Section 151.101  Nature of Vehicle Use Tax

 

a)         The Vehicle Use Tax is a privilege tax imposed on the privilege of using, in this State, motor vehicles of the First and Second Divisions, motorcycles, motor driven cycles, and motorized pedalcycles.

 

b)         The tax applies to motor vehicles acquired by gift, transfer, or purchase, and having a year model designation preceding the year of application for title by 10 or fewer years on and after October 1, 1985, and prior to January 1, 1988. On and after January 1, 1988, the tax shall apply to all motor vehicles without regard to model year. Section 3-1001 of the Illinois Vehicle Title & Registration Law [625 ILCS 5/3-1001].

 

(Source:  Amended at 24 Ill. Reg. 12087, effective July 28, 2000)

 

Section 151.105  Basis and Rate of the Tax

 

a)         Prior to January 1, 1988, the rate of tax shall be 5% of the selling price for each purchase of a motor vehicle.

 

b)         Except as hereinafter provided, beginning January 1, 1988 and until January 1, 2022, the rate of tax shall be as follows for transactions in which the selling price of the motor vehicle is less than $15,000:

 

NUMBER OF YEARS TRANSPIRED AFTER MODEL YEAR OF MOTOR VEHICLE	APPLICABLE TAX
1 OR LESS	$390
2	290
3	215
4	165
5	115
6	90
7	80
8	65
9	50
10	40
OVER 10	25

 

c)         Except as hereinafter provided, beginning on January 1, 2022, the rate of tax shall be as follows for transactions in which the selling price of the motor vehicle is less than $15,000:

 

NUMBER OF YEARS TRANSPIRED AFTER MODEL YEAR OF MOTOR VEHICLE	APPLICABLE TAX
1 OR LESS	$465
2	365
3	290
4	240
5	190
6	165
7	155
8	140
9	125
10	115
OVER 10	100

 

d)         Except as hereinafter provided, beginning January 1, 1988 and until January 1, 2022, the rate of tax shall be as follows for transactions in which the selling price of the motor vehicle is $15,000 or more:

 

SELLING PRICE	APPLICABLE TAX
$15,000 – $19,999	$   750
$20,000 – $24,999	$1,000
$25,000 – $29,999	$1,250
$30,000 and over	$1,500

 

e)         Except as hereinafter provided, beginning on January 1, 2022, the rate of tax shall be as follows for transactions in which the selling price of the motor vehicle is $15,000 or more:

 

SELLING PRICE	APPLICABLE TAX
$15,000 – $19,999	$   850
$20,000 – $24,999	$1,100
$25,000 – $29,999	$1,350
$30,000 – $49,999	$1,600
$50,000 – $99,999	$2,600
$100,000 – $999,999	$5,100
$1,000,000 and over	$10,100

 

f)         Effective January 1, 1988, the tax rate shall be $15 for each motor vehicle acquired in the following transactions:

 

1)         When the transfer is a gift to a beneficiary in the administration of an estate, which, effective May 13, 2022, includes, but is not limited to, the administration of an inter vivos trust that became irrevocable upon the death of a grantor, and the beneficiary is not a surviving spouse;

 

2)         When a motor vehicle which has once been subjected to the Illinois retailers' occupation tax or use tax is transferred in connection with the organization, reorganization, dissolution or partial liquidation of an incorporated or unincorporated business wherein the beneficial ownership is not changed;

 

3)         When the transferee or purchaser is the spouse, mother, father, brother, sister or child of the transferor. Section 3-1001 of the Illinois Vehicle Title & Registration Law. When the transfer is from one spouse to the other spouse in a dissolution of marriage proceeding the transfer is considered a transfer between spouses for purposes of this subsection.  The transfer must be made no later than 90 days after the date of a final, non-appealable order of dissolution of marriage.

 

g)         A claim that a transaction is taxable under subsection (f)(3) of this Section must be supported by a certification of family relationship. The certificate must be executed by the transferee and submitted at the time of filing the return.  The certification must include the transferor's name and address, the transferee's name and address and a statement that describes the family relationship between them.  In the case of a dissolution of marriage, the transferee spouse shall also certify that the order of dissolution of marriage is final and shall provide a copy of the order of dissolution of marriage.

 

h)         For a transaction in which a motorcycle, motor driven cycle or motorized pedalcycle is acquired the tax rate shall be $25. Section 3-1001 of the Illinois Vehicle Title & Registration Law [625 ILCS 5].

 

i)          For a transaction in which an all-terrain vehicle is acquired, the tax rate shall be $25.

 

j)          For purposes of this Section, "selling price" means the consideration received for a motor vehicle subject to the tax imposed by this Section valued in money, whether received in money or otherwise, including cash, credits, service or property.  In the case of gifts or transfers without reasonable consideration, "selling price" shall be deemed to be the fair market value as determined by the Department or the Department's vendor.  In determining the fair market value, the Department or its vendor shall consider the year, make, model and Vehicle Identification Number.

 

(Source:  Amended at 46 Ill. Reg. 18171, effective October 25, 2022)

 

Section 151.110  Title Application – Returns and Payment

 

a)         The purchaser shall file a return signed by the purchaser with the Department of Revenue on a form prescribed by the Department.

 

b)         Such return and payment from the purchaser shall be submitted to the Department after the sale and shall be a condition to securing the title to the motor vehicle from the Secretary of State. Section 3-1002 of the Illinois Vehicle Title & Registration Law (Ill. Rev. Stat. 1987, ch. 95½, par. 3-1002). Such return and payment from the purchaser or transferee shall be submitted to the Department no later than 30 days after the sale or transfer of the vehicle.

 

c)         When the applicable tax depends upon the "model age" of the vehicle, such "model age" shall be calculated on the date of title application.

 

d)         The "model age" of the vehicle shall be determined by subtracting the model year of the vehicle from the year of the date of title application.

 

(Source:  Amended at 45 Ill. Reg. 11578, effective September 1, 2021)

 

Section 151.115  Nontaxable Transactions

 

The tax does not apply to receipts from sales:

 

a)         If the use of the vehicle is otherwise taxed under the Use Tax Act;

 

b)         If the motor vehicle 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;

 

c)         If the use of the motor vehicle is not subject to the Use Tax Act by reason of Section 3(A), (B), (C), (D), (E) or (F) of that Act dealing with the prevention of actual or likely multistate taxation;

 

d)         Of implements of husbandry;

 

e)         When a Junking Certificate is issued pursuant to Section 3-117.1(a) of the Illinois Vehicle Title & Registration Law [625 ILCS 5/3-117.1];

 

f)         When a vehicle is subject to the replacement vehicle tax imposed by Section 3-2001 of the Illinois Vehicle Title & Registration Law; or

 

g)         When the transfer is a gift to a beneficiary in the administration of an estate and the beneficiary is a surviving spouse [625 ILCS 5/3-1001].

 

(Source:  Amended at 46 Ill. Reg. 18171, effective October 25, 2022)