Illinois Form RUT-7, the Rolling Stock Certification for Motor Vehicles and Trailers, is a certificate that qualifying interstate carriers for hire give to a seller at the time of purchase to document that the vehicle or trailer is exempt from Illinois Sales and Use Tax.1Illinois Department of Revenue. RUT-7 Instructions It is not a tax return, and it is not the form a private buyer uses when purchasing a car from another person.
What RUT-7 Is and What It Does
The form’s full title is “Rolling Stock Certification for Motor Vehicles and Trailers (and Repair and Replacement Parts) Purchased on or after August 24, 2017.” The purchaser completes it and hands it to the seller as proof that the transaction qualifies for the rolling stock exemption. The seller keeps the signed certification in its records to support the exempt sale.1Illinois Department of Revenue. RUT-7 Instructions
The exemption itself comes from the Illinois Use Tax Act, which excludes rolling stock used by interstate carriers for hire to transport persons or property that originates or terminates outside Illinois.2Illinois General Assembly. 35 ILCS 105 – Use Tax Act RUT-7 is the paperwork that documents eligibility; the statute is what grants the exemption.
Who Qualifies to Use RUT-7
The rolling stock exemption is narrow. To claim it, the purchaser must be an owner, lessor, or shipper buying a vehicle or trailer that will be used by an interstate carrier for hire. All three of the following conditions must be met:1Illinois Department of Revenue. RUT-7 Instructions
- The vehicle or trailer must be used to transport persons or property for hire.
- The carrier using the vehicle must hold an active USDOT number with carrier operation listed as “Interstate” and operation classification listed as “Authorized for Hire,” “Exempt for Hire,” or both.
- For motor vehicles (not trailers), the gross vehicle weight rating must exceed 16,000 pounds.
“For hire” is where most would-be claimants fall out. A vehicle used only to carry a company’s own employees, officers, or customers does not qualify, even if the trips cross state lines. Hauling your own products to customers in other states does not count either. The exemption is for commercial carriers moving other people’s freight or passengers, not for businesses that happen to own trucks.1Illinois Department of Revenue. RUT-7 Instructions
There is one exception to the USDOT requirement. Motor vehicles and trailers used at an airport to support aircraft moving in interstate commerce can qualify without a USDOT number, provided they satisfy the other criteria.3Illinois Department of Revenue. RUT-7 Rolling Stock Certification for Motor Vehicles and Trailers
How to Complete and Deliver the Form
The purchaser fills in name, address, and phone number, along with the year, make, model, and vehicle identification number of the vehicle or trailer. The purchaser then certifies which USDOT criteria the carrier meets and signs the certification.3Illinois Department of Revenue. RUT-7 Rolling Stock Certification for Motor Vehicles and Trailers The form is available as a PDF on the Illinois Department of Revenue website.
RUT-7 is not sent to the Department of Revenue or to the Secretary of State. The buyer gives it to the seller, and both sides keep copies in their files. The sale itself still has to be reported, but on a different form, depending on where the vehicle was bought:1Illinois Department of Revenue. RUT-7 Instructions
- An Illinois dealer reports the sale on Form ST-556.
- A purchase from an out-of-state dealer is reported by the buyer on Form RUT-25, which is also where the exemption is claimed.
In either case, RUT-7 is the supporting document that shows why no sales or use tax was collected.
If You Bought From a Private Party, You Need a Different Form
RUT-7 is often confused with RUT-50, and the two have nothing in common beyond the agency and the subject matter. If you bought a car, truck, motorcycle, or ATV from another person rather than a dealership, received a vehicle as a gift, inherited one through an estate, or moved into Illinois with a vehicle titled elsewhere, the form you need is Form RUT-50, the Private Party Vehicle Use Tax Transaction.4Illinois Department of Revenue. RUT-50, Private Party Vehicle Use Tax Transaction Instructions
The difference matters. RUT-7 is an exemption certificate for commercial interstate carriers. RUT-50 is the return a private buyer files and pays when acquiring a vehicle outside a retail sale. A private party buyer who files RUT-7 by mistake has not reported the transaction and has not paid the use tax that is actually due.
Audits and Recordkeeping for the Rolling Stock Exemption
The Illinois Department of Revenue selects taxpayers for audit through a mix of random selection, referrals, the nature of the business, audit history, and specific tax issues. An audit verifies the tax base, any exemptions claimed, and the overall accuracy of returns.5Illinois Department of Revenue. Illinois Audit Information A claimed rolling stock exemption is one of those exemptions the Department can revisit.
If you claim the exemption with a RUT-7, keep records that back up each of the qualifying conditions: documentation that the vehicle is used for hire, the active USDOT number showing interstate authorized-for-hire or exempt-for-hire classification, and, for motor vehicles, the gross vehicle weight rating above 16,000 pounds. Sellers should retain the signed certification itself. Failing to produce requested records during an audit can result in a penalty of up to $3,000 per filing period.5Illinois Department of Revenue. Illinois Audit Information