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Dealer license fee hiked as part of state's spending plan; pickups on LSD still a no-no

November 23, 2010
Illinois General Assembly approved the state's $52 billion spending plan that includes a fee increase to $1,000 for new- and used-vehicle dealer licenses, up from $100 for new, $50 for used. The increase was offered to Gov. Rod Blagojevich by the CATA and the IADA to satisfy Blagojevich's hunt for revenue to plug the state's $5 billion budget deficit. The money raised by the fee increase equals the amount Blagojevich estimated he could collect by assigning a Use Tax to service loaners, sales demonstrators, test drive vehicles, driver's education vehicles, vehicles loaned to charities, parade vehicles and parts trucks. The paperwork blizzard that would have ensued under the governor's plan is thus alleviated by the fee increase payable each December when dealers apply for the annual licenses. Legislators passed another plan of the governor that would cost truck dealers: eliminating the exemption on the 6.25 percent "rolling stock" sales tax on the purchase of trucks and other vehicles used in deliveries. The exemption continues for airlines and railroads. All states that border Illinois offer the exemption, and opponents of the measure argued that taxing truck dealers would move businesses and jobs to those neighboring states. New fee increases include: New Dealer fees. An annual license now costs $1,000 for an applicant's established place of business and $100 for each additional place of business, up from $100 and $50, respectively. For applications after June 15 of any year, the license fees are $500 and $50, up from $50 and $25. Dealer temporary permit fees. Beginning July 1, the fee for a short-term permit (7 days) increases from $6 to $10, with $4 going to the General Revenue Fund. Dealer Drive-a-way permits. Fee increases July 1 from $6 to $10. Personalized license plates. Effective January 1, 2004, applicants for personalized plates shall be charged $47. To renew, add $7 to the regular renewal fee. Tire retailer tax The tax to customers increases July 1 from $1 to $2.50, 50 cents of which goes to the state's Emergency Public Health Fund. One-trip permits The fee to transport 30 vehicles increases July 1 from $6 to $10. Vanity plates redefined. The plates were reclassified to include the following sequences: • 1-7 letters and no numbers. • 1, 2, or 3 numbers and no letters. The General Assembly adjourned until the fall veto session after moving several bills to the governor's desk. The CATA-initiated measure to permit pickups on Chicago's Lake Shore Drive was not among them; that bill withered in committee. Blagojevich will consider: • An act to reduce the length of time to release a vehicle's security interest. Within 21 days after receipt of payment in satisfaction of a security interest, a release of the security interest must be executed and the certificate of title delivered to the proper person (rather than within 10 days after demand or within 30 days after payment is received). Bill also provides that the time limit is reduced to 10 days if the payment is received in the form of cash, cashier's check, or money order. Bill further provides that, in addition to any other penalty, a lienholder who fails to meet the new requirements is liable to the person or entity that was supposed to receive the release or certificate for $150 plus reasonable attorney fees and court costs. • An act to permit police to stop a vehicle whose driver is not wearing a seat safety belt. The act would be a primary offense, but officers may not search the driver, any passengers or the vehicle if the stop is solely because of a safety belt violation.