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CATA News

  • Friday, May 13, 2022 3:51 PM | Anonymous

    Nomination Ballots for the CATA’s representative on the National Automobile Dealers Association (NADA) Board of Directors are being mailed today. NADA members in the CATA’s district, which is limited to Lake, DuPage and Cook Counties, are eligible to vote. To qualify as a nominee, a member must receive at least 10 percent of the total votes cast in the nomination process. If more than one nominee is slated, the election for NADA director will take place in July. NADA Directors serve three-year terms with this one beginning in January 2023. The current CATA representative, Joe Massarelli owner of Libertyville Auto Plaza, is our current director and has chosen to run for another term.


  • Friday, May 13, 2022 3:50 PM | Anonymous
    On May 3 a group of senior-year automotive shop class students from High School District 228 visited three dealerships for the purpose of potentially gaining employment. These students have demonstrated mechanical aptitude and are great candidates to enter a career path in the automotive industry.  Many of them are interested in becoming an automotive technician and some also opted to interview with a second dealership the following day.

    The CATA’s grassroots high-school education program is an effort to find eligible students who can help fill vacancies at CATA dealerships. The CATA partnered with district career counselors to put this unique event together.

    "It was very interesting to see these young people get a look at the career opportunities that exist at new-car dealerships," said Chris Konecki, CATA executive vice president. "I don’t think that most students realize the lucrative career opportunities that exist at dealerships and seeing them really opens their minds to potentially starting a career there. Most of the students have never been in a dealership let alone being able to see the service department, service bays, back office and show rooms."

    This CATA initiative will roll out to other districts around Chicagoland in the coming months.

    "What we need is to connect with dynamic career counselors like the ones we have partnered with in District 228," said Konecki. "Once we do that, we can reach out to our dealer members in those school districts to set up similar events."

    With almost all dealers needing technicians as well as other staff, this is a way to try to connect potential candidates with employers.  For more information on this program contact Chris Konecki at the CATA.
     


  • Friday, May 13, 2022 3:26 PM | Anonymous
    Many of you have heard of the Employee Retention Tax Credit (ERTC) and want to know if the program is still active and, if yes, what can be done to avail your business of this significant COVID-inspired relief program. Following is a summary of the terms of the program and what credits might be available.
     
    1. Two Tests of Eligibility
      1. Reduced gross receipts test:
        1. 2020: You are eligible if your gross receipts declined in any calendar quarter by more than 50% compared to the same quarter in 2019.
        2. 2021: You are eligible if your gross receipts declined in any calendar quarter by more than 20% compared to the same quarter in 2019.
      2. Government Order Test
        1. An employer is eligible if it experiences a calendar quarter in which the operation of the trade or business is fully or partially suspended during the calendar quarter from an appropriate government authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19.
        2. Determination under the government order test will likely require the services of a company that specializes in researching the various mandates and regulations that occurred at all levels of government in the industry you operate and the geographic region of your company.
    2. Eligibility Periods
      1. 2020: March 13, 2020 – December 31, 2020
      2. 2021: January 1, 2021 – September 30, 2021
    3. Eligible Wages
      1. The sum of the wages and health insurance payments were made on the behalf of eligible employees.
      2. Cannot use the same wages used to achieve PPP loan forgiveness and as eligible wages for the ERTC. There are strategies for maximizing the credit in this situation.
    4. Maximum Credit
      1. 2020: 50% of up to $10,000 per quarter of wages per employee = $5,000 credit per quarter per eligible employee
      2. 2021: 70% of up to $10,000 per quarter of wages per employee = $7,000 credit per quarter per eligible employee
    The CATA urges its dealers to consult with their established professional tax and legal advisors regarding ERTC eligibility. You may also contact Phil Kent, CPA, Partner, at MichaelSilver at 847-982-0333 or www.michaelsilver.com with questions.

