Instructions for Form Rut-7-a - Rolling Stock Certification for Aircraft, Watercraft, Limousines, and Rail Carrier Items

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Illinois Department of Revenue
RUT-7-A
Instructions
General Information
What is the purpose of Form RUT-7-A?
The total trips or miles for which persons or property are
carried for hire between points in Illinois may be used to
Form RUT‑7‑A, Rolling Stock Certification for Aircraft,
qualify for the exemption if the journey or shipment originates
Watercraft, Limousines, and Rail Carrier Items, allows a
or terminates outside Illinois. For aircraft, flight hours may
purchaser to certify to the seller that the purchaser is allowed
be used in lieu of miles in determining whether the aircraft
an exemption from Sales and Use Tax on aircraft, watercraft,
meets the mileage test. For watercraft, nautical miles or trip
limousines, and rail carrier items that are utilized by interstate
hours may be used in lieu of miles in determining whether the
carriers for hire for use as rolling stock moving in interstate
watercraft meets the mileage test.
commerce.
What is the difference between Form RUT-7-A and
Aircraft and watercraft must carry persons or property
Form RUT-7?
for hire in interstate commerce for more than 50 percent
of its total trips or miles/hours in a 12‑month period.
Use Form RUT‑7‑A to claim a rolling stock exemption on
qualified purchases of aircraft, watercraft, limousines, and
Limousines must carry persons or property for hire in
rail carrier items. Also use Form RUT‑7‑A to claim a rolling
interstate commerce for more than 50 percent of its total
stock exemption on repair and replacement parts for aircraft,
trips or miles in a 12‑month period.
watercraft, limousines, and rail carrier items.
Rail carrier items must be used as rolling stock to haul
Use Form RUT‑7, Rolling Stock Certification for Motor
persons or commodities for hire in interstate commerce on
Vehicles and Trailers (and Repair and Replacement Parts)
a regular and frequent basis.
Purchased on or after August 24, 2017, to claim a rolling stock
If you make fleet purchases and will not use the same
exemption on purchases of certain motor vehicles and trailers,
qualifying method, a separate Form RUT‑7‑A must be
if the motor vehicle or trailer was purchased on or after
completed for each aircraft, watercraft, or limousine since the
August 24, 2017. Also use Form RUT‑7 to claim a rolling stock
election is on a per item basis. Keep a copy in your records to
exemption for purchases on or after August 24, 2017, of repair
verify your election.
and replacement parts for motor vehicles and trailers.
What does not qualify for the exemption?
Note: Contact the Illinois Department of Revenue at
Only those items specifically used as rolling stock may qualify
1 800 732-8866 or 217 782-3336 if you need to document
for the exemption. For example, items do not qualify for use
the purchase of a motor vehicle or a trailer made before
as rolling stock when they are used only
August 24, 2017, or the purchase of repair and replacement
to transport company officers, employees, customers or
parts for motor vehicles and trailers made before
others not for hire (even if the persons cross state lines);
August 24, 2017.
or
Who may claim the exemption?
to transport property a business owns or is selling and
To claim a rolling stock exemption, you must be an owner,
delivering to customers (even if the items cross state
lessor, or shipper purchasing tangible personal property that
lines).
will be utilized by interstate carriers for hire for use as rolling
When is the Form RUT-7-A due?
stock moving in interstate commerce.
A purchaser claiming the rolling stock exemption on
May a lessor claim the exemption?
an aircraft, watercraft, limousine, or rail carrier item
should provide to the seller a signed, properly completed
Yes. Purchasers who will be leasing the tangible personal
Form RUT‑7‑A at the time of sale. Both the purchaser and
property may claim the exemption, provided it will be utilized
seller should keep a copy in their records to document the
by interstate carriers for hire for use as rolling stock moving in
exemption.
interstate commerce.
Are there other returns that must be filed?
How do I document the exemption?
When an aircraft, watercraft, or limousine qualifying for
To document the rolling stock exemption, you must properly
the rolling stock exemption is sold by an Illinois dealer,
complete Form RUT‑7‑A and, for aircraft, watercraft, and
the dealer reports the sale using Form ST‑556, Sales Tax
limousines, indicate the method by which the item purchased
Transaction Return, or Form ST‑556‑LSE, Transaction Return
qualifies for the rolling stock exemption.
for Leases.
