Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart J - TRADED-IN PROPERTY › Section 150.1101 - General Information

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				"selling price", which is subject to the Use Tax when a sale at retail is made,
				includes
the consideration for the sale valued in money, whether
				received in money or otherwise, including cash, credits, property other than as
				hereinafter provided, and services, but, prior to January 1, 2020 and beginning
				again on January 1, 2022, not including the value of or credit given for
				traded-in tangible personal property when the item that is traded-in is of like
				kind and character as that which is being sold; beginning January 1, 2020 and
				until January 1, 2022, "selling price" includes the portion of the value of or
				credit given for traded-in motor vehicles of the first division, as defined in
				Section 1-146 of the Illinois Vehicle Code, of like kind and character as that
				which is being sold that exceeds $10,000. "Selling price" shall be determined
				without any deduction on account of the cost of the property sold, the cost of
				materials used, labor or service cost or any other expense whatsoever. "Selling
				price" does not include charges that are added to prices by sellers on account
				of the seller's tax liability under the Retailers' Occupation Tax Act, or on
				account of the seller's duty to collect, from the purchaser, the tax that is
				imposed by the Use Tax Act, or, except as otherwise provided with respect to
				any cigarette tax imposed by a home rule unit, on account of the seller's tax
				liability under any local occupation tax administered by the Department, or,
				except as otherwise provided with respect to any cigarette tax imposed by a
				home rule unit, on account of the seller's duty to collect, from the
				purchasers, the tax that is imposed under any local use tax administered by the
				Department.
[35
				ILCS 105/2]
b) The phrase "like kind and character"
				includes, but is not limited to, the trading of any kind of motor vehicle on
				the purchase of any kind of motor vehicle, or the trading of any kind of farm
				implement on the purchase of any kind of farm implement, while not including a
				kind of item which, if sold at retail by that retailer, would be exempt from
				Retailers' Occupation Tax and Use Tax as an isolated or occasional
				sale.
c) A motor vehicle traded to
				a farm implement dealer for a farm implement would not qualify for the
				exemption unless such farm implement dealer is also a motor vehicle dealer
				because the farm implement dealer's sale of the motor vehicle would be exempt
				as an isolated or occasional sale. A farm implement traded to a motor vehicle
				dealer for a motor vehicle would not qualify for the exemption unless such
				dealer is also a farm implement dealer because the motor vehicle dealer's sale
				of the farm implement would be an exempt isolated or occasional sale. A farm
				implement traded for a motor vehicle, or a motor vehicle traded for a farm
				implement, would qualify for the exemption if the seller is engaged in business
				both as a motor vehicle dealer and a farm implement dealer. Agricultural
				produce or animals traded for a motor vehicle or for a farm implement would not
				qualify for the exemption.
d) The
				real test is whether the retail sale of the traded-in tangible personal
				property by the person who accepted it in trade would be subject to Use Tax, or
				whether such sale would be exempt as an isolated or occasional sale. In the
				former event, the tangible personal property qualifies for the trade-in
				exemption. In the latter event, it does not.
e) No purchase of tangible personal property
				at retail from a person engaged in the business of selling that kind of
				property shall be deemed to be exempt from the Use Tax by reason of the fact
				that the tangible personal property which is being purchased was acquired by
				the seller as a trade-in, rather than being purchased by the seller. The Use
				Tax applies to used tangible personal property (however acquired by the seller
				who is engaged in the business of selling that kind of property), as well as to
				new tangible personal property, as long as the sale is being made at retail by
				a person engaged in the business of selling that kind of property.