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$10K trade-in cap not replaced, will take effect Jan. 1

November 15, 2019
Car buyers in Illinois with a trade-in worth more than $10,000 will pay more sales tax effective Jan. 1, after the state’s General Assembly declined to amend an upcoming law during its fall veto session.
The CATA, the Illinois Automobile Dealers Association and others had sought to pass legislation to repeal the $10,000 cap on motor vehicle trade-in credits before it takes effect when 2020 dawns.
But despite the action having the support of nearly every key lawmaker, House Speaker Mike Madigan declared that only revenue bills intended to clarify language would be considered by the House during the veto session’s six days in October and November. The trade-in cap, his aides said, was too substantive to be considered.
The dealer associations said that efforts to undo the trade-in limit would continue when the General Assembly reconvenes next year. "All our hard work will serve us as we advance the issue again in January," CATA Chairman Bill Haggerty said.
Under the cap, a person who buys a $35,000 vehicle and trades in another vehicle worth $20,000 still can buy the next car for $15,000, but will see the sales tax based on a $25,000 transaction, meaning the consumer will pay about $700-$920 more in sales tax compared to today’s computations.