Illinois DOR Issues Private Letter Ruling on Taxability of Boats, Watercraft

The Illinois Department of Revenue (DOR) issued a private letter ruling on the taxability of boats and watercraft. The DOR found that boats or watercraft are not considered “automobiles” under the Illinois Automobile Renting Occupation and Use Tax Act. Therefore, gross receipts from renting boats are not subject to that tax. The DOR reasoned that boats do not meet the statutory definition of “automobile” under the Act because they are not “vehicles” transported or drawn upon a highway as defined in the Illinois Vehicle Code. [Ill. Dep’t of Revenue, Private Letter Ruling ST-25-0002-PLR, 05/19/25]

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