Illinois Boat Bill of Sale: Use Tax and DNR Filing

An Illinois boat bill of sale is the signed document a private buyer and seller create to record the sale of a watercraft, and it does two jobs: it lets the Department of Revenue calculate the 6.25 percent use tax on the purchase, and it supports the title and registration application you file with the Department of Natural Resources within 15 days of the sale.¹² Without it, the DNR cannot verify what you paid or issue new documents in your name, and the Department of Revenue can tax you on fair market value instead of your actual price.

What to Put in the Document

Illinois does not publish a mandatory state form, so any clearly written document works as long as it contains enough detail to identify the vessel, the parties, and the terms. Cover these items:

Full legal names and current residential addresses of the buyer and the seller.
The exact purchase price, written in figures and, if possible, in words, along with the calendar date of the sale.
The Hull Identification Number, the 12-character code stamped on the transom or the upper starboard side of the hull. This is the single most important identifier on the document.
The current Illinois registration number, if the boat is already registered in the state.
A description of the vessel: year, manufacturer, model, and overall length.
If an outboard motor is part of the sale, its make, serial number, and horsepower.
If a trailer is part of the sale, list it separately with its own VIN, year, make, and weight capacity.
Signatures from both the buyer and the seller.

Notarization is not required for a boat bill of sale in Illinois. Getting the signatures notarized anyway makes the document harder to challenge later, which is worth the small cost on higher-value boats or any deal between strangers.

Keep the original with your application package for the DNR. Give the seller a copy for their tax records and as proof they no longer own the boat.

The Department of Revenue is allowed to look at whether the price you reported is reasonable for the sale date, the vessel’s condition, and comparable transactions.³ If your price came in low because the boat needs work, note the condition on the bill of sale. Detail is your protection against being taxed on a higher figure.

Which Boats This Applies To

All powered watercraft must be registered in Illinois, regardless of size. Every registered boat over 21 feet must also be titled with the DNR, and boats 21 feet or under can be titled voluntarily. Either way, a private-party transfer needs a bill of sale.

Non-powered watercraft are exempt from registration entirely.⁴ If you’re buying a canoe, kayak, rowboat, or paddleboard with no motor, you don’t need to register it or file a bill of sale with the state. Adding even a small trolling motor changes that: the boat becomes powered watercraft and the registration rules kick in.

Trailers Are a Separate Transaction

The boat itself goes through the DNR. The trailer does not. Trailers are titled and registered through the Illinois Secretary of State, the same as any other road vehicle.⁵ If your purchase includes a trailer, list it on the bill of sale but plan for a second trip to a Secretary of State facility for the trailer’s title and plates.

Pay the Use Tax First

The Department of Revenue expects its cut before the DNR will finish your registration. The tax is 6.25 percent of the purchase price, with no trade-in allowance for watercraft.¹ On a $10,000 boat, that comes to $625. Even if you traded in your old boat as part of the deal, the tax applies to the full price of the new one.

Which form you file depends on who sold you the boat:

Form RUT-75 covers private-party watercraft purchases, whether the seller is inside Illinois or out of state. This is the form most private buyers use.⁶
Form RUT-25 is only for purchases from an unregistered out-of-state dealer or retailer, not a private seller.

You can file RUT-75 electronically through MyTax Illinois, which is the fastest option. You’ll need your Social Security number, prior-year adjusted gross income from your IL-1040, a copy of the bill of sale, and a bank account for payment. After filing online, wait one business day before applying for registration.⁶ Paper forms are also available at DNR offices, but each paper form has a unique transaction number and cannot be photocopied.

Also read the Department of Revenue’s watercraft use tax guidance for filing details.⁷

File with the DNR Within 15 Days

Illinois gives you 15 days from the date of purchase to submit your title and registration application to the DNR.⁸ Your package should contain:

The completed Watercraft Registration/Title Application with the Transfer/Renewal box checked.
The original signed bill of sale.
The certificate of title, properly assigned by the seller.⁹
Proof of use tax payment (your RUT-75 receipt).
The registration fee.

Registration fees run by length:¹⁰

Class 1, powered under 16 feet: $28 new or transfer, $18 renewal.
Class 2, 16 to under 26 feet: $60 new or transfer, $50 renewal.
Class 3, 26 to under 40 feet: $160 new or transfer, $150 renewal.
Class 4, 40 feet and over: $210 new or transfer, $200 renewal.

Watercraft registration is not available over the counter at any DNR office, so you cannot walk in and finish this the same day. You can start online through the DNR’s application system, but supporting documents still have to be mailed to the Springfield office.⁸

One thing to confirm before you finalize the purchase: ask the seller whether the boat’s existing registration is current. The DNR can refuse to process a transfer if either party owes fees or taxes on the vessel, and prior-year debts can stall your application even though they aren’t yours.²

If the Seller Lost the Title

This is a common problem in private boat sales and there is a fix. If the seller can’t find the original certificate of title and you plan to register the boat in Illinois, the seller can complete a Watercraft Power of Attorney form from the DNR website and give it to you. That form stands in for the lost title on the transfer.⁸

If you plan to register the boat in another state, the power of attorney will not work. The seller has to order a duplicate title from the DNR through the online application system before the sale can move forward.⁸

Either way, the bill of sale is still required. The title or power of attorney documents the chain of ownership; the bill of sale documents the price and the transfer. You need both.

1
Illinois Department of Revenue. Use Tax Rates
2
Illinois General Assembly. Illinois Code 625 ILCS 45 – Boat Registration and Safety Act, Section 3A-12
3
Legal Information Institute. Illinois Admin Code tit. 86, 153.110 – Basis and Rate of the Tax
4
Illinois General Assembly. Illinois Code 625 ILCS 45 – Boat Registration and Safety Act, Section 3-12
5
Illinois Secretary of State. TA Trailer License Plates
6
Illinois Department of Revenue. Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return
7
Illinois Department of Revenue. Watercraft Use Tax
8
Illinois Department of Natural Resources. Watercraft Frequently Asked Questions
9
Illinois General Assembly. Illinois Code 625 ILCS 45 – Boat Registration and Safety Act, Section 3A-17
10
Illinois Department of Natural Resources. Transaction Fees