Scott Alpeter, executive director of the Illinois Independent Auto Dealers Association (IIADA), sees just one winner emerging from the enactment of a new state law that caps trade-in tax credits for most vehicles in Illinois at $10,000.
“It’s not good for consumers or dealers, only for the government,” Alpeter told Prairie State Wire. “Consumers will recognize this is just another way to penalize them.”
The new law is slated to become official on Jan. 1, stifling motorists across the state with an additional tax bill of some $40 million overall, according to the Daily Herald.
IIADA executive director Scott Alpeter
“The association is trying to get as much support to fight this as we can,” Alpeter said. “We don’t think it’s right that the car should be taxed a second time. This law is going to affect every dealer in the state. This is why associations are in business, to have their voices heard at time like these.”
With virtually every dealer in the state working in the area of trade-ins, Alpeter predicted that no one will be immune from the hazards of the new law.
“This will impact everyone from clients having to change the way they do business by driving cars longer, to dealers trying to find ways to sell new vehicles,” he said. “We just don’t think this is going to be good for business. People just won’t buy new cars as they maybe would before.”
Much of the added revenue from the new tax is slated to go toward the $45 billion that Gov. J.B. Pritzker said he needs to cover the Rebuild Illinois part of his new state budget advertised to rebuild roads, bridges and railways. In all, there were at least 21 new provisions paving the way for raised taxes or new fees included in Pritzker’s overall $85 billion budget.