CDF Sales Tax Exemption Qualifications

              This bulletin identifies four qualifica-tions
which must be met for a
second division motor vehicle or
trailer purchase to qualify for the
Commercial Distribution Fee (CDF)
sales tax exemption, which began
July 1, 2003.
Definitions
For purposes of the CDF sales tax
exemption, the term
“second division motor vehicle”
has the same meaning as that
in Section 1-146 of the Illinois
Vehicle Code.
“trailer” includes a trailer as
defined in Section 1-209 of the
Illinois Vehicle Code, a semi-trailer
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.
“gross vehicle weight rating”
(GVWR) is the weight identified
by the manufacturer or manu-facturers
as the maximum
loaded weight, including pas-sengers
and cargo, of a single
motor vehicle or trailer (i.e., the
maximum loaded weight that it
can carry safely). This number
is shown on the vehicle’s Safety
Compliance Certification Label,
generally located on the driver’s
side door opening.
CDF Sales Tax Exemption Qualifications
FY 2004-19
December 2003
Illinois Department of Revenue
Informational Bulletin
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
“Illinois Tax Fax,” our
fax-on-demand service, at:
217 785-3400
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
7,000 copies - 12/03 - P.O. Number 2040678
CDF Sales Tax Exemption
Qualifications
The purchase of a second division
motor vehicle or trailer qualifies for
the CDF sales tax exemption if all
of the following conditions are met.
1 The manufacturer’s gross ve-hicle
weight rating (GVWR) is
more than 8,000 pounds.
2 The vehicle will be used primarily
for commercial 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.
4 The exemption is documented
properly.
Examples of purchases
that do not qualify for the
CDF sales tax exemption
Although the Commercial Distribu-tion
Fee may be imposed and paid,
that does not mean that the second
division motor vehicle or trailer
purchase automatically qualifies for