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Bill puts dealer license fee on sliding scale

November 18, 2010

A new-car dealer’s annual Illinois license fee would be based on the number of units he sold the previous year, with top sellers paying $1,500 a year, under legislation being considered in Springfield. The fee rose in 2004 from a flat $100 to $1,000.


The legislation, House Bill 280, would change the license fee for dealers who sell 3,000 or more vehicles to $1,500, and $750 for each additional dealership to which the application pertains. At the low end, dealers who sell 499 vehicles or fewer would pay just $250 a year, plus $125 for any additional businesses. 

Other thresholds and fees, under HB280: 2,000-2,999 units: $1,250/$625; 1,500-1,999 units $1,000/$500; 1,000-1,499 units: $750/$375; 500-999 units: $500/$250.


A companion bill, HB4898, would amend the dealer’s annual license application to require applicants to declare to the secretary of state the number of units the dealership sold the previous year. 

A third bill would place used-car dealer licenses on a sliding scale, at a slightly higher rate than that for new-car dealers. A used-car dealer would face a $1,500 fee if he sold 2,500 or more units the previous year.


Other legislation being considered in Springfield:


House Bill 4159 would amend the Illinois Vehicle Code to forbid selling a vehicle to someone who does not hold a valid driver’s license issued by a state, territory or other possession of the United States. Under current law, someone without a license, or whose license has been suspended, can buy all the cars he wants, but he cannot drive any of them off the lot. The measure has rested in the House Rules Committee since October.


Any person who causes property damage while driving without liability insurance would be committing a Class 4 felony, under HB4673. In addition, such a person would be guilty of a Class 3 felony if another person is injured, and a Class 2 felony if another person dies from the accident.


Senate Bill 2618 provides that the vehicle of a person who is involved in an accident while driving without liability insurance is subject to seizure and forfeiture, regardless of whether or not the person was at fault. The vehicle could be forfeited to the owner’s spouse or to a properly licensed family member.


To spur the sale of fuel-efficient cars, House Bill 4163 would extend a $500 income tax credit for each taxpayer who buys, at retail, a hybrid or a flexible-fuel vehicle from Dec. 31, 2007 through Dec. 30, 2008. Vehicles that are modified after manufacture to be a hybrid or alternate-fuel vehicle would not qualify for the credit, and the credit could not be carried forward or back. The bill has rested in the chamber’s Rule Committee since October.