GIFTED/TRANSFERRED VEH TAX

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SB4073 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB4073

Introduced 2/24/2026, by Sen. Jil Tracy

SYNOPSIS AS INTRODUCED:

625 ILCS 5/3-1001

from Ch. 95 1/2, par. 3-1001

Amends the Illinois Vehicle Code. Provides that the $15 tax imposed on
the privilege of using any motor vehicle acquired by gift, transfer, or
purchase also applies to stepparents, grandparents, stepgrandparents,
stepsiblings, stepchildren, and stepgrandchildren.
LRB104 20921 LNS 34688 b

A BILL FOR

SB4073
LRB104 20921 LNS 34688 b
1

AN ACT concerning transportation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Vehicle Code is amended by
5
changing Section 3-1001 as follows:

6

(625 ILCS 5/3-1001)

(from Ch. 95 1/2, par. 3-1001)
7

Sec. 3-1001.
A tax is hereby imposed on the privilege of
8
using, in this State, any motor vehicle as defined in Section
9
1-146 of this Code acquired by gift, transfer, or purchase,
10
and having a year model designation preceding the year of
11
application for title by 5 or fewer years prior to October 1,
12
1985 and 10 or fewer years on and after October 1, 1985 and
13
prior to January 1, 1988. On and after January 1, 1988, the tax
14
shall apply to all motor vehicles without regard to model
15
year. Except that the tax shall not apply:
16

(i) if the use of the motor vehicle is otherwise taxed
17

under the Use Tax Act;
18

(ii) if the motor vehicle is bought and used by a
19

governmental agency or a society, association, foundation
20

or institution organized and operated exclusively for
21

charitable, religious or educational purposes;
22

(iii) if the use of the motor vehicle is not subject to
23

the Use Tax Act by reason of subsection (a), (b), (c), (d),

SB4073
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LRB104 20921 LNS 34688 b
1

(e) or (f) of Section 3-55 of that Act dealing with the
2

prevention of actual or likely multistate taxation;
3

(iv) to implements of husbandry;
4

(v) when a junking certificate is issued pursuant to
5

Section 3-117(a) of this Code;
6

(vi) when a vehicle is subject to the replacement
7

vehicle tax imposed by Section 3-2001 of this Act;
8

(vii) when the transfer is a gift to a beneficiary in
9

the administration of an estate and the beneficiary is a
10

surviving spouse;
11

(viii) if the motor vehicle is purchased for the
12

purpose of resale by a retailer registered under Section
13

2a of the Retailers' Occupation Tax Act.
14

Prior to January 1, 1988, the rate of tax shall be 5% of
15
the selling price for each purchase of a motor vehicle covered
16
by Section 3-1001 of this Code. Except as hereinafter
17
provided, beginning January 1, 1988 and until January 1, 2022,
18
the rate of tax shall be as follows for transactions in which
19
the selling price of the motor vehicle is less than $15,000:
20
Number of Years Transpired After
Applicable Tax

21
Model Year of Motor Vehicle
22
1 or less
$390
23
2
290
24
3
215
25
4
165
26
5
115

SB4073
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LRB104 20921 LNS 34688 b
1
6
90
2
7
80
3
8
65
4
9
50
5
10
40
6
over 10
25
7
Except as hereinafter provided, beginning January 1, 1988 and
8
until January 1, 2022, the rate of tax shall be as follows for
9
transactions in which the selling price of the motor vehicle
10
is $15,000 or more:
11
Selling Price
Applicable Tax
12
$15,000 - $19,999
$ 750
13
$20,000 - $24,999
$1,000
14
$25,000 - $29,999
$1,250
15
$30,000 and over
$1,500
16

Except as hereinafter provided, beginning on January 1,
17
2022, the rate of tax shall be as follows for transactions in
18
which the selling price of the motor vehicle is less than
19
$15,000:
20

