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2012 IADA OFFICERS
Chairman
Jim Lombardi
Lombardi Chev Buick
Wilmington
Vice Chairman
Gary Knight
Carmack Car Capitol
Danville
Treasurer
Mike Mangold
Mangold Ford
Eureka
Secretary
Dave Taylor
Taylor Chrysler Dodge, Inc.
Bourbonnais
President
Peter Sander
IADA
Springfield
IADA Staff Contacts:
Ph# 1-800-252-8944
Pete Sander
President
Ext. 103
psander@illinoisdealers.com
Larry Doll
Legal
Ext. 105
ldoll@illinoisdealers.com
Mark Harting
Administrative Services
Ext. 110
mharting@illinoisdealers.com
Mike Healey
Member Services
Ext. 107
mhealey@illinoisdealers.com
Joe McMahon
Legislative
Ext. 113
jmcmahon@illinoisdealers.com
Meghan Sander
Member Communications
Ext. 109
msander@illinoisdealers.com
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Your
IADA
Partner
Moving Vehicle Registration Into The Future
(click logo for more details)
Upcoming Webinars
January 3rd
Greg Criss
How the "All Makes/All Models" Business Plan Can Suceed in Your Service Department (12 PM CST)
January 10th
Ted Fellows
Parts eCommerce - How (and if) Your Dealership Can Profit by Selling Parts Online (12 PM CST)
January 2nd
JD Rucker
Automotive Internet Marketing Trends that will Make 2013 a Stellar Year (11 AM CST)
January 9th
Sean V. Bradley
How to Create an Unfair Advantage of Google Using Video Search Engine Optimization (11 AM CST)
Upcoming Events
IADA/CATA Conference
April 3-7, 2013
Marco Island Marriott Beach Resort Golf Club & Spa
Marco Island, Florida
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December 28, 2012 Vol 2012, Issue 19
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LEGAL BULLETIN: WARRANTY REIMBURSEMENT SURCHARGES INVALIDATED
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Last month, in an important decision for motor vehicle dealers, a Cook County Circuit Court Judge ruled in favor of Illinois dealers who challenged Nissan North America’s (Nissan) practice of imposing a Warranty Supplemental Cost Recovery Charge on all of its Nissan and Infiniti dealers. Nissan does not have a uniform parts reimbursement agreement with a majority of its dealers, but it imposed the surcharge on its dealers to recover its cost of reimbursing the dealers for parts used in warranty repairs. Section 6 of the Motor Vehicle Franchise Act (Franchise Act) provides that a manufacturer can impose a warranty parts surcharge on its franchisees, but only if (1) the manufacturer and a majority of its franchisees enter into a written agreement setting a uniform reimbursement rate for all franchisees who sign onto the agreement; and (2) the manufacturer limits the surcharge only to those franchisees who do NOT sign onto the reimbursement agreement.
Two Chicago-area dealers challenged Nissan’s surcharge before the Illinois Motor Vehicle Review Board. The Board ruled in favor of the dealers, finding that Nissan’s surcharge violates Section 6 of the Franchise Act. Nissan appealed the ruling in Circuit Court and lost again.
Nissan will appeal to the Illinois Appellate Court, so this matter has not been finally decided. Furthermore, if the dealers are successful on appeal, there will be a separate hearing to determine damages. However, if you are an Infiniti or Nissan dealer (or a similarly situated dealer of another line make), you may want to consider filing a protest with the Motor Vehicle Review Board. As you review your options, bear in mind that this type of protest is subject to a 4-year statute of limitations and that older claims will not be actionable.
If you have any questions about the information in this bulletin, please feel free to contact IADA Legal at (217) 753-0220 or ldoll@illinoisdealers.com.
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MOTOR VEHICLES SALES TAX INCREASE LOOMING?
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IADA has heard reports that Governor Quinn may ask legislators to increase the sales tax on new vehicle purchases. According to the report, the 2009 capital construction plan, which is primarily funded by video gaming tax receipts, faces a $300 million shortfall because those tax receipts are coming in well below expectations. The Governor has offered legislative leaders a menu of tax increases, asking them to pass tax increases that will make up for the $300 Million shortfall. Although details have not been released, one of the proposed options is a $250 Million annual increase in the sales tax on new vehicle purchases. Attempts to reduce or remove the retailer’ discount (1.75%) for collecting and remitting sales tax to the Department of Revenue are anothr possible target. Other proposals include an increase in the Motor Vehicle Rental Tax, elimination of sales tax breaks for ethanol and biodiesel, a natural gas fracking tax, an oil drilling tax, eliminating a tax break targeted for the oil industry, a satellite TV tax, a tax on internet downloads, and imposing additional taxes on internet sales.
Right now, all of these proposals are in the discussions stage, but the Governor is expected to push legislators to pass at least some of these tax increases during the lame-duck session in early January, before new legislators are seated.
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CASH REPORTING: END-OF-YEAR REMINDER ABOUT FORM 8300
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The IRS requires all retailers and financial institutions that receive more than $10,000 cash in any one transaction (or any two or more related transactions) to file IRS Fin CEN Form 8300.
For every deal where you file a Form 8300, you must notify the customer that you filed that form. The notice must state your dealership name and address, the amount you reported on the form, and a statement that the information has been reported to the Internal Revenue Service. You can send the written notice any time after you file Form 8300 up until January 31st of the year following the calendar year in which you received the cash. If you have already given written notice to the customer this year, you need not do it again. The notification you provide may be a copy of Form 8300, or it can be a letter that says:
Dear Customer:
We are required by the Internal Revenue Service to report certain transactions involving cash and certain kinds of checks under the provisions of 26 U.S.C. 6050i. (Name of Dealership) filed a Form 8300 with the IRS on (date) indicating you provided us ($ amount) in cash to purchase a (describe the vehicle).
