What corrections did Illinois suggest for a private publication about moving property into Illinois and taxing rented vehicles?

Plain-English summary

Illinois refused to approve the accuracy of a private vehicle-law publication. It directed the publisher to Illinois statutes, administrative rules, and Department publications, then offered limited corrections to reduce incomplete or incorrect information.

Moving property into Illinois

The guide's sentence should begin with "Individuals moving into Illinois" because businesses were not exempt under the provision discussed.

The required prior use outside Illinois should be described as "for at least 3 months," not "90 days or more," under 35 ILCS 105/3-70.

Automobile rental cutoff

The Automobile Renting Occupation and Use Tax applied to vehicles rented for one year or less. The guide's distinction between periods shorter than one year and periods of one year or more placed an exact one-year rental on the wrong side of this tax cutoff.

The Department also found the sentence "No tax required if lessor maintains title and registration of vehicle in existing state" unclear and did not approve it.

The response enclosed the 2011 RUT-50 Vehicle Use Tax Chart but did not reproduce or independently approve the rest of the publication.

What this means for you

Publishers and compliance-guide users

Do not treat this GIL as approval of the guide. Only the specific corrections stated in the letter are supported, and the underlying rules were discussed in 2011.

Individuals moving into Illinois

The wording distinction matters: the letter identified an exemption for individuals and used a minimum period of at least three months of prior out-of-state use.

Vehicle lessors

An exactly one-year rental fell within the one-year-or-less automobile renting tax category described by the Department.

Common questions

Q: Did Illinois certify the private publication as accurate?
A: No.

Q: Did the moving exemption described apply to businesses?
A: No. The Department told the publisher to specify individuals.

Q: Is "at least three months" necessarily identical to "90 days or more"?
A: The Department specifically required the statutory wording "at least 3 months."

Q: Did a rental lasting exactly one year fall under the automobile renting tax?
A: Yes under the cutoff stated in this GIL.

Citations and references

• 35 ILCS 105/3-70 — the moving-to-Illinois prior-use exemption language corrected by the Department.

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2011.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2011/st-11-0077.pdf

Original ruling text

ST 11-0077-GIL 09/16/2011 MISCELLANEOUS
The Department will not approve the accuracy of private legal publications. (This is a GIL.)

September 16, 2011

Dear Xxxxx:
This letter is in response to your letter dated July 1, 2011, in which you request 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 2012 edition of the 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 SEPTEMBER 9, 2011
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.
If you have any questions please give me a call.

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 I, “Title Information”, under the heading “Sales Or Use Tax Applicable To Titling”, in the
discussion regarding residents moving into Illinois: The sentence should begin with “Individuals
moving into Illinois . . .” (since businesses are not exempt). The time period in that sentence should
read “for at least 3 months” instead of “90 days or more”. See 35 ILCS 105/3-70.
In Part VI, “GENERAL INFORMATION”, under the heading “LEASED VEHICLES”: With
respect to whether Automobile Renting Occupation and Use Tax is owed, this tax applies to vehicles
rented for periods of one year or less. Your publication references throughout this Section, leases
for periods of less than one year or one year or more. While this cut-off may be applicable in other
regards, with respect to Automobile Renting Occupation and Use Tax, that tax is triggered upon the
rental of vehicles for periods of one year or less, and does not apply for leases of more than one
year.
In this same Section the sentence “No tax required if lessor maintains title and registration of
vehicle in existing state” appears. It is not clear to us what this sentence means.
I have enclosed the 2011 RUT-50 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:msk
Enc.