You must identify which method will be used — trips or
When an aircraft, watercraft, or limousine is purchased from
miles — at the time of purchase and document your choice
an out‑of‑state dealer, the purchaser reports the sale using
on Form RUT‑7‑A. If you do not choose an option, you will be
Form RUT‑25, Vehicle Use Tax Transaction Return, or Form
deemed to have chosen the miles method. You must use the
RUT‑25‑LSE, Use Tax Return for Lease Transactions.
aircraft, watercraft, or limousine in a qualifying manner under
the chosen method for each consecutive 12‑month period. If
When a limousine is purchased (or is acquired by gift
you do not, the exemption will be revoked and applicable tax,
or transfer) from an individual or other private party, the
penalties, and interest will be due.
purchaser reports the sale using Form RUT‑50, Private Party
Vehicle Tax Transaction.
RUT‑7‑A Instructions (R‑12/17)
Illinois Department of Revenue
RUT-7-A
Instructions
General Information
What is the purpose of Form RUT-7-A?
The total trips or miles for which persons or property are
carried for hire between points in Illinois may be used to
Form RUT‑7‑A, Rolling Stock Certification for Aircraft,
qualify for the exemption if the journey or shipment originates
Watercraft, Limousines, and Rail Carrier Items, allows a
or terminates outside Illinois. For aircraft, flight hours may
purchaser to certify to the seller that the purchaser is allowed
be used in lieu of miles in determining whether the aircraft
an exemption from Sales and Use Tax on aircraft, watercraft,
meets the mileage test. For watercraft, nautical miles or trip
limousines, and rail carrier items that are utilized by interstate
hours may be used in lieu of miles in determining whether the
carriers for hire for use as rolling stock moving in interstate
watercraft meets the mileage test.
commerce.
What is the difference between Form RUT-7-A and
Aircraft and watercraft must carry persons or property
Form RUT-7?
for hire in interstate commerce for more than 50 percent
of its total trips or miles/hours in a 12‑month period.
Use Form RUT‑7‑A to claim a rolling stock exemption on
qualified purchases of aircraft, watercraft, limousines, and
Limousines must carry persons or property for hire in
rail carrier items. Also use Form RUT‑7‑A to claim a rolling
interstate commerce for more than 50 percent of its total
stock exemption on repair and replacement parts for aircraft,
trips or miles in a 12‑month period.
watercraft, limousines, and rail carrier items.
Rail carrier items must be used as rolling stock to haul
Use Form RUT‑7, Rolling Stock Certification for Motor
persons or commodities for hire in interstate commerce on
Vehicles and Trailers (and Repair and Replacement Parts)
a regular and frequent basis.
Purchased on or after August 24, 2017, to claim a rolling stock
If you make fleet purchases and will not use the same
exemption on purchases of certain motor vehicles and trailers,
qualifying method, a separate Form RUT‑7‑A must be
if the motor vehicle or trailer was purchased on or after
completed for each aircraft, watercraft, or limousine since the
August 24, 2017. Also use Form RUT‑7 to claim a rolling stock
election is on a per item basis. Keep a copy in your records to
exemption for purchases on or after August 24, 2017, of repair
verify your election.
and replacement parts for motor vehicles and trailers.
What does not qualify for the exemption?
Note: Contact the Illinois Department of Revenue at
Only those items specifically used as rolling stock may qualify
1 800 732-8866 or 217 782-3336 if you need to document
for the exemption. For example, items do not qualify for use
the purchase of a motor vehicle or a trailer made before
as rolling stock when they are used only
August 24, 2017, or the purchase of repair and replacement
to transport company officers, employees, customers or
parts for motor vehicles and trailers made before
others not for hire (even if the persons cross state lines);
August 24, 2017.
or
Who may claim the exemption?
to transport property a business owns or is selling and
To claim a rolling stock exemption, you must be an owner,
delivering to customers (even if the items cross state
lessor, or shipper purchasing tangible personal property that
lines).
will be utilized by interstate carriers for hire for use as rolling
When is the Form RUT-7-A due?
stock moving in interstate commerce.
