Illinois – Cook County Enacts Use Tax Ordinance for Non-Titled Property

SALT Report 1957 – Cook County passed an ordinance that imposes a 1.25% use tax on non-titled personal property that will be used in the county but was purchased outside of the county. The tax is imposed on the purchaser or user of the non-titled property and is payable when the property is first used in the county.  If the purchaser resides in the county or the property was delivered to a location in the county, the property will be considered for use in the county and first used on the date of delivery.

The ordinance also requires that every person who purchases non-titled personal property that is subject to the use tax register with the Cook County Department of Revenue.  If you have a use tax liability you will receive an annual tax credit for the first non-titled personal property purchased outside the county with a value of $3,500 or more. The credit can be applied to your total tax liabilities accrued under the ordinance.

The following items are exempt from the use tax ordinance:

  • Non-titled personal property exempt from tax under the Illinois Use Tax Act,
  • Food for human consumption that will be consumed off the premises where it is sold, excluding alcoholic beverage, soft drinks, and food that was prepared for immediate consumption within the county, and
  • Prescription and non-prescription medicines, drugs, and medical appliances used by persons who are public aid recipients in nursing homes.  The exemption also applies to insulin, urine testing materials, syringes, and needles used by diabetics.

The following uses are exempt from the use tax ordinance:

  • The use of non-titled personal property acquired outside the county by a non-resident if the property is brought into the county for his or her own use while temporarily in the county,
  • The use of non-titled personal property by an interstate carrier for hire as rolling stock moving in interstate commerce; or the lessor under a lease of at least one year, executed or in effect at the time of purchase, to an interstate carrier for hire, but only so long as the property is used by the interstate carrier,
  • The temporary storage in the county of non-titled personal property that is acquired outside the county and after being brought into the county and stored temporarily in the county is:  used outside the county; physically attached to, or incorporated into, other tangible personal property which is used outside the county; or is altered by converting, fabricating, manufacturing, printing, processing, or shaping and is used outside the county,
  • The temporary storage in the county of building materials and fixtures by a combination retailer and construction contractor if the contractor incorporates the building materials and fixtures into real estate located outside the county,
  • The personal use in the county of non-titled personal property acquired outside the county by a person who, at the time of purchase, was not a resident of the county, and who used the property outside the county for at least three months, and
  • The use in the county of non-titled personal property by a person who uses the property in the course of business and relocates to the county, or opens an office, plant, or other facility in the county, if the property has been used at least three months outside the county by the person before being moved into the county.

The ordinance also provides rules for the filing of returns, tax payments and remittances, as well as the required books and records, and violations and penalties.

For Further Information:

Illinois Department of Revenue – Cook County Ordinance 12-O-63