(1) if one year or less has transpired after the model
21

year of the vehicle, then the applicable tax is $465;
22

(2) if 2 years have transpired after the model year of
23

the motor vehicle, then the applicable tax is $365;
24

(3) if 3 years have transpired after the model year of
25

the motor vehicle, then the applicable tax is $290;
26

(4) if 4 years have transpired after the model year of

SB4073
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LRB104 20921 LNS 34688 b
1

the motor vehicle, then the applicable tax is $240;
2

(5) if 5 years have transpired after the model year of
3

the motor vehicle, then the applicable tax is $190;
4

(6) if 6 years have transpired after the model year of
5

the motor vehicle, then the applicable tax is $165;
6

(7) if 7 years have transpired after the model year of
7

the motor vehicle, then the applicable tax is $155;
8

(8) if 8 years have transpired after the model year of
9

the motor vehicle, then the applicable tax is $140;
10

(9) if 9 years have transpired after the model year of
11

the motor vehicle, then the applicable tax is $125;
12

(10) if 10 years have transpired after the model year
13

of the motor vehicle, then the applicable tax is $115; and
14

(11) if more than 10 years have transpired after the
15

model year of the motor vehicle, then the applicable tax
16

is $100.
17

Except as hereinafter provided, beginning on January 1,
18
2022, the rate of tax shall be as follows for transactions in
19
which the selling price of the motor vehicle is $15,000 or
20
more:
21

(1) if the selling price is $15,000 or more, but less
22

than $20,000, then the applicable tax shall be $850;
23

(2) if the selling price is $20,000 or more, but less
24

than $25,000, then the applicable tax shall be $1,100;
25

(3) if the selling price is $25,000 or more, but less
26

than $30,000, then the applicable tax shall be $1,350;

SB4073
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LRB104 20921 LNS 34688 b
1

(4) if the selling price is $30,000 or more, but less
2

than $50,000, then the applicable tax shall be $1,600;
3

(5) if the selling price is $50,000 or more, but less
4

than $100,000, then the applicable tax shall be $2,600;
5

(6) if the selling price is $100,000 or more, but less
6

than $1,000,000, then the applicable tax shall be $5,100;
7

and
8

(7) if the selling price is $1,000,000 or more, then
9

the applicable tax shall be $10,100.
10
For the following transactions, the tax rate shall be $15 for
11
each motor vehicle acquired in such transaction:
12

(i) when the transferee or purchaser is the spouse,
13

parent, stepparent, grandparent, stepgrandparent,
14

sibling, stepsibling,

mother, father, brother, sister or

15

child
, stepchild, grandchild, or stepgrandchild
of the
16

transferor;
17

(ii) when the transfer is a gift to a beneficiary in
18

the administration of an estate, including, but not
19

limited to, the administration of an inter vivos trust
20

that became irrevocable upon the death of a grantor, and
21

the beneficiary is not a surviving spouse;
22

(iii) when a motor vehicle which has once been
23

subjected to the Illinois retailers' occupation tax or use
24

tax is transferred in connection with the organization,
25

reorganization, dissolution or partial liquidation of an
26

incorporated or unincorporated business wherein the

SB4073
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LRB104 20921 LNS 34688 b
1

beneficial ownership is not changed.
2

A claim that the transaction is taxable under subparagraph
3
(i) shall be supported by such proof of family relationship as
4
provided by rules of the Department.
5

For a transaction in which a motorcycle, motor driven
6
cycle or moped is acquired the tax rate shall be $25.
7

On and after October 1, 1985 and until January 1, 2022,
8
1/12 of $5,000,000 of the moneys received by the Department of
9
Revenue pursuant to this Section shall be paid each month into
10
the Build Illinois Fund; on and after January 1, 2022, 1/12 of
11
$40,000,000 of the moneys received by the Department of
12
Revenue pursuant to this Section shall be paid each month into
13
the Build Illinois Fund; and the remainder shall be paid into
14
the General Revenue Fund.
15

The tax imposed by this Section shall be abated and no
16
longer imposed when the amount deposited to secure the bonds
17
issued pursuant to the Build Illinois Bond Act is sufficient
18
to provide for the payment of the principal of, and interest
19
and premium, if any, on the bonds, as certified to the State
20
Comptroller and the Director of Revenue by the Director of the
21
Governor's Office of Management and Budget.
22
(Source: P.A. 104-6, eff. 6-16-25.)

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