Running out of time to avoid the Trade-In tax

By:  Diane Benjamin

If you plan to buy a vehicle and trade-in one worth more than $10,000, you have just days left to avoid the new tax.

January 1st, thanks to democrats, only $10,000 per trade can be used to reduce Sales Tax.  They don’t care you already paid Sales Tax when you bought it,

This tax only applies to buying passenger cars and SUVs, it does not apply to pick-up trucks.

During the spring session a couple of things could happen:

  • this ridiculous tax (thrown into another bill at the last minute) could be repealed
  • pickup trucks could be added, the bill should have been based on the weight of vehicles.  Pickups were left off because of the rush to get it in a bill

Waiting until next year could easily cost you hundreds of dollars.

vehicle tax

 

10 thoughts on “Running out of time to avoid the Trade-In tax

  1. The Illinois political class could care less about IL residents and this fee increase is an excellent example. The Illinois Auto Dealers Association has made little effort to lobby against this new tax, but has no problem increasing doc fees to $300 effective 1.1.20, hand in hand with the political class.. The doc fee increase is an almost annual fee increase, along with your RE EAV. In addition, your standard vehicle registration fee increases $50 1.1.20. Add that to the doubling of the gas tax and the coming push for the income tax increase. Little wonder the best thing to come out of IL is I-80.

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    1. I talked to IADA twice. Madigan refused to consider any changes during the veto session. They have a list of legislators who support repeal. The spring session will be telling. If you don’t want tax increases start working to get rid of the democrats doing it – and a few Republicans.

      Liked by 1 person

      1. And I’m waiting for your next expose were you cry about Illinois’ poor roads and infrastructure. I bet it will be only a few weeks. The tax on trade ins is meant to bring in moneys for infrastructure capital improvements. The legislation was bipartisan–so I don’t get were you place the “blame” on Madigan. It must be nice to parrot the dealer lobby…

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      2. You actually believe government doesn’t have the money to fix roads? It’s called priorities, roads aren’t one for the state of locally. If you’ve read for awhile you know Bloomington only spends money on roads they got by raising taxes. Where is all the other money they steal going? The state is no different.

        Liked by 1 person

      1. Let’s see you’re buying a car for 45-50 thousand dollars or more. The average trade in is about $9,000 thus the $10,000 cap. So you’re spending money on pretty high end cars. And you can’t afford the taxes. Cry me a river.

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  2. Tell me where are you going to get monies to rebuild our roads and infrastructure in Illinois? The gas tax has not kept up with inflation. Are you going to rob education? How many schools do you want to close? Or social services? I guess grandma can linger in an unsafe nursing home. Or the foster kid system can take another hit.

    Or dip in retirement funds? That way you can crab about how the pension funds aren’t fully funded.

    Sorry if your spending money to buy a $80,000 car and are crying about the taxes, then you really need to rethink your priorities. You won’t know socialism if it bit you in the butt.

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    1. My car has over 100,000 miles and I have no plans to trade it. Nice try.

      25% of the state budget goes to pensions. Instead of reforms democrats want more taxes. Schools are already getting less. Medicaid eats up a huge chunk too, all because ill I did expanded the program. Think local. Coliseum , BCPA, downtown, bike lanes, IMRF penalties for pension spiking, hiring more employees with or skins and benefits, gold plated healthcare for employees, etc etc. There is where the road money went. The state is no different. Roads don’t want monuments for politicians.

      Liked by 1 person

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