Sincerely,
(Name of Dealership)
IRS Publication 1544 explains the Cash Reporting Rule, and can be downloaded by
clicking here. You can download Form 8300 and instructions by clicking here. Note: Form 8300 was revised in July, 2012. Please discard older versions of Form 8300. For information about filing Form 8300 electronically, click here.
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2013 DOCUMENTARY FEE: $164.30
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The maximum allowable documentary fee for 2013 will be $164.30. This is an approximate 1.8% increase in the 12-month Consumer Price Index for All Urban Consumers issued by the U.S. Department of Labor. The “doc fee” is subject to Retailers’ Occupation Tax as part of the gross receipts from the sale of a vehicle.
Pursuant to Section 11.1 of the Motor Vehicle Retail Installment Sales Act (815 ILCS 375/11.1), every retail installment contract under the Act shall contain or be accompanied by a notice containing the following information:
"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF $150 WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
Please note that if your dealership is operating under a Consent Decree related to documentary fees, the Consent Decree may have requirements in addition to those set forth in the above law.
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HEALTH CARE REFORM Q&A
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Comprehensive Health Care Reform legislation was enacted in March 2010 and has been a topic of discussion ever since. American Fidelity Assurance Company knows it’s challenging for employers to understand the new requirements, figure out how to comply, and keep up with the changing rules. This Q&A will hopefully answer some common questions employers have about Health Care Reform and how it could impact them, particularly between now and 2014.
Source: American Fidelity Assurance Company
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COMPLIMENTARY AND DISCOUNTED SAFETY TRAINING
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Time is running out for Federated Insurance clients to take advantage of complimentary and discounted safety training.
Through December 31, 2012, clients can request one of more than 300 safety training DVDs and streaming videos at no cost other than DVD shipping charges. These films are available for 30 days.
Clients can also register for computer-based training courses free of charge through December 31, 2012. Classes must be registered for by December 31, but can be taken in 2013. Through December 31, Federated clients can register their employees for these training courses at a reduced cost of $50 per employee.
To learn more, contact your local Federated marketing representative or call 1-888-333-4949 and ask to speak with the Risk Management Resource Center. Offer ends on January 1!
Source: Federated Insurance |
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REGISTRATION OPEN FOR THE - IADA/CATA DEALER CONFERENCE
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Don’t miss your chance to register for IADA/CATA’s Annual Dealer Conference, April 3-7, at the beautiful Marco Island Marriott, Marco Island, Florida. IADA and CATA host the Annual Conference to bring dealer and industry leaders together for an opportunity to meet with both Associations’ leadership and the NADA Chairman. The event provides an excellent format to discuss current industry issues. Please click the links to view the tentative agenda and registration form. |
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MULTI-EMPLOYER PENSION SURVEY
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Next Spring, Congress is expected to reauthorize the Pension Protection Act. Many multi-employer pension plans, including, but certainly not limited to, the Central States Pension Fund and the International Association of Machinists Pension Fund are not fully funded. If an employer withdraws from a multi-employer pension fund, either because it has gone out of business or in order to move into a different pension fund, the employer is responsible for its portion of unfunded vested benefits (withdrawal liability). Depending on the health of a multi-employer pension fund and the number of employees that an employee has participating in the fund, an employer’s withdrawal liability can be very large in some cases.
When it takes up the reauthorization of the Pension Protection Act, Congress may include reform of multi-employer pension funds to reduce potential employer withdrawal liability. IADA would like to determine the number of dealers who participate in Multi-Employer Pension Plans. If you have employees who participate in a Multi-Employer Pension Plan and you have not already completed this survey, we ask that you take a few moments to complete this short 3-question survey and fax back to IADA at 217-753-3424 or email to ldoll@illinoisdealers.com. All responses will be kept confidential.
Thank you in advance for taking time to complete this survey.
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IADA EXPRESSES ITS CONDOLENCES TO THE RAY GREEN FAMILY
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IADA expresses its heartfelt condolences to the Green Family on the passing of Bev Green, wife of IADA Past Chairman Ray Green, Jacksonville. Bev Green, 82, of Springfield, and formerly of Jacksonville, passed away Thursday morning, Dec. 27, 2012, at Memorial Medical Center in Springfield.
She is survived by her children, Gail Green of Peoria, Jill Green of East Moline, Jeff Green (wife, Pamela) of Peoria and Todd Green (wife, Chris) of Springfield; eight grandchildren, Eric W. Dresing (wife, Erin), Ashley Dresing Bradshaw (husband, Stephen), Chad W. Dresing, Allison Dresing Swain (husband, Stephen), Madison Green, Drake Green, Audrey Green and Gabriel Green; four great-grandchildren, Sophia, Kiefer and Ella Bradshaw and Charlie Dresing; and two sisters, Mary Kline of Cedar Rapids, Iowa, and Sandy Faltermeier (husband, Robert) of Kansas City, Mo. She was preceded in death by three brothers, Carlos, Gary and Carlton Westermeyer; and three sisters, Carmen Chapman, Joy Schaetzel and June Lukan.
A Funeral Mass will be celebrated at 10 a.m. Monday at the Church of Our Saviour in Jacksonville, with burial at Calvary Cemetery in Jacksonville. The family will meet friends from 1-4 p.m. Sunday at Williamson Funeral Home in Jacksonville. A prayer service will be conducted at 12:45 p.m. Sunday at the funeral home. Memorials are suggested to Routt Catholic High School or Our Saviour Grade School. Condolences may be left online at www.airsman-hires.com.
Ray Green may be contacted at 2040 Laurel St. Springfield, Illinois 62704.
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