CHICAGO USE TAX FOR TITLED PERSONAL PROPERTY

Municipal Code of Chicago tit. 3, ch. 3-28

in effect

Municipal Code of Chicago § 3-28-010 Title.

3-28-010 Title. This chapter shall be known and may be cited as the "Chicago Use Tax Ordinance for Titled Personal Property". The tax shall be known as the "Chicago Use Tax for Titled Personal Property" 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)

Municipal Code of Chicago § 3-28-020 Definitions.

3-28-020 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) [Reserved] (4) "Illinois Use Tax Act" means the Use Tax Act, effective July 14, 1995, as amended, 35 ILCS 105/1, et seq. (5) "Retailer" means every person defined as a retailer by the Illinois Use Tax Act, as amended, that is engaged in the business of making sales at retail of titled personal property. (6) "Retailer subject to city tax enforcement" means a retailer that: (a) Has or maintains within the city, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business or any agent or other representative operating within the city under the authority of the retailer or its subsidiary, irrespective of whether the place of business or agent or other representative is located in the city permanently or temporarily, or whether the retailer or subsidiary is licensed to do business in the city; or (b) Engages in soliciting orders within the city from persons by means of catalogues, advertising or other types of solicitation, whether such orders are received or accepted within or without the city; or (c) Is owned or controlled by a person that owns or controls other retailers that are engaged in the same or a similar business in the city; or (d) Owns or possesses real or personal property located or used in the city. (7) "Titled personal property" means tangible personal property, as set forth in the Illinois Use Tax Act, as amended, which is titled or registered with an agency of the State of Illinois at a location within the corporate limits of the city. (8) "Use" means the exercise by any person of any right to, or power over, titled personal property incident to the ownership of that property, but does not include: (a) The sale of property in any form as tangible personal property in the regular course of business to the extent that the property is not first subjected to a use for which it was purchased; or (b) The use of property by its owner for demonstration purposes; or (c) The interim use of tangible personal property by a retailer before the retailer sells the property. 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 Use Tax Act, as amended. (Added Coun. J. 11-10-94, p. 59125; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

Municipal Code of Chicago § 3-28-030 Tax imposed.

3-28-030 Tax imposed. A. Pursuant to Section 8-11-6(a) of the Illinois Municipal Code, as amended, a tax is imposed upon the privilege of using in the city titled personal property that is purchased at retail from a retailer. The ultimate incidence of and obligation for payment of the tax is on the purchaser of the titled personal property. B. The rate of the tax shall be one and one- quarter percent of the titled personal property's selling price, as the term "selling price" is defined in the Illinois Use Tax Act, as amended. C. To prevent multiple home rule taxation, the use of titled personal property in the city by a person who paid a home rule municipal tax in another municipality with respect to the sale, purchase or use of the property shall be exempt from the tax imposed by this chapter to the extent of the amount of the tax properly due and actually paid in the other home rule municipality. D. 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; Amend Coun. J. 12-15-04, p. 39840, § 1)

Municipal Code of Chicago § 3-28-031 Exempt uses.

3-28-031 Exempt uses. Notwithstanding any other provision of this chapter, uses of titled personal property that are exempt under the applicable provisions of Section 8-11-6(c) of the Illinois Municipal code, as amended, and the Illinois Use Tax Act, as amended, shall not be subject to the tax imposed by this chapter. (Added Coun. J. 11-10-94, p. 59125)

Municipal Code of Chicago § 3-28-036 Tax collection - Enforcement by state.

3-28-036 Tax collection - Enforcement by state. A. Pursuant to Section 8-11-6(c) of the Illinois Municipal Code, as amended, consent and authority are given to the Illinois Department of Revenue to Collect, administer and enforce the tax imposed by this chapter when titled personal property is purchased at retail from a retailer in Cook, DuPage, Lake, Kane, McHenry or Will counties. B. Sections 3-28-038 through 3-28-110 of this chapter shall not apply to a purchase of titled personal property in Cook, DuPage, Lake, Kane, McHenry or Will counties if the tax is collected, administered and enforced by the Illinois Department of Revenue pursuant to subsection A of this section. (Added Coun. J. 11-10-94, p. 59125)

Municipal Code of Chicago § 3-28-038 Tax collection - Enforcement by city.

3-28-038 Tax collection - Enforcement by city. A. It shall be the duty of every retailer subject to city tax enforcement to collect the tax imposed by this chapter from the purchaser and to remit the tax to the city department in accordance with Section 3-28-040 of this chapter. In the event that a retailer subject to city tax enforcement fails to collect or remit the tax required to be collected by this section, the retailer shall be liable to the city for the amount of such tax. B. Retailers that are not required to collect the tax pursuant to subsection A of this section may voluntarily collect the tax from purchasers. Any retailer that voluntarily collects the tax may retain a commission as authorized in Section 3-28-050 of this chapter. The retailer shall remit the tax collected (less any applicable commission) to the city department in accordance with Section 3-28-040 of this chapter. C. Retailers shall collect the tax imposed by this chapter from purchasers by adding the tax to the selling price of the titled personal property. The amount of the tax shall be stated on the sales receipt or bill as a distinct item separate and apart from the selling price. (Added Coun. J. 11-10-94, p. 59125)

Municipal Code of Chicago § 3-28-040 Obligation of retailers to file remittances and returns.

