It’s just a bill
Monday, Feb 24, 2020 - Posted by Rich Miller
* Center Square…
A bipartisan group of Illinois lawmakers has gotten behind a proposal to repeal the state’s new car trade-in tax and replace it with a different fee structure.
As of Jan. 1, Illinois’ sales tax applies to any trade-in vehicle worth more than $10,000. That means trading in a $30,000 car for one worth $60,000 will cost the customer an extra $1,200 in additional sales taxes. It’s estimated to bring the state $60 million annually, affecting what state officials insisted was a small portion of Illinois residents.
Legislation filed earlier last month would repeal the application of sales tax to trade-in value over $10,000. In turn, it would charge a tax based on the selling price of the car if it’s worth more than $15,000 or how many years old it is if valued at less than $15,000. It would take effect 120 days after it’s enacted.
Industry experts predicted the Jan. 1 change would have a profound effect on consumer buying habits and the change appears to have set in quickly.
“Last year, we had about 26 trade-ins by now from the first of the year that were over $10,001,” said Daniel Fontana, sales consultant at Mike Haggerty Buick GMC in Oak Lawn. “We’re only floating at 19 right now.”
The bill is sponsored by Sen. Tony Munoz (D-Chicago).
* Bernie…
State Rep. TIM BUTLER, R-Springfield, has filed a bill that would allow breweries to start “mug clubs.”
A mug club is a loyalty program where bar patrons can purchase a special mug from the establishment and have it refilled at a discount over the course of a year.
Currently, such discounts are prohibited under the state’s happy hour law, which only allows the sale of drinks at a reduced price for up to four hours a day and 15 hours a week.
Under Butler’s legislation, a carve-out would be made “if a person purchases a mug, cup or other glassware” as part of a mug club program.
Butler said the idea was sparked by a conversation he had with the owners of BUZZ BOMB BREWING CO., 406 E. Adams St., who hope to bring the concept to Springfield.
The bill is here.
* Another try…
Is it time to raise the speed limit again? The suburban lawmaker who six years ago pushed to boost our highway limit from 65 mph to 70 mph seems to think so.
State Sen. Jim Oberweis (R-North Aurora) has filed legislation, Senate Bill 2565, to lift Illinois’ highway speed limit to 75 mph. But where Oberweis got overwhelming support for increasing the limit to 70 mph six years ago, skeptics already are emerging for taking it up another 5 mph.
* WCIA…
Senator Ram Villivilam said he wants to bring back a small business tax credit for $5,000 for every new position a business with fewer than 50 employees makes. The Illinois Chamber of Commerce likes the idea of the bill, but does not know if the incentives are strong enough. “We still think it has the same fundamental flaws, unless you really go ahead and get up to $10,000 or $15,000,” said Todd Maisch. “But even then, there is going to be a suspicion that what is there one year won’t be there the next, as soon as the legislature decides that they want that revenue back.”
For a business to receive the credit, the position created will have to pay at least $15 per hour.
…Adding… Marni Pyke…
Quashing the proposed extension of Route 53 north into Lake County may have been the easy part.
Residents who waged war against the pricey expansion rejoiced when the Illinois tollway dropped the project last July, effectively dooming it for lack of funds.
Now, however, there’s a 1,100-acre hot potato squatting in Lake County. The state spent $54.3 million over 48 years acquiring land for the defunct road.
What to do? Looks like it’s task force time.
Legislation is percolating through the General Assembly to create a task force authorized to recommend uses for the land by Dec. 31.
The bill is here.