SB2481 Summary

• Amends the Use Tax Act and Retailers' Occupation Tax Act to restore trade-in allowances for motor vehicle purchases effective 120 days after the bill's enactment, after a temporary period (January 1, 2020 through approximately April 2020) when trade-in values exceeding $10,000 were taxable.

• Modifies the Illinois Vehicle Code to establish a new flat-fee tax structure on motor vehicle purchases, replacing the previous percentage-based system with tiered fees based on vehicle age and selling price, effective 120 days after enactment.

• For vehicles under $15,000, establishes tax rates ranging from $465 (1 year or less old) to $100 (over 10 years old); for vehicles $15,000 or more, establishes tax rates ranging from $850 to $10,100 depending on selling price brackets up to $1,000,000.

• Continues exemptions from motor vehicle tax for vehicles subject to Use Tax Act, government/charitable organizations, farm equipment, and certain estate transfers, with a $15 flat tax for family transfers and $25 for motorcycles.

• Increases monthly deposits to the Build Illinois Fund from $5,000,000 to $40,000,000 annually beginning 120 days after enactment.