Illinois Code § 3-1001

§ 3-1001.

A tax is hereby imposed on the privilege of using, in this State, any motor vehicle as defined in Section 1-146 of this Code acquired by gift, transfer, or purchase, and having a year model designation preceding the year of application for title by 5 or fewer years prior to October 1, 1985 and 10 or fewer years on and after October 1, 1985 and prior to January 1, 1988. On and after January 1, 1988, the tax shall apply to all motor vehicles without regard to model year. Except that the tax shall not apply: (i) if the use of the motor vehicle is otherwise taxed under the Use Tax Act; (ii) if the motor vehicle is bought and used by a governmental agency or a society, association, foundation or institution organized and operated exclusively for charitable, religious or educational purposes; (iii) if the use of the motor vehicle is not subject to the Use Tax Act by reason of subsection (a), (b), (c), (d), (e) or (f) of Section 3-55 of that Act dealing with the prevention of actual or likely multistate taxation; (iv) to implements of husbandry; (v) when a junking certificate is issued pursuant to Section 3-117(a) of this Code; (vi) when a vehicle is subject to the replacement vehicle tax imposed by Section 3-2001 of this Act; (vii) when the transfer is a gift to a beneficiary in the administration of an estate and the beneficiary is a surviving spouse; (viii) if the motor vehicle is purchased for the purpose of resale by a retailer registered under Section 2a of the Retailers' Occupation Tax Act. Prior to January 1, 1988, the rate of tax shall be 5% of the selling price for each purchase of a motor vehicle covered by Section 3-1001 of this Code. Except as hereinafter provided, beginning January 1, 1988 and until January 1, 2022, the rate of tax shall be as follows for transactions in which the selling price of the motor vehicle is less than $15,000: Number of Years Transpired After Applicable Tax Model Year of Motor Vehicle 1 or less $390 2 290 3 215 4 165 5 115 6 90 7 80 8 65 9 50 10 40 over 10 25 Except as hereinafter provided, beginning January 1, 1988 and until January 1, 2022, the rate of tax shall be as follows for transactions in which the selling price of the motor vehicle is $15,000 or more: Selling Price Applicable Tax $15,000 - $19,999 $ 750 $20,000 - $24,999 $1,000 $25,000 - $29,999 $1,250 $30,000 and over $1,500 Except as hereinafter provided, beginning on January 1, 2022, the rate of tax shall be as follows for transactions in which the selling price of the motor vehicle is less than $15,000: (1) if one year or less has transpired after the model year of the vehicle, then the applicable tax is $465; (2) if 2 years have transpired after the model year of the motor vehicle, then the applicable tax is $365; (3) if 3 years have transpired after the model year of the motor vehicle, then the applicable tax is $290; (4) if 4 years have transpired after the model year of the motor vehicle, then the applicable tax is $240; (5) if 5 years have transpired after the model year of the motor vehicle, then the applicable tax is $190; (6) if 6 years have transpired after the model year of the motor vehicle, then the applicable tax is $165; (7) if 7 years have transpired after the model year of the motor vehicle, then the applicable tax is $155; (8) if 8 years have transpired after the model year of the motor vehicle, then the applicable tax is $140; (9) if 9 years have transpired after the model year of the motor vehicle, then the applicable tax is $125; (10) if 10 years have transpired after the model year of the motor vehicle, then the applicable tax is $115; and (11) if more than 10 years have transpired after the model year of the motor vehicle, then the applicable tax is $100. Except as hereinafter provided, beginning on January 1, 2022, the rate of tax shall be as follows for transactions in which the selling price of the motor vehicle is $15,000 or more: (1) if the selling price is $15,000 or more, but less than $20,000, then the applicable tax shall be $850; (2) if the selling price is $20,000 or more, but less than $25,000, then the applicable tax shall be $1,100; (3) if the selling price is $25,000 or more, but less than $30,000, then the applicable tax shall be $1,350; (4) if the selling price is $30,000 or more, but less than $50,000, then the applicable tax shall be $1,600; (5) if the selling price is $50,000 or more, but less than $100,000, then the applicable tax shall be $2,600; (6) if the selling price is $100,000 or more, but less than $1,000,000, then the applicable tax shall be $5,100; and (7) if the selling price is $1,000,000 or more, then the applicable tax shall be $10,100. For the following transactions, the tax rate shall be $15 for each motor vehicle acquired in such transaction: (i) when the transferee or purchaser is the spouse, mother, father, brother, sister or child of the transferor; (ii) when the transfer is a gift to a beneficiary in the administration of an estate, including, but not limited to, the administration of an inter vivos trust that became irrevocable upon the death of a grantor, and the beneficiary is not a surviving spouse; (iii) when a motor vehicle which has once been subjected to the Illinois retailers' occupation tax or use tax 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 the transaction is taxable under subparagraph (i) shall be supported by such proof of family relationship as provided by rules of the Department. For a transaction in which a motorcycle, motor driven cycle or moped is acquired the tax rate shall be $25. On and after October 1, 1985 and until January 1, 2022, 1/12 of $5,000,000 of the moneys received by the Department of Revenue pursuant to this Section shall be paid each month into the Build Illinois Fund; on and after January 1, 2022, 1/12 of $40,000,000 of the moneys received by the Department of Revenue pursuant to this Section shall be paid each month into the Build Illinois Fund; and the remainder shall be paid into the General Revenue Fund. The tax imposed by this Section shall be abated and no longer imposed when the amount deposited to secure the bonds issued pursuant to the Build Illinois Bond Act is sufficient to provide for the payment of the principal of, and interest and premium, if any, on the bonds, as certified to the State Comptroller and the Director of Revenue by the Director of the Governor's Office of Management and Budget. (Source: P.A. 104-6, eff. 6-16-25.)