101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3660

 

Introduced , by Rep. Robert Martwick

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/3-1001  from Ch. 95 1/2, par. 3-1001

    Amends the Illinois Vehicle Code. Increases the use tax rate for private sales of motor vehicles valued at $30,000 or more from a flat rate of $1,500 to the following rates: $2,000 for a vehicle valued from $30,000 to $49,999; $2,500 for a vehicle valued from $50,000 to $99,999; $5,000 for a vehicle valued from $100,000 to $999,999; and $10,000 for a vehicle valued at $1,000,000 or more. Provides that the same motorcycles, motor driven cycles, and mopeds are subject to the same rates as other motor vehicles (currently a flat rate of $25 is imposed regardless of value). Effective January 1, 2020.


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A BILL FOR

 

HB3660LRB101 10595 HLH 55701 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by changing
5Section 3-1001 as follows:
 
6    (625 ILCS 5/3-1001)  (from Ch. 95 1/2, par. 3-1001)
7    Sec. 3-1001. A tax is hereby imposed on the privilege of
8using, in this State, any motor vehicle as defined in Section
91-146 of this Code acquired by gift, transfer, or purchase, and
10having a year model designation preceding the year of
11application for title by 5 or fewer years prior to October 1,
121985 and 10 or fewer years on and after October 1, 1985 and
13prior to January 1, 1988. On and after January 1, 1988, the tax
14shall apply to all motor vehicles without regard to model year.
15Except that the tax shall not apply
16        (i) if the use of the motor vehicle is otherwise taxed
17    under the Use Tax Act;
18        (ii) if the motor vehicle is bought and used by a
19    governmental agency or a society, association, foundation
20    or institution organized and operated exclusively for
21    charitable, religious or educational purposes;
22        (iii) if the use of the motor vehicle is not subject to
23    the Use Tax Act by reason of subsection (a), (b), (c), (d),

 

 

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1    (e) or (f) of Section 3-55 of that Act dealing with the
2    prevention of actual or likely multistate taxation;
3        (iv) to implements of husbandry;
4        (v) when a junking certificate is issued pursuant to
5    Section 3-117(a) of this Code;
6        (vi) when a vehicle is subject to the replacement
7    vehicle tax imposed by Section 3-2001 of this Act;
8        (vii) when the transfer is a gift to a beneficiary in
9    the administration of an estate and the beneficiary is a
10    surviving spouse.
11    Prior to January 1, 1988, the rate of tax shall be 5% of
12the selling price for each purchase of a motor vehicle covered
13by Section 3-1001 of this Code. Except as hereinafter provided,
14beginning January 1, 1988, the rate of tax shall be as follows
15for transactions in which the selling price of the motor
16vehicle is less than $15,000:
17Number of Years Transpired AfterApplicable Tax
18Model Year of Motor Vehicle
191 or less$390
202290
213215
224165
235115
24690
25780
26865

 

 

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1950
21040
3over 1025
4Except as hereinafter provided, beginning January 1, 1988 and
5through December 31, 2019, the rate of tax shall be as follows
6for transactions in which the selling price of the motor
7vehicle is $15,000 or more:
8Selling PriceApplicable Tax
9$15,000 - $19,999$ 750
10$20,000 - $24,999$1,000
11$25,000 - $29,999$1,250
12$30,000 and over$1,500
13Except as hereinafter provided, beginning January 1, 2020, the
14rate of tax shall be as follows for transactions in which the
15selling price of the motor vehicle is $15,000 or more:
16Selling PriceApplicable Tax
17$15,000 - $19,999$750
18$20,000 - $24,999$1,000
19$25,000 - $29,999$1,250
20$30,000 - $49,999$2,000
21$50,000 - $99,999 $2,500
22$100,000 - $999,999 $5,000
23$1,000,000 and over $10,000
24For the following transactions, the tax rate shall be $15 for
25each motor vehicle acquired in such transaction:
26        (i) when the transferee or purchaser is the spouse,

 

 

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1    mother, father, brother, sister or child of the transferor;
2        (ii) when the transfer is a gift to a beneficiary in
3    the administration of an estate and the beneficiary is not
4    a surviving spouse;
5        (iii) when a motor vehicle which has once been
6    subjected to the Illinois retailers' occupation tax or use
7    tax is transferred in connection with the organization,
8    reorganization, dissolution or partial liquidation of an
9    incorporated or unincorporated business wherein the
10    beneficial ownership is not changed.
11    A claim that the transaction is taxable under subparagraph
12(i) shall be supported by such proof of family relationship as
13provided by rules of the Department.
14    Until January 1, 2020, for For a transaction in which a
15motorcycle, motor driven cycle or moped is acquired the tax
16rate shall be $25. For transactions on or after January 1,
172020, the tax rate for motorcycles, motor driven cycles, and
18mopeds shall be the same as for all other motor vehicles.
19    On and after October 1, 1985, 1/12 of $5,000,000 of the
20moneys received by the Department of Revenue pursuant to this
21Section shall be paid each month into the Build Illinois Fund
22and the remainder into the General Revenue Fund.
23    The tax imposed by this Section shall be abated and no
24longer imposed when the amount deposited to secure the bonds
25issued pursuant to the Build Illinois Bond Act is sufficient to
26provide for the payment of the principal of, and interest and

 

 

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1premium, if any, on the bonds, as certified to the State
2Comptroller and the Director of Revenue by the Director of the
3Governor's Office of Management and Budget.
4(Source: P.A. 96-554, eff. 1-1-10.)
 
5    Section 99. Effective date. This Act takes effect January
61, 2020.