Do I have to pay "use tax on non-retialer transfers of motor

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Latest post 11-09-2012 8:03 AM by adjuster jack. 6 replies.
  • 11-08-2012 4:35 PM

    • maomao
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    Do I have to pay "use tax on non-retialer transfers of motor


    I received a letter from cook county deparment of revenue asking for "use tax on non-retailer transfers of motor vehicles" because I registered my car in seceratary of secretary of state located in cook county. And the tax price is 225$ for 0-5 years car, 200$ for 5-10 yrs car and 175 for over 10 yrs car. The letter was mailed Nov, 2nd and tax due on Dec, 2012.  My car was old and cheap, this amount is going to take a huge percentage for the price I got the car.
    I called them to ask why I didn't get notified when I settle down my documents in the DMV. The lady from the county call center said this is county tax and it is separately from state tax and they are no sense to inform me when I did my plate and title. I don't even live in cook county anymore.  Are they legally to charge me this tax after 5 month I bought the car and without notify me this only happen to COOK COUNTY?

  • 11-08-2012 4:43 PM In reply to

    Re: Do I have to pay "use tax on non-retialer transfers of motor

    Your last question seems to indicate you think there's some kind of short-term statute of limitations or something or that the law would require they notify/bill you when you bought the car.  I wouldn't think that's true (most people know whether their county charges a car/personal property tax, and the DMV and the county are two separate entities).

    Can't know from here what the tax period is, but if you moved out of the jurisdiction, you can expect to report that and pay a pro rata/proportional share of the tax (your current county may have the same thing). I would like to think you read up about this before posting here, but if not:

    http://www.cookcountygov.com/portal/server.pt/community/revenue,_department_of/313/use_tax/487

  • 11-08-2012 4:54 PM In reply to

    Re: Do I have to pay "use tax on non-retialer transfers of motor

    Chancey1:
    Can't know from here what the tax period is, but if you moved out of the jurisdiction, you can expect to report that and pay a pro rata/proportional share of the tax (your current county may have the same thing).

    No, moving after you purchased the vehicle doesn't mean the tax is pro rated. If you read the Cook county use tax ordinance, which is similar to many other state/local use tax ordinances, you'll see that the tax is imposed at the time of purchase based on the purchase price of the vehicle. So what matters is where the buyer resided when the purchase was made. Moving after the fact won't change the tax amount owed — nothing in the ordinance provides for proration. Once again, if you aren't familiar with tax law, I suggest you not try answering tax law questions. Tax law is not based on whatever you think the right answer SHOULD be. It's based on exactly what the relevant tax law says. 

  • 11-08-2012 6:43 PM In reply to

    Re: Do I have to pay "use tax on non-retialer transfers of motor

    Similar question: I bought a motorcycle after March 1, 2012, but I sold it 2 weeks later. I got the letter for cook county tax, yet I don't own the bike now (i understand I did at one point). Do i still have to pay for something I don't own?

  • 11-08-2012 7:18 PM In reply to

    • maomao
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    • IL
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    Re: Do I have to pay "use tax on non-retialer transfers of motor

     

     

    Taxagent:

     If you read the Cook county use tax ordinance, which is similar to many other state/local use tax ordinances, you'll see that the tax is imposed at the time of purchase based on the purchase price of the vehicle. So what matters is where the buyer resided when the purchase was made. Moving after the fact won't change the tax amount owed — nothing in the ordinance provides for proration.

     

    Thank you for the reply. The website said this tax is effective from March, 2012. You mentioned "you'll see that the tax is imposed at the time of purchase based on the purchase price of the vehicle". But this tax was nothing related to how much I paid the vehicle, it is only matter with my vehicle's age. 1-5 years $225 6 to 10 years $200 11years and over $175. It is a big amount compared with my old car's value. And since it is effected shortly, should I expect notification for that in advance?

    The same question still, do I need to pay if I don't live in cook county anymore?

    Thanks

  • 11-09-2012 8:03 AM In reply to

    Re: Do I have to pay "use tax on non-retialer transfers of motor

    JohnThomas:

    Similar question: I bought a motorcycle after March 1, 2012, but I sold it 2 weeks later. I got the letter for cook county tax, yet I don't own the bike now (i understand I did at one point). Do i still have to pay for something I don't own?

    Yes.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 11-09-2012 8:03 AM In reply to

    Re: Do I have to pay "use tax on non-retialer transfers of motor

    maomao:
    do I need to pay if I don't live in cook county anymore?

    Yes.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
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