Illinois Administrative Code › Title 86 - REVENUE › Part 153 - WATERCRAFT USE TAX › Section 153.115 - Nontaxable Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
The tax imposed by the Watercraft Use Tax Law does not apply
				if:
a) the use of the watercraft is
			 otherwise taxed under the Use Tax Act;
b) the watercraft is bought and used by a
			 governmental agency or a society, association, foundation, or institution
			 organized and operated exclusively for charitable, religious, or educational
			 purposes and that entity has been issued an exemption identification numberthat
			 is active under Section 1g of the Retailers' Occupation Tax Act;
c) the transfer is a gift to a beneficiary in
			 the administration of an estate and the beneficiary is a surviving spouse;
			 or
d) the watercraft is exempted
			 from the numbering provisions of Section 3-12 of the Boat Registration and
			 Safety Act [625 ILCS
			 45/3-12 ]. [35 ILCS
			 158/15-10 ] However, Watercraft Use Tax will become
			 due on any watercraft that is exempted from the numbering provisions of
			 paragraphs A, B, C, F, and G of Section 3-12 of the Boat Registration and
			 Safety Act if that watercraft is used upon the waters of this State over 30
			 accumulated days in any calendar year. The following are the watercraft
			 referred to in paragraphs A, B, C, F, and G of Section 3-12 of the Boat
			 Registration and Safety Act to which the 30-day rule applies:
1) A watercraft that has a valid marine
			 document issued by the United States Coast Guard.
2) A watercraft already covered by a number
			 in full force and effect that has been awarded to it pursuant to Federal law or
			 a Federally approved numbering system of another State.
3) A watercraft from a country other than the
			 United States temporarily using the waters of this State.
4) A watercraft that belongs to a class of
			 boats that has been exempted from numbering by the Department of Natural
			 Resources after that agency has found that an agency of the federal Government
			 has a numbering system applicable to the class of watercraft to which the
			 watercraft in question belongs and would be exempt from numbering if it were
			 subject to the Federal law.
5) A
			 watercraft that is competing in any race approved by the Department of Natural
			 Resources under the provisions of Section 5-15 of the Boat Registration and
			 Safety Act or a watercraft that is designed and intended solely for racing
			 while engaged in navigation that is incidental to preparation of the watercraft
			 for the race. Preparation of the watercraft for the race may be accomplished
			 only after obtaining the written authorization of the Department of Natural
			 Resources.
Example:
A watercraft that has a valid marine document issued by the
				United States Coast Guard and is used upon the waters of this State for 35 days
				in a calendar year is subject to Watercraft Use Tax. The tax applies even
				though the watercraft is not required to be registered under the Boat
				Registration and Safety Act until it has been used upon the waters of this
				State for more than 60 days in a calendar year. See subsection (d).