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Below is an SOS bulletin regarding the new odometer disclosure statements effective January 1st. This is very important because an improper application will not be kicked back to you - they will issue a new title with "not actual mileage" printed on it.
Beginning Jan. 1, 2021, the federal government has expanded the Truth in Mileage Act odometer disclosure requirement. Currently, any applicable vehicle that is 10 model years or newer is required to have the mileage recorded at the time of titling; however, the new provisions require that in 2021 all applicable vehicles have an odometer disclosure for vehicles 20 model years or newer. The implementation of this new 20-year requirement will be done on an annual basis, so by 2031, all vehicles 20 years or newer are properly recorded.
For the state of Illinois, beginning Jan. 1, 2021, any vehicle that is 11 model years or newer shall require either a secured power of attorney OR a surrendered certificate of title/certificate of origin with the odometer disclosure form completed. Any application for a certificate of title for a vehicle - 11 model years or newer - that is not accompanied by an odometer disclosure shall be marked as "Not Actual Mileage" which, typically, affects the value of the vehicle.
Please be sure to complete an odometer disclosure form for all 2011 model-year vehicles and newer going forward.
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LEGAL REMINDER: STATEWIDE MINIMUM WAGE INCREASES TO $11/HOUR ON JANUARY 1, 2021 |
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The statewide minimum wage will increase from $10.00 per hour to $11.00 per hour on January 1, 2021. On January 1, 2022, and each on January 1st thereafter, the State minimum wage will increase by $1.00 per hour through January 1, 2025, when the minimum wage will reach $15.00 per hour.
The current minimum wage in Cook County, outside of Chicago, is $13.00 per hour and the minimum wage in Chicago is $14.00 per hour.
Illinois employers are advised to review their pay plans before the end of the year to make sure that they meet minimum wage obligations. |
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LOCALLY IMPOSED SALES TAX CHANGES EFFECTIVE JANUARY 1ST |
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Beginning January 1, 2021, 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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MAXIMUM DOCUMENTARY FEE INCREASES TO $303.60 FOR 2021
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. |
SOS REMINDS DEALERS TO RETURN OLD STYLE TRPS
The SOS new TRP process requires dealers to return their old style TRPs to avoid their SOS fines. The TRPs need to be returned to SOS, not IADA.
LEGAL REMINDER: SEXUAL HARASSMENT PREVENTION TRAINING MUST BE COMPLETED BY YEAR-END
All Illinois employers must provide sexual harassment training to their employees by December 31, 2020 and annually thereafter. The Illinois Department of Human Rights released a Model Sexual Harassment Prevention Training Program, which is available here: State of Illinois Sexual Harassment Prevention Training. Employers are not required to use the Department's model policy, but any training program must equal or exceed what is provided in the model program. Regardless of the method of training used, it is recommended that employers have employees complete a certification of participation in Sexual Harassment Prevention Training similar to the certification on the final page of the model program, which should be retained in employee personnel files. Additional information can be found in the Department's FAQ Section, click here.
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