The tax imposed by the Watercraft Use Tax Law does not apply
if:
a) the use of the watercraft is
otherwise taxed under the Use Tax Act;
b) the watercraft is bought and used by a
governmental agency or a society, association, foundation, or institution
organized and operated exclusively for charitable, religious, or educational
purposes and that entity has been issued an exemption identification numberthat
is active under Section 1g of the Retailers' Occupation Tax Act;
c) the transfer is a gift to a beneficiary in
the administration of an estate and the beneficiary is a surviving spouse;
or
d) the watercraft is exempted
from the numbering provisions of Section 3-12 of the Boat Registration and
Safety Act [
625 ILCS 45/3-12 ].
[
35 ILCS
158/15-10 ] However, Watercraft Use Tax will become
due on any watercraft that is exempted from the numbering provisions of
paragraphs A, B, C, F, and G of Section 3-12 of the Boat Registration and
Safety Act if that watercraft is used upon the waters of this State over 30
accumulated days in any calendar year. The following are the watercraft
referred to in paragraphs A, B, C, F, and G of Section 3-12 of the Boat
Registration and Safety Act to which the 30-day rule applies:
1) A watercraft that has a valid marine
document issued by the United States Coast Guard.
2) A watercraft already covered by a number
in full force and effect that has been awarded to it pursuant to Federal law or
a Federally approved numbering system of another State.
3) A watercraft from a country other than the
United States temporarily using the waters of this State.
4) A watercraft that belongs to a class of
boats that has been exempted from numbering by the Department of Natural
Resources after that agency has found that an agency of the federal Government
has a numbering system applicable to the class of watercraft to which the
watercraft in question belongs and would be exempt from numbering if it were
subject to the Federal law.
5) A
watercraft that is competing in any race approved by the Department of Natural
Resources under the provisions of Section 5-15 of the Boat Registration and
Safety Act or a watercraft that is designed and intended solely for racing
while engaged in navigation that is incidental to preparation of the watercraft
for the race. Preparation of the watercraft for the race may be accomplished
only after obtaining the written authorization of the Department of Natural
Resources.
Example:
A watercraft that has a valid marine document issued by the
United States Coast Guard and is used upon the waters of this State for 35 days
in a calendar year is subject to Watercraft Use Tax. The tax applies even
though the watercraft is not required to be registered under the Boat
Registration and Safety Act until it has been used upon the waters of this
State for more than 60 days in a calendar year. See subsection (d).
e) Other common
exemptions:
1) A tugboat qualifying for the
rolling stock exemption is purchased for use upon the waters in Illinois. No
Watercraft Use Tax would be incurred on the purchase.
2) A person purchases a 17-foot johnboat from
an individual (non-retailer) to be used primarily in the raising of catfish for
retail sale on a commercial catfish farm in Illinois. No Watercraft Use Tax is
due on the purchase, because the johnboat is used primarily in production
agriculture.
