- Published: Thursday, February 27, 2020 09:19 AM
SPRINGFIELD- Assistant Majority Leader Tony Munoz (D-Chicago) moved to ensure that the recent changes to Illinois tax structure under its construction funding program that are hitting customers with multiple taxes are repealed with new legislation on Wednesday.
The current tax structure enacted to fund Illinois’ first construction program in a decade removed a previous tax exemption and put in place a tax on any vehicle trade-in above $10,000, meaning consumers pay a tax when purchasing a vehicle and again when trading in the same vehicle.
“This effort ensures that the cost of purchasing a vehicle in Illinois doesn’t skyrocket and protects consumers from the possibility of paying taxes on their vehicle twice,” Munoz said.
To ensure a more fair way to collect revenue that won’t hit car buyers twice, Senate Bill 2481 increases the private vehicle sales tax by $75 for vehicles valued under $15,000 and $100 for vehicles valued at or above $15,000, the first increase to the tax since 1988. The tax rate on private party transactions would still be lower than the State's 6.25% tax rate that is currently paid by dealership customers.
The legislation was approved in the Senate Revenue Committee and will move on to the full Senate.