On Jan, 1, 2020 the Leveling The Playing Field For Illinois Retail Act takes effect - ant it will cost you hundreds of dollars, if not thousands. In a nutshell, this new law caps the tax credit you get when you trade in any vehicle at $10,000
What does this mean? Right now, when trade in any vehicle, you get a tax credit for the full amount of whatever the dealer gives you for the vehicle. You don't pay a sales tax on that amount. You only pay a sales tax on the difference. But, starting Jan, 1, 2020, this new law states that you can only get a tax credit up to $10,000 and no more
In other words, if you get a $30,000 trade-in allowance on a $47,000 vehicle, you only pay taxes on the $17,000 difference. Starting Jan, 1, 2020, the state imposed a cap of $10,000 on trade allowances, which means you would pay taxes on $37,000.
And the law applies regardless of how much the dealer gives you for your trade. Imagine, you're trading an almost new Toyota and the dealer tells you that you'll get $30,000 for you trade. Well, right now, you don't pay a cent of sales tax on that $30,000. But after Jan. 1. 2020, you'll pay tax on $20,000 of that $30,000 because there's a cap of $10,000.
It may be a long shot, but if enough people loge a complaint against this law, there's a chance it could be repealed.
The Illinois Automobile Dealers Association is actively lobbying to make this happen. And they could use your help. Visit IllinoisDealers.com to find out more information on how together we can stop this law from affecting YOUR pocket.
If you've been thinking of getting a new vehicle next year, don't wait or you'll lose a lot of money. Get to Coad Toyota and trade in your car by December 31, 2019.