  • Friday, May 13, 2022 2:35 PM | Anonymous
    CATA is hosting RMP’s Tax, Titling & Registration Seminar consisting of the most current and accurate SOS (Secretary of State) and DOR (Department of Revenue) processes. This informative two hour seminar consists of everything from license and titling basics all the way to more advanced deal processing. Topics include properly titling, registering and remitting taxes to remain compliant with SOS and DOR, adjusting any corrections on completed ERT applications and tips on streamlining your dealership tax, title and registration processes.
    • SOS and DOR compliance
    • Forms and necessary supporting documents
    • ERT correction requests
    • Tax forms and calculations
    • Full Titles and Vehicle Services
    • Third party trades, trades by heirs or by Small Estate Affidavit
    • Special plates
    Tiffany Spivey and Ali Poiliot from Vitu along with Bill Huber for the Illinois Secretary of State will be available to answer any questions during and after the seminar. Lunch and copies of the REG 101 — Introduction to Tax, Titling & Registration and REG 201 — Specialized Tax, Titling & Registration Transactions books are provided.
     
    Two Dates Available
    Lunch will be provided!

  • Friday, May 13, 2022 9:00 AM | Anonymous member (Administrator)
    According to an Automotive News article, U.S. dealerships facing a significant tax burden this year triggered by global supply chain disruptions and subsequent inventory shortages related to COVID-19 could be one step closer to getting relief.

    Legislation introduced by U.S. Sen. Sherrod Brown would provide relief to dealerships that use the "last in, first out" inventory accounting method and have struggled to maintain inventory levels because of the global semiconductor shortage. In addition, the bill would provide a statutory determination that the requirements for a qualified liquidation under Section 473 of the Internal Revenue Code have been satisfied for new-vehicle dealers that have experienced a reduction of new vehicles held in LIFO inventory. The relief would give dealers up to three years to restore their inventories to more normal levels.

    "Auto dealers continue to face dramatic and unprecedented inventory shortages as a result of pandemic-related foreign supply chain disruptions and, without support, recovery could be long and hard for Ohio's affected local businesses, employees and their customers," Brown said in a statement. "This legislation will grant much-needed tax relief to auto dealers facing unique supply chain challenges."

    The National Automobile Dealers Association is the driving force behind this effort. The CATA urges its members to contact their representatives to become co-sponsors of the bill, HR7382/S.4105, the Supply Chain Relief Act.

    "The bill would provide needed short-term relief to help the auto industry recover from severe inventory shortfalls due to the pandemic and supply chain and semiconductor shortages," NADA CEO Mike Stanton said in a statement. "NADA strongly supports this legislation to reaffirm existing federal law related to a 'major foreign trade interruption' and urges Congress to pass it as soon as possible."
  • Friday, April 29, 2022 3:56 PM | Anonymous
    The CATA received a call from a dealer member who reported a new fraud issue. This dealer received four separate calls from police that their dealer license plates were involved in various crimes. The dealer was able to prove that the plates in question were locked in a safe in their dealership at the dates and times of the alleged crimes and, therefore, were able to successfully contest the charges and fines.

    Here are a couple of important reminders from the Illinois Statewide Auto Theft Taskforce (ISATT):
    • Dealerships should always keep records on who has their dealer plates and when, so when a police department inquires, they can confidently account for the plate in question.  
    • Once a calendar year is over and that year’s plates are expired, the old plates need to be destroyed and must be verified that they are in fact destroyed.  
    Be sure to report any crime to ISATT or contact them with any questions.

    ISATT Contact Information:
    708-740-0425
    isatt@ilsos.gov


  • Friday, April 29, 2022 3:55 PM | Anonymous
    Let’s get back into the "swing" of things! The Chicago Automobile Trade Association (CATA) is excited to bring back its member golf outing this summer. Please join the CATA for a fun-filled day on the course, Tuesday, June 14, at Cog Hill in Lemont.

    SCHEDULE OF EVENTS*
    • 9:30 a.m. – Registration (near outdoor Pavilion)
    • 10-11 a.m. – Coffee & Networking Reception (Pavilion)
    • 11 a.m. – Lunch and CATA Annual Meeting (Pavilion)
    • 12:30 p.m. – Shotgun
    • Post-Golf Happy Hour
    *Please make note of the new format.
     
    Not a golfer? No problem. Join us for lunch and the annual meeting in the Pavilion and network with CATA members.
     
