Miasmatic Review

It's a used canoe!!!!

In the state of Illinois you have to register your canoe before you can use it. Now if you ask the bureaucrats they will tell you that it’s for your own protection. That way people can’t steal your canoe and sell it. Honestly, let’s just be honest and admit it. The state wants to micromanage anything and everything its citizens do. They can also get more money out of us.

The problem is that if you buy a used canoe, you can have a ton of fun trying to get it registered. Especially if you have a canoe that is not currently registered with the state or comes from a state that doesn’t register their canoes… such as Wisconsin. That is where my canoe came from. So as I filled out the paper work, and I spoke with the DNR there was mention of a watercraft tax.

At the time you apply for an Illinois title or registration with the Illinois Department of Natural Resources for a watercraft you purchased or leased, you are required to submit either payment of tax or proof that no tax is due before your watercraft can be titled or registered.

The Illinois Department of Revenue is responsible for administering the collection of tax and providing the necessary tax forms. You must make separate payments for tax due and title and/or registration fees. Make your tax payment payable to the Illinois Department of Revenue and your payment for title fees payable to the Illinois Department of Natural Resources.

The Department of Natural Resources directed me to the Illinois Department of Revenue. While I was on hold with them I started doing some research and discovered the following on the back of the registration form:

Effective September 1, 2004 tax is owed when a watercraft (class 2, 3, 4 and personal watercraft [PWC], i.e. jet-skis) is acquired by gift, donation, transfer, or non-retail purchase if the watercraft will be used in Illinois.

Thus, I figured when I finally got through the person would tell me that I owed nothing because a canoe is a Class A watercraft… “Class A – Canoe/Kayak/Paddleboat”. Finally after ten minutes a guy with a thick Spanish accent is trying to help me. I could barely understand what he was saying to me. I explained why I was calling. He asked me how long was is the canoe. I advised 17 feet and he put me on hold “to look something up.” He came back on and said that I would indeed owe taxes on it.

SAY WHAT?!?!?!?!

He said that because the canoe is 17 feet, I owe taxes on it. If it had been 15 feet, I would have been okay. I clarified that the form says that a class 2 watercraft is 16 to 24 ft , but that a class A is a canoe/kayak/paddleboat. It doesn’t say what size it has to be. He stated that there is nothing that claims that a canoe is exempt from the size categories. Even after I pointed out that doesn’t make sense since they have a separate category just for Canoes/kayaks/paddleboats. The guy put me on hold again and said he was going to talk to his supervisor. I was on hold for another 5 minutes and he comes back on and claims that “I spoke with my supervisor and they agree with me.” I asked to speak with the supervisor and was transferred to a voice mail.

I left a message asking them to call me back. In the meantime I started doing more research and I found this on the Illinois Department of Revenue’s own website. First I have from their own section on definitions.

"Watercraft" means Class 2, Class 3, and Class 4 watercraft, as defined in Section 3-2 of the Boat Registration and Safety Act [625 ILCS 45/3-2] and personal watercraft, as defined in Section 1-2 of the Boat Registration and Safety Act [625 ILCS 45/1-2]. [35 ILCS 158/15-5] Section 3-2 of the Boat Registration and Safety Act defines these terms asfollows:

"Class 2" watercraft means all watercraft 16 feet or more but less than 26 feet in length, except canoes and kayaks.

"Class 3" watercraft means all watercraft 26 feet or more but less than 40 feet in length.

"Class 4" watercraft means all watercraft 40 feet or more in length.

Next I found this on the FAQ for the RUT-75 form. The one that you have to fill out to pay for the tax.

Who must file Form RUT-75? If you acquire an aircraft or watercraft by gift, donation, transfer, or non-retail purchase, you must fi le Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return.

“Aircraft” includes airplanes, helicopters, hot-air balloons, ultra lights,
gliders, blimps, dirigibles, seaplanes, and anything else defined as
aircraft in Section 3 of the Illinois Aeronautics Act.

“Watercraft” includes
• Class 2, Class 3, and Class 4 watercraft as defined in Section 3-2
of the Boat Registration and Safety Act; and
• personal watercraft as defined in Section 1-2 of the Boat
Registration and Safety Act (jet skis, wave runners, etc.).

“Watercraft” does not include canoes or kayaks.

Finally we have 625 ILCS 45/3-2

(625 ILCS 45/3 2) (from Ch. 95 1/2, par. 313 2)
Sec. 3 2. Identification number application. The owner of each watercraft requiring numbering by this State shall file an application for number with the Department on forms approved by it. The application shall be signed by the owner of the watercraft and shall be accompanied by a fee as follows:

A. Class A (all canoes, kayaks, and non motorized paddle boats). $6
B. Class 1 (all watercraft less
than 16 feet in length, except
canoes, kayaks, and non motorized paddle boats).. $15
C. Class 2 (all watercraft 16
feet or more but less than 26 feet in length
except canoes, kayaks, and non motorized paddle boats). $45
D. Class 3 (all watercraft 26 feet or more
but less than 40 feet in length)............ $75
E. Class 4 (all watercraft 40 feet in length
or more)........................... $100

Upon receipt of the application in approved form, and when satisfied that no tax imposed pursuant to the "Municipal Use Tax Act" or the "County Use Tax Act" is owed, or that such tax has been paid, the Department shall enter the same upon the records of its office and issue to the applicant a certificate of number stating the number awarded to the watercraft and the name and address of the owner.
(Source: P.A. 93 32, eff. 7 1 03; 94 45, eff. 1 1 06.)

Emphasis mine

Pay no attention to the prices, those have gone up.

So I’m waiting for this supervisor to call me back. I’m fighting paying the taxes on this because according to all the laws, forms and documentation I can find, CANOES ARE EXEMPT!!!!! I’m not paying any more money into this State hemorrhaging money due to bad money management. I wonder how badly the state is going to come down on me?