RUT-75 Instructions for Aircraft/Watercraft Use Tax Transaction Return

Enter the Social Security number (SSN) or federal employer identification number (FEIN), first and last name or company name, and phone number. Enter the address as it will appear on the Illinois registration.

For electronic filers, the SSN or FEIN and taxpayer name must match the information in our system. Taxpayers filing using their SSN will also be required to provide their Prior Year Adjusted Gross Income.

Watercraft only - Check if reporting a transfer between immediate family members. If our review indicates that the primary reason for transfer was to avoid payment of tax, we will bill you for applicable tax, penalties, and interest.

Enter the seller's name, address, and phone number.

Enter the year, make, model, date that the purchaser (not the seller) acquired the item, and date that the purchaser (not the seller) brought the item into Illinois. This date should always be on or after the purchase date. For watercrafts enter Hull ID number, type (e.g., open, cabin, houseboat, sailboat, pontoon, PWC/jetski, paddleboat or other) and length.

For aircrafts enter serial number, "N" number, and aircraft/airframe hours.

1. Item is bought and used by a charitable, religious, educational, or governmental organization with an active Illinois Department of Revenue (IDOR) exemption number. 35 ILCS 158/15-10(ii); 35 ILCS 157/10-15(ii).
2. Item is used as rolling stock for hire to haul persons or commodities in interstate commerce. Aircraft - provide FAA certificate of authority number. 35 ILCS 158/15-10(iii); 35 ILCS 157/10-15(iii).
3. Item was a gift from an estate to a surviving spouse. 35 ILCS 158/15-10(iv); 35 ILCS 157/10-15(iv).
4. Item was acquired outside of Illinois and brought into and stored temporarily in Illinois. It will be removed and will be used solely outside of Illinois. 35 ILCS 158/15-10(iii); 35 ILCS 157/10-15(iii).
5. Item is used primarily in production agriculture and qualifies for the farm machinery and equipment exemption. 35 ILCS 5/3-5(11).
6. Watercraft only - not required to be numbered under the Boat Registration and Safety Act and
   • will not be used upon Illinois waters for more than 30 days in any calendar year, 35 ILCS 158/15-10(v); or
   • regardless of time used upon Illinois waters, is either:
     • owned by the United States, a State, or subdivision thereof; and used solely for official purposes and clearly identifiable; or
     • used exclusively as a ship’s lifeboat. 625 ILCS 45/3-12(D), (E).

Tax is based on the purchase price/selling price or fair market value amount. Enter the higher of the purchase price/ selling price or fair market value. 86 Ill. Adm. Code 153.105(a)-(b); 35 ILCS 157/10-15. If you purchase or acquire a share of an aircraft or watercraft, enter the share’s purchase/selling price or fair market value. 35 ILCS 158/15-15; 86 Ill. Adm. Code 152.101.

Round to the nearest dollar: Drop amounts of less than 50 cents, and increase amounts of 50 cents or more to the next highest dollar. IDOR may utilize contracted vendors to determine the validity of the purchase/selling price stated on your return. 35 ILCS 157/10-30; 35 ILCS 158/15-30. We will bill you if additional tax is owed, including penalties and interest.

For aircraft, selling price is defined as the reasonable consideration received for the aircraft valued in money, cash, credits, property, services, etc. 86 Ill. Adm. Code 152.105(d). You must attach a copy of the FAA bill of sale and a copy of the purchase agreement/invoice which must have the selling price and any tax previously paid clearly and separately stated. 86 Ill. Adm. Code 152.110(a). In the case of gifts or transfers without a stated selling price, tax will be imposed on the fair market value of the aircraft on the date the aircraft is acquired or the date the aircraft is brought into the State, whichever is later. 86 Ill. Adm. Code 152.105(c)(d).

For watercraft, purchase price is defined as the reasonable consideration paid for the watercraft received in money, cash, credits, property, services, etc., and including the value of any motor sold with, or in conjunction with, the watercraft. 35 ILCS 158/15-5. Attach a copy of the purchase agreement/invoice which must have the purchase price and any tax previously paid clearly and separately stated. When there is no stated purchase price, such as a gift or trade, tax is imposed on the fair market value on the date the watercraft or the share of the watercraft was acquired or the date the watercraft was brought into Illinois, whichever is later. In the case of a watercraft transfer between immediate family members (i.e., a spouse, parent, brother, sister, or child), reasonable consideration ordinarily means the consideration paid, unless it appears from the facts and circumstances that the primary motivation of the transfer was the avoidance of tax. 35 ILCS 158/15-5; 86 Ill. Adm. Code 153.110(a). In the case of gifts between immediate family members, no tax is due unless it appears that the primary motivation of the transfer was the avoidance of tax. 86 Ill. Adm. Code 153.110(b).

Provide the name of the state and the amount of sales or use tax you previously paid to that state. Credit is allowed only if the tax previously paid was properly due and separately stated on the proof of tax payment that must be attached to Form RUT-75. 86 Ill. Adm. Code 153.110(d).

For paper filers, subtract Line 3 from Line 2. This is the amount of tax that you owe. Make your remittance payable to “Illinois Department of Revenue” and attach it to Form RUT-75. For electronic filers, MyTax Illinois will calculate the tax due for you. Payments must be made electronically when you submit your form.

You owe a late filing penalty if you do not file a processable return by the due date, a late payment penalty if you do not pay the amount you owe by the original due date of the return, a bad check penalty if your remittance is not honored by your financial institution, and a cost of collection fee if you do not pay the amount you owe within 30 days of the date printed on a bill that we send you. For more information, see Publication 103, Penalties and Interest for Illinois Taxes, available on our website at tax.illinois.gov.

Attach a copy of the purchase agreement or invoice, FAA bill of sale (aircraft), bill of sale (watercraft), and proof of tax paid, if applicable. IDNR and IDOT may also require copies of this documentation as part of their registration paperwork. See their websites at dnr.illinois.gov or idot.illinois.gov for additional guidance.

For paper filers, the purchaser and co-owner (if applicable) must sign Form RUT-75. Send your return and required attachments with your application and fees for registration to the appropriate address below.

For electronic filers, enter your email address and confirm it to verify the request. Your email address will act as your signature.

Do not mail the printable confirmation page or a paper copy of the form. This could cause processing delays.

After filing Form RUT-75 electronically, allow one business day for processing before applying for your aircraft or watercraft registration. Payment requests submitted in MyTax Illinois can take three to five business days to process.