    RATES
    • CATA Dealer Member Rate: $95 per person
    • CATA Allied Member Rate: $125* per person (*unless the allied member hosts a CATA member dealer; they will then receive the $30 credit post-event)
    • Lunch-only ticket: $40 per person
    TO RSVP/Make a Payment
    1. To register, please click here.
    2. To make your payment, please mail a check for your total to the Chicago Automobile Trade Association at 18W200 Butterfield Road, Oakbrook Terrace, IL 60181 (attn: Roxanne Sammarco). Or, if paying via credit card, call Roxanne at 630-424-6060.
    Questions/Sponsorship Information
    It's been "FORE"ever since we hosted an all-member event. We hope to see you soon!
     


  • Friday, April 29, 2022 3:55 PM | Anonymous
    In today’s selling climate, vehicles are often sold over MSRP with "required" markup or additional services like paint protectant and interior protection. However, Section 475.310 of the Illinois Administrative Rules on Motor Vehicle Advertising provides that purchasers shall be able to purchase all vehicles described in an advertisement (or on a website) at the advertised price. Accordingly, if a vehicle is listed for sale at MSRP on a dealer website, but is sold at a higher price, there is an advertising rules violation. When selling over MSRP, the simplest way to comply with Section 475.310 might be to show the MSRP on the dealer website, and then add a caption below the MSRP entitled "Market Adjustment," stating the amount over MSRP that the dealer is charging for the vehicle. Dealers also have the option of displaying the MSRP with a strikethrough additionally listing "call for price."


  • Friday, April 29, 2022 3:52 PM | Anonymous
    In light of the recent uptick in COVID-19 cases, CATA dealerships are facing an increasing number of infections among dealership employees. As the virus has changed and mutates and the number of vaccinated individuals has increased, the Illinois Department of Health has revised COVID-19 workplace rules. Here are some key takeaways from those changes:
    • If you have an employee test positive for the virus by means of an at- home test, that employee should follow up with a viral test such as a PCR at a doctor’s office or testing facility. Once confirmed, the employee should stay home and quarantine for a minimum five-day period after the positive result.  
    • If the employee is symptom free after five days, they can return to work and resume normal activity. A mask is recommended for an additional five-day period once back at work.
    • Any employee that is a close contact, meaning someone exposed to someone who has received a positive result and that is fully vaccinated, does not need to quarantine but should monitor themselves for symptoms. If symptoms manifest themselves the employee should not attend work and should go and get a viral test to find out if they are positive for the virus.
    • That employee should observe the six-foot distance rule whenever possible. If they cannot, they should consider wearing a tight-fitting mask which covers the nose and mouth at all times for a period of five days from the last contact with the positive employee.
    • If an employee is considered a close contact and they are not fully vaccinated, that employee should stay home for a period of five days and get a viral PCR test at a doctor’s office or testing facility.
    • If that person tests positive, the rules for positive cases apply, which are five days at home but he or she can return to work after the five days and no longer having symptoms.
    You can find more information from the Illinois Department of Health and the Centers for Disease Control at the following links:


  • Friday, April 29, 2022 3:51 PM | Anonymous
    Effective January 1, 2022, the Illinois Vehicle Code, 625 ILCS 5/3-113(e), was amended to provide that the Secretary of State is authorized to issue a certificate of title in the name of the dealership to a licensed dealer under Chapter 5 for $20 if the surrendered certificate of title has no space to assign the certificate of title again. If a dealer paid more than $20 for such a title, it may, within six months of the date of payment, file an Illinois Secretary of State form entitled "Consideration for Refund," which can be found on the SOS website at http://www.ilsos.gov, along with a copy of the original application for vehicle title, seeking a refund of any amount paid more than the $20 fee. The explanation for the requested refund should be "excess title fees paid." The refund request can be faxed (217-557-4552) or sent priority mail to Office of the Secretary of State, Accounting Revenue Department, Refund Section, 222 Howlett Building, Springfield, Illinois 62756.

    To save time, money and follow-up CATA Exclusive ERT Provider Vitu recommends applying for Dealer Title Only applications through
    cyberdriveillinois.com
    . Selecting Electronic Registration and Titling and selecting Title Only, Dealer for Resale checkbox will appear.  This will produce the correct application showing the $20 Dealer Title Only fee.  The dealer also has the ability to add the Expedited Title Fee of $30 to be able to obtain a title more quickly.

    Link to Consideration for Refund form:
    https://www.ilsos.gov/publications/pdf_publications/ar9.pdf
     


Chicago Automobile Trade Association
18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181 
(630) 495-2282

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