Did Illinois's $15 family-transfer vehicle tax rate apply to a transfer from a stepparent to a stepchild?

Plain-English summary

IDOR rescinded its earlier ST 12-0054-GIL and replaced it with this clarification of the Illinois Private Vehicle Use Tax.

The letter said a $15 tax rate applied in three stated situations:

1. A transfer to the transferor's spouse, mother, father, brother, sister, or child.
2. A gift to a beneficiary during estate administration when the beneficiary was not a surviving spouse.
3. A transfer connected with a business organization, reorganization, dissolution, or partial liquidation when the vehicle had previously been subject to Illinois Retailers' Occupation Tax or Use Tax and beneficial ownership did not change.

The key correction was that the family list did not include a stepchild. IDOR said the statute was limited to the people specifically named.

A person claiming the family rate had to submit a certification with the transferor's and transferee's names and addresses and a statement describing the family relationship.

Common questions

Did the $15 rate apply to stepchildren? No.

Was documentation required for a qualifying family transfer? Yes, a family-relationship certification had to accompany the return.

What happened to ST 12-0054-GIL? IDOR rescinded it effective immediately and issued this letter in its place.

Citations and references

• 625 ILCS 5/3-1001
• 86 Ill. Adm. Code 151.101 and 151.105
• Related guidance: ST 12-0054-GIL, rescinded by this letter and named in prose without a corpus link

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2012.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2012/st-12-0061.pdf

Original ruling text

ST 12-0061-GIL 12/07/2012 VEHICLE USE TAX
Article X of the Illinois Vehicle code imposes a tax on the privilege of using a motor
vehicle in this State that is acquired by gift, transfer, or purchase. This letter rescinds
ST 12-0054-GIL. (This is a GIL.)
December 7, 2012
Dear:
This General Information Letter is sent to you to rescind General Information Letter ST 12-0054-GIL
that was sent to you on September 27, 2012. We are issuing you this letter in its place so that we
may clarify our earlier response.
The Department issues two types of letter rulings. Private Letter Rulings (“PLRs”) are issued by the
Department in response to specific taxpayer inquiries concerning the application of a tax statute or
rule to a particular fact situation. A PLR is binding on the Department, but only as to the taxpayer who
is the subject of the request for ruling and only to the extent the facts recited in the PLR are correct
and complete. Persons seeking PLRs must comply with the procedures for PLRs found in the
Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter
(“GIL”) is to direct taxpayers to Department regulations or other sources of information regarding the
topic about which they have inquired. A GIL is not a statement of Department policy and is not
binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website at
www.ILTAX.com to review regulations, letter rulings and other types of information relevant to your
inquiry.
Article X of the Illinois Vehicle Code imposes a tax on the privilege of using a motor vehicle in this
State that is acquired by gift, transfer, or purchase. 625 ILCS 5/3-1001. See also 86 Ill. Adm. Code
151.101. This tax is commonly referred to as the Private Vehicle Use Tax. With certain exceptions,
the amount of tax assessed is based on the model year of the car unless the purchase price is
$15,000 or greater.
A tax rate of $15 applies under the following circumstances:
(1)

the transferee or purchaser of the motor vehicle is the spouse, mother, father, brother,
sister or child of the transferor;

(2)

the transfer is a gift to a beneficiary in the administration of an estate and the
beneficiary is not a surviving spouse, or

(3)

when the motor vehicle has once been subjected to the Illinois Retailers' Occupation
Tax or Use Tax and 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.

A claim that a transaction is taxable under subsection (1) above 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. See 86 Ill.
Adm. Code 151.105. Note, though, the statute limited the specific persons entitled to a tax rate of
$15 in subsection (1) above. We wanted to clarify that the statute does not extend to step children of

ST 12-0061-GIL
December 7, 2012
Page 2
the transferor. Again, please note that the letter issued September 27, 2012 is rescinded effective
immediately.
I hope this information is helpful. If you require additional information, please visit our website at
www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.
Very truly yours,

Debra M. Boggess
Associate Counsel