3-28-040 Obligation of retailers to file remittances and returns. A. On or before the last day of each calendar month, every retailer that either is required to collect or voluntarily collects the tax imposed by this chapter shall file with the city department a remittance return and remit all applicable tax for the preceding calendar month. The return shall be filed on a form prescribed by the comptroller, containing such information as the comptroller may reasonably require. B. Notwithstanding any other provision of this chapter, for all periods beginning on or after January 1, 2000, (1) all tax returns shall be filed with the department on an annual basis on or before April 15 of each year in accordance with Sections 3-4-186 and 3-4-189 of this Code, (2) all tax remittances shall be made in accordance with either Section 3-4-187 (payment of actual tax liabilities) or Section 3-4-188 (payment of estimated taxes), and (3) the provisions of Sections 3-4-186, 3-4-187, 3-4-188 and 3-4-189 shall control over any contrary provisions in this chapter regarding the subjects covered by those sections. (Added Coun. J. 11-10-94, p. 59125; Amend Coun. J. 11-17-99, p. 18040, § 1.2; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

Municipal Code of Chicago § 3-28-050 Commission for collecting and remitting tax.

3-28-050 Commission for collecting and remitting tax. All retailers remitting the tax imposed by this chapter to the city department may retain 2.00 percent of the tax they collect to reimburse themselves for expenses incurred in collecting and remitting the tax. This commission shall not be allowed for taxes not timely remitted to the department. (Added Coun. J. 11-10-94, p. 59125)

Municipal Code of Chicago § 3-28-060 Obligation of purchasers to file returns and pay tax directly to the city department.

3-28-060 Obligation of purchasers to file returns and pay tax directly to the city department. A. If a retailer does not collect the tax imposed by this chapter from the purchaser, then the purchaser shall file a return on a form prescribed by the comptroller and pay the tax directly to the city department on or before the last day of the calendar month following the month that the titled personal property was purchased. B. 1. Pursuant to Section 3-55(b) of the Illinois Use Tax Act, as amended, and Section 3-28-031 of this chapter, if a purchaser of titled personal property leases the property to an interstate carrier for-hire under a lease for one year or longer and the lease is executed or in effect at the time of purchase, then the use of that property by the interstate carrier for-hire is exempt from the tax imposed by this chapter. 2. When the use of the titled personal property described in subsection B.1. of this section reverts to the lessor, the lessor shall file a return with the city department and pay the tax imposed by this chapter based upon the fair market value of the property as of the date of the reversion. The return shall be filed and the tax paid on or before the last day of the month following the calendar month in which the reversion occurred. C. Notwithstanding any other provision of this chapter, for all periods beginning on or after January 1, 2000, (1) all tax returns shall be filed with the department on an annual basis on or before August 15 of each year in accordance with Sections 3-4-186 and 3-4-189 of this Code, (2) all tax payments shall be made in accordance with either Section 3-4-187 (payment of actual tax liabilities) or Section 3-4-188 (payment of estimated taxes), and (3) the provisions of Sections 3-4-186, 3-4-187, 3-4-188 and 3-4-189 shall control over any contrary provisions in this chapter regarding the subjects covered by those sections. (Added Coun. J. 11-10-94, p. 59125; Amend Coun. J. 11-17-99, p. 18040, § 1.2; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

Municipal Code of Chicago § 3-28-070 Registration.

3-28-070 Registration. A. Every retailer that is subject to tax collection responsibilities pursuant to Section 3-28-038(A) of this chapter shall register with the city department on a form prescribed by the comptroller within 30 days after commencing business. B. Purchasers of titled personal property shall register with the city department on a form prescribed by the comptroller within 30 days after incurring $1,000.00 or more of tax liability during the immediately preceding 12 calendar months. C. If any information provided by a person on a registration form ceases to be accurate, then the person shall file a corrected form with the city department prior to the following January 1st. (Added Coun. J. 11-10-94, p. 59125; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

Municipal Code of Chicago § 3-28-080 Resellers of titled personal property.

3-28-080 Resellers of titled personal property. A. If a person claims that it is not liable for the tax imposed by this chapter because it is a reseller of titled personal property, that person shall apply to the city department for a resale number. The applicant shall state facts showing why it is not liable for the tax and shall furnish such additional information as the city department may reasonably require. B. Upon approval of the application, the city department shall assign a resale number to the applicant and shall certify the number to the applicant. C. The city department may cancel the resale number of any person if the number (1) was obtained through misrepresentation, (2) is used to avoid taxation in a case where the purchase in fact was not a purchase for resale or (3) is no longer necessary because the person has discontinued making resales. D. The privilege of using titled personal property in the city shall not be tax-free on the ground that a sale at retail is a sale for resale unless (1) the purchaser has an active resale number issued by the city department and (2) furnishes that number to the retailer in connection with certifying to the retailer that the sale at retail is nontaxable as a sale for resale. (Added Coun. J. 11-10-94, p. 59125; Corrected. 3-9-95, p. 66769)

Municipal Code of Chicago § 3-28-090 Maintaining books and records.

3-28-090 Maintaining books and records. Every retailer subject to city tax enforcement, every retailer that voluntarily collects the tax imposed by this chapter and every purchaser that is required by Section 3-28-060 of this chapter to pay the tax directly to the city department shall retain accurate books and records of each transaction or activity that gave rise, or may have given rise, to any tax liability or exemption under this chapter. All such books and records shall be kept in the English language and, at all times during business hours of the day, shall be subject to and available for inspection by the city department. (Added Coun. J. 11-10-94, p. 59125)

Municipal Code of Chicago § 3-28-100 Rules and regulations.

3-28-100 Rules and regulations. 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; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

Municipal Code of Chicago § 3-28-110 Application of Uniform Revenue Procedures Ordinance.

3-28-110 Application of Uniform Revenue Procedures Ordinance. 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)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2606225Fetched: 10/24/2026