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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 20th
Joni Stuker
Habits & Practices of Exceptional BDC Managers (12 PM CST)
Click here to register!
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January 15th
Tami Boyer
Strategies for Dealerships to Engage the Millennial Generation (12 PM CST)
Click here to register!
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January 8, 2015 Vol 2013, Issue 49
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MOTOR VEHICLE LEASES--CHICAGO LEASE TAX
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The Illinois Department of Revenue has clarified the proper calculation of the "Chicago Personal Property Lease Transaction Tax" (Chicago Lease Tax). Dealers who are responsible for collecting the Chicago Lease Tax from lease customers are not required to apply the "Tax Reimbursement Calculation formula to the Chicago Lease Tax. A Chicago Dealer that leases a vehicle to a Chicago resident at a lease contract amount of $20,000 would calculate State and City of Chicago taxes as follows:
The State Tax (including Cook County Tax) is calculated by applying the Tax Reimbursement Calculation Formula as follows:
(1) 1.00
(2) 0.095 (State: 0.0725, Chicago: 0.0125, Cook County: 0.01)
(3) 0.905
(4) 1.105
(5) $20,000
(6) $22,100
(7) $2,100 State Tax
After the State tax is calculated and added to the payment, the Chicago Lease Tax of 9% is applied to the lease payment. Because the Chicago Lease Tax is a tax on the customer rather than on the dealer, no additional tax calculations are necessary. The State will not tax any reimbursement to the dealer for the Chicago Lease Tax.
Additional information about the motor vehicle lease tax changes, including a Frequently Asked Questions Section and a recording of IADA's December 4th Lease Tax Seminar can be found at www.illinoisdealers.com. If you have any questions about the motor vehicle lease tax changes, please contact IADA at (217) 753-0220 or at ldoll@illinoisdealers.com. |
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MOTOR VEHICLE LEASES-COOK COUNTY USE TAX
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For dealers who are responsible for collecting the Cook County Use Tax, the Cook County Department of Revenue has clarified that the Cook County Use Tax will be calculated on the same base as the State of Illinois will use for qualifying leases of qualifying vehicles. In other words, dealers will not have to use two different definitions of selling price when determining the tax on a motor vehicle lease for the State of Illinois and the County of Cook. |
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LEGAL ALERT: MOTOR VEHICLE LEASE TAX
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Under the new tax law changes for qualifying leases, if you pass your Sales Tax obligation on to your customer and that reimbursement is shown on the lease contract, you must use to Department of Revenue's Tax Reimbursement Calculation Worksheet to determine the correct amount of tax due. Whether the tax is paid up front or gets capitalized into the lease is immaterial. If the tax is passed on to the customer and appears on the lease contract, you must use the Tax Reimbursement Calculation Worksheet or you will under collect sales tax. The Tax Reimbursement Calculation Worksheet can be found at www.illinoisdealers.com. If you have any questions about motor vehicle lease taxes, please contact IADA at (217) 753-0220 or ldoll@illinoisdealers.com.
Some lenders and leasing companies have told dealers that they do not have to use the Tax Reimbursement Calculation Worksheet if the tax is paid up front. This characterization is inaccurate. If the tax is passed on to the customer and appears on the lease contract you MUST use the Tax Reimbursement Calculation Worksheet to calculate the correct sales tax. Be sure that your Dealer Management Software is calculating the correct sales tax. |
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IRS FORM 8300
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Customer Notification Deadline is 1/31/15
The IRS requires all retailers and financial institutions that receive more than $10,000 cash in any one transaction to file IRS Fin CEN Form 8300. For every deal where you file Form 8300, you must notify the customer that the form has been filed. For all Forms 8300 filed in 2014, dealers have until January 31, 2015 to provide written notice to customers. If you have already sent written notice to these customers, you do not need to do so again.
Additional Information about Filing Form 8300
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2015 IRS MILEAGE RATES
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As of January 1, the standard mileage rates for the use of a car, van, pickup or panel truck are:
• 57.5 cents per business miles driven (up from 56 cents/mile in 2014)
• 23 cents per mile driven for medical or moving purposes (down .05 cents from 2014)
• 14 cents per mile driven in service of charitable organizations
For more information click here. |
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CHICAGO MINIMUM WAGE INCREASE COMING JULY 1st
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On July 1st, Chicago employers will be required to pay their employees a minimum wage of $10 per hour. Chicago's minimum wage increase to $10 per hour will be followed by another 4 annual increases that will raise Chicago's minimum wage to $13 per hour beginning July 1, 2019. On July 1, 2020 and each year thereafter, the Chicago minimum wage will be subject to an annual increase based on the Consumer Price Index. The Chicago Minimum Wage Ordinance can be found here. These minimum wage increases apply only to Chicago employers. The minimum wage in the rest of the State remains at $8.25 per hour. |
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OSHA RECORDKEEPING RULE - EFFECTIVE 1/1/15
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As of January 1, 2015, dealers must use OSHA Form 300 to record workplace injuries and illnesses. Dealers were previously exempt from completing this form; however, OSHA repealed a number of industry exemptions from this mandate, including new and used car dealers.
View OSHA Fact Sheet on Recordkeeping Rule |
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SECURE CHOICE SAVINGS PROGRAM ACT
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On January 5th, Governor Pat Quinn signed Senate Bill 2758 into law. Senate Bill 2758, codified as Public Act 98-98-1150, becomes effective on June 1, 2015 and will create the Illinois Secure Choice Savings Program. Once the Secure Choice Savings Program is implemented, all employers with at least 25 employees that do not offer their employees a qualified retirement plan, including but not limited to a plan qualified under Section 401(a), 401(k), 403(a), 403(b), 408(k), 408(p), or 457(b) of the Internal Revenue Code of 1986 will be required to establish a payroll deposit retirement savings arrangement to allow each employee to participate in the State-run retirement savings program. Affected employers will be required to automatically enroll all of their employees in the State-run savings program, except for those employees who opt out of the program. For each employee who is enrolled in the program, the employer shall deduct 3% of the employee's wages (or such other amount that the employee elects). The full text of Public Act 98-1150 can be found here. |
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EMPLOYMENT DISCRIMINATION-PREGNANCY
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Public Act 98-1050 took effect on January 1, 2015 and amended the Illinois Human Rights Act to provide that it is illegal to discriminate against a person on the basis of pregnancy. Public Act 98-1050 prohibits an employer from refusing to hire or act with respect to the terms of employment on the basis of the employee's or prospective employee's pregnancy or medical condition related to pregnancy. Public Act 98-1050 requires employers to make reasonable accommodations for medical conditions related to pregnancy for all pregnant employees unless the employer can show that the accommodation would impose an undue hardship on the employer. The pregnancy reasonable accommodation provisions are similar to the reasonable accommodations that are required for employees with disabilities. For pregnancy and related conditions, reasonable accommodations include more frequent restroom and water breaks, rest breaks, private, non-bathroom space for expressing breast milk, assistance with manual labor, temporary transfer to a less strenuous or less hazardous position, a modified work schedule, time off to recover from child birth, and leave necessitated by pregnancy, childbirth, or medical or common conditions resulting from pregnancy or childbirth. The full text of Public Act 98-1050 can be found here. |
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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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