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.

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:

1. Items of property which are exempted under the provisions of the Illinois Use Tax Act.
2. Food for Human Consumption consumed off premises (except soft drinks, alcohol and food prepared for immediate consumption).
3. Prescription and Non Prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics, for human use.

The following are Exempt Uses:

1. Property acquired outside and brought in by a nonresident natural individual for their own use temporarily in the city.
2. Rolling stock moving in interstate commerce.
3. Property utilized by interstate carriers for hire as rolling stock.
4. Temporary storage in the city of property that will be used outside the city
5. Property delivered outside the city by a common carrier.
6. Property used at least 3 months outside the city before its use in the city. If a business relocates to the city, this exemption would apply only if it never had a city location.

Non-Titled Use Tax Regulations

November 2015 Information Bulletin - Nontitled Use Tax as it relates to construction contractors