Bill Text: IL HB4284 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Vehicle Code. In provisions concerning a motor vehicle transfer tax when the transfer is pursuant to the administration of an estate and the beneficiary is not a surviving spouse, provides that those provisions also apply to the administration of an inter vivos trust that became irrevocable upon the death of the grantor. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2022-05-13 - Public Act . . . . . . . . . 102-0762 [HB4284 Detail]

Download: Illinois-2021-HB4284-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB4284 Introduced , by Rep. Anne Stava-Murray SYNOPSIS AS INTRODUCED:
625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
Amends the Illinois Vehicle Code. In provisions concerning a motor vehicle transfer tax when the transfer is pursuant to the administration of an estate and the beneficiary is not a surviving spouse, provides that those provisions also apply to the administration of an inter vivos trust that became irrevocable upon the death of the grantor. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Vehicle Code is amended by
changing Section 3-1001 as follows:
(625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
(Text of Section before amendment by P.A. 102-353)
Sec. 3-1001. A tax is hereby imposed on the privilege of
using, in this State, any motor vehicle as defined in Section
1-146 of this Code acquired by gift, transfer, or purchase,
and having a year model designation preceding the year of
application for title by 5 or fewer years prior to October 1,
1985 and 10 or fewer years on and after October 1, 1985 and
prior to January 1, 1988. On and after January 1, 1988, the tax
shall apply to all motor vehicles without regard to model
year. Except that the tax shall not apply
(i) if the use of the motor vehicle is otherwise taxed
under the Use Tax Act;
(ii) if the motor vehicle is bought and used by a
governmental agency or a society, association, foundation
or institution organized and operated exclusively for
charitable, religious or educational purposes;
(iii) if the use of the motor vehicle is not subject to

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the Use Tax Act by reason of subsection (a), (b), (c), (d),
(e) or (f) of Section 3-55 of that Act dealing with the
prevention of actual or likely multistate taxation;
(iv) to implements of husbandry;
(v) when a junking certificate is issued pursuant to
Section 3-117(a) of this Code;
(vi) when a vehicle is subject to the replacement
vehicle tax imposed by Section 3-2001 of this Act;
(vii) when the transfer is a gift to a beneficiary in
the administration of an estate and the beneficiary is a
surviving spouse.
Prior to January 1, 1988, the rate of tax shall be 5% of
the selling price for each purchase of a motor vehicle covered
by Section 3-1001 of this Code. Except as hereinafter
provided, beginning January 1, 1988, the rate of tax shall be
as follows for transactions in which the selling price of the
motor vehicle is less than $15,000:
Number of Years Transpired After Applicable Tax
Model Year of Motor Vehicle
1 or less $390
2 290
3 215
4 165
5 115
6 90
7 80

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8 65
9 50
10 40
over 10 25
Except as hereinafter provided, beginning January 1, 1988, the
rate of tax shall be as follows for transactions in which the
selling price of the motor vehicle is $15,000 or more:
Selling Price Applicable Tax
$15,000 - $19,999 $ 750
$20,000 - $24,999 $1,000
$25,000 - $29,999 $1,250
$30,000 and over $1,500
For the following transactions, the tax rate shall be $15 for
each motor vehicle acquired in such transaction:
(i) when the transferee or purchaser is the spouse,
mother, father, brother, sister or child of the
transferor;
(ii) when the transfer is a gift to a beneficiary in
the administration of an estate, including, but not
limited to, the administration of an inter vivos trust
that became irrevocable upon the death of a grantor, and
the beneficiary is not a surviving spouse;
(iii) when a motor vehicle which has once been
subjected to the Illinois retailers' occupation tax or use
tax is transferred in connection with the organization,
reorganization, dissolution or partial liquidation of an

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incorporated or unincorporated business wherein the
beneficial ownership is not changed.
A claim that the transaction is taxable under subparagraph
(i) shall be supported by such proof of family relationship as
provided by rules of the Department.
For a transaction in which a motorcycle, motor driven
cycle or moped is acquired the tax rate shall be $25.
On and after October 1, 1985, 1/12 of $5,000,000 of the
moneys received by the Department of Revenue pursuant to this
Section shall be paid each month into the Build Illinois Fund
and the remainder into the General Revenue Fund.
The tax imposed by this Section shall be abated and no
longer imposed when the amount deposited to secure the bonds
issued pursuant to the Build Illinois Bond Act is sufficient
to provide for the payment of the principal of, and interest
and premium, if any, on the bonds, as certified to the State
Comptroller and the Director of Revenue by the Director of the
Governor's Office of Management and Budget.
(Source: P.A. 96-554, eff. 1-1-10.)
(Text of Section after amendment by P.A. 102-353)
Sec. 3-1001. A tax is hereby imposed on the privilege of
using, in this State, any motor vehicle as defined in Section
1-146 of this Code acquired by gift, transfer, or purchase,
and having a year model designation preceding the year of
application for title by 5 or fewer years prior to October 1,

