LEASE TAX CHANGES COMING
www.illinoisdealers.com
LEASE TAX CHANGES
WELCOME
PLEASE SQUEEZE IN
www.illinoisdealers.com
LEASE TAX CHANGES
GOOD STUFF TO TALK ABOUT:
IMPROVED LEASE PROCESS
 How it will work
 How the process will flow thru CVR
 Helpful CVR training issues
 Relevant SOS title & reg issues
www.illinoisdealers.com
LEASE TAX CHANGES
THANKS FOR YOUR SUPPORT AND MEMBERSHIP IN IADA
ACCOMPLISHMENTS
 Grassroots effort with legislators and Governor
– lease tax improved

Dealers worked with SOS to automate the title
process - CVR
www.illinoisdealers.com
LEASE TAX CHANGES
THANKS FOR YOUR SUPPORT AND MEMBERSHIP IN IADA
ACCOMPLISHMENTS
 Effort to end Sunday Closing – dealers defeat

Perpetual discussion to take away dealers 1 ¾
retail collection allowance – dealers defeat
www.illinoisdealers.com
LEASE TAX CHANGES
NICE JOB!!

These things don’t just happen without working
together.

A lot of tangible and intangible things constantly going
on in State Government so your support /
membership is critical

Thanks again and keep up the good work
www.illinoisdealers.com
LEASE TAX CHANGES
Beginning on January 1, 2015, apply to:
 Fixed-Term Leases of
 Qualifying Vehicles
Fixed-Term Lease:
 Standard lease. The term of the lease is stated in
the lease contract. Leases that include charges if
the customer holds the vehicle past the lease term
are still fixed-term leases.
www.illinoisdealers.com
LEASE TAX CHANGES
Qualifying Vehicles:
 Any 1st Division Vehicle
 A 2d Division Vehicle that is:
A self-contained motor vehicle with living quarters for
recreational, camping, or travel use, with direct walk
through access to the living quarters from the driver’s
seat;
 A van configured for the transportation of between 7
and 16 people; or
 8,000 pounds or less Gross Vehicle Weight Rating.

www.illinoisdealers.com
PURCHASE
New Car $31,000
Taxable Amount
$31,000
- $10,000
$21,000
Dealer
Sells
Dealer
Sells
(Trade – in)
Customer
Customer
$10,000 Used Car
$21,000 Taxable Amount
X 6.25% Tax Rate
$ 1,313 Tax
www.illinoisdealers.com
LEASE – UNTIL JANUARY 1, 2015
New Car $31,000
Taxable Amount
$31,000
- $10,000
$21,000
Dealer
Sells
Lessor
(Captive Finance Company)
Dealer
Sells
(Trade – in)
Lessor
(Captive Finance Company)
$10,000 Used Car
$21,000 Taxable Amount
X 6.25 Tax Rate
$ 1,313 Tax Tax
www.illinoisdealers.com
LEASE – ON/AFTER JANUARY 1, 2015
New Car $31,000
Dealer
Sells
Lessor
(Captive Finance Company)
Lease Terms:
36-month Lease
$2,400 Down
$350/Month
Taxable Amount $15,000
$15,000 Taxable Amount
X 6.25 Tax Rate
$ 938 Tax
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IADA CONTACT
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