Illinois Department of Revenue

     RUT-7                  Instructions

                                            General Information
What is the purpose of Form RUT-7?                                  May a lessor claim the exemption?
Form RUT‑7, Rolling Stock Certification for Motor Vehicles          Yes. Purchasers who will be leasing a motor vehicle or trailer 
and Trailers (and Repair and Replacement Parts) Purchased           may claim the exemption, provided the criteria outlined above 
on or after August 24, 2017, allows a purchaser to certify to       in “Who may claim the exemption?” are met.
the seller that the purchaser is allowed an exemption from          What if the item does not continue to be used as 
Sales and Use Tax on certain motor vehicles and trailers that       rolling stock?
are utilized by interstate carriers for hire for use as rolling     The tax exemption will last as long as the motor vehicle or 
stock moving in interstate commerce.                                trailer continues to be used to transport persons or property 
What is the difference between Form RUT-7 and                       for hire. When the motor vehicle or trailer no longer continues 
Form RUT-7-A?                                                       to be used as rolling stock, including no longer being leased 
Use Form RUT‑7, Rolling Stock Certification for Motor               for use as rolling stock, the purchaser must pay Use Tax on 
Vehicles and Trailers (and Repair and Replacement Parts)            the selling price, allowing for a reasonable depreciation for the 
Purchased on or after August 24, 2017, to claim a rolling stock     period during which the item qualified for the exemption.
exemption on purchases of certain motor vehicles and trailers,  Use tax must be paid directly to the Illinois Department of 
if the motor vehicle or trailer was purchased on or after August  Revenue on or before the last day of the calendar month 
24, 2017. Also use Form RUT‑7 to claim a rolling stock              following the month in which the item is no longer used as 
exemption on repair and replacement parts for motor vehicles        rolling stock. For more information regarding Use Tax, visit 
and trailers purchased on or after August 24, 2017.                 our website at tax.illinois.gov or call us at 217 782-3336 or 
Use Form RUT‑7‑A, Rolling Stock Certification for Aircraft,         1 800 732-8866.
Watercraft, Limousines, and Rail Carrier Items, to claim a          How do I document the exemption?
rolling stock exemption on qualified purchases of aircraft,         To document the rolling stock exemption, you must properly 
watercraft, limousines, and rail carrier items. Also use            complete Form RUT‑7, including providing the USDOT 
Form RUT‑7‑A to claim a rolling stock exemption on repair           number. A purchase that otherwise meets the requirements 
and replacement parts for aircraft, watercraft, limousines, and     for exemption will only qualify if the purchaser can supply an 
rail carrier items.                                                 active USDOT number of the interstate carrier with the carrier 
Note: Contact the Illinois Department of Revenue at                 operation listed as “interstate” and the operation classification 
1 800 732-8866 or 217 782-3336 (or call 1 800 544-5304 for          listed as “authorized for hire,” “exempt for hire,” or both (except 
TDD‑telecommunications device for the deaf) if you need             for motor vehicles or trailers used at an airport to support the 
to claim a rolling stock exemption on the purchase before           operation of an aircraft moving in interstate commerce).
August 24, 2017, of a motor vehicle or a trailer or repair and      Note: Motor vehicles and trailers (and repair and replacement 
replacement parts for motor vehicles and trailers.                  parts) purchased before August 24, 2017 (i.e., the date 
Who may claim the exemption?                                        P.A. 100‑321 became effective) do not qualify for a rolling 
To claim a rolling stock exemption, you must be an owner,           stock exemption under this method. Instead, purchasers must 
lessor, or shipper purchasing tangible personal property that       certify the exempt purchase using either the total trips or total 
will be utilized by interstate carriers for hire for use as rolling miles method. See the note under “What is the difference 
stock moving in interstate commerce.                                between Form RUT‑7 and Form RUT‑7‑A?” above.
To qualify for the rolling stock exemption,                         What does not qualify for the exemption?
• the motor vehicle or trailer must be used to transport            Only those items specifically used as rolling stock may qualify 
  persons or property for hire,                                     for the exemption. For example, items do not qualify for use 
• the purchaser must certify that the motor vehicle or trailer      as rolling stock when they are used only
  will be utilized by an interstate carrier for hire who holds      • to transport company officers, employees, customers or 
  an active USDOT number with the carrier operation listed            others not for hire (even if the persons cross state lines); 
  as “interstate” and the operation classification listed as          or
  “authorized for hire,” “exempt for hire,” or both “authorized     • to transport property a business owns or is selling and 
  for hire” and “exempt for hire,” * and                              delivering to customers (even if the items cross state 
• for motor vehicles, the gross vehicle weight rating must            lines).
  exceed 16,000 pounds.                                             In addition, even if the motor vehicle or trailer is used for 
* The second item above does not apply to a motor vehicle or        hire and exceeds 16,000 pounds (for motor vehicles), it 
trailer used at an airport to support the operation of an aircraft  cannot be purchased exempt unless the interstate carrier 
moving in interstate commerce, as long as the motor vehicle         holds the proper USDOT credentials (i.e., a USDOT number 
or trailer otherwise qualifies under the above criteria.            with a Carrier Operation of “Interstate” and an Operation 
                                                                    Classification of “authorized for hire,” “exempt for hire,” or 
                                                                    both).

