Bill Text: IL HB5475 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Vehicle Code. Provides that, from July 1, 2022 through June 30, 2023, the registration fees imposed under this Article shall be reduced by 50%. Provides for transfers from the General Revenue Fund to the Road Fund. Provides that the vehicle use tax shall be suspended from July 1, 2022 through June 30, 2023. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-31 - Referred to Rules Committee [HB5475 Detail]

Download: Illinois-2021-HB5475-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5475 Introduced , by Rep. Amy Elik SYNOPSIS AS INTRODUCED:
625 ILCS 5/3-803.1 new
625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
Amends the Illinois Vehicle Code. Provides that, from July 1, 2022 through June 30, 2023, the registration fees imposed under this Article shall be reduced by 50%. Provides for transfers from the General Revenue Fund to the Road Fund. Provides that the vehicle use tax shall be suspended from July 1, 2022 through June 30, 2023. Effective immediately.
LRB102 25066 HLH 34326 b
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 25. The Illinois Vehicle Code is amended by
changing Section 3-1001 by adding Section 3-803.1 as follows:
(625 ILCS 5/3-803.1 new)
Sec. 3-803.1. Registration fees. Notwithstanding any other
provision of law, from July 1, 2022 through June 30, 2023, the
registration fees imposed under this Article shall be reduced
by 50%. No later than June 30, 2023, the Secretary of State
shall certify to the State Comptroller and the State Treasurer
the amount that would have been deposited into the Road Fund
under this Article if the fees had been imposed. As soon as
possible after receiving that certification, the State
Comptroller shall order transferred and the State Treasurer
shall transfer from the General Revenue Fund to the Road Fund
an amount equal to the amount so certified.
(625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
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

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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
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

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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 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,

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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 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.

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Except as hereinafter provided, beginning on 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:
(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 and the beneficiary is not

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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
Comptroller and the Director of Revenue by the Director of the

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Governor's Office of Management and Budget.
Notwithstanding any other provision of law, the tax under
this Section shall be suspended from July 1, 2022 through July
1, 2023.
(Source: P.A. 102-353, eff. 1-1-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.