21 vehicle, are not taxable. On the other hand, dealer incentives paid to the dealer and conditioned on the retail sale of a vehicle are taxable, except that: A. Dealer incentives contingent, at the time of sale, on making or having any additional retail sales (stair step incentives) are not taxable; and B. Dealer incentives or bonuses contingent on the dealer meeting certain manufacturer required marketing standards, facility standards or sales and service department satisfaction goals are not taxable (such as CSI store based or marketing-based incentives). QUESTION 3: I sell a car to a customer who provides me with the address of his Lake Geneva, Wisconsin, home. Do I need to charge him Illinois sales tax? The Illinois Revenue Code provides an exemption for Sales Taxes for purchases made by non-residents of Illinois. The fact that a customer has a domicile outside of Illinois does not mean that he is not an Illinois resident. However, since July 1, 2008, the Department of Revenue holds the dealer to the following requirements: 1. The purchaser must sign the following certificate: “I (purchaser), under applicable penalties, including penalties for perjury and fraud, state that I am not an Illinois resident. I understand that if I am a resident of Illinois, or if I use the motor vehicle in Illinois for more than 30 days in a calendar year as provided in 86 Ill. Adm. Code 150.310(a) (7), then I am liable for tax, penalty and interest on this purchase.” 2. The purchaser must also provide one of the following: a. A copy of the purchaser’s permanent non-Illinois Driver’s License; or b. If a copy of the non-Illinois Driver’s License is not kept or an Illinois license is present, a rebuttable presumption that the purchaser is an Illinois resident is created, which in turn requires the dealer to maintain other evidence of the non-residency of the purchaser, such as (i) Voters Registration Card with a non-Illinois address, or (ii) a copy of a purchase contract or lease agreement for a new non-Illinois residence, or (iii) a copy of a non-resident tax return, or (iv) credit report listing the purchaser’s primary residence in another state, or (v) property tax records claiming a homestead in another state, or (vi) other similar documentation. If the documents above are kept, then, absent fraud, the Department will only proceed against the purchaser for any claim that the exemption did not apply. If the documentation above is not kept, the Department will disallow the exemption, subject to further review by the Department. In the case of a motor vehicle lease, the above provision shall apply to the lessee as if the lessee was the purchaser.
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