What is my PWC tax obligation when I apply for title or registration in Illinois
A. At the time you apply for an Illinois title or registration with the Illinois Department of Natural Resources for a watercraft you purchased or leased, you are required to submit either payment of tax or proof that no tax is due before your watercraft can be titled or registered.
The Illinois Department of Revenue is responsible for administering the collection of tax and providing the necessary tax forms. You must make separate payments for tax due and title and/or registration fees. Make your tax payment payable to the Illinois Department of Revenue and your payment for title fees payable to the Illinois Department of Natural Resources.
Note: Failing to title or register the item does not prevent the Department of Revenue from imposing the tax due on the purchase.
Q. Which forms are used for paying Illinois tax on watercraft and snowmobiles?
A. One of three forms must be used to pay tax or prove that no tax is due:
- Form RUT-25, Use Tax Transaction Return, due no later than 30 days after the date the watercraft or snowmobile is brought into Illinois or the date of purchase from an out-of-state dealer or retailer, lending institution, or leasing company selling at retail.
- Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return, due no later than 30 days after the date the watercraft is brought into Illinois or the date the watercraft is brought into Illinois, whichever is later, if acquired by gift, transfer, donation, or non-retail purchase. “Watercraft” includes:
- Class 2, Class 3, and Class 4 Watercraft as defined in Section 3-2 of the Boat Registration and Safety Act; and
- personal watercraft as defined in Section 1-2 of the Boat Registration and Safety Act (jet skis, wave runners, etc.)
- Form RUT ST-556, Sales Tax Transaction Return, due no later than 20 days after the date of delivery of the watercraft if purchased from an Illinois dealer or leasing company.
See http://www.dnr.illinois.gov/boating/Pages/TaxRequirementonWatercraft.aspx