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1985 and 10 or fewer years on and after October 1, 1985 and
prior to January 1, 1988. On and after January 1, 1988, the tax
shall apply to all motor vehicles without regard to model
year. Except that the tax shall not apply
(i) if the use of the motor vehicle is otherwise taxed
under the Use Tax Act;
(ii) if the motor vehicle is bought and used by a
governmental agency or a society, association, foundation
or institution organized and operated exclusively for
charitable, religious or educational purposes;
(iii) if the use of the motor vehicle is not subject to
the Use Tax Act by reason of subsection (a), (b), (c), (d),
(e) or (f) of Section 3-55 of that Act dealing with the
prevention of actual or likely multistate taxation;
(iv) to implements of husbandry;
(v) when a junking certificate is issued pursuant to
Section 3-117(a) of this Code;
(vi) when a vehicle is subject to the replacement
vehicle tax imposed by Section 3-2001 of this Act;
(vii) when the transfer is a gift to a beneficiary in
the administration of an estate and the beneficiary is a
surviving spouse.
Prior to January 1, 1988, the rate of tax shall be 5% of
the selling price for each purchase of a motor vehicle covered
by Section 3-1001 of this Code. Except as hereinafter
provided, beginning January 1, 1988 and until January 1, 2022,

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the rate of tax shall be as follows for transactions in which
the selling price of the motor vehicle is less than $15,000:
Number of Years Transpired After Applicable Tax
Model Year of Motor Vehicle
1 or less $390
2 290
3 215
4 165
5 115
6 90
7 80
8 65
9 50
10 40
over 10 25
Except as hereinafter provided, beginning January 1, 1988 and
until January 1, 2022, the rate of tax shall be as follows for
transactions in which the selling price of the motor vehicle
is $15,000 or more:
Selling Price Applicable Tax
$15,000 - $19,999 $ 750
$20,000 - $24,999 $1,000
$25,000 - $29,999 $1,250
$30,000 and over $1,500
Except as hereinafter provided, beginning on January 1,
2022, the rate of tax shall be as follows for transactions in

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which the selling price of the motor vehicle is less than
$15,000:
(1) if one year or less has transpired after the model
year of the vehicle, then the applicable tax is $465;
(2) if 2 years have transpired after the model year of
the motor vehicle, then the applicable tax is $365;
(3) if 3 years have transpired after the model year of
the motor vehicle, then the applicable tax is $290;
(4) if 4 years have transpired after the model year of
the motor vehicle, then the applicable tax is $240;
(5) if 5 years have transpired after the model year of
the motor vehicle, then the applicable tax is $190;
(6) if 6 years have transpired after the model year of
the motor vehicle, then the applicable tax is $165;
(7) if 7 years have transpired after the model year of
the motor vehicle, then the applicable tax is $155;
(8) if 8 years have transpired after the model year of
the motor vehicle, then the applicable tax is $140;
(9) if 9 years have transpired after the model year of
the motor vehicle, then the applicable tax is $125;
(10) if 10 years have transpired after the model year
of the motor vehicle, then the applicable tax is $115; and
(11) if more than 10 years have transpired after the
model year of the motor vehicle, then the applicable tax
is $100.
Except as hereinafter provided, beginning on January 1,

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2022, the rate of tax shall be as follows for transactions in
which the selling price of the motor vehicle is $15,000 or
more:
(1) if the selling price is $15,000 or more, but less
than $20,000, then the applicable tax shall be $850;
(2) if the selling price is $20,000 or more, but less
than $25,000, then the applicable tax shall be $1,100;
(3) if the selling price is $25,000 or more, but less
than $30,000, then the applicable tax shall be $1,350;
(4) if the selling price is $30,000 or more, but less
than $50,000, then the applicable tax shall be $1,600;
(5) if the selling price is $50,000 or more, but less
than $100,000, then the applicable tax shall be $2,600;
(6) if the selling price is $100,000 or more, but less
than $1,000,000, then the applicable tax shall be $5,100;
and
(7) if the selling price is $1,000,000 or more, then
the applicable tax shall be $10,100.
For the following transactions, the tax rate shall be $15 for
each motor vehicle acquired in such transaction:
(i) when the transferee or purchaser is the spouse,
mother, father, brother, sister or child of the
transferor;
(ii) when the transfer is a gift to a beneficiary in
the administration of an estate, including, but not
limited to, the administration of an inter vivos trust

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that became irrevocable upon the death of a grantor, and
the beneficiary is not a surviving spouse;
(iii) when a motor vehicle which has once been
subjected to the Illinois retailers' occupation tax or use
tax is transferred in connection with the organization,
reorganization, dissolution or partial liquidation of an
incorporated or unincorporated business wherein the
beneficial ownership is not changed.
A claim that the transaction is taxable under subparagraph
(i) shall be supported by such proof of family relationship as
provided by rules of the Department.
For a transaction in which a motorcycle, motor driven
cycle or moped is acquired the tax rate shall be $25.
On and after October 1, 1985 and until January 1, 2022,
1/12 of $5,000,000 of the moneys received by the Department of
Revenue pursuant to this Section shall be paid each month into
the Build Illinois Fund; on and after January 1, 2022, 1/12 of
$40,000,000 of the moneys received by the Department of
Revenue pursuant to this Section shall be paid each month into
the Build Illinois Fund; and the remainder shall be paid into
the General Revenue Fund.
The tax imposed by this Section shall be abated and no
longer imposed when the amount deposited to secure the bonds
issued pursuant to the Build Illinois Bond Act is sufficient
to provide for the payment of the principal of, and interest
and premium, if any, on the bonds, as certified to the State

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Comptroller and the Director of Revenue by the Director of the
Governor's Office of Management and Budget.
(Source: P.A. 102-353, eff. 1-1-22.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.