If you
planned on trading in your old car for a new one---you might want to get ‘er
done before the end of the month. Because if you don’t you’ll find yourself
contributing to the Governor’s capital plan for the state.
The new
state sales tax on vehicle trade-ins starts on New Year’s Day and will raise
$60-million dollars for such things as dog parks, pickleball courts, snowmobile
paths and even a privately-owned theater.
In a blog
written by Austin Berg on the Illinois Policy site, he explains the way this is
going to work. Follow me…
You’re
trading your car value at $20,000 to buy a new one for $35-grand. At the moment,
your sale tax is based on the difference between the trade-in and the new
car---$15,000 dollars. When you apply the average state and local tax rate of
8.74%, the sales tax is around $1300-dollars.
On New
Year’s that same transaction will cost you $900 dollars more. And that means
you will pay taxes twice on the same vehicle. You already paid state sales
taxes when you bought it the first time around.
This while
Illinois already has its hand in my pocket by raising the gas tax and bumping
passenger car license plate fees fifty bucks.
The only
thing more relentless than the stories of vast corruption in our state
capitol….is an equally relentless desire to stick us with more oppressive
taxes.
And it's not
over…..not by a long shot.
The beatings
will continue until morale improves.
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