Tricycle Modifications Not Eligible for Reduced Tax Rate in Illinois

Wednesday, May 18th, 2016

 
 
A vintage red tricycle.
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Illinois
Transportation

Illinois' reduced tax rate did not apply to modifications to a taxpayer's tricycle.

Illinois has a reduced tax rate for items used to make motor vehicles more usable for disabled persons. A disabled taxpayer wanted to attach an electric motor to a tricycle to make mobility easier.

The Department of Revenue determined that a tricycle was not a "motor vehicle." As a result, the taxpayer could not use the reduced rate for the tricycle, electric motor, or other parts.

http://tax.illinois.gov/LegalInformation/LetterRulings/st/2015/ST-15-0078-GIL.pdf


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TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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