IL HB3891

Amends the Use Tax Act and Retailers' Occupation Tax Act to exclude the full value of traded-in tangible personal property from the "selling price" when calculating sales tax, provided the trade-in is of like kind and character as the item being purchased

Repeals the provision enacted January 1, 2020 that required sales tax to be paid on the portion of motor vehicle trade-in values exceeding $10,000 for First Division vehicles (passenger cars)

Restores the pre-2020 tax treatment where trade-in credits fully reduce the taxable selling price for all tangible personal property, including motor vehicles

Takes effect immediately upon becoming law