Current through Register Vol. 48, No. 38, September 20, 2024
a) Qualifications for exemption through June
30, 2004. Beginning on July 1, 2003 through June 30, 2004, sales of certain
motor vehicles are not subject to the tax imposed under this Part if they meet
all of the following tests:
1) The motor
vehicle qualifies as a second division motor vehicle under Section 1-146 of the
Illinois Vehicle Code. First division motor vehicles, such as those motor
vehicles that are designed for the carrying of not more than 10 persons, do not
qualify for the exemption (See
625 ILCS
5/1-146.);
2) The motor vehicle has a gross vehicle
weight in excess of 8,000 pounds; and
3) The motor vehicle is subject to the
Commercial Distribution Fee imposed under Section 3-815.1 of the Illinois
Vehicle Code. [35 ILCS
115/2] The motor vehicle must be registered and
remain registered in such a manner whereby it is subject to payment of the
Commercial Distribution Fee imposed under Section 3-815.1 of the Illinois
Vehicle Code [625 ILCS
5/3-815.1] and such fee is actually paid for any
period in which the fee is in effect.
b) Qualifications for exemption beginning
July 1, 2004. Beginning on July 1, 2004 through June 30, 2005, sales of certain
motor vehicles are not subject to the tax imposed under this Part if they meet
all of the following tests:
1) The motor
vehicle is a second division motor vehicle. First division motor vehicles, such
as those motor vehicles that are designed for the carrying of not more than 10
persons, do not qualify for the exemption (See 625 ILCS 5/1-146.);
2) The motor vehicle must have a gross
vehicle weight rating in excess of 8,000 pounds. For purposes of this Section,
Gross Vehicle Weight Rating means the value specified by the manufacturer or
manufacturers as the maximum loaded weight of a single vehicle. (See 625 ILCS
5/1-124.5.);
3) The motor vehicle
is subject to the Commercial Distribution Fee imposed under Section 3-815.1 of
the Illinois Vehicle Code. The motor vehicle must be registered and remain
registered in such a manner whereby it is subject to payment of the Commercial
Distribution Fee imposed under Section 3-815.1 of the Illinois Vehicle Code
[625 ILCS 5/3-815.1] and such fee is actually paid for any period in which the
fee is in effect; and
4) The motor
vehicle is used primarily for commercial purposes. [35 ILCS 115/2] For purposes
of this Section, a motor vehicle used for commercial purposes means any motor
vehicle used to transport persons or property in the furtherance of any
commercial or industrial enterprise, whether for-hire or not-for-hire.
COMMERCIAL PURPOSE EXAMPLE: A motor vehicle that is used for
transportation to work, school, or recreational activities would not be used
for commercial purposes.
c) Documentation of exemption. To properly
document the exemption, the seller must obtain a written certificate from the
purchaser stating the following:
1) the name,
address, and telephone number of purchaser;
2) the description and Vehicle Identification
Number of the motor vehicle or motor vehicles being purchased;
3) the name and address of seller;
4) the date of purchase;
5) a statement that the motor vehicle will be
used primarily for commercial purposes and will be registered under Section
3-815(a) or 3-818(a) of the Illinois Vehicle Code or in such other manner
whereby the registration of that motor vehicle will require the payment of the
Commercial Distribution Fee imposed under Section 3-815.1 of the Illinois
Vehicle Code and that such vehicle will remain validly registered in such a
manner for subsequent registration years;
6) the commercial purpose for which the
vehicle will be used along with the purchaser's Illinois Business Tax (IBT)
number or other business registration number; and
7) the signature of purchaser.
d) Liability for tax. If a
purchaser claims the exemption provided in this Section and the vehicle is not
considered subject to the Commercial Distribution Fee as described in
subsection (a)(3) or (b)(3) of this Section or otherwise does not qualify for
this exemption, the purchaser will be liable for the tax based upon the
purchase price of that vehicle and any applicable penalties and interest from
the date of purchase.
e) Repair and
replacement parts. The exemption provided in this Section may not be claimed
for any repair part, replacement part, or other item attached or incorporated
into the motor vehicle after the purchase of the motor vehicle. Such items may
qualify for exemption from sales tax if the motor vehicle or trailer is used in
a manner that qualifies for the rolling stock exemption. See 86 Ill. Adm. Code
130.340.
f) Trailers. For purposes of this Section, a
trailer that is subject to the Commercial Distribution Fee imposed under
Section 3-815.1 of the Illinois Vehicle Code will qualify as a second division
motor vehicle under subsection (a)(1) or (b)(1) of this Section. The term
"trailer" includes a trailer as defined in Section 1-209 of the Illinois
Vehicle Code, a semitrailer as defined in Section 1-187 of the Illinois Vehicle
Code, and a pole trailer as defined in Section 1-161 of the Illinois Vehicle
Code.
