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Visit Our Website
www.IllinoisDealers.com
Join our mailing list!
Do you know of other member dealership employees who should be receiving the IADA Electronic Bulletins? Let us know! Send an email to Meghan Sander (msander@illinoisdealers.com), Director of Communication, with the contact information of people who should be on our distribution list.
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2014 IADA OFFICERS
Chairman
Mike Mangold
Mangold Ford
Eureka
Vice Chairman
Dave Taylor
Taylor Chrysler Dodge & Jeep, Inc.
Bourbonnais
Treasurer
Sam Roberts
Roberts Motors, Inc.
Alton
Secretary
Jack Schmitt
Jack Schmitt Chevrolet
O'Fallon
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 8th
Ray Branch
Effective Labor Rate Control and Management... The Art & The Science (12 PM CST)
Click here to register!
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January 6th
Peter Nyvall
HRM Weekly - Overdue Activities and Esigning in the New HRM System (12 PM CST)
Click here to register!
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December 18, 2014 Vol 2013, Issue 47
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LEASE TAX SEMINAR NOW AVAILABLE AT IADA WEBSITE
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If you were unable to attend one of IADA's seminars describing the lease tax changes that take effect on January 1, 2015, you can now access a recording of the December 4th seminar at www.illinoisdealers.com. Also available on the website is a section with answers to frequently asked questions about the lease tax, a copy of the Department of Revenue's seminar presentation slides, and copies of the new tax forms motor vehicle dealers will be required to use starting in 2015.
Close to 500 participants attended the (3) IADA Lease Tax Seminars held recently throughout the State. Our appreciation to personnel from the Illinois Department of Revenue, Illinois Secretary of State, CVR and IADA Staff who participated on the seminars for our membership. |
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LOCALLY IMPOSED SALES TAX CHANGES EFFECTIVE JANUARY 1ST
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Beginning January 1, 2015, the rates of certain locally imposed sales taxes that are administered by the Illinois Department of Revenue will change. Please refer to the attached bulletin from the Illinois Department of Revenue to see if you are affected. Please note that these sales tax rate changes apply only to general merchandise and do not apply to vehicles. The Department of Revenue bulletin outlining the sales tax increases can be found here. |
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LEGAL REMINDER: INCOME TAX RATES DECREASE ON JANUARY 1, 2015
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The temporary portion of the Income Tax increase that the General Assembly passed in 2011 will expire on December 31, 2014. Beginning January 1, 2015, the Individual Income Tax rate will shrink from 5% to 3.75% of net income and the Corporate Income Tax rate will shrink from 7% to 5.25% of net income. Employers will need to revise the amount of Income Tax they withhold from employee paychecks for wages earned on and after January 1, 2015. Additional information, including updated withholding tax tables, can be found on the Illinois Department of Revenue website at www.tax.illinois.gov or here: IL-700-T. |
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2015 DOCUMENTARY FEE $168.43
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The maximum allowable documentary fee for 2015 will be $168.43. This is an approximate 1.3% 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.
2015 DOCUMENTARY FEE: $168.43
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CONGRESS APPROVES TAX EXTENDERS BILL: LIMITED-TIME TAX BENEFITS MAY BE AVAILABLE
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Congress is sending to the President a measure that increases small business expensing and bonus depreciation, which will allow you and your customers to expense a larger portion of equipment purchases for 2014. The Senate last night approved a House-passed bill, H.R. 5771, to renew several expired tax provisions that will benefit automobile and truck dealers and their customers. These provisions apply to purchases in 2014 only. Dealers and their customers must act quickly to take advantage of these tax benefits.
First, the bill contains a retroactive increase of the limit on business equipment eligible under Section 179 small business expensing to $500,000 for eligible new and used equipment purchased in 2014. Without this bill, the maximum eligible for Sec. 179 expensing in 2014 would have been $25,000. The bill also includes an extension of the 50 percent bonus depreciation deduction for new business equipment acquired and placed in service in 2014.
In addition to these changes, there is an extension of the additional $8,000 in first-year depreciation for certain business vehicles purchased in 2014. This provision may provide substantial potential savings for your business customers, but they must purchase qualifying vehicles before December 31, 2014.
Dealers and their customers are encouraged to consult their tax advisors to determine the exact amount of their potential tax savings, which is dependent on their own particular tax situation and the interplay of the provisions described above.
President Obama is expected to sign this legislation. NADA and ATD strongly supported and advocated for the renewal of these pro-dealer measures.
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OSHA REPEALS DEALER RECORDKEEPING EXEMPTIONS
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The Occupational Safety and Health Administration (OSHA) recently repealed a number of industry exemptions from its mandate that employers with 11 or more employees keep a workplace injury and illness log, including one for car dealers that dates back to the 1980s, according to NADA.
Effective January 1, 2015, car dealers must use OSHA Form 300 to record workplace injuries and illnesses. By February 1, 2016, they must also post an OSHA Form 300A summary of the workplace injury and illnesses that occurred in 2015. Dealers can access an OSHA fact sheet on the rule and an online tool to train employees on how to fill out the newly required forms.
We will provide additional information on the new requirement as the effective date nears. |
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FTC TAKES ACTION AGAINST DEALER CHAINS
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The Federal Trade Commission (FTC) announced last week that it is taking action against two auto dealer chains for deceptively advertising the cost of buying or leasing a car, according to NADA. These actions follow consent orders the FTC entered into with the same chains in 2012 to resolve allegations that they engaged in deceptive advertising related to negative equity and failed to satisfy the disclosure requirements that apply to credit and/or lease ads containing "trigger terms."
According to an FTC press release (CLICK HERE), one of the chains has agreed to settle the charges and, as part of the agreement, pay a civil penalty of $360,000.
In January, 2014, the FTC announced "Operation Steer Clear," a nationwide sweep against deceptive automobile advertising focusing on the sale, financing, and leasing of motor vehicles. The Commission charged ten new car dealers from around the county with deceptive advertising.
In a news release, the FTC said "buying or leasing a car is a big deal, and car ads are an important source of information for serious shoppers. Dealers' ads need to spell out costs and other important terms customers can count on. If they don't, dealers can count on the FTC to take action."
Just a reminder, Illinois has its own set of advertising regulations and dealers are encouraged to do their advertising according to these regulations. |
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IADA-CATA SPRING DEALER CONFERENCE: REGISTER TODAY!
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 Join IADA and CATA for our annual Dealer Conference this spring, March 29 - April 2 at the beautiful Marco Island Marriott in Marco Island, Florida. Pre and post dates are available, but we need your reservation ASAP! Click here to register today! |
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