Thanks to a new Illinois law that takes effect Jan. 1, 2015, state taxes on vehicle leases will be reduced by as much as 50 percent, allowing consumers to get more car for less money. House Bill 2317, signed by Gov. Quinn in May 2014, alters the way taxes are collected on light-vehicle leases. Prior to Jan. 1, a leasing customer paid tax on the entire purchase price of the vehicle. After Jan. 1, customers intending to lease a new vehicle will pay taxes only on money due at lease inception and monthly lease payments. Because most vehicles have a residual value of 50 percent or more, this change reduces the taxes owed by new lessees by 50 percent or more.
Starting Jan. 1, Illinois is cutting the lease tax on new cars and trucks. New lessees could save up to 50 percent in taxes. That's right, up to 50 percent!
Everyone loves a tax break. This is big news you can take to the bank. Even better, leasing your next new car or truck allows you to afford more for less money. With an automobile lease, you do not pay for the entire car, you only pay for what you use. That means lower monthly payments for the same car, or more car then you ever thought possible.
Stretch your dollars, now lower taxes mean less cost to lease your next vehicle. With leasing you can get a new car every three or four years, the latest automobile technology more often, state of the art safety features, outstanding fuel economy, and low maintenance costs.