A. (1) Except as otherwise provided by this chapter, a tax is imposed upon the privilege of using in the city any motor vehicle that is acquired by purchase, gift or transfer. The ultimate incidence of and obligation for payment of the tax is on the person that acquires the motor vehicle by purchase, gift or transfer.
(2) Notwithstanding subsection (A)(1) of this section, the tax shall not apply if the motor vehicle is purchased at retail from a retailer and the purchaser is required to pay the use tax imposed by the Chicago Use Tax Ordinance for Titled Personal Property, Chapter 3-28 of this Code.
B. To prevent multiple home rule taxation, any person that uses a motor vehicle in the city may claim a credit against the tax imposed by this chapter equal to any home rule municipal tax properly due and actually paid to another home rule municipality with respect to the nonretail sale or other nonretail transfer of the motor vehicle subject to the tax imposed by this chapter. The credit may not exceed the amount of the tax imposed by this chapter that otherwise would be due.
C. Nothing in this chapter shall be construed to impose a tax upon any business or activity which, under the constitutions of the United States and the State of Illinois, may not be made the subject of taxation by the city.
(Added Coun. J. 11-10-94, p. 59125, § 3.1, effective 7-1-95)