Aircraft Use Tax

Statutory Reference

35 ILCS 157/10-1 to 157/99-99

Definition

The tax is imposed on aircraft purchased (or acquired by gift or transfer) from another individual or person or business that is not in the business of selling aircraft at retail. (Sales of aircraft from registered Illinois dealers are taxed under the Retailers’ Occupation Tax Act.)

Tax Rate

The rate is 6.25% of the purchase price or fair market value, whichever is greater.

If you acquire the aircraft by purchase from a person or business that is not in the business of selling aircraft at retail, you must pay tax on the aircraft’s purchase price. If the aircraft’s purchase price is less than the fair market value, you must pay tax on the aircraft’s fair market value on the date acquired or the date brought into Illinois, whichever is later. If you acquire a share of an aircraft, tax is based on the purchase price or fair market value of the share acquired. There is no provision for a trade-in allowance under Aircraft Use Tax. The tax due is based on the fair market value of the aircraft or share of the aircraft.

If you acquire the aircraft by gift, donation or transfer, you must pay tax on the aircraft’s fair market value on the date acquired or the date brought into Illinois, whichever is later.

If you acquired and used the aircraft outside Illinois before you brought it into Illinois, you will receive a credit for tax properly due and paid to another state.

Form/Filing & Payment Requirements

Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return (this form is not available online)

You may obtain a copy of this form at the Illinois Department of Transportation - Division of Aeronautics when you register the aircraft. You must submit proof of tax payment or proof of exemption before your aircraft registration will be issued by the Illinois Department of Transportation. You may also call IDOR's 24-hour Forms Order Line at 1 800 356-6302. Forms may also be obtained by calling us at 1 800 732-8866.

This form is due no later than 30 days from the acquisition date or the date the item is brought into Illinois, whichever is later.

Form RUT-75-X, Amended Aircraft/Watercraft Use Tax Transaction Return
STS-76 - Illinois Aircraft/Watercraft and Vehicle Tax Information Guide
FY 2004-06-A - Tax on Aircraft

Exemptions

The following transactions are exempt under the Aircraft Use Tax Act:

The use of the aircraft in Illinois is already taxed under the Illinois Use Tax Act. For example, the aircraft is purchased from an out-of-state retailer. This type of transaction is taxed and reported on Form RUT-25, Use Tax Transaction Return.
The aircraft is acquired by a governmental agency or a society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes that has been issued an active exemption number by the Illinois Department of Revenue.
The aircraft is acquired by an interstate carrier for hire for use as rolling stock to transport persons or commodities in interstate commerce.
The aircraft is a gift to a beneficiary in an estate and the beneficiary is the surviving spouse.
The temporary storage of an aircraft that was acquired outside of Illinois and after being brought into Illinois and stored temporarily, is used solely outside Illinois.
The aircraft is used primarily (more than 50%) in production agriculture. For example, an aircraft used primarily for crop dusting.

Questions?

Call us at: 1 800 732-8866 or 1 217 782-3336
Call TDD: 1 800 544-5304

Frequently Asked Questions about Aircraft Use Tax