Illinois Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Illinois Sales and Use Tax Applicable to Registration

 

State tax rate is 6.25% with some locally imposed taxes, RESIDENTS who purchase a new or used vehicle from out-of-state dealers, lending institutions, or leasing companies pay state tax of 6.25% but may include LOCAL TAXES up to 7.25% depending on location in the State, on the net price after trade-in allowance, with CREDIT for sales or use taxes paid to another state. MILITARY PERSONNEL ARE NOT EXEMPT from sales taxes. RESIDENTS moving into Illinois are exempt from the USE TAX if vehicle was purchased AND titles in another state 90 days or more prior to moving into Illinois. NON-RESIDENT who purchase a vehicle in Illinois for registration in another state are not subject to tax if not titled in Illinois. Purchaser must acquire or affix driveaway permit or purchaser must affix non-Illinois license plates to remove from Illinois. Vehicles sold to an INTERSTATE CARRIER to be used for hire, a SCHOOL, a RELIGIOUS ORGANIZATION, or a CHARITABLE ORGANIZATION are EXEMPT. The sale or transfer of a vehicle from an individual other than a retailer is subject to VEHICLE USE TAX on the model year if the selling price was less than $15,000, and on the selling price if $15,000 or more. The VEHICLE USE TAX on sales or transfers of motorcycles and ATV’s is $25.00 and the tax is $15.00 when the sale or transfer is between spouse, parent, brother, sister, or child. TAX EXEMPT when transferring to a surviving spouse. NOTE: There are NO USE TAXES on PRIVATE PARTY TRANSFERS on boats. You need a Use Permit. When a customer receives more than one vehicle from a dealer for their trade-in, and no money changes hands (even trade), a completed tax form is required with every Application for Title, regardless of whether taxes are due or not. The net purchase price is defined as the actual purchase price less the trade-in values(s). If the net purchase price is zero or less, then the tax due is zero. Contact the Illinois Department of Revenue at (800) 732-8866, or (217) 782-3336, to receive assistance with tax computation. By mail contact Illinois Department of Revenue, Sales and Use Taxes, 101 W. Jefferson Street, Springfield, IL 62702 and on the Internet http://www.Iltax.com.