Sales of Aircraft & Watercraft by Lessors
You are considered a retailer under the Retailers’ Occupation Tax Act if you are engaged in the business of leasing or renting aircraft or watercraft and you sell a used aircraft or watercraft in connection with your business to a purchaser who will use the aircraft or watercraft for his or her own use.
Generally, the tax rate is 6.25%. Your rate may be higher if units of local government have imposed taxes.
- Form ST-556, Sales Tax Transaction Return
Contact our Central Registration Division at 1 217 785-3707 to properly register as a retailer of aircraft or watercraft and obtain the necessary ST-556 forms. The aircraft or watercraft cannot be registered until tax is paid or proof that the transaction is exempt from taxation is submitted. Aircraft is registered with the Illinois Department of Transportation - Division of Aeronautics. Watercraft is registered with the Illinois Department of Natural Resources.
- FY 2005-04 - Tax on Watercraft
- Call us at: 1 800 732-8866 or 1 217 782-3336
- Call TDD: 1 800 544-5304