Effective August 28, 2007, limousines used in interstate commerce may now qualify for the rolling stock exemption under Illinois Sales and Use Tax.
How is “limousine” defined?
For the purpose of this bulletin, “limousine” is defined as any privately owned first division vehicle intended to be used for transportation of persons for-hire when payment is not based on a meter charge, but is prearranged for a designated destination (625 ILCS 5/1-139.1.)
What are the requirements for a limousine to qualify for the rolling stock exemption?
A limousine must carry for hire, persons or property, in interstate commerce for either more than 50 percent of its total trips in a 12-month period, or more than 50 percent of its total miles in a 12-month period.
What qualifies as trips or miles in interstate commerce?
Trips or mileage of limousines for which persons or property are carried for hire just between points in Illinois may be used to qualify for the exemption if the journey of the passenger or shipment of the property either originates or terminates outside Illinois.
How do I document the qualifying method?
At the time of purchase you must identify which qualifying method, trips or miles, you will use and report that choice to us on the required tax return. You must use the limousine in a qualifying manner for each consecutive 12-month period from the initial title or registration date, whichever is later. If you do not, the exemption will be revoked and applicable tax, penalty, and interest will be due. Once made, the qualifying method cannot be changed.
If you do not identify which qualifying method you will use, you will be deemed to have chosen the mileage method.
Note: You do not have to use the same qualifying method for each limousine.
Rolling Stock Exemption Changes
To:
All limousine purchasers who will claim the rolling stock exemption and retailers who must document the exemption
For information
or forms... 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: tax.illinois.gov Call our 24-hour
Forms Order Line at:
1 800 356-6302
This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.
Illinois Department of Revenue
Informational Bulletin
Printed by authority of the State of Illinois
10,000 copies - 10/07- P.O. Number 2080192
FY 2008-03
October 2007
Brian Hamer
Director of Revenue
