By: Diane Benjamin
Starting January 1st under a new Illinois law you will pay more sales tax if you trade-in a vehicle for more than $10,000.
If you trade in a nice car to buy an even nicer car, you have a tax bulls-eye on your wallet. Democrats think you are rich and therefore must be taxed more. This tax is aimed directly at the middle class, the people who they claim won’t be paying more if the progressive income tax gets passed. This attack is more proof Democrats know where tax revenue can be generated, there aren’t enough rich for their folly. Democrats target regular folks until they have nothing left to tax,
Until January 1st here’s how it works:
You buy a car for $30,000
You get a trade allowance of $18,000.
You are only taxed on the difference: $30,000 – $18,000 = $12,000. Tax at 6.25% = $750.
January 1st you are only allowed $10,000 on your trade before calculating sales tax.
$30,000 – $10,000 = $20,000 taxable for a total tax of :
$20,000 x 6.25% = $1,250
The state just stole another $500 from you!
But it’s okay because you are rich! Right?
Buying a car out of state will get you a tax bill in the mail. BTW, if you buy gas across the border pay cash. I hear Illinois expects you to remit their motor fuel tax. Don’t leave a trail for them to find.
Here’s what to do:
Trade-in your car before January 1st – a long time before January 1st. When the population wakes up to this fleece the dealerships will be packed and the deals will be few.
If you need to buy a used vehicle, wait until after January 1st. The lots will be packed with trade-ins and prices will be lower.
You could also keep your vehicle until the value is less than $10,000. Dealers won’t like that option. Cash For Clunkers interfered in the free market and cost a lot of people jobs. Democrats don’t like capitalism, this is more proof.
This fleece is part of Build Illinois. It appears a number of bills make up the total.
The joke is on you if you thought infrastructure was the target for all the new taxes.
Start with this story: https://www.dailyherald.com/news/20190713/why-you-might-pay-more-to-buy-a-car-in-illinois-a-trade-in-tax-credit-cap
Then see Illinois.gov summary: https://www2.illinois.gov/Pages/news-item.aspx?ReleaseID=20266
HR 62. Is one of the bills involved. Who voted YES? Republican leadership: Dan Brady and Jim Durkin. http://ilga.gov/legislation/votehistory/101/house/10100HB0062_05292019_020000T.pdf
There are 37 Republicans in the House. 39 people voted no.
The Senate vote was worse, only 6 NO votes: http://ilga.gov/legislation/votehistory/101/senate/10100HB0062_06012019_001000T.pdf
Local Republicans voting YES: Bill Brady, Jason Barickman, Tom Bennett, Chapin Rose
You already know about Senate Bill 1939: https://blnnews.com/2019/07/17/four-bs-and-an-r/
The same locals voted Yes.
Maybe the Republicans are trying to hasten Illinois’ destruction. Or maybe they are really Democrats,
Either way, none of the locals are fighting for your wallet.
This governor is aggressively increasing revenue and is not afraid to approach everything. So sad, glad I’m not a resident of Illinois anymore. The time to act for Illinois citizenry is just about past. Let the exodus continue. The buying your car in another state has always generated sales tax, I believe.
Diane keep your “love light shining”, I don’t always agree with you; however, you are a bulldog this is needed. Keep your faith and don’t be angry, but be satisfied that you are right. Thanks for this perspective
1) I don’t want people to always agree with me
2) Yes, buying in another state has generated a bill for local tax, this will be an additional state tax
3) This tax affects my business, Cash for Clunkers put a lot of my customers out of business because they couldn’t find inventory. It remains to be seen what affect this has.
4) Only angry that I can’t get my husband to abandon Illinois!
Keep your faith, I’m ok with sales tax for vehicles purchased out of state. Think it’s been that way for a long time. You need to keep working on your hubby!
I’m surprised and don’t tell them that if I buy from a person I don’t pay sales tax other than $25 if the car I think is older than 25 years. Now if I buy from a dealer in state or out I pay taxes. Go figure that one out. No doubt they will change that for buying from a private person.
If I buy used I look for a private seller in state or out and an older car. Yes there are some good old cars out there.
I quit trading in and buying any new car years ago.
For what little I drive I also slap on antique license plates ($51 a year) on my old cars. I’ll be ****ed if I am paying their high license plate fees too. If I ever get stopped and when have you ever seen a police officer anymore, I just claim I am having work done on my antique car.
I just picked up a very nice Cadillac Fleetwood from a woman in MI. It was her parents car, 51K miles on it and maintained. I don’t need a new BMW even though I could afford it. Only a fool would hand your money over to those Democrat losers.
That is certainly another option, of course a lot of people could be out our of work at dealerships. Democrats can then be blamed. Your taxes will go up to compensate since democrats aren’t capable of cutting spending.
If you’re wealthy enough to plunk down $30,000 or more for a new car or have it financed you should be able to figure in and pay the taxes involved in buying that car. You repeatedly cry about poor roads and infrastructure in Illinois but you certainly don’t want to pay for those roads and infrastructure that new car your driving is using. The capital improvements $45 billion just passed will enable over the next several years repairing and enhancing the state’s roads, bridges and public transit systems as well as K-12 and higher education campuses, public health clinics and a number of other public facilities. I guess you think those funds to repair roads and bridges comes from fairy dust.
Evidently you didn’t read where the money is going. It isn’t all going for roads and bridges. Thanks for playing.
For what it’s worth just have a friend or relative steal your car and total it by driving it off into a lake and collect the insurance money to use for a cash down payment. Just sayin! No sales tax there. LOL
Recommending insurance fraud isn’t a plan!
So…..apparently in Karen S (O) B’s mind, a person that can finance a $30,000 vehicle is “wealthy”? Please stop a moment and contemplate how stupid, out-of-touch, and militantly Communist that attitude is. scary, Scary, SCARY!
What I don’t get is the “road use tax” on a vehicle EVEN if you buy it out of town, which is a .0075% tax on the sticker price, and WHY is it that if you live in Bloomington that UPPITY TOWN sends you the bill??
Local tax!
Gee! I wonder how many native Chicago Residents will go out and help the economy by buying a new car from
a dealership and paying this unfair tax. Maybe the bums on welfare could work on some civil projects to ease
he burden. Naaah!… what was I thinking.
Jelly B. and his boys (and girls) are cooking up every way they can to dig more and more money out of anyone for anything. It’s also why all of the fines are increasing and why the State Police (who are already mostly just revenuers anyway) are “stepping up” patrols on the highways it’s for “our safety” of course… Just wait, it’s gonna get even worse. I’m almost afraid to leave the house these days and yet I have to every day (and wouldn’t want it any other way), and take my chances of being fined for some ridiculous infraction or another. Just wait, eating, smoking, drinking water/soda etc while driving will be the next thing they will be “watching for” and it will not just be an “add-on”, because well, they do what they want because they can, we are just subjects to collect “tribute” from to fill the coffers of the royal court – I mean, the government.
Smoking with minors in the car is illegal now.
Yes I know, I have some friends who have said – “Well, I guess I’m not going to taking the grand kids anywhere anymore.
Thanks for providing the information on B, B, & B. I won’t support them anymore. Also, I have the “Membership Letter” from the Illinois Republican Party sitting on my desk – I guess I can throw it in the trash now.
My license plates are $3500 a year in Nevada, cost based on purchase price. It can always be worse