Posted on 12/03/2019 12:10:56 PM PST by Erik Latranyi
Car dealers may have a busy New Year’s Eve if Illinoisans try to beat a significant sales tax expansion on vehicle trade-ins that starts in 2020.
The state currently collects no sales tax on a car’s trade-in value, which acts as credit toward a new vehicle purchase. By law, sales tax only applies to the difference between trade-in value and the new vehicle’s purchase price.
That changes Jan. 1. Under Senate Bill 690, signed June 28 by Gov. J.B. Pritzker, state and local sales tax will be applied to any trade-in value above $10,000. The new tax is expected to cost Illinoisans $60 million a year – which was earmarked not for roads, but for vertical infrastructure such as new state buildings and renovations.
The least a driver looking to trade-in will face is 6.25% in sales tax, the state’s rate. Municipalities often add their own sales tax, averaging 2.49%. Statewide the average combined state and local sales tax is 8.74%, but it ranges as high as 10.25% in Chicago.
(Excerpt) Read more at illinoispolicy.org ...
It also illustrates the greed and corruption of Illinois Democrats.
There will be a lot of trade-ins taking place in Wisconsin. Plus Iowa, Missouri, Kentucky and Indiana.
Yeah. I’m in KY. My relatives are in Illinois.
The $10,000 thing is interesting, though. It reminds me of the AMT (adjusted minimum tax) It is based on a dollar amount. Unfortunately that dollar amount in 2019 dollars is puny compared to what it was when the AMT was started.
Fortunately for me, though I always buy my cars new, when I trade them in they’ve been rode hard and put away wet. Every single car I’ve traded in was for $500.
They need their pensions.
They will catch the tax when one returns to IL. and register the vehicle.
Next they will tax the trade in value as income!
The Big Chic'go: not enough!
“They need their pensions.”
Indeed, related thread about a fat IL pension:
https://www.freerepublic.com/focus/f-news/3798085/posts
If only Illinois elected more Democrats.
Time to move the F out of Illinois.
Just another way of taking your money. They already tax your money double, triple, and quadruple.
Serves them right for voting (D)
earmarked not for roads, but for vertical infrastructure such as new state buildings and renovations.
Vitrazza glass office chair mats are a must have for gubmint wurkers.
In this season of Thanksgiving, I’m thankful that I don’t have to live in Illinois...
Next they will tax the trade in value as income!
I hear you, but let’s not give them any ideas. I’m sure socialist/radical types, would think , of course, you trade in a car, it’s worth “x” amount of money as an asset, and of course you should be taxed on that amount.
I live on the KY/TN/VA border and lots of KY residents trade and tag their vehicles in TN because of KY’s outrageous taxes and fees. In KY you pay sales tax on the sticker, not what you actually paid for the vehicle. If the sticker says $40,000 and you only paid $35000 tough you get to pay an extra 6% on that $5K, you have to present the sticker when tagging the vehicle. Years ago I had a clerk argue with me about the sticker I presented. It was from the window and was the manufacturer with the MSRP. Oh no she declared I want the one with the dealer add-ons. I said this is the one they gave me and what I paid for it. We went back and forth and she finally tagged it, greedy battle axe! Then you get the joy of paying property taxes on it every year in addition to taxes for tagging it for another year. About ten years ago I had an 06 Grand Marquis that went UP in value according to the state of KY. I said have you people finally reached full blown insanity? If you will show me someone willing to pay this I will gladly sell it to them! A freaking Grand Marquis going up in value, two years in a row! On top of that you get to pay outrageous insurance rates.
I now have a lake house in TN which I own with my mother-in-law so I tag my vehicles in TN and insure them there as well and have a TN license. I pay approximately $2600 to insure them, 3 full coverage, 1 liability, no tickets or accidents. In KY it would be about $5200 a year. To tag them in TN $315, in KY I would pay that in taxes for just one of the cars alone! We stay at the lake house two thirds of the time and can’t justify the outrageous KY taxes and insurance rates. I know many people who outright just give the TN address of a relative rather than get hammered by KY.
Just wonder what these politicians will do when they run out of taxpayers money? Tax each other?
This is weird. I love the area where I live in KY regarding cars and tabs.
When we moved here from Seattle, we had to get our cars “inspected” before they could be licensed here. It cost five bucks and it amounted to taking down the VIN. And I had no cash and they said, “Oh, just come by next week.” My wife did and they said it was ok and they already took care of it.
And when I renewed my tabs on my Scion FRS, that I drive 150 miles a day to work, I told them about my high mileage and they adjusted the fee accordingly. And they’ve computed the value every year based on that mileage formula.
So, now I have
2013 Scion FR-S
2017 Scion iA
2006 Scion xB
2004 Silverado Z71
Total annual tab fees: $250.
My friends in Seattle pay thousands annually for a stable like that. AND they have a high sales tax. ;)
I live in down state Illinois and I must be in a bubble or something because not one single person I know will admit to voting for the FAT Blagojevich.
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