, and trailers
(and implements
				of husbandry or special mobile equipment for which the purchaser intends to
				apply for an optional title)
, a purchaser of such tangible personal
				property for use in this State, who purchases such tangible personal property
				from an out-of-state retailer, shall file with the Department,
not
				later than 30 days after such tangible personal property is brought into this
				State for use,
upon a form prescribed and supplied by the Department, a
				return for each such item of tangible personal property purchased, except that
				if, in the same transaction,
1)
a purchaser of motor vehicles, aircraft, watercraft, or trailers who is
				a retailer of motor vehicles, aircraft, watercraft, or trailers purchases more
				than one motor vehicle, aircraft, watercraft, or trailer for the purpose of
				resale or
2)
a
				purchaser of motor vehicles, aircraft, watercraft, or trailers purchases more
				than one motor vehicle, aircraft, watercraft, or trailer for use as qualifying
				rolling stock
(see 86 Ill. Adm. Code
				130.340)
as provided in
				Section 3-55 of
the Act
,
then the purchaser may report the purchase of all
				  motor vehicles, aircraft, watercraft, or trailers involved in that transaction
				  to the Department on a single return prescribed by the Department.
[35 ILCS
				  105/10 ] For purposes of the exception in subsection
				  (i)(2) above, purchasers may only report multiple purchases of items of like
				  kind and character on a single return. For example, purchasers may report the
				  purchase of 15 motor vehicles on a single return. However, purchasers may not
				  report the purchase of 10 trailers and 5 motor vehicles on a single return.
				  Such a purchase requires one return for the trailers and a second return for
				  the motor vehicles.