WHAT IS THE COOK COUNTY INDIVIDUAL USE TAX?

The Cook County Department of Revenue Use Tax is charged in connection with the privilege of the use of motor vehicles (motorcycle, moped, car, truck, boat, etc.) on the roads of Cook County, IL and is assessed to all transactions involving the purchase of a vehicle from a dealership located outside of Cook County when the motor vehicle is registered at an address located within Cook County. The Cook County Use Tax Ordinance went into effect December 1, 1995. The revenue collected from this tax is allocated to the Cook County Public Safety Fund, which includes the County’s criminal justice system (courts, juvenile detention, jails and related programs) as well as the Office of the Public Guardian and other departments.

WHY AM I RECEIVING THIS NOTICE?

Cook County receives a file from the Secretary of State. Based on the file, notices are issued by the Department of Revenue. If you are an individual that has purchased any personal property (automobile, truck, watercraft, aircraft, motorcycle, snowmobile, trailer, etc.) at a retail business and titled or registered the property at an address within Cook County, it may be subject to Use Tax. The Department of Revenue does not have a way of knowing if this vehicle was purchased from a private party.

WHAT IS THE TAX RATE?

Prior to January 1, 2012, the Cook County Use Tax Rate was ¾ of 1%.

As of January 1, 2012, the Cook County Use Tax Rate is 1%.

I DIDN’T BUY MY CAR AT A DEALERSHIP, I BOUGHT IT FROM A PRIVATE PARTY (NON-RETAILER).

Prior to March 1, 2012, Cook County Use Tax was not due when a vehicle is purchased from a private individual (non-retailer). The customer should have some documentation showing this, such as an RUT-50 (State of Illinois sales tax form). If the customer cannot locate their RUT-50, they can contact the Illinois Department of Revenue, Records Management Division at 800.732.8866 or 217.782.3336. You can also visit the Illinois Department of Revenue online and download the IL-4506 Request for Copy of Tax Return form which will need to be completed and mailed back to the address on the bottom of the form along with a $5.00 payment (personal check or money order). It will take between 6 to 8 weeks for the customer to receive a copy of the paperwork that they requested.

I BOUGHT MY VEHICLE IN COOK COUNTY.

A copy of the bill of sale or ST-556 will document this. No tax is due if the vehicle was purchased from a dealer located in Cook County.

I BOUGHT MY CAR AT A DEALERSHIP OUT OF STATE. THE RUT-25 SHOWS THAT I PAID THE COOK COUNTY TAX.

RUT-25 is the Illinois sales tax form used when a vehicle is purchased out-of-state and titled in Illinois. It does show a 1% tax for Cook County, but this is not the Cook County Use Tax. This 1% goes to support the RTA. The form can be confusing.

I PAID ALL OF MY TAXES AT THE SECRETARY OF STATE (OR CURRENCY EXCHANGE) WHEN I REGISTERED MY VEHICLE.

If a customer bought the vehicle out-of-state (such as Indiana) or from a non-Cook County dealership, the Cook County tax was not collected. The individual paid for their title, registration and the difference in state taxes (state taxes go to the Illinois Department of Revenue not the County). This Cook County tax can only be paid directly to us. The Secretary of State and/or Currency Exchange is prohibited from collecting this tax.

I DON’T OWN THE CAR. I ONLY CO-SIGNED THE LOAN.

The Dept of Revenue bills the 1st owner listed on the Bill of Sale / Title. That individual is responsible for paying the Cook County Use Tax. The bill is only sent to the 1st owner on the Bill of Sale / Title. The secondary will not receive notice unless the liability is transferred.

THE VEHICLE IS NOT KEPT IN COOK COUNTY.

If the vehicle was correctly titled or registered to an address in Cook County at the time of purchase, it is subject to this tax.

I NO LONGER OWN THIS VEHICLE.

This notice reflects the initial time of purchase. Unless the Cook County tax was paid, it remains due.

Types of documentation you can provide to determine amount of tax due, if any.

1) Bill of Sale sales tax return for vehicles purchased at a dealer (dealer can be located inside or outside of cook county);

2) ST-556 sales tax return for vehicles purchased at retail in Illinois;

3) RUT-25 sales tax return for vehicles purchased at retail outside of Illinois, but titled and registered in Illinois; and

4) RUT-50 sales tax return used for private sales.