Replacement Vehicle Tax Repealed

              Beginning July 1, 2003, the Replace-ment
Vehicle Tax and sales and use
tax exemptions related to this tax have
been repealed.
How does this change affect
insurance companies?
If you purchase a passenger car in
Illinois on behalf of your insured per-son
as part of a total loss claim, sales
or use tax, whichever is applicable,
must now be paid on the full purchase
price.
If you purchase the vehicle from an
Illinois dealer, sales tax is due on
the full purchase price of the
vehicle, and should be reported to
us by the dealer on Form ST-556,
Sales Tax Transaction Return.
If you purchase the vehicle from an
individual, use tax is due, and
should be reported to us on Form
RUT-50, Vehicle Use Tax Transac-tion
Return.
Note: Insurance companies may no
longer file Form RVT-7, Replacement
Vehicle Tax Return; this form is now
obsolete.
How does this change affect
registered Illinois automobile
dealers?
You may not claim a deduction for a
net insurance settlement amount on
Line 2 of Form ST-556, Sales Tax
          	
   
   
   
        
  
       
    
    
Illinois Department of Revenue
       	
    
     	
 
For information
or forms...
To:
1) Insurance Companies,
2) Retailers who file Form ST-556, Sales Tax Transaction Return, and
3) Individuals who file 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 2031376
Transaction Return, for items sold on or
after July 1, 2003. If you do, we will
disallow the deduction and you may
receive an assessment.
We are revising Form ST-556 to ac-commodate
this change. Continue to
use your current inventory of ST-556
forms until your new shipment arrives.
If you need to file an amended return
for a transaction that occurred before
July 1, 2003, you may take the Re-placement
Vehicle Tax deduction on
Line 2 of your Form ST-556-X,
Amended Sales Tax Transaction
Return.
Questions?
If you have questions or need more
information, please call or write us. Our
telephone numbers and address are
printed on the left side of this bulletin.