An Illinois Bill of Sale is a form used to legally document the sale of personal property in the state of Illinois. When selling a vehicle, boat, or firearm you should use a bill of sale specifically for that purpose.
A Bill of Sale will protect both the buyer and seller in the event of a legal dispute in Illinois, so both parties should keep a copy of the document for their records.
Types of Bill of Sale
Illinois Vehicle Bill of Sale Requirements
Illinois law does not require a vehicle bill of sale, which is a legal document that acts as a receipt and shows when ownership of a car switched hands when it is purchased from an in-state dealer or individual. However, new Illinois residents who lease vehicles must submit out-of-state titles or other proof of ownership, such as a bill of sale, when they apply for a title and registration.
Benefits of Creating This Document
Though Illinois does not require a bill of sale, there are benefits to creating and keeping one for your records. Namely, it includes important information, such as the buyer’s and seller’s contact information, the date and location of the purchase, and the sale price. Maintaining a record with this information protects the seller if the buyer abandons the vehicle or fails to register and title it.
Additionally, this document serves as a receipt for the buyer, as well as a helpful document that they can refer to when they are completing their taxes. In Illinois, taxes must be paid on all vehicle sales. Taxes are based on the model year of the vehicle if the selling price is less than $15,000 or on the selling price if it is more than $15,000.
What to Include in One
Since a bill of sale isn’t a legal requirement, Illinois doesn’t provide a form for buyers and sellers. Buyers and sellers can create their own with the following information:
- Buyer’s and seller’s names, addresses, phone numbers, and signatures
- Vehicle sale price and when the final payment was made
- Make, model, year, and Vehicle Identification Number (VIN)
- Date and location of the vehicle sale
- Odometer reading
The buyer and seller should keep copies of the document as proof of the transaction. It is not required to have the document notarized; however, doing so adds credibility to a document.
The Illinois Secretary of State Driver Services recommends writing the form in English.
Illinois requires that an owner submit the state-provided form for a Junked Vehicle (VSD 658), along with a Certificate of Final Disposition (VSD 657), if he/she has the lost the vehicle’s title certificate and plans to send it to a salvage yard. The state will not accept any other bill of sale for junked vehicles.
Steps to Take After Vehicle Purchase
In addition to mandatory insurance laws, Illinois requires all vehicles to be titled and registered after purchase.
With the Electronic Registration and Title (ERT) System, you can complete and print an Application for Vehicle Transaction(s) (VSD 190) online. Also, you may obtain title and registration applications by visiting most Illinois Secretary of State Driver Services facilities.
New Resident Registration Requirements
New residents have 30 days to apply for an Illinois title and registration after establishing residency. In addition to completing the Application for Vehicle Transaction, you must provide the following documents:
- Name and Illinois address of the owner
- Odometer reading from the vehicle odometer (do not include tenths of a mile)
- Vehicle description, including the year, make, model, VIN, body type, date of purchase, whether it is new or used
- Names and addresses of any lienholders in order of priority
- Original signature(s) of owner(s)
For new residents who have leased vehicles, these documents must be submitted:
- Lease purchase agreement
- Out-of-state registration, verifying the vehicle was registered in another state
- Out-of-state title
- Manufacturer’s certificate of origin
- Bill of sale identifying the vehicle and the lessor’s name and address
The application must be accompanied by the out-of-state title or other proof of ownership, such as a bill of sale.
If you recently bought and have not titled or registered a vehicle you are bringing with you to Illinois, you must complete appropriate tax forms. Tax form RUT-25 must be completed and submitted along with a bill of sale to the Illinois Secretary of State’s Office if the vehicle was purchased from a dealer. Along with these documents and the application for vehicle registration and title, you must submit any applicable taxes payable to the Illinois Department of Revenue.
If the vehicle was purchased or gifted from an individual, tax form RUT-50 (Vehicle Use Tax Transaction Return) must be completed and submitted with the registration and title application and any applicable taxes. If the department is questioning the vehicle’s purchase price, you can submit RUT-49 in lieu of a bill of sale. The seller and purchaser must sign RUT-49.
Illinois Boat Bill of Sale Requirements
Any person who purchases a used jet ski or personal watercraft or watercraft classified in Illinois as Class 2, 3, or 4 from a retailer or individual in Illinois must submit a boat bill of sale and a number of other documents, according to the Illinois Department of Natural Resources.
You must submit:
- A completed Watercraft Registration/Title Application
- An original watercraft title or Power of Attorney form
- If applicable, a lien release letter
- A check or money order made payable to IDNR for any applicable fees
- Bill of sale
In addition to these documents, if you bought a watercraft from a retailer, you must submit a RUT-25 tax form. You must also submit a RUT-75 tax form if the purchase was made by an individual.
Illinois Gun Bill of Sale Requirements
In Illinois, a private seller of a firearm must contact the Department of State Police and determine whether a potential buyer/transferee has a valid Firearm Owner’s Identification Card number before they can legally sell or transfer a weapon. State police must approve the validity of the FOID number before a firearm can be transferred. Firearm transfers that are transferred as gifts to spouses or relatives, as well as transfers made at a federally-licensed firearm dealer’s place of business, are exempt from this law.
Additionally, Illinois law requires any person who transfers a firearm, stun gun, or taser to keep a record of the transfer, such as a firearm bill of sale, for 10 years from the date of transfer. The bill of sale or record must contain:
- Buyer’s and seller’s full names and addresses
- Date of transfer
- Description, including the make, model, and caliber
- Serial number or other number identifying the firearm, taser, or stun gun
- Location of the transfer
- Transferee’s Firearm Owner’s Identification (FOID) card number
- Approval numbers or documents provided by the Department of State Police
It is also beneficial to include information about disclosures, sale prices, and any mechanical defects. Though not required, it is recommended that buyers and sellers maintain copies of each other’s identities.
In addition to the state law, Cook County requires individuals to submit a Lost, Stolen, Destroyed, or Transferred Firearms Report within 48 hours of no longer having the weapon.
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