Use Tax for Titled Personal Property (8400, 8400R)


Municipal Code Reference: 3-28
CAPS Code Reference: 1002920051927
Tax Return Form Code: Form 8400
Form 8400R - Retailer
Procedure: The Use Tax for Titled Personal Property imposes a tax on the purchase of titled tangible personal property for use in Chicago from a vendor located outside Chicago.
Tax Base: 1.25% of taxable purchases
Exemptions, Deductions and Credits: Items exempt under the Illinois Use Tax Act are exempt, ie. machinery and equipment used in manufacturing. Also leases of property to an interstate carrier for hire that is under a lease for one year or longer as long as the lease is executed at the time of purchase. When the property reverts back to the lessor on the lease expiration date, the tax must be paid on the fair market value as of the date of the reversion. The tax is then due by the last day of the following month after the reversion took place. For example, if the car reverted back to the lessor in January, the tax must be paid by the last day of February.
Rulings and Procedures: None