Would IDOR verify a private publisher's Illinois motor-vehicle title, tax, lease, fee, and procedure guide?

Plain-English summary

A private publisher asked IDOR to verify Illinois title, tax, lease, fee, and procedure information for a 2016 motor-vehicle textbook used by government agencies, dealers, law enforcement, and other subscribers.

IDOR refused to approve the accuracy of a private legal publication and advised reliance on Illinois statutes, administrative rules, and Department publications.

To reduce incorrect information, it nevertheless suggested specific historical edits. The vehicle-use-tax discussion should identify Form RUT-50; beginning July 1, 2015, that form also collected Chicago and Cook County local vehicle use tax on nonretail transactions. For qualifying vehicles sold for leases over one year beginning January 1, 2016, taxable selling price was based on the lease-contract amount without trade-in credit. The guide also needed to limit trade-in deductions accordingly and explain credit for tax properly paid to another state.

What this means for you

This GIL is a dated correction sheet, not IDOR certification of a commercial reference work. Use the official law and current Department materials rather than treating the 2015 suggestions as current procedure.

Common questions

Did IDOR approve the textbook? No.

Did it provide any corrections? Yes, concerning RUT-50, local vehicle use tax, and the 2016 long-term lease rule.

Citations and references

• 35 ILCS 120/1.

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2015.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2015/st-15-0062-gil.pdf

Original ruling text

ST 15-0062-GIL 10/26/2015 MOTOR VEHICLES
The Department will not approve the accuracy of private legal publications. (This is a
GIL.)

October 26, 2015

Dear Xxxxx:
This letter is in response to your letter dated July 1, 2015, in which you request
information. 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.tax.illinois.gov to review regulations, letter rulings and other types of information relevant
to your inquiry.
The nature of your inquiry and the information you have provided require that we
respond with a GIL. In your letter you have stated and made inquiry as follows:
We are in the process of compiling necessary information that will enable us to
include your state's procedures and fees in the 2016 edition of the ABC Title and
Registration Textbook.
Submitting correct information for the next year is extremely important. Our
publication is utilized by hundreds of thousands of subscribers nationwide
including members of AAMVA, DMV's, dealerships, government agencies, and
law enforcement. The return of accurate data will help ensure proper transactions
AND cut down on calls made to your offices!
1.)

Please verify the tax and lease information shown including
address and phone number(s), fees, and procedures making changes
and/or adding new data for the next year.

2.)

Please send new ORIGINAL sample documents (no photocopies)
if applicable.

THE DEADLINE TO RETURN YOUR INFORMATION IS SEPTEMBER 11, 2015

Page 2
Your assistance is greatly appreciated and I encourage you to contact me
throughout the year as changes in procedures occur. As an Advisory Board
Member you will receive a complimentary copy of the new edition once it
becomes available.
Should you have any questions, please feel free to contact me directly at (###)

-#### ext. ###.

DEPARTMENT’S RESPONSE:
We cannot approve the accuracy of private legal publications. We advise you to consult
Illinois statutes and administrative rules, as well as Department publications on these matters.
However, in the interest of limiting the dissemination of incorrect or incomplete information, we
make the following suggestions.
In Part I, "TITLE INFORMATION", under the heading "SALES OR USE TAX
APPLICABLE TO TITLING":

1. In the sentence that reads “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", add "(Form RUT50)" immediately after "VEHICLE USE TAX."
2. Immediately after the sentence that reads "The VEHICLE USE TAX on sales or
   transfers of motorcycles and ATVs is $25.00, and the tax is $15.00 when the sale or
   transfer of any motor vehicle is between spouse, parent, brother, sister, or child.", add
   a new sentence as follows: "Beginning on July 1, 2015, the Illinois Department of
   Revenue began collecting Chicago and Cook County's local Vehicle Use Tax on nonretail transactions on Form RUT-50 as well."
   In Part VI, "GENERAL INFORMATION", under the heading "LEASED VEHICLES",
   in the portion that discusses "TAXES":
3. Immediately after the sentence that reads "For LEASED VEHICLES (periods of
   more than one year): Lessor is considered user of the vehicle and incurs Illinois Use
   Tax liability when vehicle is brought into the state." add a sentence that reads
   "Effective January 1, 2016, the taxable "selling price" of motor vehicles of the first
   division and certain motor vehicles of the second division sold for the purpose of
   leasing the vehicles for a defined period of more than one year is based on the amount
   of the lease contract, with no credit for trade-ins." See the definition of "selling price"
   at 35 ILCS 120/1.
4. In this same paragraph, add the underscored language to the following sentence
   "Trade-in deduction (except in cases where the taxable selling price is the amount of
   the lease contract) and/or credit for sales tax previously paid in another state is

Page 3
allowed to reduce Illinois Use Tax but only if clearly and separately stated on the Bill
of Sale or other proof of purchase price."
I have enclosed the 2015 RUT-50 Private Party Vehicle Use Tax Chart and the RUT-6
Local Government Private Party Vehicle Use Tax Charts.
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,

Samuel J. Moore
Associate Counsel
Enc.
SJM:mdb