Who May File.
Any organization that owns a motor vehicle for which an exemption is sought must file for a motor vehicle tax exemption if:
- The motor vehicle is owned by and used exclusively for agricultural and horticultural societies; or
- The motor vehicle is:
- Owned by an educational, religious, charitable, or cemetery organization, or any organization for the exclusive benefit of any educational, religious, charitable, or cemetery organization;
- Used exclusively for educational, religious, charitable, or cemetery purposes;
- Not owned or used for financial gain or profit to either the owner or user;
- Not used for the sale of alcoholic liquors for more than 20 hours per week; AND
- Not owned or used by an organization which discriminates in membership or employment based on race, color, or national origin.
Each motor vehicle must be listed separately to qualify for tax exempt status.
Use of Vehicle.
A partial exemption of a motor vehicle may not be granted. A motor vehicle does not have separable portions; it is either exempt or taxable in its entirety.
If a motor vehicle is used for other than incidental nonexempt use, no exemption may be granted. For example, a qualifying organization provides a motor vehicle
to an employee to use in the activities of the organization. The employee also uses the motor vehicle for personal and family use beyond incidental use.
The motor vehicle is taxable since it is not used exclusively for exempt purposes. If a qualifying organization provides a motor vehicle to an employee to use as
transportation to and from the workplace, this personal use would not automatically preclude the exemption.
Please note: Exemption from motor vehicle tax does not exempt the motor vehicle from sales and use taxes or wheel tax.
When and Where to File.
All applications for exemption must be filed with the county treasurer of the county in which the motor vehicle is subject to tax, not more than 15 days before and
not later than 30 days after the registration date of the motor vehicle. For a newly-acquired motor vehicle, the application must be made within 30 days of the date of
purchase. Exempt status for a motor vehicle extends through one registration period. A renewal application must be filed annually no sooner than the first day of the last
month of the registration period or no later than the last day of the registration period. Failure to apply for tax exempt status within the allotted time is a waiver of
the exemption for the registration year.
If an application for exemption is disapproved by the county board of equalization (board), an appeal may be made to the Tax Equalization and Review Commission within 30
days of the final decision of the board.
Indicate primary use of the motor vehicle by marking the appropriate block. State in detail the use of the motor vehicle and explain any circumstances existing when the motor
vehicle may have multiple use classifications. If the motor vehicle is not used exclusively as indicated, give the approximate percentage of exempt use.
The completed Application for Exemption, Form 457, is retained by the county clerk after action by the board. The county treasurer may make copies for their records.