A Cook County Circuit judge granted a preliminary injunction against the Cook County Non-Titled Property Use Tax to allow the County time to provide additional information on issues of concern. Lawsuits have been filed over the tax by the Chicagoland Chamber of Commerce and two law firms, and the County intends to respond in a formal Motion to Reconsider, with a hearing set for Sept. 10, 2013. Payment of this tax began this past May, but is currently not being accepted by the County nor is filing of non-titled personal property tax returns required at present.
Keep in mind that this new tax was imposed on the value of certain non-titled personal property purchased outside of the County when first used in the county. Purchasers are allowed an annual credit for the first $3,500 of value of applicable non-titled personal property purchases subject to this tax. The rate of 1.25 percent was initially imposed effective April 1, 2013 but was later amended to be .75 percent effective June 1, 2013 to bring it in line with the County sales tax. Besides raising more revenue, the tax was intended to help Cook County businesses from losing sales to their competitors in neighboring counties with lower sales tax. Instead, it has created a tax and reporting burden for the taxpayers of Cook County, especially for those purchasing large amounts of commodities and expensive software.
Legal challenges were anticipated regarding the extent of the county’s taxation powers and whether purchasers should be credited by the county for sales taxes paid in other states or municipalities.
Further details can be found at the Cook County Department of Revenue website.
