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Area's April 1 tax rate increases by the numbers--really

November 16, 2010
A corrected correction
 

Consider this: Even the fabled Casey at the Bat got three whiffs before he struck out.

 

Pending tax rate changes were presented incompletely by the CATA in the March 10 edition of this newsletter and again in a blast fax on the subject days later. The previous total rates failed to include a 0.75 percent Cook County use tax that is remitted directly to the county and is not recorded on the Illinois Revenue Department’s Form ST-556.

 

The composite numbers below are accurate, according to accountants with Crowe, Chizek & Co. Cash registers and any computer programs must be adjusted for the correct tax amounts effective April 1. Communities with home-rule authority might have higher numbers.

 

State lawmakers awarded an additional quarter-cent per dollar Regional Transit Authority tax in Cook County and twice that in the five collar counties to fund mass transit in Chicago.

 

The new RTA tax rate is 1 percent in Cook County and 0.75 percent in DuPage, Kane, Lake, McHenry and Will counties. The RTA tax is reflected on Line 4 of Form ST-556. Until the department distributes updated forms, dealers will have to amend their preprinted forms.

 

The differing rates among counties have caused some confusion among dealers who sell a vehicle to someone who lives in another county. Suburban dealers with a Chicago customer should collect the higher Chicago rate and submit that to Springfield, which will direct Chicago’s home rule dividends back to the city’s revenue department.

 

The only time a customer may pay less than the rate preprinted on a dealership’s Form ST-556 is if the customer’s address is outside Illinois. Then, the customer would pay the rate set forth where he lives.

 

The Cook County Use Tax, amended in 1995, adds 0.75 percent to items that must be titled or registered with the State of Illinois. To remit the tax, on a monthly basis, dealers must be registered with the county’s revenue department. Dealers located outside Cook County who regularly advertise in Cook and who sell vehicles to Cook County residents are advised to register with the department and collect the tax.

 

Cook County also levies a "wheel tax" on all new vehicles retailed in the county. The tax ranges from $7.50 for a two-wheel motorcycle to $22.50 for a semi-trailer. Four-wheeled vehicles are assessed $15.

 

Beginning July 1, Cook County’s sales tax on general merchandise like parts climbs another 1 percent. But the tax rate on vehicles and other items that must be titled and registered will not be impacted by that increase.

 

 

The looming 10.25 percent rate in Chicago will give the city the dubious honor of having the highest general sales tax of any major U.S. city.

 

 

 

Tax

Chicago

Cook

DuPage

Kane

Lake

McHenry

Will

Others

State

5.00

5.00

5.00

5.00

5.00

5.00

5.00

5.00

Municipal

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

County supplemental

+0.25

+0.25

+0.25

+0.25

+0.25

+0.25

+0.25

+0.25

Base sales tax

6.25%

6.25%

6.25%

6.25%

6.25%

6.25%

6.25%

6.25%

 

 

 

 

 

 

 

 

 

Chicago Home Rule

1.25

 

 

 

 

 

 

 

RTA tax

1.00

1.00

0.75

+0.75

+0.75

+0.75

+0.75

 

DuPage Water Commission

 

 

+0.25

 

 

 

 

 

Supplemental Cook County use tax

+0.75

+0.75

 

 

 

 

 

 

Effective April 1, 2008

9.25%

8.00%

7.25%

7.00%

7.00%

7.00%

7.00%

6.25%

on vehicles and general merchandise

 

 

 

 

 

 

 

 

Cook County tax increase

+1.00

+1.00

 

 

 

 

 

 

Effective July 1, 2008

10.25%

9.00%

 

 

 

 

 

 

on general merchandise (vehicles not affected)

 

 
 

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