Need some help on car buying rules.. Michigan to Illinois - Chicagoland Sportbikes
Chicagoland Sportbikes
 
Open Forum This forum is for all off-topic discussion.

 
LinkBack Thread Tools Display Modes
post #1 of 3 (permalink) Old 12-19-2009, 12:14 PM Thread Starter
Registered User
 
iamnotgreg's Avatar
 
Join Date: Jun 2003
Location: Chicago
Posts: 12,528
Location: Chicago
Sportbike: 2003 Aprilia Mille R Colin Edwards / 01-02 Ninj ZX6r Tracktoy / 2003 SV650
Years Riding: 12
How you found us: some guy at the IBM credit union told me about it
           
Need some help on car buying rules.. Michigan to Illinois

I have a question and I don't have a lot of time to do research and am not quite sure how to definitively find this out (the surprise would be expensive)

Here is the deal -

My Father in law and brother in law are out buying a car in Michigan for my Brother in law - A new car from a dealership (who incidentally doesn't know how this works either) ...

There is some incentive for Chrysler owners in Michigan they get an additonal $1,000 off the purchase of a new car.... So his Dad is going to cosign for the car - but the car has to be registered in Michigan for the rebate.

If they purchase the car in Michigan and title it there - then My bro in law transfers it out to Ill (he just graduated college and moved here recently) ..

Would they get hit with sales tax a second time for Illinois?

I seem to remember Ill having some law about if you buy a car in Indiana and transfer it within x time period (i cant remember what x is) you have to pay the sales tax in Ill.. If I remember correctly it was put in because people would buy cars in low tax indianaland and then register them over in cheap plates illinoisland..

I have to run Wife has an appt - but I figured there would be someone on here who knew the answer to this one.. I'll be checking with my iphone from the road.

Thanks in advance
Greg
iamnotgreg is offline  
Sponsored Links
Advertisement
 
post #2 of 3 (permalink) Old 12-19-2009, 12:18 PM
Registered User
 
Pilotx1's Avatar
 
Join Date: Apr 2008
Location: Elk Grove IL
Posts: 15,832
Location: Elk Grove IL
Sportbike: '03 Gsxr 1000, '04 Zuma,07 GSXR 600 trackbike
Years Riding: june 2007, since new,july '10
How you found us: friend
           
Send a message via AIM to Pilotx1 Send a message via Yahoo to Pilotx1
Titled or registered items (these forms are not available on-line)
Registered Illinois dealers who sell vehicles, watercraft, aircraft, trailers, and mobile homes must file Form ST-556, Sales Tax Transaction Return, within 20 days of the delivery date.

Individuals who purchase items that must be titled or registered in Illinois from an out-of-state retailer (i.e., dealer, lending institution, leasing company selling at retail, or leasing company leasing items to Illinois residents) must file Form RUT-25, Vehicle Use Tax Transaction Return, on the date the Illinois title and registration is applied for, but not more than 30 days after the date the item is brought into Illinois.

Individuals who purchase (or acquire by gift or transfer) motor vehicles that must be titled or registered from another individual or private party must file Form RUT-50, Private Party Vehicle Tax Transaction Return, within 30 days from the date the vehicle is purchased or acquired. (See “Vehicle Use Tax”) Individuals who acquire (by gift, donation, transfer, or non-retail purchase) aircraft or watercraft that must be registered must file Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return, no later than 30 days from the date the item was acquired or the date the item was brought into Illinois, whichever is later. (See “Aircraft Use Tax” and “Watercraft Use Tax”.)

from: http://www.revenue.state.il.us/busin.../sales/rot.htm

-Jason
CCS AM #31
Pilotx1 is offline  
post #3 of 3 (permalink) Old 12-19-2009, 06:14 PM
Registered User
 
beac83's Avatar
 
Join Date: Jun 2008
Location: Morgan Park, IL
Posts: 3,741
Location: Morgan Park, IL
Sportbike: A couple
Years Riding: too long to have any sense
How you found us: NESBA
           
I'd put BOTH names on the title, and then title it in Michigan. In a year or so, transfer title to Illinois, tell them that you moved into the state. You'll pay the title fee $68 + plates, but since there was no sale, you should not have to pay taxes.

Craig
________________
beac83 is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Chicagoland Sportbikes forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in









Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome