• • IADA Dealer Day Highlights
• • Sunday Closing Repeal Filed Again
• • ERT Processing Reminders
• • 700 Credit Webinar Series: Identity Verification - Free!

This past week IADA members came to Springfield to learn about the latest legislative proposals impacting franchised dealerships in Illinois. Attendees heard from several key legislative leaders on various dealer issues from repeal of the Sunday Closing Law and potential changes to the retail collection allowance to many issues which could impact our state's budget including a graduated income tax proposal, sports gambling, recreational use of cannabis and increased taxes on motor vehicle registrations, plates and gasoline.

The IADA Board of Directors met and had an opportunity to hear Senate Republican  Leader Bill Brady, (R) Bloomington, discuss Republican concerns over increasing income taxes and various fees to balance the state budget.

At the event, IADA Chairman, Pat Manning,  DeKalb, highlighted several dealer issues that IADA is working on at the state level with Illinois legislators, including a proposal to create electronic titles and a proposal to permit expanded use of dealer plates by heavy duty truck dealers. Rep. Jay Hoffman, (D) Swansea, an assistant majority leader in the House, talked about financial issues facing Illinois. He also commented on several important dealer issues which he is supporting.  Also speaking was House Republican Leader Jim Durkin, (R) Western Springs, who reviewed issues the Illinois business community is facing in a state budget which is continuing to experience deficits in record numbers. NADA Director Jamie Auffenberg, O'Fallon, discussed dealer legislative and manufacturer issues at the national level and also encouraged dealers to become more politically active in supporting the NADAPAC.

Following the Legislative Conference and visits to the State Capitol, IADA and our CAR of Illinois state legislative political action committee hosted a Reception and BBQ for Illinois Legislators, legislative staffs and dealer attendees at the IADA Offices overlooking the State Capitol. The day and evening were highly successful in promoting the dealer franchise system and helping IADA's legislative activities.

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• All plate and registration stickers are the property of the IL Secretary of State.  It is the goal of IADA and CVR that no client should ever receive a fine from SOS.  Please review your internal procedures to ensure that your plate and registration certificate inventory is secure.  All clients managing inventory should reconcile on a WEEKLY BASIS at a minimum.
   
• According to the Secretary of State Administrative Code, Section 1010.540 Fees, an ERT service provider may charge the dealer up to $10 for each ERT transaction.  The maximum ERT fee to be imposed on the customer may not exceed the amount actually charged by the service provider to the dealer plus an amount equal to 1.5 times the amount, and, therefore, the maximum fee imposed upon a customer utilizing ERT services shall be $25. Examples listed below:
  • ERT provider charges a dealer $5, the dealer is allowed to charge the customer $12.50. ERT provider charges a dealer $8, the dealer is allowed to charge the customer $20. ERT provider charges a dealer $10, the dealer is allowed to charge the customer $25.
     
• According to the Secretary of State, the ERT fee must be disclosed in one of the following ways:
  •  The fee may be identified on the bill of sale, receipt, or other sales document as "Optional ERT Fee", with the phrase "Optional ERT Fee" distinguished in bold, colored, italic, underscored type, or enlarged font, in at least 8-point font.  If this method is used, all pre-printed bills of sale, receipts or other sales documents shall identify the fee as "Optional ERT Fee" in bold type; or 
  • The fee shall be identified on a separate document, including the phrase "Optional Electronic Registration Fee", using at least 8-point font size and with a signature line indicating the customer's acceptance or rejection of the option of paying the fee.
  • The Illinois Department of Revenue considers the ERT fee to be part of a vehicle's selling price and is subject to sales tax.
     
• If you plan to have an off-site sale, you should contact CVR with plenty of notice prior, as offsite sale can impact proper tax collection.  CVR can quickly determine whether you will need to make changes to your Electronic Vehicle Registration computer systems to reflect the new taxable location so that sales tax is collected at the correct rate and allocated to the correct unit of local government.  REMEMBER - Even a location right across the street can have a different tax rate than your dealership if it is located in a business district or other special taxing district.   
  
  Information about how to report sales from an off-site location can be found on the Department of Revenue's website, click here.  
  
  CVR users who need assistance may contact their CVR Account Executive, CVR customer assistance at (800) 333-6995 or CVR online Chat.

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