RUT‑7 Instructions (R‑09/17)

                                       General Information (continued)
When is the Form RUT-7 due?                                        When a motor vehicle or trailer is purchased (or is acquired 
A purchaser claiming the rolling stock exemption on a motor        by gift or transfer) from an individual or other private party, the 
vehicle or trailer should provide to the seller a signed, properly purchaser reports the sale using Form RUT‑50, Private Party 
completed Form RUT‑7 at the time of sale. Both the purchaser  Vehicle Tax Transaction.
and seller should keep a copy in their records to document the  Sales of repair and replacement parts are reported by retailers 
exemption.                                                         using Form ST‑1, Sales and Use Tax and E911 Surcharge 
Are there other returns that must be filed?                        Return.
When a motor vehicle or trailer qualifying for the rolling stock   For purchases of aircraft, watercraft, limousines, and rail 
exemption is sold by an Illinois dealer, the dealer reports the    carrier items, see Form RUT‑7‑A instructions.
sale using Form ST‑556, Sales Tax Transaction Return, or           What if I need help?
Form ST‑556‑LSE, Transaction Return for Leases.                    If you need help, call us at 1 800 732-8866 or 217 782-3336, 
When a motor vehicle or trailer is purchased from an               call our TDD‑telecommunications device for the deaf at 
out‑of‑state dealer, the purchaser reports the sale using          1 800 544-5304, or visit our website at tax.illinois.gov. 
Form RUT‑25, Vehicle Use Tax Transaction Return, or 
Form RUT‑25‑LSE, Use Tax Return for Lease Transactions.

                                                 Specific Instructions
Step 1: Identify the purchaser                                     For purchases of repair and replacement parts, you must 
Enter the name, address, and telephone number of the               also select either  1or  2under either Single purchase or 
purchaser. If the purchaser is a lessor who will lease the item,   Blanket certification to indicate whether the full purchase is 
also complete Step 2. If the item is not being purchased for       exempt or whether a percentage of the purchase is exempt. 
purposes of a lease, proceed directly to Step 3.                   If  2is selected, enter the percentage of the purchase that 
                                                                   qualifies or will qualify for a rolling stock exemption. Blanket 
Step 2: If the purchaser is a lessor, identify the lease 
                                                                   certifications expire after three years.
customer
If the purchaser is a lessor, enter the name, address, and          Note: Purchases of repair or replacement parts on or after 
telephone number of the lease customer. Complete Step 2            August 24, 2017, are exempt only if they meet the current test 
only if the purchaser is a lessor who will lease the item to an    for exemption, regardless of when the motor vehicle or trailer 
interstate carrier for hire who will use the item under lease as   was purchased.
rolling stock in interstate commerce; otherwise skip Step 2        Step 5: Certification
and proceed directly to Step 3.                                    The individual making the purchase must sign and date the 
Step 3: Describe the purchase                                      certification, print his or her signed name, and as appropriate, 
Enter the date the item was purchased, and check the               provide the purchaser’s business name.
applicable box to indicate whether the item purchased is a 
motor vehicle or trailer or repair and replacement parts for a 
motor vehicle or trailer.
For purchases of motor vehicles and trailers, enter the year, 
make, model, and the vehicle identification number (VIN) for 
the motor vehicle or trailer purchased.
For purchases of repair and replacement parts, you must 
provide a description of items purchased.
Step 4: Confirm that the purchase qualifies for the 
rolling stock exemption
Whether you are purchasing a motor vehicle or trailer or repair 
and replacement parts for a motor vehicle or trailer, check 
each box to confirm that this purchase meets the criteria to 
qualify for the rolling stock exemption. You must provide the 
carrier’s active USDOT number and indicate whether the 
carrier’s Operation Classification is listed as “authorized for 
hire,” “exempt for hire,” or both.

RUT‑7 Instructions (R‑09/17)                                                                   Printed by authority of the State of Illinois ‑ Web only