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Local Car Dealer Reacts to Sales Tax Law

Local Car Dealer owners are understandably just as concerned as citizens about a new law that will apply sales tax to traded in vehicles.  The law equates to as an example, if you trade in a vehicle worth $30,000 for a car worth $60,000, you’ll pay an extra $1,200 in sales taxes.  Pete Sander, president of the Illinois Automobile Dealers Association says it could result in residents putting off purchasing new vehicles or not being able to purchase the same vehicle they would’ve otherwise.  Owner of White County Ford – Chrysler Anthony Huffer say, “It’s just gonna make it tough.  Ya know, in our area, people seemed to be bogged down enough as it is.  And maybe a lot of folks aren’t cash buyers, most finance ‘em anymore.  Well you’re talking an extra $2,000 – $2,500 in taxes and that’s gonna be $40 more per month for a lot of people.”

And if you thought you might get around it by purchasing in a neighboring state, you’d be sadly mistake.  According to the tax code, there’s a provision that the state can collect that in the registration change and you’d be required to pay that tax, even if it’s thirty or even sixty days after the sale.  Huffer says it’s straight up Double Taxation.  “These people have paid taxes on that vehicle already.  That one they’re trading in, they’ve been taxed on before.  Trust me, they have paid it so it is kinda double taxation.  I know the state needs money and I understand we’re broke and this or that, but I sure wish they’d go in other outlets than to try and get it this way.”

The association is hoping to negotiate a better deal with lawmakers.