Illinois Sales Tax Allocation

IADA has received several inquiries about possible changes to the allocation of local sales tax revenues from motor vehicle sales.  The sales tax rate is based on the point of sale and the local portion of sales tax revenue is allocated to the municipality (or county) of the dealership where the sale took place.  During the Spring Session, legislation was introduced to change the sales tax allocation to the location where the customer registers the vehicle.  Fortunately, IADA was able to contact key legislators to see that the reallocation legislation was held in committee.  In addition to making the calculation and allocation of local sales tax revenues extremely complicated for dealers, such a change could interfere with dealers’ decisions about where to locate their dealerships.  IADA will continue to monitor for additional legislative attempts to change sales tax allocation.  

Cook County & Chicago Minimum Wages Increase on July 1

Beginning July 1, 2023, the Cook County Minimum Wage will increase from $13.35 to $13.70 by ordinance, because the 4.9% April CPI increase triggered a 2.5% cap on Cook County's minimum wage increase.

Also, beginning July 1, 2023, the minimum wage for employers located in Chicago will increase from $15.40 per hour to $15.80 per hour. 

The statewide minimum wage in effect everywhere outside of Cook County remains at $13 until January 1, 2024, when it will increase to $14 per hour.

Phillips Chevrolet Supports Wounded Warrior Project

IADA would like to help promote the good things that you dealers do in your communities.

Phillips Chevrolet has raised $12,000 for the Wounded Warrior Project. General Manager, Michael Maheras; Sales Specialist, Veteran, Chris Baxendale, and President Curtis Pascarella stand to show the $12,000 raised. These funds will go to help the mission of the Wounded Warrior Project: to honor and empower wounded veterans and active duty service members. A small organization that began in 2003 to provide simple care and comfort items to hospital bedsides has blossomed into an organization with services in mental health, career counseling, and long-term rehabilitative care. Phillips Chevrolet is located in Frankfort, Lansing and Bradley, IL.

Feel free to reach out to us or contact our partner, Colleen Dudgeon (Colleen@Serafin.com), directly about any events you may be sponsoring, partnerships with charitable organizations or anything you are doing that promotes your community involvement.  We'll work with Serafin to share the message.  And follow us on Twitter and let us know the good stuff you have going on at your dealership so we can help promote it.

Reminder: Electric Vehicles Are Not Required To Have An EL Plate   

Electric vehicles can now be registered on any registration that is available to internal combustion vehicles.  That means that you can issue a passenger plate to an electric vehicle customer through CVR and bolt the plate on the vehicle without going through the TRP process.  Electric vehicle customers may also apply for vanity and personalized plates now as well, in the same manner as internal combustion vehicle customers.  

If you have any questions about the CVR process, you can contact your CVR Account Executive or the hotline at 1-800-333-6995.

Locally Imposed Sales Tax Changes Effective July 1

Beginning July 1, 2023, the rates of certain locally imposed sales taxes that are administered by the Illinois Department of Revenue will change. Please refer to this 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.  If you are impacted, please make sure to update your processing equipment in your service department to collect the proper rate. 

Income Development Company - Ethos Group

Ethos Group partners with dealers to promote an ethical, customer-focused approach to the sale, financing, and servicing of automobiles.  You may think you’re doing it all right, but give them a chance to introduce themselves and you may learn there’s a lot more you could be earning. 

For more information, contact Lance Graves - lgraves@ethosgroup.com or call him at (402) 960-0538. 

Check out this week's Ethos “Two Minute Tune-Up” feature - Commitment.  We hope you enjoy the short messages.

Legal Update: Illinois Title Fee Increases to $165 on July 1

Starting July 1, 2023, the fee for an Illinois Certificate of Title will increase to $165 (from $155). Transactions transmitted on or after July 1, 2023, will be subject to the increased fee.  Registration fees and Duplicate and Corrected Titles, Dealer Lien Release Titles, and Salvage Titles are not changed.

The fee increase was included in the Budget Implementation Bill for the state fiscal year that starts on July 1st.  CVR has already worked with SOS to implement the change.   You may need to consider contacting your DMS provider for any other reporting matters.

US Ambulances for Ukraine Looking for SUV Donations

US Ambulances for Ukraine (UA Resistance Foundation) is seeking donations of used SUVs and other 4-wheel drive vehicles to support the Ukrainian military.  US Ambulances has already accepted donations of over 60 used ambulances and fire engines to support first responders in Ukraine and now seeks to provide additional support to the Ukrainian military, emergency services, or Ministry of Health by delivering donated SUVs.   The UA Resistance Foundation is a registered 501c3 not-for-profit corporation based out of Chicago. 

Additional information about Ambulances for Ukraine can be found here.

Information about donating a vehicle, including information about whether you may qualify for an income tax deduction, can be directed to:
Christopher Manson - Vice President
Government Relations - OSF Healthcare System
124 SW Adams St. | Peoria, IL | 61602
P: (309) 624-7658 | C: (309) 922-7046 
Christopher.M.Manson@osfhealthcare.org