A purchaser claiming the rolling stock exemption on
May a lessor claim the exemption?
an aircraft, watercraft, limousine, or rail carrier item
should provide to the seller a signed, properly completed
Yes. Purchasers who will be leasing the tangible personal
Form RUT‑7‑A at the time of sale. Both the purchaser and
property may claim the exemption, provided it will be utilized
seller should keep a copy in their records to document the
by interstate carriers for hire for use as rolling stock moving in
exemption.
interstate commerce.
Are there other returns that must be filed?
How do I document the exemption?
When an aircraft, watercraft, or limousine qualifying for
To document the rolling stock exemption, you must properly
the rolling stock exemption is sold by an Illinois dealer,
complete Form RUT‑7‑A and, for aircraft, watercraft, and
the dealer reports the sale using Form ST‑556, Sales Tax
limousines, indicate the method by which the item purchased
Transaction Return, or Form ST‑556‑LSE, Transaction Return
qualifies for the rolling stock exemption.
for Leases.
You must identify which method will be used — trips or
When an aircraft, watercraft, or limousine is purchased from
miles — at the time of purchase and document your choice
an out‑of‑state dealer, the purchaser reports the sale using
on Form RUT‑7‑A. If you do not choose an option, you will be
Form RUT‑25, Vehicle Use Tax Transaction Return, or Form
deemed to have chosen the miles method. You must use the
RUT‑25‑LSE, Use Tax Return for Lease Transactions.
aircraft, watercraft, or limousine in a qualifying manner under
the chosen method for each consecutive 12‑month period. If
When a limousine is purchased (or is acquired by gift
you do not, the exemption will be revoked and applicable tax,
or transfer) from an individual or other private party, the
penalties, and interest will be due.
purchaser reports the sale using Form RUT‑50, Private Party
Vehicle Tax Transaction.
RUT‑7‑A Instructions (R‑12/17)
General Information (continued)
When an aircraft or watercraft is purchased (or is acquired
What if I need help?
by gift or transfer) from an individual or other private party,
If you need help, call us at 1 800 732-8866 or 217 782-3336,
the purchaser reports the sale using Form RUT‑75, Aircraft/
call our TDD‑telecommunications device for the deaf at
Watercraft Use Tax Transaction Return.
1 800 544-5304, or visit our website at tax.illinois.gov.
Sales of rail carrier items or repair and replacement parts are
reported by retailers using Form ST‑1, Sales and Use Tax and
E911 Surcharge Return.
Specific Instructions
Step 1: Identify the purchaser
Step 4: Indicate how this certification is being used
For limousines, aircraft, and watercraft, you must indicate
Enter the name, address, and telephone number of the
purchaser. If the purchaser is a lessor who will lease the
the method by which the item purchased qualifies for a rolling
item, proceed to Step 2. If the item is not being purchased for
stock exemption (i.e., more than 50 percent of its total trips
purposes of a lease, proceed directly to Step 3.
or miles in a 12‑month period for limousines; or more than 50
percent of its total trips or miles/hours in a 12‑month period for
Step 2: If the purchaser is a lessor, identify the lease
aircraft or watercraft).
customer
If you have been issued a certificate of authority number
If the purchaser is a lessor, enter the name, address, and
authorizing you to operate as a carrier for hire, enter that
telephone number of the lease customer. Complete Step 2
number.
only if the purchaser is a lessor who will lease the item to an
For rail carrier items, mark the box to indicate that the
interstate carrier for hire who will use the item under lease as
rolling stock in interstate commerce; otherwise skip Step 2
purchase qualifies for the rolling stock exemption.
and proceed directly to Step 3.
For repair and replacement parts, select either a or b
under either Single purchase or Blanket certification to
Step 3: Describe the purchase
indicate whether the full purchase is exempt or whether a
Enter the date the item was purchased. Also, enter the year,
percentage of the purchase is exempt. If b is selected, enter
make, model, and the appropriate identification number for the
the percentage of the purchase that qualifies or will qualify for
item (i.e., vehicle identification number (VIN) for limousines;
a rolling stock exemption. Blanket certifications expire after
hull identification number (HIN) for watercraft; aircraft
three years.
identification number (N) for aircraft; or other identification
number for rail carrier items).
Step 5: Certification
For repair and replacement parts, you must provide a
The individual making the purchase must sign and date the
description of items purchased.
certification, print his or her signed name, and as appropriate,
provide the purchaser’s business name.
RUT‑7‑A Instructions (R‑12/17)
Printed by authority of the State of Illinois ‑ Web only

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