102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5475

 

Introduced 1/31/2022, 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.


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A BILL FOR

 

HB5475LRB102 25066 HLH 34326 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 25. The Illinois Vehicle Code is amended by
5changing Section 3-1001 by adding Section 3-803.1 as follows:
 
6    (625 ILCS 5/3-803.1 new)
7    Sec. 3-803.1. Registration fees. Notwithstanding any other
8provision of law, from July 1, 2022 through June 30, 2023, the
9registration fees imposed under this Article shall be reduced
10by 50%. No later than June 30, 2023, the Secretary of State
11shall certify to the State Comptroller and the State Treasurer
12the amount that would have been deposited into the Road Fund
13under this Article if the fees had been imposed. As soon as
14possible after receiving that certification, the State
15Comptroller shall order transferred and the State Treasurer
16shall transfer from the General Revenue Fund to the Road Fund
17an amount equal to the amount so certified.
 
18    (625 ILCS 5/3-1001)  (from Ch. 95 1/2, par. 3-1001)
19    Sec. 3-1001. A tax is hereby imposed on the privilege of
20using, in this State, any motor vehicle as defined in Section
211-146 of this Code acquired by gift, transfer, or purchase,
22and having a year model designation preceding the year of

 

 

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1application for title by 5 or fewer years prior to October 1,
21985 and 10 or fewer years on and after October 1, 1985 and
3prior to January 1, 1988. On and after January 1, 1988, the tax
4shall apply to all motor vehicles without regard to model
5year. Except that the tax shall not apply
6        (i) if the use of the motor vehicle is otherwise taxed
7    under the Use Tax Act;
8        (ii) if the motor vehicle is bought and used by a
9    governmental agency or a society, association, foundation
10    or institution organized and operated exclusively for
11    charitable, religious or educational purposes;
12        (iii) if the use of the motor vehicle is not subject to
13    the Use Tax Act by reason of subsection (a), (b), (c), (d),
14    (e) or (f) of Section 3-55 of that Act dealing with the
15    prevention of actual or likely multistate taxation;
16        (iv) to implements of husbandry;
17        (v) when a junking certificate is issued pursuant to
18    Section 3-117(a) of this Code;
19        (vi) when a vehicle is subject to the replacement
20    vehicle tax imposed by Section 3-2001 of this Act;
21        (vii) when the transfer is a gift to a beneficiary in
22    the administration of an estate and the beneficiary is a
23    surviving spouse.
24    Prior to January 1, 1988, the rate of tax shall be 5% of
25the selling price for each purchase of a motor vehicle covered
26by Section 3-1001 of this Code. Except as hereinafter

 

 

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1provided, beginning January 1, 1988 and until January 1, 2022,
2the rate of tax shall be as follows for transactions in which
3the selling price of the motor vehicle is less than $15,000:
4Number of Years Transpired AfterApplicable Tax
5Model Year of Motor Vehicle
61 or less$390
72290
83215
94165
105115
11690
12780
13865
14950
151040
16over 1025
17Except as hereinafter provided, beginning January 1, 1988 and
18until January 1, 2022, the rate of tax shall be as follows for
19transactions in which the selling price of the motor vehicle
20is $15,000 or more:
21Selling PriceApplicable Tax
22$15,000 - $19,999$ 750
23$20,000 - $24,999$1,000
24$25,000 - $29,999$1,250
25$30,000 and over$1,500
26    Except as hereinafter provided, beginning on January 1,

 

 

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12022, the rate of tax shall be as follows for transactions in
2which the selling price of the motor vehicle is less than
3$15,000:
4        (1) if one year or less has transpired after the model
5    year of the vehicle, then the applicable tax is $465;
6        (2) if 2 years have transpired after the model year of
7    the motor vehicle, then the applicable tax is $365;
8        (3) if 3 years have transpired after the model year of
9    the motor vehicle, then the applicable tax is $290;
10        (4) if 4 years have transpired after the model year of
11    the motor vehicle, then the applicable tax is $240;
12        (5) if 5 years have transpired after the model year of
13    the motor vehicle, then the applicable tax is $190;
14        (6) if 6 years have transpired after the model year of
15    the motor vehicle, then the applicable tax is $165;
16        (7) if 7 years have transpired after the model year of
17    the motor vehicle, then the applicable tax is $155;
18        (8) if 8 years have transpired after the model year of
19    the motor vehicle, then the applicable tax is $140;
20        (9) if 9 years have transpired after the model year of
21    the motor vehicle, then the applicable tax is $125;
22        (10) if 10 years have transpired after the model year
23    of the motor vehicle, then the applicable tax is $115; and
24        (11) if more than 10 years have transpired after the
25    model year of the motor vehicle, then the applicable tax
26    is $100.

 

 

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1    Except as hereinafter provided, beginning on January 1,
22022, the rate of tax shall be as follows for transactions in
3which the selling price of the motor vehicle is $15,000 or
4more:
5        (1) if the selling price is $15,000 or more, but less
6    than $20,000, then the applicable tax shall be $850;
7        (2) if the selling price is $20,000 or more, but less
8    than $25,000, then the applicable tax shall be $1,100;
9        (3) if the selling price is $25,000 or more, but less
10    than $30,000, then the applicable tax shall be $1,350;
11        (4) if the selling price is $30,000 or more, but less
12    than $50,000, then the applicable tax shall be $1,600;
13        (5) if the selling price is $50,000 or more, but less
14    than $100,000, then the applicable tax shall be $2,600;
15        (6) if the selling price is $100,000 or more, but less
16    than $1,000,000, then the applicable tax shall be $5,100;
17    and
18        (7) if the selling price is $1,000,000 or more, then
19    the applicable tax shall be $10,100.
20For the following transactions, the tax rate shall be $15 for
21each motor vehicle acquired in such transaction:
22        (i) when the transferee or purchaser is the spouse,
23    mother, father, brother, sister or child of the
24    transferor;
25        (ii) when the transfer is a gift to a beneficiary in
26    the administration of an estate and the beneficiary is not

 

 

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1    a surviving spouse;
2        (iii) when a motor vehicle which has once been
3    subjected to the Illinois retailers' occupation tax or use
4    tax is transferred in connection with the organization,
5    reorganization, dissolution or partial liquidation of an
6    incorporated or unincorporated business wherein the
7    beneficial ownership is not changed.
8    A claim that the transaction is taxable under subparagraph
9(i) shall be supported by such proof of family relationship as
10provided by rules of the Department.
11    For a transaction in which a motorcycle, motor driven
12cycle or moped is acquired the tax rate shall be $25.
13    On and after October 1, 1985 and until January 1, 2022,
141/12 of $5,000,000 of the moneys received by the Department of
15Revenue pursuant to this Section shall be paid each month into
16the Build Illinois Fund; on and after January 1, 2022, 1/12 of
17$40,000,000 of the moneys received by the Department of
18Revenue pursuant to this Section shall be paid each month into
19the Build Illinois Fund; and the remainder shall be paid into
20the General Revenue Fund.
21    The tax imposed by this Section shall be abated and no
22longer imposed when the amount deposited to secure the bonds
23issued pursuant to the Build Illinois Bond Act is sufficient
24to provide for the payment of the principal of, and interest
25and premium, if any, on the bonds, as certified to the State
26Comptroller and the Director of Revenue by the Director of the

 

 

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1Governor's Office of Management and Budget.
2    Notwithstanding any other provision of law, the tax under
3this Section shall be suspended from July 1, 2022 through July
41, 2023.
5(Source: P.A. 102-353, eff. 1-1-22.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.