Use Tax for Non-Titled Personal Property (8402B, 8402CO, 8402IN, 8403)
|Municipal Code Reference:
|CAPS Code Reference:
|Tax Return Form Code:
|Form 8402B (Business)
Form 8402IN (individual)
Form 8402CO (contractor)
Form 8403 (Retailer)
The Use Tax for Non-Titled Personal Property imposes a tax on the purchase of non-titled tangible personal property for use in Chicago from a retailer located outside Chicago.
NOTE: The city does not require retailers to collect and remit the use tax. However, retailers can voluntarily collect and remit the tax (using form 8403), and retain a commission equal to 5% of any tax remitted. Note that purchasers will still be required to pay the use tax directly to the Department of Revenue.
|1% of taxable purchases (first $2,500.00 of purchases each year are exempt)
|Exemptions, Deductions and Credits:
Use means a person exercising right to or power over tangible personal property as an owner. It does not include sale of property, use of property for demonstration purposes, interim use by a retailer before sold, physical incorporation of tangible personal property, as an ingredient into other tangible personal property transported out of the City. Also everything that is stated in the Illinois Use Tax Act as exempt is also exempted.
The chapter differentiates between exempt property and exempt uses.
The following are the three classifications of exempt property:
The following are Exempt Uses:
|Rulings and Procedures:
Businesses registered for Use Tax for Non-Titled Personal Property Tax with the Chicago Department of Finance.