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The documentary fee, or doc fee, will increase from $300 to $303.60 on January 1, 2021. This is an approximate 1.2% increase in the 12-month Consumer Price Index for All Urban Consumers issued by the U.S. Department of Labor.
The change in the base doc fee will require updates to the notice that must accompany or be included on the retail installment contract as required under Section 11.1 of the Motor Vehicle Retail Installment Sales Act. The required disclosure is as follows:
"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, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF $300, 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 the doc fee is subject to Retailers' Occupation Tax as part of the gross proceeds from the vehicle sale and that, if your dealership is operating under a consent decree related to doc fees, the consent decree may include requirements in addition to those set forth in the above law. |
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