What does Illinois General Information Letter ST 18-0004-GIL conclude about Motor Vehicles?

Plain-English summary

This General Information Letter answers an unusual request: a private publisher compiling a nationwide reference guide (described in the letter as the "ABC PUBLICATION," used by DMVs, dealerships, and law enforcement) asked the Illinois Department of Revenue to review and confirm the tax rates, fees, and procedures it planned to print for Illinois motor vehicle transactions. The Department's first and clearest point is that it will not approve or vouch for the accuracy of any private legal publication. That is simply not a service the Department provides, and this letter — like all GILs — is not a statement of Department policy and is not binding, per 2 Ill. Adm. Code 1200.120.

That said, the Department did not stop there. "In the interest of limiting the dissemination of incorrect or incomplete information," it flagged two specific errors in the publisher's draft. First, the draft listed a "local taxes" rate of 7.50% on leased vehicles; the Department corrected this to 7.25%, explaining that a 0.25% tax under the Water Commission Act of 1985 had terminated effective June 1, 2016 (citing 70 ILCS 3720/4(h)). Second, on how Chicago's municipal use tax is administered, the Department clarified that it (the state) administers Chicago's Municipal Use Tax on titled and registered property purchased at retail from a retailer in Cook County and all contiguous counties — suggesting the publisher revise its description accordingly.

Finally, the Department enclosed the 2017 RUT-50 Private Party Vehicle Use Tax Chart as a helpful reference and pointed the requester back to the Illinois statutes, administrative rules, and Department publications as the authoritative sources — not the Department's informal review of a private guide.

What this means for you

Publishers, researchers, and compilers of tax-rate guides

Do not rely on any private publication's stated Illinois rates without checking the primary source. This letter itself shows why: even a well-established nationwide reference had a stale rate on file. Always verify current Illinois motor vehicle tax rates and procedures directly against Illinois statutes, administrative rules, and Department of Revenue publications (or use the RUT-50 chart referenced here) rather than treating any secondary compilation as authoritative.

Dealerships, DMV-adjacent businesses, and law enforcement

If you use a third-party rate guide for Illinois motor vehicle leases or private-party sales, confirm the "local taxes" line reflects 7.25%, not 7.50% — the higher figure included a 0.25% Water Commission Act tax that ended June 1, 2016. Also note that Chicago's Municipal Use Tax on titled/registered property is administered by the state (not solely by the city) when the property is purchased at retail from a retailer in Cook County or a contiguous county.

Accountants and tax professionals

This ruling is a good illustration of the PLR/GIL distinction the Department restates in nearly every letter: a Private Letter Ruling (2 Ill. Adm. Code 1200.110) is binding on the Department as to the specific requesting taxpayer if the facts are complete and correct; a GIL (2 Ill. Adm. Code 1200.120) merely points the requester to relevant regulations or sources and is never a statement of Department policy. Here, because the inquiry was really "please proofread our publication" rather than a fact-specific tax question, the Department treated it as a GIL and gave only limited, courtesy-level input.

Common questions

Q: Did the Department certify that the publisher's guide is now accurate?
A: No. The Department expressly declined to approve the accuracy of any private legal publication, even after suggesting corrections. It only flagged two specific issues; it did not review or bless the rest of the publication.

Q: What was wrong with the original draft?
A: The draft listed a 7.50% "local taxes" rate for leased vehicles. The Department said this should be 7.25%, because a 0.25% tax under the Water Commission Act of 1985 ended June 1, 2016 (70 ILCS 3720/4(h)).

Q: Who administers Chicago's Municipal Use Tax on vehicles?
A: Per this letter, the Illinois Department of Revenue administers Chicago's Municipal Use Tax on titled and registered property purchased at retail from a retailer in Cook County or any contiguous county — the Department suggested revising the publisher's description to reflect this rather than describing it as purely municipal/county-administered.

Q: Is this letter binding or citable as Department policy?
A: No. It is a General Information Letter under 2 Ill. Adm. Code 1200.120, which by definition is not a statement of Department policy and is not binding on the Department. It merely directs the reader to relevant sources.

Citations and references

Statutes and rules:

• 2 Ill. Adm. Code 1200.110 (Private Letter Ruling procedures)
• 2 Ill. Adm. Code 1200.120 (General Information Letter procedures — governs this letter)
• 70 ILCS 3720/4(h), Water Commission Act of 1985 (basis for the 0.25% local tax termination, effective June 1, 2016)

Referenced resource:

• 2017 RUT-50 Private Party Vehicle Use Tax Chart (enclosed with the original letter)

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2018.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2018/st-18-0004-gil.pdf

Original ruling text

ST 18-0004-GIL 02/09/2018 MOTOR VEHICLES
The Department will not approve the accuracy of private legal publications. (This is a GIL.)

February 9, 2018

Dear Xxxxx:
This letter is in response to your letter dated July 5, 2017, in which you requested 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 2018 edition of the ABC PUBLICATION.
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 MONTH XX, 20XX.

ST 18-0004-GIL
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.
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 VI, "GENERAL INFORMATION", under the heading "LEASED VEHICLES", in the portion
that discusses "TAXES", under:
"LOCAL TAXES": "7.50%" should be "7.25%" as a result of the termination of the 0.25% tax
on June 1, 2016 under the Water Commission Act of 1985 (see 70 ILCS 3720/4(h)).
“MUNICIPAL OR COUNTY USE TAX”: The Illinois Department of Revenue administers
Chicago’s Municipal Use Tax on titled and registered property when the property is purchased
at retail from a retailer in Cook County, and in all contiguous counties. One way to reference
this would be to change the last part of this sentence to read “…, which, except for Chicago in
some cases, are administered and collected by the municipality or county.”
I have enclosed the 2017 RUT-50 Private Party Vehicle Use Tax Chart.

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
SJM:bkl