Starting Jan. 1, Illinois law will change so that sales tax applies to the down payment and monthly lease payments. If the deposit is $2,000, the tax is $165. If the monthly payment is $300, the sales tax is $24.75 each month. The total tax for a 36-month lease would be $1,056, which is $1,419 less than under the current formula. 9% of income or fees for all leases, including renting without a computer owner to enter, modify or retrieve the data provided by the customer The reason I ask is that the price I can get for a rental is in MI, where I come from and where I rented my current vehicle 3 years ago, is significantly lower. I know that when I transfer my vehicle from MI to IL, the difference between the 6% and. 8.5% should pay, but I can`t find any indication of this 30% tax that should be paid. Car rental in Illinois will be more favorable starting January 1, 2015 due to changes to applicable tax laws. Previously, taxes were based on the total value of a rented vehicle, although the renter is only in possession of the vehicle for the duration of the rental.

Now, with the new law, the tax is levied on every monthly payment, as is the case in most other U.S. states, Illinois is the fifth largest (or sixth, depending on the data source) largest state in the U.S. and home to the country`s third largest city, Chicago. It was also home to some of the least favorable laws regarding car rental, but there have been major changes in recent years to make leasing a more reasonable option, along with the laws of other states. This 1993 judgment dates back to the enactment of section 3-32-050(A)(7), which added an exception for ”the rental, tenancy or use of personal property where the landlord and tenant are members of the same related group.” The regulation replaced the judgment, which is therefore no longer in force. They are kept on this website for historical purposes only. Personal Real Estate Rental Transaction Tax Decision 11 In Hertz Corp. v.

City of Chicago, 2017 IT 119945 the Illinois Supreme Court struck down Decision No. 11 on the Personal Property Rental Transaction Tax. The judgment is therefore no longer in force. They are kept on this website for historical purposes only. Tax ruling on personal real estate transactions 12 Which represents a saving of $1419 compared to the previous rental formula. Source: Chicago Tribune //www.chicagotribune.com/classified/automotive/ct-rides-1225-illinois-autolease-tax-20141222-story.html With Illinois` changes, Texas will be the only state still taxing the capitalized cost of a leased vehicle. In other states, only monthly lease payments are generally taxed, as in the new Illinois law. Another new wrinkle in Illinois for 2015 is that trading in a vehicle no longer affects sales tax on a lease. Since an exchange reduces capitalized costs, it also reduces the applicable sales tax.

This provision ends with the new legislation because cap costs are no longer imposed. In addition, in addition to sales tax, Chicago levies an 8% user tax on leased vehicles. The combined cost of these taxes helped reduce leasing to about 8 percent of new vehicles registered in the city in 2013, which is even lower than the Illinois national average of 14 percent, according to data from Polk, an auto data research firm. The 1. In January, Illinois law was changed so that sales tax only applies to the customer`s down payment and monthly rental payment. For a $30,000 vehicle with a down payment of $2,000, taxes would be $165. If the payment were $300 per month, the monthly taxable sales tax would be $24.75. Now you only have to pay taxes on the value of the rental term, compared to before when you had to pay taxes on the total value of the vehicle.

This is a big change! This change means that your monthly payments will be lower and it will be easier for you to get into a new vehicle more often if you decide to rent. It`s a win-win situation! ”It`s a win for the state, it`s a win for dealers, and it`s a win for consumers because it will be easier for them to get into a new vehicle more often if they decide to rent,” Sander said. Rent or borrow? Peter Sander, president of the Illinois Automobile Dealers Association, couldn`t estimate how much leasing would increase in Illinois because of the new tax law, but he said it would encourage more consumers to rent if revenue from vehicle sales and sales tax increased. A rented vehicle is counted in the same way as a vehicle sold and is registered in the name of the renter, just like a purchased vehicle. For more information on how much money these new rental laws can save you on a new Subaru, come, call or click here to see our inventory of new cars today! Currently, Illinois taxes the entire capitalized cost of the vehicle (the ”price” negotiated in the lease) – even if it is a long-term lease rather than a purchase. For a resident of a Cook County suburb who rents a $30,000 car, the 8.25% auto sales tax would be $2,475. The tax can be paid in advance or included in the monthly rental payment. Please note that taxes vary from county to county, so calculations should be made accordingly. Prior to January 1, 2015, Illinois taxed the full capitalized cost of a leased vehicle, even if it was a long-term lease and not a purchase.

For example, if you leased a $30,000 vehicle, the 8.25% car sales tax for Cook County residents would be an additional $2475 that could be paid in advance or included in the monthly lease payment. Since there are special rules for dealing with gross trade-in value (i.e. regardless of an existing loan balance) when you rent the car or buy or finance it directly, it can still save you money when you buy or rent. Our goal isn`t for people to rent – it`s about people knowing if it makes sense to rent. So please enter your numbers in the calculator to see what leads to the lowest tax burden. That could change on Jan. 1, when new legislation comes into effect that will reduce taxes on leased vehicles and dealers step up advertising to promote the virtues of leasing. . Uniform Revenue Procedures Order Decision 6: Collection Obligations – Facilitators January 2021 Newsletter – Nexus and Safe Harbor November 2015 Transaction Tax Newsletter – July 2016 Revised Information Bulletin – Cell Phone Tower Tax November 2015 Newsletter – Non-Depository Computer Leases April 2006 Newsletter – Taxi Owners and Rentals October 2003 Information Bulletin – Clarification of personal property rental transaction tax May 1997 Information bulletin – Personal property tax rates vary from county to county, and in the City of Chicago the sales tax is 9.5%, so the impact of the law varies by location.

Thanks for this article, that`s exactly what I was looking for. So there is a use tax that I took into account, but still not 30% in addition to the sales tax of 9.any%. Application for exemption from transaction tax for small new businesses There is an inconvenient user tax, but it is certain that there is not 30%. it is an outright lie. I believe it`s 8% on top of the usual sales tax on the monthly payment. . Leasing as a percentage of new car sales has nearly doubled nationally over the past five years, but Illinois has been well below this growth spurt due to sales tax laws that make leasing less attractive than in other states. Hello everyone, I`m looking to rent a car, and the seller I spoke to cited a 9.25% sales tax on top of a ”30% monthly tax,” which would make payments much higher than expected.

I`ve spoken to the Illinois Department of Revenue, and they`ve never heard of this 30% tax. During mytax.illinois.gov, I selected Companies, then Tax Rate Finder. I chose Chicago Cook County (where I live) and it says that the car tax is 8.5%. What am I missing here? Affidavit for sharing the use of non-possessable computer leases. .