CDF Sales Tax Exemption Changes

              This bulletin addresses changes made
to the commercial distribution fee
(CDF) sales tax exemption effective
July 1, 2004.
Definitions
We have used the generic terms “motor
vehicle” and “trailer” throughout this
bulletin. Definitions for both of these
terms are shown below.
The term “motor vehicle” means a
second division motor vehicle as
defined in Section 1-146 of the
Illinois Vehicle Code.
The term “trailer” means a trailer as
defined in Section 1-209 of the
Illinois Vehicle Code, a semitrailer
as defined in Section 1-187 of the
Illinois Vehicle Code, and a pole
trailer as defined in Section 1-161
of the Illinois Vehicle Code.
CDF sales tax exemption
changes
The CDF sales tax exemption will
be repealed July 1, 2005.
Through June 30, 2005, the CDF
sales tax exemption applies to the
purchase of a second division
motor vehicle or trailer if all of the
following qualifications are met.
1 The manufacturer’s gross
vehicle weight rating (GVWR)
is more than 8,000 pounds.
CDF Sales Tax Exemption Changes
For information
or forms...
To:
1) Retailers who file Form ST-556, Sales Tax Transaction Return, and
2) Individuals who file Form RUT-25, Use Tax Transaction Return, or
RUT-50, Vehicle Use Tax Transaction Return
Call us at:
1 800 732-8866 or
217 782-3336
Call our TDD
(telecommunications device
for the deaf) at:
1 800 544-5304
Write us at:
Illinois Department of Revenue
P.O. Box 19044
Springfield, IL 62794-9044
Visit our Web site at:
www.ILtax.com
Call
our 24-hour
Forms Order Line at:
1 800 356-6302
Brian A. Hamer
Director of Revenue
Printed by authority of the State of Illinois
250,000 copies - 7/04
2 The motor vehicle or trailer will
be used primarily for commer-cial
purposes.
3 The Commercial Distribution
Fee administered by the Illinois
Secretary of State is paid
— when the vehicle or trailer is
registered at the time of
purchase (or, directly to the
Illinois Secretary of State
when the purchaser applies
for apportioned plates) and
— in subsequent registration
years.
Note: “Used for commercial purposes”
means that persons or property are
transported as part of a commercial or
industrial enterprise, whether for-hire or
not.
Examples of purchases
that do not qualify for the
CDF sales tax exemption
Although the Commercial Distribution
Fee may be imposed and paid, that
does not mean that the second division
motor vehicle or trailer purchase auto-matically
qualifies for the CDF sales tax
exemption. All other qualifications
identified in this bulletin must be met.
Examples of purchases that do not
qualify for the exemption are listed
below.
1 The purchase of a pick-up truck
with a manufacturer’s GVWR of
Illinois Department of Revenue
Informational Bulletin
July 2004
FY 2005-02
This bulletin is written to
inform you of recent
changes; it does not replace
statutes, rules and regula-tions,
or court decisions.