Illinois Trade-In Tax Law
On January 1st, 2020 the vehicle trade-in law will change. Governor Pritzker signed a bill in June 2019 that makes a vehicle trade-in, with value above $10,000, include a state and local sales tax. The tax revenue will be going to Illinois infrastructures such as building renovations and more.
Illinois currently collects no sales tax on a car’s trade-in value, which acts as credit toward a new vehicle purchase. According to the bill, sales tax only applies to the difference between the trade-in value and the new vehicle’s purchase price.
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