In November 2011, the Cook County Board of Commissioners passed the new Use Tax on Non-Retailer Transfers of Motor Vehicles. The Department of Revenue will administer and enforce the tax effective March 1, 2012.
As of March 1, 2012, a tax is applied to the transfer or purchase of a motor vehicle that is titled or registered from a non-retailer (Private Party), at a location in Cook County, with an agency of the State of Illinois (Ordinance 11-0-109) Chapter 74-Article XVII.
This tax shall not apply if the motor vehicle is purchased at retail from a retailer and the purchaser is required to pay the Cook County Use Tax as per Chapter 74 Article VII of the County's Code at the rate of 1%.
*The tax rate of $25 is under the following circumstances:
Transferee of purchaser is a spouse, mother, father, brother, sister or child of the transferor and proof of family relationship is established by proper documentation
Transfer is a gift to a beneficiary of an estate and the beneficiary is not a surviving spouse
The transfer has already been taxed per State's retailer occupation tax, sales tax or use tax and the motor vehicle is transferred in connection with the organization, reorganization, dissolution or partial liquidation of an incorporated or unincorporated business provided that the beneficial ownership is not change
Exemptions to the tax are as follows:
Government agency or a society, association, foundation or institution organized exclusively for charitable, religious or educational purpose
Implements of husbandry (vehicles used for farming or agriculture)
A motor vehicle for which a junking certificate has been issued
A motor vehicle that is subject to the replacement vehicle tax by the State of Illinois
Transfer as a gift to a beneficiary in the administration of an estate and the beneficiary is a surviving spouse.
The use of the vehicle is exempt under the applicable provisions of Section 3-55 (b), (c), (d), (e) & (f) of the State of Illinois Use Tax Act:
i. The use of the vehicle in the State of Illinois as an interstate carrier for hire as rolling stock moving in interstate commerce or by lessors under a lease of one year or longer.
ii. The use of the vehicle, in the State of Illinois, by owners, lessors, or shippers of the vehicle that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce as long as so used by the interstate carriers for hire, and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
iii. The vehicle is in temporary storage, in the State of Illinois and is acquired outside the State and that, after being brought into this State and stored here temporarily; however, is used solely outside this State.
iv. The temporary storage in the State of Illinois of construction related vehicles that are acquired either in the State or outside; however, are used outside the State.
Key Information:
The Cook County Use Tax on non-retailer transfer of motor vehicle is in addition to all other taxes imposed by the county, the State or any municipal corporation or political subdivision. If you are not making a payment online, please detach the coupon from your notice and mail it in along with your payment to the mailing address listed below. NOTE: If you are disputing the tax amount that you received, you must submit a copy of your RUT-50, the notice that you received from the Department by Fax (312) 603-5717 or by mail along with payments to:
COOK COUNTY DEPARTMENT OF REVENUE
NON-RETAILER USE TAX
26335 Network Place
CHICAGO, IL 60673-1263
In order for your payment to be applied correctly, you must pay the EXACT amount noted on your Non-Retailer Use Tax Notice. Underpayments and PAST DUE payments will not be accepted online.
If you acquired the motor vehicle identified on your notice by purchase, gift or transfer from an immediate family member (i.e. spouse, mother, father, sister, brother or child), please provide your RUT-50 form along with a $25.00 check/money order to the address noted on the notice.
If you have any questions regarding payment of the Non-Retailer Use Tax, please contact our call center at (312) 603-6245.
To obtain a copy of the Non-Retailer Handout, please click here.
To obtain a copy of the Non-Retailer Self Assessment form, please click here.
Note: The information contained herein is not meant to be a substitute for the Non-Retailer Use Tax Ordinance, which can be obtained at cookcountygov.com/revenue.