Transaction Return Changes

              This bulletin addresses the Commer-cial
Distribution Fee sales tax exemp-tion
and changes to the Rolling Stock
Exemption.
“Commercial Distribution
Fee (CDF)” Sales Tax
Exemption
Beginning July 1, 2003, certain second
division motor vehicle and trailer pur-chases
are exempt from sales tax if the
Commercial Distribution Fee adminis-tered
by the Secretary of State is paid.
This new tax exemption is called the
Commercial Distribution Fee (CDF) sales
tax exemption.
Which purchases qualify for
the CDF sales tax exemption?
A purchase qualifies for the CDF sales
tax exemption if
it is a second division motor vehicle
or trailer with a gross vehicle
weight of more than 8,000 pounds;
and
the Commercial Distribution Fee
administered by the Illinois Secre-tary
of State is paid because the
purchaser will pay either the
— flat weight tax for a bus, truck,
or truck tractor under Section
3-815(a) of the Illinois Vehicle
Code; or
— mileage weight option tax for a
bus, truck, truck tractor, or trailer
under Section 3-818(a) of the
Illinois Vehicle Code.
Note: To help you identify which second
division motor vehicles and trailers
qualify, the flat weight class schedule
and mileage weight option class
         	 
   
  
       
  
       
 
  
    
Illinois Department of Revenue
   	     	   
 
      
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
     
  
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Printed by authority of the State of Illinois
7,000 copies - 6/03 - P.O. Number 2031368
schedule by gross weight and class are
listed on Page 2 of this bulletin.
Must a purchaser who receives
the CDF sales tax exemption
continue to pay the Commer-cial
Distribution Fee to con-tinue
to qualify for the CDF
sales tax exemption?
Yes. The purchaser must continue to
pay the Commercial Distribution Fee in
subsequent years. Otherwise, the
vehicle no longer qualifies for the CDF
sales tax exemption and Illinois Use
Tax is due on the purchase price.
Does the CDF sales tax
exemption also apply to repair
and replacement parts?
No. Purchases of repair and replace-ment
parts do not qualify for the CDF
sales tax exemption. However, these
purchases may qualify for the “rolling
stock” exemption, which is also ad-dressed
in this bulletin.
How is the CDF sales tax
exemption reported and
documented?
The CDF sales tax exemption is re-ported
on one of the following forms:
Form ST-556, Sales Tax Transaction
Return (registered dealers only);
Form RUT-25, Use Tax Transaction
Return (for purchases made from
out-of-state dealers or retailers); or
Form RUT-50, Vehicle Use Tax
Transaction Return (for purchases
made between individuals).
We are currently revising these forms
to include the CDF sales tax exemp-