CHICAGO USE TAX FOR NONRETAIL TRANSFERS OF MOTOR VEHICLES

Municipal Code of Chicago tit. 3, ch. 3-29

in effect

Municipal Code of Chicago § 3-29-010 Title.

3-29-010 Title. This chapter shall be known and may be cited as the "Chicago Use Tax Ordinance for Nonretail Transfers of Motor Vehicles". The tax shall be known as the "Chicago Use Tax for Nonretail Transfers of Motor Vehicles" and is imposed in addition to all other taxes imposed by the City of Chicago, the State of Illinois or any other municipal corporation or political subdivision of the State of Illinois. (Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95)

Municipal Code of Chicago § 3-29-020 Definitions.

3-29-020 Definitions. A. When any of the following words or terms are used in this chapter, they shall have the meaning or construction ascribed to them in this section: (1) "City" means the City of Chicago, Illinois. (2) "City department" means the department of finance of the city. (3) "Illinois Vehicle Code" means the Illinois Vehicle Code, effective July 1, 1970, as amended, 625 ILCS 5/1, et seq. (4) "Illinois Use Tax Act" means the Use Tax Act, effective July 14, 1955, as amended, 35 ILCS 105/1, et seq. (5) "Motor vehicle" means a motor vehicle, as defined by the Illinois Vehicle Code, which is titled or registered with an agency of the State of Illinois at a location within the corporate limits of the city. (6) "Use" has, to the extent applicable, the meaning set forth in the Illinois Use Tax Act. (7) "Using in the city" means titling or registering, with an agency of the State of Illinois, a motor vehicle at a location within the corporate limits of the city. B. All words or terms used in this chapter that are not defined in subsection A of this section or in the uniform revenue procedures ordinance, Chapter 3-4 of this Code, as amended, shall have, to the extent applicable and where the context admits, the meaning set forth in the Illinois Vehicle Code. (Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 5-6-15, p. 107645, § 1)

Municipal Code of Chicago § 3-29-030 Tax imposed.

3-29-030 Tax imposed. A. (1) Except as otherwise provided by this chapter, a tax is imposed upon the privilege of using in the city any motor vehicle that is acquired by purchase, gift or transfer. The ultimate incidence of and obligation for payment of the tax is on the person that acquires the motor vehicle by purchase, gift or transfer. (2) Notwithstanding subsection (A)(1) of this section, the tax shall not apply if the motor vehicle is purchased at retail from a retailer and the purchaser is required to pay the use tax imposed by the Chicago Use Tax Ordinance for Titled Personal Property, Chapter 3-28 of this Code. B. To prevent multiple home rule taxation, any person that uses a motor vehicle in the city may claim a credit against the tax imposed by this chapter equal to any home rule municipal tax properly due and actually paid to another home rule municipality with respect to the nonretail sale or other nonretail transfer of the motor vehicle subject to the tax imposed by this chapter. The credit may not exceed the amount of the tax imposed by this chapter that otherwise would be due. C. Nothing in this chapter shall be construed to impose a tax upon any business or activity which, under the constitutions of the United States and the State of Illinois, may not be made the subject of taxation by the city. (Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95)

Municipal Code of Chicago § 3-29-040 Tax rate.

3-29-040 Tax rate. A. Except as provided in subsections B and C of this section, the rate of the tax imposed by this chapter shall be as follows: Number of Years Transpired After Model Year of Motor Vehicle | Applicable Tax 3 or less | $80.00 4 through 8 | $65.00 9 through 14 | $50.00 15 or more | $0.00 (no tax) B. Unless no tax applies because of the age of the vehicle as provided in subsection (A), the rate of the tax shall be $15.00 for each motor vehicle acquired under the following circumstances: (1) The transferee or purchaser is the spouse, mother, father, brother, sister or child of the transferor and proof of family relationship is established; (2) The transfer is a gift to a beneficiary in the administration of an estate and the beneficiary is not a surviving spouse; (3) The motor vehicle has once been taxed pursuant to the Illinois Retailers’ Occupation Tax Act, 35 ILCS 120/1, et seq., as amended, or the Illinois Use Tax Act or any other state retailers’ occupation tax, sales tax or use tax and the motor vehicle is transferred in connection with the organization, reorganization, dissolution or partial liquidation of an incorporated or unincorporated business provided that the beneficial ownership is not changed. C. The rate of the tax shall be $15.00 for each motorcycle, motor-driven cycle or motorized pedacycle that is acquired. (Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95; Amend Coun. J. 5-6-15, p. 107645, § 1; Amend Coun. J. 11-14-18, p. 90376, Art. VI, § 1)

Municipal Code of Chicago § 3-29-050 Exemptions.

