The Illinois RUT-75 form is the Aircraft/Watercraft Use Tax Transaction Return. You file it when you acquire an aircraft or watercraft from anyone other than a licensed Illinois dealer, whether by purchase, gift, or transfer. The tax is 6.25% of the purchase price or fair market value, whichever is higher, and the return is due within 30 days of acquiring the item or bringing it into Illinois. You cannot register or title the aircraft or watercraft until the return is filed and the tax is paid or shown not to be due.
When You Have to File
RUT-75 applies whenever the seller is not a registered Illinois retail dealer. That covers private-party sales, purchases from out-of-state sellers who don’t collect Illinois tax, and transfers where no money changes hands, including gifts and donations. If you buy from a licensed Illinois dealer, the dealer collects tax under the Retailers’ Occupation Tax Act and you don’t file this form.1Illinois Department of Revenue. Watercraft Use Tax
One boundary worth knowing: RUT-75 covers only aircraft and watercraft. Cars, trucks, motorcycles, ATVs, trailers, and snowmobiles use a different return, typically RUT-25 or RUT-50.2Illinois Department of Revenue. Illinois Tax Requirements for Cars, Trucks, Vans, Motorcycles, ATVs, Trailers, and Mobile Homes Filing the wrong form delays registration.
How the Tax Is Calculated
The rate is 6.25% of the purchase price or fair market value, whichever is greater.3Illinois Department of Revenue. Use Tax Rates The “whichever is greater” language does real work. Buy a boat from a friend for $5,000 when its fair market value is $20,000, and Illinois taxes you on $20,000. The Department of Revenue uses contracted vendors to check reported prices against market data, and mismatches produce a bill for the difference plus penalties and interest.4Illinois Department of Revenue. RUT-75 Instructions for Aircraft/Watercraft Use Tax Transaction Return
For gifts and other transfers with no stated selling price, tax is calculated on the fair market value as of the date you acquire the item or bring it into Illinois, whichever is later.5Justia Law. Illinois Administrative Code Part 153 Section 153.110 – Basis and Rate There is no trade-in allowance on aircraft or watercraft, so don’t expect the reduction you may know from vehicle sales.3Illinois Department of Revenue. Use Tax Rates
If you already paid sales or use tax to another state on the same item, Illinois credits that amount. If the other state’s rate was below 6.25%, you owe Illinois the difference.6Illinois Department of Revenue. Use Tax for Individuals – Questions and Answers
Exemptions
A few situations reduce or eliminate what you owe.
Watercraft Gifts Between Immediate Family
Watercraft gifts between spouses, parents, siblings, and children owe no tax, provided the transfer wasn’t primarily structured to avoid the tax. If you sell rather than gift a watercraft to a family member, tax applies to the price actually paid, again subject to the Department’s anti-avoidance judgment.4Illinois Department of Revenue. RUT-75 Instructions for Aircraft/Watercraft Use Tax Transaction Return This family exemption is watercraft only. It does not apply to aircraft.
Estate Gifts to a Surviving Spouse
A surviving spouse receiving an aircraft or watercraft as a gift from an estate owes no use tax.4Illinois Department of Revenue. RUT-75 Instructions for Aircraft/Watercraft Use Tax Transaction Return Other inheritances do not automatically qualify. If you receive an aircraft or watercraft through a will or estate distribution and you aren’t the surviving spouse, tax is calculated on fair market value.
Tax-Exempt Organizations
Governmental bodies and qualifying charitable, religious, or educational organizations with an active Illinois Department of Revenue exemption number pay no tax on these purchases.4Illinois Department of Revenue. RUT-75 Instructions for Aircraft/Watercraft Use Tax Transaction Return You still file the return to document the exemption.
What to Gather Before You File
For watercraft: the hull identification number, vessel type (open, cabin, pontoon, sailboat, PWC), vessel length, and the purchase agreement or invoice showing the price and any tax previously paid.
For aircraft: the serial number, “N” number, airframe hours, an FAA bill of sale, and the purchase agreement or invoice showing the selling price and any tax previously paid.
The purchase agreement must show the price and any tax paid as separate line items.4Illinois Department of Revenue. RUT-75 Instructions for Aircraft/Watercraft Use Tax Transaction Return If you’re claiming an exemption, bring supporting proof: documentation of the family relationship for a watercraft family transfer, or your organization’s IDOR exemption number.
The form itself asks for the seller’s full name and address, the date you acquired the item, and the higher of purchase price or fair market value. There is a dedicated exemption section for the applicable box and legal basis.
How to File and Pay
You can file electronically or by mail. Either way, the return is due within 30 days of acquiring the aircraft or watercraft, or within 30 days of bringing it into Illinois, whichever is later.7Illinois Department of Natural Resources. Tax Requirement on Watercraft
Electronic filing runs through MyTax Illinois at mytax.illinois.gov. You can upload the bill of sale and purchase agreement directly.8Illinois Department of Revenue. Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return Payment is made in full from a checking or savings account at the time of filing, so have your routing and account numbers ready. Allow one business day after electronic filing before applying for registration, and three to five business days for the payment to fully process.
Paper copies of RUT-75 are available through the Illinois Department of Transportation (for aircraft), the Illinois Department of Natural Resources (for watercraft), and the Department of Revenue.8Illinois Department of Revenue. Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return Mail the completed form with a check or money order payable to the Illinois Department of Revenue, and attach all supporting documents.
Late-Filing Penalties
Missing the 30-day deadline triggers a penalty and interest. The first-tier penalty is the lesser of $250 or 2% of the tax owed. If you still haven’t filed within 30 days after the Department sends a nonfiling notice, a second-tier penalty applies: the greater of $250 or an additional 2% of the tax due, capped at $5,000.9Illinois Department of Revenue. Pub-103, Penalties and Interest for Illinois Taxes Interest accrues on the unpaid tax until it is paid.
The Department also warns that if a family-member transfer appears designed primarily to avoid tax, it will be reclassified, and the full tax, penalties, and interest will be billed.4Illinois Department of Revenue. RUT-75 Instructions for Aircraft/Watercraft Use Tax Transaction Return On a high-value boat or plane, the exposure adds up fast.
Getting Registered After You File
Once the Department of Revenue processes the return, you receive a validated copy. That validated copy is what registration offices require. Take it to the Illinois Department of Natural Resources for watercraft, or the Illinois Department of Transportation for aircraft.7Illinois Department of Natural Resources. Tax Requirement on Watercraft Neither agency will register or title the property without proof that tax has been paid or that no tax is due.
Electronic filers can usually visit the registration office the next business day. Paper filers wait longer, since the validated return returns by mail. Hold off on registration until the validated copy is in hand.