Non-Retailer Use Tax

Non-Retailer Use Tax

General Information

An ordinance imposing a tax on the non-retail sale or transfer of tangible property titled or registered, with an agency of the State of Illinois, at an address or location inside Cook County.

In November 2011, the Cook County Board of Commissioners passed the County’s fiscal year 2012 budget. As part of the budget, the Use Tax on Non-Retailer Transfers of Motor Vehicles was enacted which, the Department of Revenue will administer and enforce.

Effective 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%.

Rates:

• Age of Vehicle           Rate
• 1 – 5 years                 $225
• 6 to 10 years              $200
• 11 years and over      $175
• Gifts or other non-monetary transfer     $25

Effective August 1, 2013 the Cook County Board of Commissioners approved a rate reduction for vehicles purchased on or after August 1, 2013. If the vehicle was purchased prior to August 1, you are subject to the initial rate that was imposed. The new rates are as follows:

Rates:

• Age of Vehicle          Rate
• 1 – 3 years                $225
• 4 to 8 years               $175
• 9 years and over       $90
• Motorcycles              $90
• Gifts or other non-monetary transfers   $25

State of Illinois

As of July 1, 2015, the Use Tax on Non-Retailer Transfers of Motor Vehicles is collected by the State of Illinois on behalf of the Cook County Department of Revenue at the time of registration.

The tax rate of $25 applies under the following circumstances:

Transferee or 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:

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.

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.

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.

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.

Non Retailer Rate Reduction:

The Cook County Department of Revenue has created a Rate Reduction Form for tax payers of the Non-Retailer Use Tax that meet the specific economic criteria listed below. This form allows for a reduced tax amount of $25.00 for each qualifying transaction. Please complete the application and include it, along with RUT-50 and all required documentation, to the address listed in the upper left corner of the Non-Retailer Rate Reduction form.

Other 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.

The Cook County Department of Revenue will be receiving a monthly transaction file from the Illinois Department of Revenue and Secretary of State of Illinois in order to pursue tax collection efforts.

Secretary of State of Illinois

As of July 2015, the Secretary of State of Illinois collects the Non-Retailer Use Tax at the time of registration for vehicles that were purchased after July 1, 2015.

Payment Options

Check/Money Order: Make payable to the Cook County Department of Revenue and mail to

Cook County Department of Revenue

Non-Retailer Use Tax 

26335 Network Place 

Chicago, IL 60673-1263

Cash: Pay In-Person Only (see address below)

Credit Card:  In-Person Only (see address below)

Cook County Department of Revenue

118 N. Clark Street – Room 1160  

Chicago, IL 60602