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Bill to scrap trade-in cap nears passage in Illinois Senate

Friday, March 06, 2020 7:08 PM | Anonymous
Legislation to repeal the $10,000 cap on the value of traded-in vehicles was poised on March 5 for passage by the Illinois Senate. It then would move to consideration by the state House.
Members of the CATA are encouraged to contact their state lawmakers in support of Senate Bill 2481. The General Assembly is in recess and legislators are in their districts until March 18.
Votes thus far on SB 2481 have been unanimous in support, and Gov. J.B. Pritzker has voiced his backing. The cap took effect Jan. 1 following moves last spring to find funding for the $45 billion state capital infrastructure plan sought by Pritzker.
Infrastructure projects would instead be funded, in part, by increasing the sales tax charged in private vehicle sales. For instance, the current $390 sales tax on a 1-year-old vehicle sold for less than $15,000 would increase to $465. If the same vehicle sells for $15,001-$20,000, the sales tax would be increased from $750 to $850.
If the General Assembly passes the legislation, the change to restore the full trade-in allowance on First Division vehicles would take effect upon the governor signing the bill. As currently written, the trade-in credit cap exempts Second Division vehicles.
According to the Illinois Vehicle Code, a First Division vehicle is designed for carrying not more than 10 persons. A Second Division vehicle is designed to carry more than 10 persons; be used for living quarters; pull or carry freight, cargo or implements of husbandry; or be a First Division vehicle remodeled for use and used as a Second Division vehicle.
Sen. Antonio Muñoz initially sponsored the bill, then about a quarter of the state’s senators followed suit.

Chicago Automobile Trade Association
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