3-29-050 Exemptions. Notwithstanding any other provision of this chapter, the tax imposed by this chapter shall not apply to: A. A motor vehicle that is purchased and used by a governmental agency or a society, association, foundation or institution organized and operated exclusively for charitable, religious or educational purposes; B. The use of a motor vehicle that is exempt under the Illinois Use Tax Act; C. Implements of husbandry; D. A motor vehicle for which a junking certificate has been issued pursuant to Section 3-117.1(a) of the Illinois Vehicle Code; E. A motor vehicle that is transferred as a gift to a beneficiary in the administration of an estate and the beneficiary is a surviving spouse. (Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95; Amend Coun. J. 5-6-15, p. 107645, § 1)

Municipal Code of Chicago § 3-29-055 Collection of tax.

3-29-055 Collection of tax. A. In accordance with the Local Tax Collection Act (35 ILCS 720/0.01, et seq.), the city comptroller may enter into and execute an agreement with the Illinois Department of Revenue to allow the Illinois Department of Revenue to collect and enforce the tax imposed by this chapter on behalf of the city including all civil penalties that may be assessed as an incident of the tax. Such agreement may provide for an administration fee and indemnification. At such time as the Illinois Department of Revenue begins to collect and enforce the tax pursuant to such an agreement, the Illinois Department of Revenue shall have full power to administer and enforce the provisions of this chapter. B. If an agreement is entered into and executed as provided in this section, the Illinois Department of Revenue and persons subject to the tax collected by the Illinois Department of Revenue pursuant to this chapter shall, as much as practicable and to the extent allowed by law, have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties, definitions of terms and procedures, as those set forth in the Local Tax Collection Act (35 ILCS 720, et seq.) and the intergovernmental agreement between the City of Chicago and the Illinois Department of Revenue executed in accordance with that Act, the Vehicle Use Tax under Article X of Chapter 3 of the Illinois Vehicle Code (625 ILCS 5/3-1001, et seq.), and the Uniform Penalty and Interest Act (35 ILCS 735/3-1, et seq.). (Added Coun. J. 5-6-15, p. 107645, § 1)

Municipal Code of Chicago § 3-29-060 Obligation of taxpayers to file returns and pay tax.

3-29-060 Obligation of taxpayers to file returns and pay tax. Except as otherwise provided under Section 3-29-055, every person that is required to pay the tax imposed by this chapter shall file a return on a form prescribed by the comptroller and pay all applicable tax to the city department or its designee on or before the last day of the calendar month following the month that the motor vehicle was acquired. (Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 5-6-15, p. 107645, § 1)

Municipal Code of Chicago § 3-29-070 Rules and regulations.

3-29-070 Rules and regulations. Except as otherwise provided under Section 3-29-055, the comptroller is authorized to adopt, promulgate and enforce reasonable rules and regulations pertaining to the administration and enforcement of this chapter. (Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 5-6-15, p. 107645, § 1)

Municipal Code of Chicago § 3-29-080 Application of Uniform Revenue Procedures Ordinance.

3-29-080 Application of Uniform Revenue Procedures Ordinance. Except as otherwise provided under Section 3-29-055, whenever not inconsistent with the provisions of this chapter or whenever this chapter is silent, the provisions of the Uniform Revenue Procedures Ordinance, Chapter 3-4 of this Code, as amended, shall apply to and supplement this chapter. (Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95; Amend Coun. J. 5-6-15, p. 107645, § 1)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2606313Fetched: 10/24/2026