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Ad infraction:

November 23, 2010
Sales tax can't be rolled into vehicle price or otherwise absorbed by dealer

A few print ads by area dealers recently offered to pay the vehicle sales tax for customers. That is a violation of the Illinois Use Tax Act. According to Section 7 of the Act (35 ILCS 105/): "It is unlawful for any retailer to advertise or hold out or state to the public or to any purchaser, consumer or user, directly or indirectly, that the tax or any part thereof imposed by Section 3 hereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold, or if added that it or any part thereof will be refunded other than when the retailer refunds the selling price and tax because of the merchandise's being returned to the retailer or other than when the retailer credits or refunds the tax to the purchaser to support a claim filed with the Department under the Retailers' Occupation Tax Act or under this Act. "Any person violating any of the provisions of this Section within this State shall be guilty of a Class A misdemeanor."


Accompanying this edition of the CATA Bulletin is the latest issue of Chicago Auto Outlook, a Quarterly newsletter with useful, unique, timely and objective information about the eight-county CATA automotive market. Articles present new vehicle registrations based on numbers supplied by the Detroit-based data services organization, The Polk Co., then add meat to the bone by analyzing issues and trends. Jeffrey Foltz, editor and publisher of Chicago Auto Outlook, prepares an "Outlook" newsletter with localized numbers for nearly two dozen state and metropolitan dealer associations. Readers should contact Erik Higgins at the CATA about topics they would like to see covered in the quarterly newsletter, what they like and don't like about the publication, and other general impressions about Chicago Auto Outlook.