Unload That Clunker Before January

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.